Tucson Real Estate & Golf Properties

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



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Tucson Real Estate - Home Selling 102

Home PricingPricing a home to get the most for it while having it low enough to sell is a tough decision. There are a variety of methods for determining price. The most common is by comparing sales of like properties. For homes in a subdivision of like square footage and amenities it is less difficult to determine the right price. For homes that are unique, it is more difficult to determine the right price.

When in doubt get an appraisal to determine the right value of your home. In Tucson most appraisals cost $300 and up. The larger the home, the more unique, the higher the cost. Know that the appraisal is good for the day of the appraisal. In three to six months the value of your home may be completely different.

Learning KnowingKnowing the market whether it is a Neutral, Sellers or Buyers market will be an important factor to pricing. In a Sellers market or Neutral market there is more flexibility in what prices will work. In a Buyers market pricing is more critical. Pricing below comparative sales may be the best solution to increase opportunity for sale in a Buyers market. Price wrong and you become an Expired Listing waiting to happen.

Knowing the neighborhood and community will help in making an informed decision. Keeping track of sales in the area, not asking price, will help identify what buyers are willing to pay. A high number of sellers make the mistake of pricing based on what other homes in the neighborhood are asking.

What does not factor into the a marketable sales price:

  1. What the home was purchased for.
  2. What the current debt is on the home.
  3. Personal need to sell the home.
  4. Personal value of the home.
  5. What neighbors have their homes on the market for.

What Buyers are considering for value:

  1. Location, location, location.
  2. Sales price of like homes in the past six to twelve months.
  3. Whether sales prices have decreased or increased in the last six to twelve months.
  4. How the home compares to other homes buyers have seen.
  5. In a Buyers market, WIIFM. What’s In It For Me. What are you as the seller willing to offer the buyer if they decide to buy your home.
  6. Incentives that builders are offering. How do they compare?

Types of pricing.

Fixed Pricing: A set price to ask for the home. In a Sellers or Neutral market pricing 3-5% above sales prices of like properties. In a Buyers market fixed pricing needs to be carefully considered. Preferably below comparative prices or worse case scenario at comparative prices for a Buyers market.

Range Pricing: One of the most misunderstood methods of pricing covers a low to high range. On the low end the absolute bottom of what is acceptable. On the high end a dream price in a perfect world. In Seller and Neutral markets the target sales price is generally in the middle of the range. In a Buyers market the target price is much closer to the bottom number. What I recommend to most sellers,”What is the absolute lowest price you are willing to accept in six month?” If priced right and the market will support the target price. If the price is wrong offers will come in at the bottom price or not at all. If several offers come in at the bottom price, there is a clear message from the buyers.

As you can see there are a lot of factors to consider when pricing a home. Making a non-emotional business decision based on the market, sale of like homes, and what type of pricing to use can make the difference between selling your home and having your home on the market for a long time. What price will you choose?

More reading:

This entry was posted on Sunday, July 8th, 2007 at 9:29 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. Unique properties are sometimes difficult to price.

    Here’s an approach that I find helpful:
    First, I find the most comparable neighborhood sales as well for my usual free market analysis of the home. If the seller does not feel 100% confident about the 100% asking price, I ask the seller to hire a professional to do a short-form appraisal, and offer to rebate the seller the costs of it at closing. Most sellers are very happy to do this because they realize that they will get better results if they price the home correctly.

    July 12th, 2007 // kermit johnson

  2. Kermit - Thank you. Great advise.

    July 12th, 2007 // Doug

  3. Great article, and I found that a lot of the information will translate well to other markets besides Tucson.

    July 13th, 2007 // Louisville Real Estate

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  6. […] Morale of the story, know your competition if you expect to compete. Know what it takes to compete. Base pricing on sales not the desire of others. Know your motivation. Be prepared to let buyers see your home on short notice when it is convenient for them. How many times have you driven to a store to find them closed, and never returned? Add To: […]

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  8. […] Home Selling 102 - Pricing. Knowing the market and how to price for that market is critical. Over pricing in a Sellers Market isn’t bad. The market should catch up soon. Over pricing in a Buyers Market is a prescription for disaster. […]

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