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Tuesday, March 22, 2016

What’s the Secret to Selling Quickly in Phoenix?

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We have a great guide for our home sellers called Pricing Your Home for Maximum Value: The Definitive Guide. This will help you market your home to the widest audience possible, and it will show you how to utilize your home’s price to help it sell. Please let us know if you’d like a copy!

The one thing that will ultimately determine the value of your home is the market. It’s not the upgrades on your home or the landscaping. Absorption rates and supply & demand will be major factors affecting the final sale price of your home.

Absorption rates are used to describe the amount of supply and demand. The real definition is the inverse of months of supply. For example, if there are 100 condos listed for sale in a certain area, and 10 condos sold over the last month, the absorption rate is 10/100=10%. An absorption rate of 20% or higher means that homes are selling quickly and the market favors sellers.

If inventory is low, which it is in most places, you will get a nice price for your home. However, even when inventory is low and the market is working in your favor, you still need to price your home correctly. If you price your home right at the market value, people will see a good value in it and fight for it. A bidding war will ensue and your price will be raised by the invisible hand of the market.

If you price your home too high, buyers will be able to see that you’re asking too much. Home buyers are much savvier than they were 20 years ago, and they will simply not look at your home. When your home gets no activity on the market, it will go stale and it will either sell for a reduced price or it will not sell at all.

This is why coming out with the right home price is so important. If you want to learn more, ask us for a copy of this guide. There is a lot more information in there!