Your House Won’t Sell Itself: Selling in a Highly Competitive Real Estate Market

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Your House Won’t Sell Itself: Selling in a Highly Competitive Real Estate Market

Sticky
Aug 02, 2018
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If you’re looking to sell your home in this competitive Arizona Real Estate market, there are some things you have to know and be prepared for. While it may seem like you’ll be able to sell your home at a high price and quickly, that’s not always the case. A few mistakes in the process can cost you some serious money, so make sure you have a good plan before you get started.

Our Current Real Estate Marketing in Phoenix/Mesa

Right now, the Valley’s real estate market is extremely competitive due pressure on both supply and demand. On the demand side, we are seeing an influx of people moving into the Valley from all over the country, but especially from California and Washington. On the supply side, we’re seeing people hold on to their homes rather than move to another home.

For example, empty nesters looking to downsize or others looking to change location don’t see the value in moving — they won’t end up better financially. Additionally, interest rates continue to rise, adding more pressure to this formula.

When Selling Your Home, You Might Be Tempted

Even in the highly competitive market described above, your house doesn’t sell itself. You might be tempted to do it alone (For Sale By Owner or FSBO) or to use one of the discounted websites or apps. To be blatantly frank with you, this business requires a hands-on professional to help you get the best deal and avoid devastating mistakes.

In these market conditions we see appraisals come back low. Banks won’t lend above the appraised value, and that can be a tough pill for sellers to swallow when they see other high prices being published. Unless you have a buyer who might be ready to make an offer, this will throw a real curve ball during the negotiation process. We’re seeing offers getting pulled which results in homes sitting too long or getting relisted. This gives buyers leverage and pushes the price down below where it could have been.

You also need to consider the buying process and the buyer’s experience. Buyers care about accessibility and ease of getting information. They want an available and dedicated agent, someone who has actually been in the home, and understands all the particulars of that property, a real person, to be available to answer questions and meet buyers and their agents in person, if necessary, to secure the sale. Buyers and their agents work best when they work with somebody who really knows the product – the home.

Most often, with apps and internet sites, calls are answered by people who have NEVER BEEN IN THE HOUSE! They don’t know the neighborhood. They don’t know the schools. They have no clue what there is to do in the area. They can’t answer “Where does sunlight hit the property?” This can cause a buyer, who might be ready to make an offer, move on to the next home. In this market, buyers don’t have time to wait.

Your Keys to a Successful Home Sale

So, what can you do to make your sale a successful one? Here are a few tips:

  1. Identify the true value of your home. The most dangerous thing you can do is price your home out of the market, which is easy to do. This can result in the listing getting stale. Buyers and their agents will see desperation, smell blood in the water and know that you’re ready to deal and start to get very aggressive.
  2. Forcing your agent to overprice. The reason you hire a professional Realtor is for their experience and expertise. They will guide you through the process and protect you from making a potentially very costly error.. Rookie agents can succumb to this pressure and list a home at too high of a price. Don’t let that happen to you. Hire the right partner.
  3. Get the house ready for sale. Fix what needs to be fixed or have repair allowances ready to go. The key here is to pay the $300-400 for a home inspection. Don’t wait for the buyer’s inspection to surprise you. There are too many cancelled contracts in this market because buyers realize during negotiations that they’re overpaying once the inspections and appraisals come in. Don’t be surprised. Be prepared! When a buyer identifies repairs that the seller felt too unimportant to fix, that gives them leverage and could kill the deal.
  4. Know your market. Buyers are more educated than they’ve ever been. They see when a house that’s being flipped has cut corners or has only made cosmetic changes (like paint and carpets) when real repairs are called for (like a leaky roof or cracked pool). Be ready for these savvy buyers.
  5. Look at the other houses for sale in your area. Then, ask yourself if you’d buy your house when compared to them. What are the obvious things your home needs to compete with those? Where should you invest in fixes or repairs? These are answers a good agent will get you.
  6. Don’t go for the high-dollar upgrades or renovations. But…if your floors (carpet, tile), walls (paint) or cabinets show wear, stains, or damage, get those fixed. Carpet can really hurt the value of a house.
  7. Let your agent guide you and do their job. Many homeowners let their emotions get in the way. Whether it’s writing descriptions or posting photos on listing sites or getting down to the final negotiations, your Agent has the skills, experience, and training to do these the right way.

When these issues present themselves during negotiations, often as a result of the buyer’s inspection, it will have a negative effect on the Seller’s position.

Conclusion

In a tight real estate market like the one we’re experiencing in Phoenix today, homeowners can be tempted to go it alone, to push the sales price too high, and to fail to get their home ready for sale. Doing so can result in a listing sitting for too long, for negotiations to fail, and for buyers to move on to another property. You need a professional agent who is available, not just for buyers, but also to let companies like the carpet cleaners in and make sure they do their work right.

Felecia Rozansky

You want somebody who knows the market, the neighborhood, and will help you keep up with today’s savvy buyers.

Selling a home is an emotional experience, one of the biggest decisions you’ll make. Set yourself up for success using a proven process that relies less on emotion and more on experience.

Thinking about selling your home? Contact us today to get started.

If you’ve got 5 minutes, give us a call at (602) 689-1805.

Felecia’s Raving Fans

“Felecia has made both selling and buying a home such an enjoyable process when it could be stressful. She is knowledgeable, very efficient, kind and hardworking. Bottom line, she gets the job done.

Felecia truly wants to help you find the right home and we felt like she had our best interest in mind the whole time. It was so refreshing to work with someone who wasn’t just trying to make a buck off of us. She really listens to what you want and is super trustworthy.

I would recommend Felecia to anyone buying or selling their home in a heartbeat.”

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