Tucson Real Estate Don’t Test The Water
November 8, 2008
Post Tags: location location location , real estate market
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Fresh COMPS are the order of the day.
November 8, 2008
The saying goes “All Real Estate is Local” Yes there is the other saying “Location, Location, Location” but the first one is the focus for today. However, slightly modified.
Modified in this sense. “All real estate is local and changes with time.” Which is why we look at the content of this post in context of the time it is being written.
Do Yourself A Favor Don’t Test The Waters
Over the past three years it has been a practice of many Tucson home owners to “Test the Waters” by putting their home on the market at a price that is well above market value. The theory, it doesn’t cost us anything to put it on the market and someone migth come along and actually pay us what we are asking for it.
This is not so much the case in today’s Tucson real estate market, but it does still happen. How can I tell. We still see homes that are listed way over market. We still have sellers with these listing saying “No, we don’t want to show the house today, can you come back tomorrow?” We often have clients who are relocating to Tucson and are here for a weekend or a couple of day during the week to try and find a place. NO they can’t come back tomorrow they will be back home tomorrow.
There are still people testing the waters even in today’s market. It used to be considered just a nuisance and a cause of inflated listing numbers. But now there is another issue and it is a lot more serious for both Sellers and Buyers.
New Basis and Practices for Appraisals
It used to be common to go back 6 months when doing COMPS for an appraisal, setting a listing price, or making an offer. This is no longer true. Now going back 90 days or less is the norm. Home values have been coming down at such a quick rate that going back 6 months is no longer a good picture of what current values are in real estate.
If they can’t find enough properties to comp there are two things being used. The list price to sale price ratio and calling agents with pending sales to see what the agreed sales price is for their pending deal.
You can read all about it in Kenneth Harney’s column from the Business section of the “Arizona Daily Star” today.
Bottom line; if you don’t need to list your house don’t. In the long run it could save you money and get you a better offer. It is also a kindness you can offer to your neighbors who really need to sell their house.
