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« Mesa, AZ Residents: Watch Your Trucks! | Main | Arizona Home Sellers - PRICE DOES MATTER! » Tuesday, May 08, 2007AZ Home Sellers - PRICE DOES MATTER!
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:
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!
Posted by BlogArizona BlogMaster on May 8, 2007 | Permalink CommentsI like your analogy of doctors, lawyers, mechanics, and home inspectors. I listed a home for a California Realtor. Guess what, she over priced and it didn't sell. Sometimes our peers can be our worse clients. Posted by: Doug Trudeau | May 14, 2007 7:05:14 AM You've hit the nail on the head. It's easy for a lot of agents to advise their clients on the best price for their home, but it's not as easy to follow that advice when it's about your house and the amount of money you imagine you could pocket from the sale. Posted by: Erin | May 21, 2007 5:28:39 PM Update on owner/agent real estate listings in my AZ neighborhood: The owner/agent listing I mentioned in the post above which was WAY overpriced actually sold much quicker than I expected, but only because the seller (very quickly) took a lowball offer of approximately $50,000 less than asking price. While I say the sellers took a 'lowball' offer, it was only a lowball offer in the sense that it was MUCH lower than the seller's asking price. In reality, although the sale price was approximately $50,000 less than asking price, it's really an extremely reasonable price which is very close to the home's value (in my humble opinion)! While this owner/agent severely overpriced his home, at least he was smart enough not to hold out for asking price and he didn't pass up low but reasonable offers while the listing was still new (this is a common mistake that I know many AZ sellers are kicking themselves for right now.) These particular sellers accepted an offer of $182 per square foot. NOTE: I estimated the value of their home to be $185 per square foot, plus or minus $10 per square foot depending on condition, features, etc. in my May 24, 2007 post titled "AZ Appraisals Still Coming in Too Low for Sellers" which can be found at this link: http://www.blogarizona.com/blogarizonacom/2007/05/az_appraisals_s.html Posted by: Shannon Hubbard | Aug 9, 2007 11:38:45 AM The comments to this entry are closed.
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