Pricing Question from Meebo
Posted on August 27th, 2007 by Jonathan Dalton
I just was asked a question about home pricing through Meebo, but the person asking signed off before I had finished typing my answer. So this entire post is directed at one reader, but I figure there’s some sufficient benefit here for the general public.
Question: Is my home overpriced?
Answer: Possibly.
Explanation: Looking at home pricing purely from a supply-and-demand, market mechanics type of perspective, if your home is on the market and is in the MLS and is readily accessible and hasn’t sold, the price must be too high. Once prospective buyers are walking through the front door and the home sells, you’ll know it’s priced right.
Moving more toward the idea of neighborhood pricing, unless there are some features that lift your particular subdivision head-and-shoulders above the rest in your area, make sure you’re priced competitively not just for your subdivision but for the overall area.
Local ARMLS maps have the Valley divided into large Areas (321 covers much of the Peoria/Glendale corridor along Loop 101 - Arrowhead Ranch, Fletcher Heights, etc.) and into smaller Grids. These grids are about nine miles square.
When deciding on your list price, check prices in the grid as a whole rather than your full subdivision because unless there’s some aspect of your subdivision that makes it the pick for the area, buyers are likely to drive an extra mile or so to find a better deal.
Got questions? E-mail or meebo me and I’ll be happy to help.
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