I hadn’t noticed this one until I tripped over the link on a local bubble blog. Today’s Arizona Republic had another in its series of Chicken Little-esque real estate articles, this one reporting the angst of sellers who can’t get their homes sold. Here’s one example:Seller: Mark Wray.
House: 2,200 square feet, with three bedrooms and an office in Glendale.
Price: Original listing: $465,000. Latest listing: $420,000.
Days on the market: About 300.
My first question, oddly enough, was what the neighborhood comps were for the home. And that question was answered later, when Mr. Wray said homes similar to his had been selling around $375,000 to $390,000.
You want to sell. Supply and demand is dictating what your home is worth. You know the answer is $390,000. Your agent knows the answer is $390,000. And the buyers and their agents sure as hell know the answer is $390,000. And yet you still say $420,000, then blame the “crumbling” market for the fact you can’t find someone to pay $30,000 more for your home than your neighbors’ homes.
What’s missing from the Republic article is this tidbit: homes sell when they’re priced correctly. I sold one in Desert Harbor in October in five days. I recently sold one in Knoell North near Thunderbird and 35th Avenue in nine days. On another listing, the original buyer couldn’t secure financing on the closing date and canceled the contract. We were back under contract two days later.
Where did I really do my best work for the seller? In our initial conversation about the state of the market and what it will take to sell the home. They listened. They sold. And they are moving on.
No Republic article necessary.