Mav Realty

I put out a flyer in my own neighborhood every month.  It provides an update on sales, actives and general real estate advice.  I often get calls from neighbors who, although not ready to move, are curious about market conditions.  I recently received a call from someone, who was perturbed about the downturn in pricing, and wanted to see what could be done to “maintain the values of our neighborhood”.  I wish it was that easy.

I proceeded to inform this person, who also happened to be in the mortgage business, about many of the things that led to the drop.  I have spoken with a few agents with listings, not only in my neighborhood, but around the entire Phoenix real estate market.  They all say the same thing.  Greed, as much – if not more than anything else, is causing a sudden drop.

Despite the best intentions to inform clients of market conditions, many clients still say, "I know my house is worth more, and so I am not going to listen to you and I want it priced my way."  Inevitably, what happens is, the home sits and as time goes on, the pressure to sell builds, whether it is the pending closing on a new purchase, a time deadline on a work transfer, or many other factors.  Now the seller is under pressure to sell, and more often than not, sell for well less than they were originally advised.

Agents do not advise clients to price based on how easy it will make it for themselves. They price based on the goals of the client.   In our business, (Sharon and I) we don’t tell our clients what they should price at, but provide the statistics and background information with a range of pricing so that the client can make an informed decision.  That info includes comments about the possibly longer time on market at the higher part of the range.  We also do not accept any more listings that are completely unreasonable.  Last year we took a listing that not only was priced well over any comps, but also well over the appraisal.  Foolish us.  Despite all the information to the contrary, the client wanted that.  We went along due to our past relationship with the client.  Not one showing!! The only people surprised were the clients.  Listing way too high increases the time on market, which can eventually have a negative effect on traffic. 

As professionals, we do this on a daily basis.  We keep up on market trends; have lots of statistics available to us, and a sense of what people want in general.  I have some suggestions for anyone looking to sell.  But, I have to go now, so, I will cover that in another blog post later today.

Adam Tarr, ePro
Sharon Kotula, ABR
Kotula-Tarr PC
Your Phoenix Area Real Estate Source
RE/MAX Excalibur
Scottsdale, AZ
info@WeAreAZRealEstate.com
480-483-3333