Tucson Real Estate & Golf Properties

tucson-real-estate-home.jpg
tucson-real-estate-buyer-tips.jpg
tucson-real-estate-home-search.jpg
tucson-real-estate-community-schools.jpg
tucson-real-estate-selling-tips.jpg
tucson-real-estate-meet-doug.jpg




Douglas Trudeau , Assoc. Broker
Prudential Foothills Real Estate
64 N. Harrison Road, Suite 160
Tucson , AZ 85748
Mobile: 520-954-2209
Contact Me



realtor-tiny.jpg e_h_o-tiny.jpg


Tucson Real Estate - Home Selling 101

Doug Trudeau RealtorBefore putting a home on the market there are some serious questions to ask…

  1. Is it a Seller’s market?
  2. Is it a Buyer’s market?
  3. Is it a Neutral market?
  4. Do I want to sell my home?
  5. Do I need to sell my home?

Seller’s Market

In a Seller’s Market the homeowner can afford to be a little, or sometimes allot, greedy. In a Seller’s Market there is an abundance of Buyers with not enough homes to buy. The mob Sellers Marketmentality will overcome common sense. The media has a tendency to add to frantic buying by reporting on fast and high sales. Buyers panic and are afraid to miss out and have to pay 10’s of thousands if not hundreds of thousands of dollars more for a property in a matter of weeks or months. Builders start running low on supplies, labor, and time to build. Prices sky rocket out of control. It’s like swimming down the Niagara river. Eventually the Niagara Falls will take you down. Its disaster waiting to happen. The force and momentum of the market are like the water dragging everything in its path toward the falls. The losers are generally those who buy toward the end of the frenzy. The winners are the seller who sold an bought early. Over priced homes will sell. A Seller’s Market is not a healthy market. 

Buyer’s Market

In a Buyer’s Market the effect it the opposite. I liken it to a mile long train that suddenly stopped. Add to that train 2-3 more miles of heavily loaded cars. The same number of engines exist. The same expectations exits. The train is struggling to move under the heavy burden. Eventually it will move and pick up speed. The problem is, the engines have never pulled 4 miles of cars (flood of homes on the market). So, how long will it take to get the Buyers Marketmomentum going? What happens once it begins and approaches an incline (increased interest rates)? In a Buyer’s Market sales may be reasonably consistent, however, nobody will notice because they are sitting in their car at the rail road tracks waiting for this monster to pass by. Over pricing in a Buyer’s Market is comparable to pointing a 12 gauge shotgun loaded with 00-buck at your foot and expecting your foot to be there after pulling the trigger. Sheer insanity. A Buyer’s Market is usually the aftermath of a Seller’s Market. Like the Seller’s Market, the Buyer’s Market is not a healthy market.

A great test to score whether you have a chance to sell your home in a high supply Buyer’s market is:

Price
5-Priced at least 5% below comparable solds.
4-Priced slightly below comparable solds.
3-Priced similar to comparable solds.
2-Priced slightly above comparable solds.
1-Priced more than 5% above comparable solds.

Condition
5-Pristine, shows like a model. New A/C, appliances, furnace, pool pump, roof, etc.
4-Very clean, well appointed. No deferred maintenance.
3-Average condition.
2-Dirty or cluttered. Older A/C, appliances, furnace, pool pump, roof, etc.
1-Poor condition. Hazardous items, in need of maintenance.

Seller Motivation
5-Must move quickly. Definite date in mind. Solid equity.
4-Must sell quickly. Will pay closing costs, carry financing, or other incentives.
3-Will sell at a reasonable price and pay closing costs.
2-Negative equity position. Needs a “short sale.”
1-Just speculating to see what price they can get.

11-15 = Salable 7-10 = Doubtful      3-6 = Expired In Progress

Neutral Market

The healthiest market is a neutral market. Neither buyer nor seller has a strong advantage. Homes appreciate at a reasonable pace. The market isn’t flooded nor lacking of homes for sale. In the Neutral Market Sellers will see close to what they are asking as long as the price is supported by reasonably like or similar sells. There will still be those homes on the market that are over priced. Reasonably priced homes will sell within a short period of time. The old theory of 30 buyers in 30 days and your home will sell within a month is a reality here. Both sides win in a Neutral Market. They Buyer can feel safe that they made a good decision when the value of their home is higher in six months. 

