4 Arizona Real Estate Pricing Mistakes You Can’t Afford to Make
When selling Real Estate, there are many factors to consider; Can I afford to sell? What is my home worth? How do I attract the right buyers? If I sell, what are my next steps? These are all important questions to answer BEFORE the home ever goes on the market. As an Arizona Realtor we have seen our fair share of market peaks and valleys. Some of the most common concerns Sellers have are in regard to the listing price of their home. Selecting the wrong listing price can negatively affect how you answer those critical questions, just as selecting the correct list price will make your life a whole lot easier. Here are 4 Arizona Real Estate Pricing Mistakes You Can’t Afford To Make.
Phoenix’s East Valley and the Arizona real estate market has had its ups and downs in the past 20 years. Starting in the late 1990’s and continuing until the 2008 market crash, the population of the East Valley, and the average price of East Valley real estate, rose steadily. For example, the population of Mesa rose nearly 4 percent between 2000 and 2008, and Mesa AZ real estate prices were at record highs when the crash occurred.
After 2008, the Arizona real estate market took a huge hit to its property values. East Valley home values dramatically dropped, in some cases by half. The area has made strides to recover, driven by the fact that the East Valley is still just a great place to live. But many homeowners continue to be frustrated with the value of their East Valley real estate.
Sellers entering the Arizona real estate market today have to be vigilant when it comes to pricing. Mortgage requirements remain strict, and qualified buyers have many options. It’s important to trust a qualified seller’s agent to price your home, to help you avoid the 4 pricing mistakes causing some East Valley sellers to have trouble selling their home.
Pricing Mistake #1: Starting Too High
Some sellers allow their emotions to inflate the imagined value of their home. Others don’t trust data. Still others fall victim to wishful thinking. Seller’s agents often hear these clients say, “Let’s price high at first and see what happens. We can always lower the price later if we need to.” Pricing high to “see what happens” is a dangerous strategy. Buyers are suspicious of price drops. They imply something’s wrong with the house. Also, buyer’s agents can easily assess whether a house is overpriced. But what makes this pricing mistake the worst is that, by over pricing a house when it first lists, sellers exclude their home from Internet searches being conducted by qualified buyers in the appropriate price range.
Pricing Mistake #2: Eccentric Pricing
Some sellers give their home a seemingly random list price that doesn’t end in a round number. Buyers consider this to be eccentric, and view it as a turnoff. Everyone involved in the home buying process utilizes round numbers. The buyers are pre-approved for a round number, the bank works with round numbers, and most importantly, agents conduct Internet searches using round numbers.
Pricing Mistake #3: Using Incorrect Data
Some sellers base their price on active listings rather than sold homes. Others base their price on what they themselves paid for the house, or on what houses in the next community over are selling for. None of that data is relevant. If you’re selling a home today in Mesa, price it according to what comparable Mesa AZ real estate has sold for in recent months.
Pricing Mistake #4: No Negotiating
Home buyers want value. When you allow your seller’s agent to negotiate, it sets the stage for a friendly transaction. If you’ve priced the house correctly from the start, with a reasonable, round number based on recently sold, comparable houses, the buyer will know the house is a good deal, and negotiations should be minimal.
Kenyon Realty Agents are experienced agents who are willing to work for you to ensure that you get the best possible outcome. If you’d like more information please contact us today: 480.832.1331