If you have been thinking about selling a home in Arizona, this is the first place you will want to start. Pricing your home correctly may be the most important factor when putting your home on the market with a Real Estate professional with the current market conditions. Many home owners wonder how to price their home correctly.
It is fine to look at what is currently available for sale in your neighborhood to get a very rough idea of what the general price range is in the area, however, this is not how price should be determined when discussing selling your home. When and if your home does actually sell after you put your home on the market, an appraiser will generally come to your home to complete an appraisal for the buyers lender. Very rarely will a buyer buy a home that does not appraise for the contract price. A buyer has several ways of backing out of the contract, and if the contract price is five hundred thousand, and the home appraises for four hundred and fifty thousand, the contract will usually be renegotiated, or the buyer will back out if the buyer and the seller do not come to an agreement.
The best way to determine price is very simple. Look at recent sales in your subdivision with comparable amenities. If your same exact style home down the street sold for three hundred thousand a few weeks ago, that would be a good comparable property to determine price. Depending on the market conditions will help determine where to price your home. When the market is strong in the sellers favor, and your same style home with comparable amenities sold down the street a week ago for three hundred thousand, it may be a good idea to price your home at three hundred and fifteen thousand. This is how homes appreciate, and an appraiser knows this. You can not get crazy and price the home at three hundred and fifty thousand if the best comparable property in the area sold for three hundred thousand. An appraiser will not appraise the home for this amount.
When people over price their home, several things happen. Any Realtor that is thinking about showing your home to prospective buyers will probably not show the home because good Realtors pull the comparable properties sold in the area before showing a home. A good Realtor will know that it is over priced, and move on to a home that is reasonably priced. If for some miraculous reason you do get a contract on an over priced house, you will have problems with the appraisal which will probably cause several hiccups in the lending process for the buyer.
To price your home correctly in a slow market, you may want to price your home below the comparable properties recently sold in the area. People will know that you have under priced the home and may find value in that. In some cases, a seller owes a certain amount on their mortgage and that amount may be more than the market value of the home. This is usually caused by negative amortization loans, or tricky interest only loans with a balloon payment at the end of an allotted period of time. When this happens, the seller either needs to stay in the property and keep paying the mortgage, rent out the property, or get foreclosed on. Obviously, getting foreclosed on is the last thing any one wants.
Be sure to contact a qualified Real Estate professional when thinking about buying or selling a home in Arizona. If you need any Real Estate assistance in Arizona, please visit the link below to get in touch with a qualified Realtor. Phoenix, Arizona Coldwell Banker Residential Brokerage strives to make sure your transactions run smoothly.