Over-Pricing a Home - A Hidden Danger of MLS Search

Most Sellers are familiar with the standard warnings about over-pricing a home. Long days on market, few if any showings, etc. But in the Digital Age, there’s a hidden danger of over-pricing that Sellers are not aware of: The dynamics of buyers using price ranges in MLS Searches.

Home buyers all search online and use parameters to refine their search. The most important and sometimes the ONLY criteria they use is a price range. Common ranges are $100K to $150K, $100K to $200K, etc., etc.-- we know this. But here’s where it can get interesting: If a Seller over-prices a home and it tips into a higher price range by just a little, the home will compete with far superior properties. And that's not good.

As an example, let's say that a realistic asking price for a particular 3/BR 2BA 1995 home is $285K. That puts it in a favored buyer MLS search range of $200K to $300K where it belongs and will compete nicely for buyer attention. BUT, the Seller wants to give it “wiggle room” (which, at the suggested $285K asking probably already has “wiggle room” built in)-- but Seller wants to list it for $305K. What could it hurt? In truth, a lot.

Now, it will fall in the $300K to $400K+ MLS price range where it ends up alongside other homes that are larger, newer, on larger lots, and will look “chintzy” by comparison. It doesn't measure up. More than likely it won't make the “cut” when buyers select homes to visit because, compared to the other homes, they perceive that it lacks value. It is not representative of homes in that price range.

So, pricing a home correctly isn’t only important in generalities. In the Digital Age where perception many times is truth, it’s vital.

The Best Home Loan & The Best Kept Secret

The Best Home Loan for You

How do you decide? Do you go to your bank? Do you talk to friends/relatives? Do you look online? You may be missing the one BEST resource for a home loan, the person you’ll be working with most closely throughout the home buying process: Your Realtor.

Sure, he/she is the one who’ll find homes, show you homes, write and negotiate your contract, and take you through all the many moving parts of the transaction. But, when it comes to finding the best financing resources, the person whom you’ll be working most closely with, your Realtor, is the best place to start. To find the best home loan for you. Why is that?

The Best Kept Secret

Experienced Realtors (the good ones) work with lenders all the time. They are in constant communication with lenders throughout multitudes of transactions. They have developed a vast list of lender resources who are tried, tested, and trusted. After discussing your situation with you, a good Realtor will know what you need, and which lenders will be best suited to those needs.

Realtors build relationships with lenders, and that’s no small thing. It’s perhaps the most crucial part of buying a home- getting the right loan. The best home loan for you. What your Realtor can do for you is suggest lenders who:

• Have competitive rates
• Have numerous lending lines
• Understand the local market
• Are creative finding special programs
• Work with challenging credit scores
• Are responsive and good communicators
• Work closely with your Title Company
• Stick to closing timelines
• Have offices near you

So, when looking for the best home loan for you, use the best kept secret: Your Realtor.

Buyers: Snooze, you lose. Why it's important to make a decision!

We KNOW buying a White Mountains AZ home or cabin is a BIG decision! But, you've looked online into the wee hours of the night for weeks or even months. You've narrowed down your list of homes to the nearly "perfect for you" candidates and engaged a REALTOR. You're serious. You've blocked out your valuable time for showings and spent that time carefully exploring every nook and cranny of homes. And, you finally found the best match, but... You need to "sleep on it". You need to go back home and mull it over. Okay, but consider this:

If YOU love it, chances are somebody else or a few somebody elses loves it too! Competition for well-priced cabins and homes in the White Mountains of AZ is ALWAYS stiff. They literally fly off the shelves. So, the "old school" rule of thumb (which advice well-meaning friends, relatives, co-workers may have offered you-- or you employed many years ago) of waiting and watching for price reductions, or of offering 20% or so under asking is like, so 80's! Honestly.

So, you need to be Prepared for Success. We will honestly counsel you on a home-by-home basis because we know this market. After all, we're handling calls and emails from prospective buyers every day. So we have more than just a hint about buyers and their objectives. We KNOW what's hot, we KNOW where the market is NOW, and where it's heading. Remember, you just don't hire us to negotiate on your behalf, per se, you hire us to get you the home you WANT!