Setting the Right Price for Your Home

In Wickenburg, as in every town, we all need some advise in selling our own home.   The Real Estate market is no doubt tough.  With some minor changes you can change your ‘relocation’ time!!!!

A key part of the marketing plan is setting the list price. If a home is priced too low, you won’t benefit from the optimal profit. If a home is priced too high, potential buyers may be scared away. To determine the best asking price review the cost of recently sold homes, evaluate the competition and study marketplace trends. CENTURY 21 Sales Associates are trained to use this information to help you reach the right asking price. It is also helpful to discuss other terms and conditions, such as timing and items that can be included with the sale of the home. Both of these can make your home more attractive to potential buyers.1) Location: You can’t get away from this one. If your house is located in a desirable area that is in demand, you will be able to get a higher price than you can for the same house in a less desirable area.

2) Condition: A house that has been better maintained and shows better will always sell for more than one that has had deferred (neglected) maintenance and needs work.

3) Desirable amenities: If a house has amenities that are currently popular in the marketplace, it will bring a higher price.

4) Calculate the price per square foot: The average price per square foot for homes in your neighborhood shouldn’t be the sole determinant of the asking price for your home, but it can be a useful starting point. Keep in mind that various methodologies can be used to calculate square footage.

A formal written appraisal can be useful if you have unique property, if there hasn’t been much activity in your area recently, if co-owners disagree about price, or if there is any other circumstance that makes it difficult to put a value on your home. Appraisers consider the location of the home, its proximity to desirable schools and other public facilities, the size of the lot, the size and condition of the home itself and recent sales prices of comparable properties, among other factors.

A positive close to 2008, will depend on the strength of Arizona’s housing market leading into the final quarter of the year. An important factor for judging the overall strength of the economy, in 2008, will rely heavily on the housing industry not experiencing any drastic changes or unforeseeable obstacles.

Marshall Vest, Economic and Business Research director for the University of Arizona stated, “It will be a number of months before economists can say for sure that Arizona’s economy is contracting, but recent trends in the data that we do have are ominous.”

There are many indicators which have Vest and many other economists concerned for Arizona’s start to 2008, which includes: employment and the introduction of the employer-sanctions law; automotive sales and retail sales in general; new home sales and inventories, resale home prices, and building permits; and employment growth in health, manufacturing, and mining sectors.

There is good news! Mainly the economic diversity and export-oriented industries, in Arizona, which are expected to experience continued growth. Arizona, in regards to taxation, is a very appealing state for entrepreneurs; so we can expect a continued influx of new businesses, including residents, and tourists.

What does this mean for Arizona’s real estate market?

Georganna Meyer, Chief economist for the Arizona Department of Revenue said, “I expect the real estate market and contracting to continue to have reduced activity in 2008, but recovery should begin in 2009. As a result, I expect state tax revenues will grow only slightly in 2008, if at all. Whether we’re in a recession or not, the results will be the same.”

In general, the declining number of construction permits will reduce builders’ inventories, helping to stabilize Arizona’s housing market and returning it to pre-boom growth patterns. Home values will also show a decline to start the year off, due to foreclosure and restrictive lending practices, which will make Arizona more appealing to new residents. The local job market and entrepreneurial appeal will likely contribute to Arizona’s predicted rebound late 2008.

Information Source:

Beard, B. (2007). The Arizona Republic, Arizona’s economic challenge for 2008.