Can You Compete?

The last few years have been tough on traditional home sellers. Downward pressure on pricing has made it very hard for many people to compete against the large numbers of bank-owned and short sale properties. Unfortunately, many home sellers price their home for what they “should have sold for” when they first thought of selling. Over-pricing a home can be a huge mistake. In order to price properly, you need to take many things into consideration. Location, features, competition, and several other key factors should be considered when looking to sell. The fact that you “need” to get X amount of money isn’t always the most realistic place to start. I hate to tell people that, but it’s the truth.

Bank owned homes - A "sign of the times?"

In the current market, buyers are looking for a deal. Obviously buyers have always wanted a deal, but with media reports of homes being sold for pennies on the dollar, people have been told that foreclosures and short sale homes are a great way to go. Let’s face it, for the average buyer, many things go into a decision to move. But with interest rates bordering on ridiculously low, and prices many thought they wouldn’t see again, people are looking for a deal as much as a home. A recent report from the National Association of Realtors tells us that first-time home ownership is way up, and I have seen lots of smart people moving up into larger homes in better areas to take advantage of the current market. Fortunately, competing with the banks in today’s market may not be as hard as you think. As long as the correct value is in place, many buyers are looking to avoid the short sale process and the headaches that can come from bank contracts. A traditional sale sounds pretty darn good to many people in the market to buy that may have had a bad experience with a short sale or a bank transaction. As a seller, you can compete – you just might need to have someone on your side to help you through the process. 🙂

Bottom line is this… If you have questions about buying or selling real estate, "Just Call Nick!"

AZ Real Estate Market Heating Up

Ok, so we had our first 100 degree day recently, big whup…. Around here, that is child’s play.

For many, the a/c has been cranking for weeks, but for some, they hold out as long as possible. I can tell you one thing, if you are selling a home right now, don’t try to “cheap out” and turn the a/c up to 85 or 90 when you leave for work in the morning. Try to keep it cool, it could help.

Last week, I was looking at homes in Tempe with a friend / client and was glad that many of them were occupied. As you know, there are many parts of town and a few price ranges where the majority of the homes are vacant. Not only are these homes vacant, they have no power on. No power means, no a/c. Ever step out of a car into the hot sun only to find the inside of a home to be hotter? Believe me, it’s not cool.

If a buyer needs to rush back to an air conditioned car with sweat dripping off of their forehead, he / she probably isn’t going to have a real fond memory of that home. Same thing when the sellers leave all of the blinds shut and the a/c up to barely bearable – it just doesn’t show as well.

From SRP we get this information that probably doesn’t have a home seller in mind:

Q: Is it better to set the thermostat to a high temperature (85° to 90°) while at work all day and cool the house (two-story, approximately 3,200 square feet) when you get home to a comfortable temperature (approximately 80°), or to keep the thermostat just a degree or two higher during the day so that the cooling unit doesn’t have to work as hard during peak hours to cool the house?

A: You will save money anytime you can increase the temperature on your thermostat and cause the unit not to run. The old myth that says you will spend more energy bringing the temperature back down than you would have spent just leaving the thermostat alone is just that, a myth.”

So, you might save a few bucks by turning the a/c up to 90 when you leave for work, right? Well, if you are trying to sell a home, it could cost ya’ even more. If your home shows well and is priced correctly, leaving the a/c in a comfortable range during the day might just be money well spent…