Show Low Real Estate

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Setting Your Listing Price

Setting Your Listing Price

Setting Your Listing Price

Things to Consider When Setting Your Listing Price

All owners want the best possible price and terms when selling their home, but several factors, including market conditions and interest rates, will determine how much you can get for your home. Of course you want to get the maximum price and the best terms during the window of time when your home is on the market, but knowing what those are takes experience—like what we offer.

Home selling is part science, part marketing, part negotiation, and part art. Unlike math where 2 + 2 always equals 4, in real estate there is no certain conclusion. All transactions are different, and because of this, you should do as much as possible to prepare your home for sale and engage the realtor you feel confident is able to sell your home. Our experience in the White Mountains speaks for itself.

What is Your Home Worth?

What your home will be worth boils down to “what the market says it’s worth.” A home’s value also depends on who you ask—there’s the price you would like to get, the price buyers would like to offer, and the point of agreement between the buyer and you that actually results in a sale.

In considering your home’s value, several factors are important:

  • The value of your home relates to local sale prices. The same home located elsewhere could have a different value.
  • Sale prices are a product of supply and demand. If you live in a community with an expanding job base, a growing population, and a limited housing supply, you have a seller’s market, and home prices will likely rise. Alternatively, if the local community is losing jobs and people are moving out, then you’ll likely have a buyer’s market.
  • Listing prices should not be inflated. You should be strategic in setting your listing price and be sure not to overprice your home, because you may not be able to sell it. The longer a home is on the market, the more stale the listing becomes, and the more reluctant the buyers’ agents will become. Buyers might also think there is something wrong with your home since it is not selling. If you overprice your home, you many eventually have to bring the price down to even less than what you could have asked if it was priced properly in the first place—and you will have lost the initial flurry of interest new listings generate.
  • How quickly you need to sell can affect the sale values. If you must sell quickly, you will have less leverage in the marketplace. Buyers may think you are willing to trade a quick closing for a lower price—and they may be right. Conversely, if you do not need to sell quickly, you may have more marketplace strength.
  • Sale prices should be not based upon what you needWhen you think to yourself, “I must sell for $300,000 because I need $100,000 in cash to buy my next home,” buyers may ask if $300,000 is a reasonable price for the property. If similar homes in the same community are selling for $250,000, you will not likely be able to sell for $300,000.
  • Sale prices are NOT the whole deal; look also at terms and conditions. Which would you rather have: a sale price of $200,000, or a sale price of $205,000 but where you agree to make a seller contribution of $5,000 to offset the buyer’s closing costs, pay a $2,000 allowance for roof repairs, fund two mortgage points, repaint the entire house, and leave the washer and dryer? Your willingness to be flexible on terms can mean the difference between selling your home quickly and not.

How Do You Set a Listing Price?

All transactions are unique, which means there is price flexibility in the marketplace. The amount of flexibility depends upon local conditions.

For example: You’re selling a townhouse and there have been five recent sales of the same model townhouse and the selling prices ranged from $200,000 to $210,000. These numbers provide you a guideline for pricing your own home. In a strong market perhaps you can ask for $210,000 or a little more. If the market has slowed, $210,000 may be a reasonable asking price, but more than you could get for a final sale price.

Here’s another scenario: You live in a community of Victorian-style homes, most of which were built in the 1920s. All the homes are different in terms of size, condition, modernization, style, and features. In such a neighborhood, an average sale price is just a statistic without much practical meaning. On a single block, one home may sell for $400,000 while another is priced at more than $1 million. The average price may be outrageously high for one home and staggeringly low for another.

Knowing what listing price to set for your home can be difficult. That is why it is valuable to work with us and an experienced team. We have handled many transactions and are familiar with the terms and conditions that have gone into individual sales in our area. This is in-depth knowledge that goes beyond published sale prices, which may not reflect various premiums, discounts, terms, conditions, and adjustments that existed in the final numbers. Most importantly, we know of the latest sale prices among competing houses and can provide you with that information.

Show Low has been our home for many years—the people here are our neighbors and we have deep experience with and knowledge of the White Mountains region. Phone us—we have the experience you need.

The Beautiful White Mountains—Your Next Home

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