Good products, priced right - SELL
I am currently sitting in a new home sales office in Tempe, AZ on behalf of a client. The office isn't actually open yet, and won't be open for a couple more hours. So much has been made of how slow sales are for new homes and resales. This is a little info about build it and they will come.
In 2004-05, builders were turning away buyers, getting rid of co-brokes, and doing lotteries for construction releases. Resales were getting multiple offers the first day. Of course this isn't happening anymore, and builders are offering tremendous incentives, and high co-brokes. Today I am at the exception. This community is located at the crossroads of two freeways, close to the campus of ASU, the largest university in the country based on enrollment, lots of dining, shopping and entertainment. Location, location, location. But this community wasn't always selling at a high rate. When the market slowed, the builder acknowledged this and adjusted their pricing, which truly was high. Last night at 7:30 PM, the first person showed up to camp out to be the first to purchase this morning. (My personal thought is that no home is really worth camping out in freezing temps for - yes it was in the low 30's even here in the desert). A few more showed up at midnight and overnight. Now, don't get too excited, as I don't anticipate this becoming widespread. What it does point out is the simple fact that a good product, priced right will sell even in a slower market.
The same applies to resales. As mentioned in previous posts, not just ours but across the AR spectrum, pricing for the market is a key strategy. Many builders got overly exuberant with price increases last year and are now either adjusting prices or providing incentives. The same goes for home owners. Now we aren't saying that people need to slash prices to sell. Contrary to that actually. But the simple fact is that there is data available from realtors that will show sellers what current prices are like. Too many people are still caught up in the hype and feel they can get price A when reality shows price B. We have blogged before on pricing strategies and probably will again. But the proof is here today and I am sitting in it's office. Good products, overpriced, won't sell. Good products, properly priced will. There is no need to underprice either. Just price it Right!
Adam Tarr, ePro
Sharon Kotula, ABR
Your Phoenix Area Real Estate Source
RE/MAX Excalibur
Scottsdale, AZ
480-483-3333
info@WeAreAZRealEstate.com
www.WeAreAZRealEstate.com