Prescott Arizona is a Buyer’s Market
June 17th, 2008 categories: Home Buyers, Home Sellers, Market Update
The Prescott, Arizona Real Estate market is a buyers market.
Some sellers are still having a difficult time accepting this, but it’s true. The days of asking more than the house is worth and getting offers, are over. Some sellers still like to tack 20% on to the list price to “see what happens“. I don’t know how else to say it, but that strategy is nothing more than a waste of time.
In order to sell your home in this market, sellers need to be realistic and prepared to accept 20% to 25% less than what it was worth a year to two ago.
Here are some pricing and survival tips for today’s market
1. Establish a list price and then take 10% to 15% off of that.
2. If you don’t believe your Realtor’s opinion of value, call an appraiser.
3. Do not be offended by low offers. It’s part of working in a buyers market, and it’s nothing personal. In a buyers market, buyers know that this is the chance to get a great deal. It’s human nature.
4. If you get an offer on your home, even a low offer, consider yourself lucky. Do not reject any offers on your home. Come back with a reasonable counter offer. The offer you get today may be better than the offer you get 2 months from now. Take them all seriously.
5. If your home is not getting any showings, it’s the price. If your home is getting showings and no offers, it’s the price. Home buyers are educated consumers and they know value. If your home is perceived to be over priced by buyers, they just move on to the next property.
6. This market is what it is, and sellers need to accept that. If you need or want to sell, price your home accordingly. You may end up getting a little less than you had hoped, but at least you’re moving on with your future plans.
Well spoken . . . I wish all sellers would get this! Wow, don’t they love to chase the market down? Another blogger in my local market is putting together a list of all the properties that have been on the market over 90 days, because these are stale listings. (She was trying to come up with a clever name for this list and offered $100 to the person who could help her brainstorm . . . I’m personally waiting for my check: Real Estagnate, Petrified Properties, Dusty Deals . . . one of these has to work!
She’s trying to entice buyers to work with her on these. You start low balling and trying to pick up a great deal, and sometimes it works because the “serious” buyers have quit considering the property at all and there are no offers coming in.
The only way sellers might be able to minimize the “discount” needed to sell, is if they have the willingness and ability to offer terms. Advertising “Owner Will Carry” can greatly increase the pool of potential buyers for, and interest in, the property. Sellers can leverage price for terms if they’re stuck on price.
Being willing to carry back a note on the property, precluding the buyer from having to get bank financing, can be a powerful tool.