Arlene Friedman
Arizona Homeowner September / 2010
Associate Broker
Established & Recognized
THE HIGH COST OF OVERPRICING
The most critical step in preparing to market a home is determining the listing price. All sellers want to realize the highest possible return from their property. It is obvious that pricing a property too low cannot provide the highest return; it is less obvious, but true, that pricing a property too high will also produce less than the best return. Too high a price is costly because it causes a property to miss its market. When a price is too high, those buyers for whom the home would be right won’t see the house because it is out of their price range. Buyers who are in the price range will not see the property as a good value and will buy something else. Further, agents will be reluctant to show the property. Good agents are not those who can sell overpriced homes to gullible buyers; good agents are those that present to buyers homes which are good, fair values. Sellers often feel that they want to test the market at a high price. While there may seem to be no harm in starting high and lowering the price if necessary, testing the market can be risky. A property receives its fullest exposure in the first one to four weeks on the market. The best prospects to buy the home might be turned off by the price and decide not to view or buy. Thus the seller may be turning away the best of his potential market. Another danger of testing the market with a high price is that a seller may turn down an offer that is low relative to the asking price but which, in fact, is the best offer that will be received. The cost of having a home languish on the market can be high. Statistics indicate that the longer a house is on the market, the lower the selling price in relation to the original asking price. • Associate Broker • Graduate Realtor Institute • Who’s Who in Residential Real Estate in North America • Lifetime Member Phoenix Board President’s Roundtable • Lifetime Member Scottsdale Board Million Dollar Club
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Valley Real Estate Report ALL AREAS & TYPES Active Listings Pending Listings Sales per Month
TODAY 8/10
LAST YEAR 8/09
2 YRS AGO 8/08
42,562
37,035
53,597
9,825
11,904
6,824
6,732
8,405
5,736
93,868
80,082
50,165
Active Listings $/SF
$134.62
$170.75
$190.80
Annual Sales $/SF
$90.37
$94.13
$146.77
Average Sale Price % List
Sales per Year
98.72%
95.96%
95.94%
Dollar Volume Annual Sales
$16,439M
$14,611M
$14,658M
Average Price Annual Sales
$175,125.00
$182,447.00
$292,203.00
Lender Owned % Active Listings
17.3%
14.1%
N/A
Lender Owned % Monthly Sales
42.0%
56.0%
44.9%
Pre-foreclosure % Active Listings
39.4%
33.5%
N/A
Source: Cromford Associates, LLC. The table above provides a detailed statistical analysis of today’s residential resale market in the Phoenix metropolitan area. The figures shown are for the entire Arizona Regional area as defined by ARMLS. All residential resale transactions recorded by ARMLS are included. Geographically, this includes Maricopa county, a large part of Pinal county and a small part of Yavapai county. In addition, “out of area” listings recorded on ARMLS are included, although these constitute a very small percentage (typically less than 1%) of total sales and have very little effect on the statistics. All dwelling types are included. For-sale-by-owner, auctions and other non-MLS transactions are not included. Land, commercial units and multiple dwelling units are also excluded.
InstructionsFor Life
• Take into account that great love and great achievements involve great risk.
• Spend some time alone everyday.
• When you lose, don’t lose the lesson.
• Remember that silence is sometimes the best answer.
• Follow the three R’s: Respect for self, Respect for others and Responsibility for all your actions. • Remember that not getting what you want is sometimes a wonderful stroke of luck.
Business: 480.998.0676 Cell: 602.549.9114 ArleneFriedman@cox.net If your home is currently listed, this is not a solicitation for that listing.
To Your Home Decor
• Learn the rules so you know how to break them properly. • Don’t let a little dispute ruin a great relationship. • When you’ve made a mistake, take steps to correct it.
• Open your mind to change, but don’t forget your values.
• Judge your success by what you had to give up to get it. • Don’t bring up the past in disagreements with loved ones. • Remember that the best relationship is when your love for each other exceeds your need for each other. • Share your knowledge; it’s a way to immortality.
Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net
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