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Taking Credit Where Credit’s Due – Setting the Price

Taking Credit Where Credit’s Due – Setting the Price

Last week I told you about a new listing Tobey and I took in the Sun City Grand vacation rentals.

This was a nice 2-bedroom, 1,300 square foot home in Sun City Grand that had been painstakingly upgraded by the owners to include granite counters in the kitchen and bathroom, wood floors, a custom built Murphy bed in the spare bedroom …

Maybe it would just be easier if I showed you the photo tour to jog your memory:

Yesterday, the sellers and I received an offer on the property. Today we finalized the last details of the counter offers and this home is under contract and in escrow nine days after it was placed on the market.

Here’s the interesting part …

We priced this home a little bit above current market value, a strategy which if you spend your time trolling the pages of Trulia Voices you’ll come to believe can’t possibly succeed. Except it can and it does if applied in the right circumstances … say, a home with little competition and a clear head above the homes that are on the market.

Upgrades don’t receive dollar-for-dollar treatment in this market but they still do matter. With an aggressive but proper pricing strategy, it’s quite possible to do what I’ve done on my last two sold listings … price the property slightly above the current market in hopes (since realized) of receiving nearly the highest dollar amount the market would bear.

On the first such home the sellers might have been able to realize an extra $1,500 or so and the same may apply here; since both of these sellers are turning into buyers, though, it’s simply a matter of me as their agent helping to realize savings greater than that on their purchase. For the first sellers, I successfully helped them purchase a home $8,000 below their lender’s appraised value.

Now, I realize the word “I” is coming up quite often but this is an “I” kind of story. There are 40,000 agents in the Valley and at least 14 of us are doing some sort of business. Anyone can slam the price down on a home to sell it; not everyone can price above the market and still find a buyer.

I can. I did. I will again.

And with that, I rest my case.

Comments

  • BawldGuy says:

    And that’s the way to market.

  • JD, congrats on the sale and at top dollar as well. But it’s interesting too that sometimes buyers would prefer the best home rather than just the cheapest price.

  • Jonathan Dalton says:

    That’s one thing that’s definitely changed in the Phoenix market, Howard … we’re at a place where “value” means more than “cheapest available.” Which is a very, very good thing.