It's a Crazy Real Estate Market!
If you’re a home buyer right now looking for a single family residence you know how competitive it is to get your offer accepted and how fast properties are selling. You’ve got to be the first one to see it and in most cases write an offer over asking price to get it under contract if shopping in the $200,000 - $400,000 range in Ahwatukee, Tempe, Chandler, Gilbert, Mesa and close in Queen Creek.
Inventory in this price range are at or near all time lows resulting in a seller’s market. Prices are not skyrocketing though and interest rates are rising a little so there is no reason to be scared if you are buying. Who should be scared and asking questions are sellers who aren’t seeing their homes go under contract quickly or not even getting an offer.
If your home is priced between $200,000 - $300,000 there is only 23 Days of Inventory.
If priced between $300,000 - $400,000 there is just 45 Days of Inventory.
What this means is if you are sellling a home in the $200,000 - $300,000 range you should be getting an offer within 3 - 15 days of being listed in the MLS and in 25 - 35 days if in the $300,000 - $400,000 range.
So why are there so many homes that aren’t selling between $200,000 - $400,000? Good question! As this data shows that absolutely should not be happening.
The Top 5 Reasons a home does not sell
The home is not presented properly: It’s VERY important that your home looks so good in the MLS and in social media that buyers HAVE to see your home. Professionally taken photos and a video of your home are a must do in this day and age. Additionally a single property website and a digital brochure will keep buyers engaged and interested in your home.
The home isn’t stagged and prepped to look it’s best: There is a HUGE difference between living and showing shape. Have you ever gone to look at Model Homes in a New Home Subdivision? Your home needs to look it’s very best when buyers come through that front door. At the very least your Realtor® should conduct a staging appointment with you or have a professional stager work with you to prepare your home for showings.
Deferred Maintenance: On average homeowners would move every 3-5 years which would trigger a home inspection where issues would be caught at an early stage. Quite a lot of the home inventory now is aged averaging 20 years old and the homes were last inspected 7-10 years ago. These homes have deferred maintenance that hasn’t been seen or hasn’t been an issue until the home goes under contract and an inspector shows up. This is also a HUGE stress point for sellers as they are worried something will come up on inspection. SOLUTION: Get a Pre-Inspection. You can catch all the little things, fix them so your home passes flying colors on the buyer’s inspection and if there is a big ticket item you’ll know. For example if you’ve got a 17-20 year old AC Unit it’s probably on it’s last leg and will need replacing very soon. You’re not going to be able to pass the buck to the next buyer. It’s best to either replace the unit or disclose to the buyer upfront the condition and have a bid or two from a contractor stating replacement cost and agree to credit the buyer for a portion of the repalcement cost.
Price: The home is not priced correctly for it’s condition and location. Maybe your home doesn’t look like it came out of HGTV or a Model Home. Does it back to a busy street or powerlines? If your home backs to Ray Road you can’t expect your home to sell for the same price as the home that is an interior lot or backs to greenspace. Same goes for condition. If your home looks cluttered or dirty or unkept it will absolutely not sell for the same price as the one that looks like nobody is living there even when there is.
Access to the property: If it is difficult to show your home and or you have lots of showing restrictions your home will be bypassed for properties that can easily be shown to buyers. If you have pets, arrange for daycare while it’s actively on the market. If you work from home find a flex space office to work out of for a few days. If you don’t want random showings or no lockbox the Realtor® can set their lockbox up with a CBS Code. A special code will be required to get the key out of the lockbox. Making it easy to show means more buyers which equates to offers.
If you have had your home on the market in the past 6 months priced between $200,000 - $400,000 and it was unable to sell your home most likely suffered from one or more of the above items. Like Dentists, Wine Makers and Auto Mechanics, Realtors can be really, really good and provide outstanding service or they can be sub-par and not so good. Doing research, asking questions and listening will lead you to a Professional, Full Time Realtor® that will be able to advise on these items.
Dean Carver is a Realtor® and Founding Partner of the Real Estate Brokerage, United Brokers Group®. He has been practicing real estate for 18 years and sold over 700 properties. His Real Estate Team’s Goal: To Impact Lives Positively and Give Back to the Community.