The Arizona Republic - May 2007
One of the challenges Mary Hennecke is facing in selling her house in Gilbert is competing against incentives being offered by homebuilders.
But, those incentives are also a major reason why she plans to buy a new house in Gilbert after her current one sells.
"Anything that they can offer is certainly beneficial," she said of her next purchase. "I'm hoping that the existing area will help me sell my home."
Hennecke bought her home in the Higley section of Gilbert with her husband in November, and said she benefited from an $85,000 price reduction.
She said she's hoping that margin works in her favor, as she has to sell because of a divorce.
The Valley's real estate market has 20-25 percent more inventory than it needs, said a real estate agent working in Gilbert. She said its probably going to take 9 to 12 months to clear the excess inventory.
She said as long as the inventory doesn't spike, sellers such Hennecke should have better chances as the market hits the traditional summer peak home-sales season.
The pricing and condition of a house is vital, she said. "Have your house look as nice as you'd like it to look if you were coming in looking through buyer's eyes."
Buyers are looking for homes in good condition that are well priced for their neighborhood, said Jay Butler, director of Realty Studies at Arizona State University's Polytechnic Campus in Mesa.
But the condition of the home may not be enough.
"Obviously your home has to be in good condition, but the neighborhood has to be in good condition, and that you may not have a lot of control over," he said. "Most buyers make up their minds about whether they want to look at the home by the time they get to it.
"While houses can move quickly, Butler said this is a "hard market."
"It may be finally settling in with sellers and agents alike that this market is where its going to be, and you better be realistic about that price," he said.
If sellers need to lower their asking price, they should limit it to one significant cut, Butler said.
"I tend to favor the big move a little bit," he said. "If you do a lot of little increments, their question is when do you actually stop? There's no incentive for them to make a move on it.
Hennecke still is concerned about the market. She set the price for her four-bedroom, 23/4-bath home at $345,000 with her real estate agent after figuring in factors such as square footage and amenities.
In the meantime, Hennecke is patient, and is continuing to live in the home with her two children, ages 2 and 5, while they wait for it to sell.
"It has to be show-ready at all times," she said. "It's an extra hour in the morning to make sure the house is ready before we leave.
"We spend a lot of time out now on the weekends."
