Pricing your home in Arizona’s housing market is tricky business and takes a seasoned real estate agent to get it right. There are many factors to take into consideration that all boil down to determining your home’s Fair Market Value.
The Fair Market Value of your home is determined by what a BUYER is willing to pay and a SELLER is willing to accept in today’s market. Buyers make their pricing decision by comparing your home and its perceived condition and location to other homes that have SOLD in your subdivision and area.
For a buyer to obtain financing to purchase your home, a sales price must also be supported by an appraisal, which will compare your home to similar homes that have sold in your neighborhood to support “its” value. The value of your home has little to do with what you paid for your home, the cost of the upgrades you added to your home, what financial gain you hope to get from the sale of your home or what it will cost to build your home today.
The most important thing you can do when you list your home for sale is to price your home at its fair market value. A house attracts the most interest in the real estate community and among potential buyers during the first 30 days it is listed. If your home is not priced right, your home will be overlooked by potential buyers and will remain on the market longer.
While many homeowners want to test the market for 30 days and then lower the price of their home if they don’t receive any offers, this is not a wise choice or plan. Homes that languish on the market can be labeled by agents and potential buyers as non-desirable properties…homes in need of repair, bad floor plan or location. The longer the property stays on the market, the lower the price will be when it finally sells.
As your professional Real Estate Agent, I will provide you with a complimentary CMA (Comparative Market Analysis), which will provide to you, in a concise format, information about other homes that have recently sold and homes currently on the market in your neighborhood. This is a useful tool to determine your homes value and to determine your initial list price.