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Phoenix Real Estate Sales

Real Property Management Phoenix Valley Phoenix real estate sales
Real Property Management Phoenix Valley Phoenix real estate sales

Real Property Management Phoenix Valley is a full service real estate brokerage company.  Our services include residential property management, home owner association management and Phoenix real estate sales transactions.  Using a recent Phoenix real estate sale we are going to highlight why the correct purchase price is so important.
A client contacted us in August to list his Phoenix home for sale.  We provided a sales comparable market analysis that indicated the market sales price was between $235K – $245K.  The client decided (outside of our recommendation) to list the property at $275K.  We did explain that absolutely none of the market comparable properties indicated that market price was anywhere near that amount.  Additionally, we did advise that if we couldn’t find comparable properties to support his purchase price than most likely the appraiser wouldn’t be able to either.  The seller’s response was that “he knows that Phoenix real estate prices are skyrocketing”.
From the end of Aug to the end of Sept the client did authorize two price reductions with the last bringing the price to $259,999 on September 23rd.  The client did advise that if he didn’t receive any offers by Oct 1st he was taking the property off the market.  Much to our surprise an offer for $260K came in on 9/30/19.  The buyer wanted 2% seller concessions which the seller agreed to.  Next the buyer completed the inspection and made their formal repair requests.  Their requests were as nit picky as tightening outlets!  Unfortunately, because the buyers were purchasing so above market they were expecting the seller to make an eleven year old house brand new.  Their requests were as unreasonable as the sellers purchase price!  However after a few days of negotiating both sides agreed on repair items and the appraisal was ordered.
When we received the appraisal with a value of $240K we were not surprised.  We sent the seller a copy and he reduced the price to $255K.  As his agent we were obligated to present the offer to the buyer’s agent and they declined.  We would have been surprised if they had proceeded and agreed to pay $15K over market price.
With all of our Phoenix real estate sales we try to educate buyers and sellers to the current market prices so that educated decisions can be made.  We certainly can’t prohibit a seller from listing their home at a sales price they decide but we were very surprised that a buyer represented by an agent put an offer in without having any comparable properties to support the price.
For more tips on purchasing Phoenix real estate listing to our podcast “purchasing phoenix rental property”.  For recent Phoenix real estate sales statics visit the ARMLS statistics.