Want to Sell 

What is a Want to sell Seller?

  • Not motivated by a need.
  • Will test the market to see whether they want to sell or not.
  • It doesn’t matter to them whether they sell or not.
  • It is purely a matter of making a preconceived amount of money based on nothing more than personal preference. Some may call it greed, while others may call it not giving in. In either case there is nothing dire about a must sell situation. 

 In a Seller’s Market it is safe to fit in this category. Basic economics of low supply and high demand will eventually bring a buyer a want to sell seller. Patience and just waiting for the right buyer to come along is a realistic expectation. In a Neutral Market there is more risk that a buyer might come along to meet terms of the want to sell seller. In a Buyer’s Market the want to sell seller is doing nothing more than adding to the high supply end and creating a market that is beneficial to buyers and harmful to the need to sell sellers. In the short end of it, they are hurt themselves. Should they have to sell in the near future they are likely to be disappointed and blame everyone else for their low sales price.

Need to Sell

What is a Need to sell Seller?

  • Moving to another city, state, or country. Can’t afford to maintain two mortgages. Relocating for business opportunity. Military relocation.
  • Financially distressed. Can’t keep up with the payments because some catastrophic or health related incident. 
  • Going through a divorce and need to split assets.
  • Growing family with not enough space in current home.
  • Aging and property is too physically or financially demanding.

In a Seller’s market it is safe to expect a little, or sometimes a lot more. Low supply and high or moderate demand will create some very happy sellers. In a Neutral Market the need to sell seller will still find happiness. Just not as quick as in a Seller’s Market nor as much. In a Buyer’s Market the need to sell seller may find a lot of frustration. This is where Realtors catch a lot of grief. The seller needs to sell, has an expectation of value, and the house isn’t being seen on the Internet or in person. Need to sell sellers in a Buyer’s Market require more analytical, factual, realistic, and imaginative thinking than in a Neutral or Seller’s Market. 

More reading:

This entry was posted on Wednesday, June 27th, 2007 at 6:19 pm and is filed under Tucson Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

  1. I work for SellHomeHouse.com and we are seeing a large increase in the number of motivated sellers out there because of the slowness of the housing market right now. Many homeowners are even turning to alternative methods to sell their homes just to get out from under their mortgage.

    June 28th, 2007 // T Smith

  2. T-Smith - I can see from your website that you must be busy right now. I get solicitations from foreclosure sites like currentforeclosures.com all the time. Great for the foreclosure resale business, not so great for homeowners who bought during a Seller’s Market and Trying to sell in a Buyer’s Market. Foreclosure assistance is definitely in high demand right now.

    June 28th, 2007 // Doug Trudeau

  3. […] Home Selling 101 – Motivation […]

    July 23rd, 2007 // Tucson Real Estate - Home Selling 105

  4. […] Home Selling 101 – Motivation […]

    July 24th, 2007 // Tucson Real Estate - Home Selling 106

  5. […] I have to say, the one that got my attention was pulled off the market after 84 days. Eighty four days too late. It’s a Buyers Market. There are signs of a stable market coming back. But the jury is still out. Listings like this do nothing to help the recovery. They only hinder it. My point is, if selling a home know the market, know what motivates the sale, and be competitive. […]

    July 27th, 2007 // You’ve Got To Be Kidding

  6. […] Home Selling 101 – Motivation […]

    July 30th, 2007 // Tucson Real Estate - Home Selling 107

  7. […] Home Selling 101 - Motivation. What motivated you to sell your home? Knowing your motivation helps you to comprehend where you stand in the market. […]

    July 30th, 2007 // Seven Steps To Home Selling A Home In Tucson

Leave a Reply

Copyright 2007 Tucson Real Estate Blogs     Agent Login     Design by Real Estate Tomato     Powered by Tomato Blogs