Tribune - September 2007
A couple of weeks ago, Chandler homeowners Gary and Debbie Meltzer decided to slash the asking price for their house by nearly $100,000. The four-bedroom home had been for sale since March, they had received little interest and the housing market was still deteriorating. The couple knew they would have to gradually drop the price anyway - just like the rest of the sellers in their area.
So, with the even slower holiday season fast approaching, they decided to beat their competition to it.
"I feel like by spring break, our house may even be worth less," Debbie Meltzer said.
Valley real estate agents say overpricing is a seller's biggest threat to a successful deal.
When a property is overpriced and sits on the market for a long time, the message to potential buyers is that something's wrong with it, said Mike Balzotti, vice president at The Equitable Real Estate Co. in Scottsdale. Eventually, sellers end up coming down more than if they had cut prices early on, Balzotti said.
So it's better to slash prices now rather than later, he said.
"You don't want to be chasing the market down," he said.
Lowering the asking price is just one way Valley homeowners can gain a competitive edge in an already bloated market of about 55,000 homes for sale.
"The number one way to get exposure is online," said Yalda Alawi, a real estate agent with West USA Realty in Chandler.
After getting little initial response on their home with another agent, the Meltzers switched to Alawi because of her Internet marketing experience. Now, their home has a Web page with detailed descriptions and more than 30 photos.
Roughly eight out of 10 buyers start their searches on the Web, Balzotti said. Video tours, blogs and information on neighborhood demographics have all risen in popularity, he added.
Web marketing is crucial, but a seller's approach also needs to be well-rounded, Alawi said.
Open houses, real estate broker tours and word-of-mouth through family and friends are important ways to get a home noticed, she said. Some sellers also offer incentives like paying closing costs or throwing in televisions and furniture.
"In this market, you need every kind of exposure you can get," she said.
Agents say that staging a home - which can include getting rid of clutter, repainting in a neutral pallet or laying down new carpet - is also essential.
"It has to look as close to perfect as you can make it," said Gilbert real estate agent Bill Christie with RE/MAX 2000.
If a home is vacant, it may be worthwhile to hire a professional staging agency to bring in furniture and artwork, Christie said. It's an expensive process but can really set a home apart from its competitors, he said.
It's also important to pay special attention to bathrooms and kitchens, Christie said. Ceramic tile is preferred over vinyl. Buyers also like new countertops, cabinets and appliances.
"You just don't want to give a potential buyer any reason to say 'No' to your house," Christie said.
That includes making sure the outside also looks pristine, which may mean hiring a landscaper.
Offering an allowance so the buyer can do the touch-ups isn't enough, Balzotti said.
"The buyers don't have the imagination," he said. "They just see a house that's tired and needs work."
And they will make an offer that's lower than what it would cost to make the improvements, Balzotti said.
Real estate professionals also say that sellers need to have patience and be as accommodating as possible.
Some make it difficult to show their homes by asking people to reschedule, Alawi said. Agents and buyers will move on because they have 10 more homes to look at, she said.
"You have to make sure you're putting your best foot forward every time," she said.
For the Meltzers, it's been a stressful process.
"You have kids, and you want to live. And it just feels like you're constantly cleaning," Debbie Meltzer said.
"It's terrible. I can't go one day without having my bed made if I'm in a hurry." After the dramatic price cut, their asking price is now $388,000, compared with two nearby homes that are listed at $419,000 and $498,000. Still, they continue to wait for calls. The couple realizes that the market has been bad for many people, but it's still been disheartening, Gary Meltzer said. "We didn't expect it to be as difficult as it is," he said.
Setting your price
• Abandon your point of view. Buyers don't care how much you paid for the home, your family memories, the time and money you've invested in upgrades or how large of a down payment you need for the next house.
• Ask three real estate agents to do a comparative market analysis. This shows prices of comparable sold homes, houses currently on the market and those that were on the market but didn't sell.
• Do your own market research. Go to open houses in your area and try to compare your home in terms of location, size, condition.
• Consider market conditions such as price trends and how long it takes a house to sell in your area. What are interest rates doing?
• Offer incentives, such as a lease option or down payment assistance.
