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Tuesday, May 08, 2007

Arizona Home Sellers - PRICE DOES MATTER!

As with most Valley neighborhoods, several homes have recently been listed for sale in my subdivision.  Being a Realtor®, of course I always check the list price in MLS when I see a new home go on the market.  While many AZ sellers are still unsuccessfully trying to list their homes at 2005 prices, I also noticed something else kind of disturbing to me - some of the most severely overpriced homes I've seen lately are listed by Owner/Agents.

As a Real Estate Agent, I constantly tell sellers how important it is to price their home properly.  So why do some Real Estate Agents not heed this advice when listing their own homes?  Greed?  Inexperience?  Arrogance?  I really don't know the answer.  I do know there's a house on my street that will be sitting for sale for some time though.  It was recently listed for sale at $20/square foot higher than anything else comparable that's currently listed.  And buyers have several other similar, but cheaper homes in the neighborhood to choose from, many of which have been on the market for some time.  So I'm not sure why this Owner/Agent thinks his home is worth tens of thousands of dollars more than the house for sale across the street that's 500 square feet larger and NOT selling?  Perhaps it's his purple interior paint, or maybe time just isn't an issue and he has a year or so to let the house sit before he sells it.

Personally, I hope he gets every penny of what he's asking, as it will be a comp that could affect the value of my house.  But what's more likely to happen is that it will sit on the market until he starts doing the huge price drops.  By then, however, it will have so many days on market that people will think there's something wrong with it.  I predict that in the end, he'll end up selling for less than if he had just priced it properly to begin with.

This is the second owner/agent listing I've seen in my neighborhood that's severely overpriced.  Don't misunderstand me - most agents I know are very good at determining the proper list price for a home.  However, I guess it's only logical that (some, not all!) Real Estate Agents will overprice their own homes since it's been said that:

• Doctors are bad patients
• A lawyer who represents himself has a fool for a client
• Mechanics seem to have the worst cars
• And yes, the Home Inspector's house is overdue for maintenance!

PRICE MATTERS!  So be sure to do your homework and price your home properly before listing it.  Usually this means consulting a Real Estate Agent.  But knowledge and experience are important so don't just trust any old Real Estate Agent...Call a REALTOR!

Written By: Shannon Hubbard Realtor®-Investor Great American Realty, Inc. Cell: (480) 695-6672 Email me

Posted by Shannon Hubbard, AZ Realtor & Computer Guru on May 8, 2007 | Permalink

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