Buying the Highest Priced Home or the Lowest Priced Home....Which Makes More Sense?
Yesterday was an AH HA day for my long time clients in determining which house they should make a offer on. They have been looking at homes in various neighborhoods for the last month or so. This home will be their retirement home so it was important to find exactly what they were looking for in in this home. Their requirements were a Single Level, 3 or 4 bedrooms, Big Family Room with Open Floor Plan, 2 Car Garage, Small yard and Absolutely No Pool.
There is a particular active adult community, Westbrook Village that I knew they would love living in for a long
time to come. Westbrook Village has two golf courses and two community/activity centers along with a ballroom, restaurants, you name it, it's got it. It is a fabulous place for active adults to live and play!
I knew of a home in Westbrook Village that had been on the market for over a year or more that was in my clients price range. I wondered why that home hadn't sold so I researched the sales history and discovered exactly why it was still sitting on the market. It had been so overpriced that agents totally dismissed showing the home as the seller wasn't serious about selling the home. And I mean it was overpriced by 50% up to about a month ago. The home was now in a trust and the trust officer was clearly approaching the sale of the home seriously.
The couple looked at the home a few weeks ago but the lady just wasn't sold on living so far away from kids and grand kids and didn't want to make an offer. We continued the search and I wasn't so sure we could find exactly what she wanted in the price range and amenities she needed as well. The Phoenix real estate market is on fire and every home in their price range was sold within days, and normally over list price.
The husband asked me about the house in Westbrook Village every few days
or so and I kept telling him I thought it was an excellent buy.
Yesterday the husband called and said his wife was willing to consider this home, could we look at it again? And could we look at another home with a pool they had been considering as well? We set up a time and met at the home in Westbrook Village. She liked the home this time around. It was so darn funny watching the husband act like a agent while showing her around - he made us all laugh! He wanted her to see the home how he saw it. She did and then....
She flipped the switch and was interested in the other home again. As an experienced agent I knew the other home was priced way to high for that neighborhood. In fact it was the highest priced home. I knew as well that the home in Westbrook Village was the lowest priced home in the neighborhood making it an excellent investment.
It was time to SHOW her rather than TELL her what was going on in both neighborhoods
I pulled out my ipad and pulled up all the market activity in the Westbrook Village Area. The home we were at in Westbrook was at the top of the MLS list and was the lowest priced home in the neighborhood. Next I pulled up the other neighborhood and it was the exact opposite. The house she was interested in was at the bottom of the MLS list and the highest priced home in the neighborhood and overpriced by a long shot.
It was pretty easy to see which home made the most sense in price, neighborhood and amenities. They made an offer on the Westbrook Village home. We received an acceptance today after a long weekend of my clients wondering and waiting anxiously to find out the result. They are excited to start their new life in their new home. I'm so happy it worked out for them!
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Real Estate and Working with my Clients is my Passion!
I take my clients trust in me very seriously. I'm known for 'telling' it like it is, not what folks might want to hear or think it should look like. Now that may sound kind of tough, but think about it, in the long run if you want to buy or sell a home you need to know the real facts in order to make a wise choice.
If you want the truth and the whole truth, I am the
Phoenix Real Estate Agent for You.
When you are ready to buy or sell a Phoenix Area Home, I will be your advocate, guide, and fierce negotiator. I will work hard to make your buying or selling a home as smooth and stress-free as I possibly can - even if it's a short sale. Guaranteed.
Call me and let's talk Real Estate 602-380-4886
Sincerely,
Anna 'Banana' Kruchten
Contact Anna 'Banana' Kruchten - Phoenix Real Estate - Arizona's Top Banana!
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Anna 'Banana' Kruchten
Owner/Broker, CRB, CRS, GRI
ADRE Certified Real Estate Instructor
Phoenix Property Shoppe
602-380-4886
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74 Comments on Buying the Highest Priced Home or the Lowest Priced Home....Which Makes More Sense?
Great post, your expertise paid off. This could be a commercial for iPad too!
Love all of your advice. I was just having a conversation yesterday about iPads and if they are really necessary over what my phone can do. Clearly, you have presented a great case. Thank you and congrats on your expertise and your contract!
I definitely like the fact that you kept sharing all the features about the different homes with them and it helped them make a decision. Great job!
Great job.
Count me in too! I will be buying an IPad in the near future! I loved how you mentioned ABSOLUTELY NO POOL and then the wife was interested in the house with a pool - go figure. It is great when one of the buyers becomes the agent and points out all the positives. Which brings up another blog post - how much/how hard should a buyer's agent "sell" the house?
Great job and great use of the iPad - I love mine and find it so much more convenient than my laptop.
Sounds like you did a wonderful job for your clients. Sometimes you just have to show them in black & white what is really happenning with value before they can see it.
Buying the lowest priced in the best location raises the bar
But buyers need to understand the just because you want a great price doesnt mean you need to try and strip the seller of their true equity. Past sales are yoiur comps.
Working with a good agent will help you get the best price and then you can personalize your new home
MarleneDietrich@Realtor.com
949-400-1021
Good job, you professional you! You made them see the light right then and there. That is the way of the future.
When I first started in real estate 19 years ago, clients told me right off they did not want to buy the highest price in a neighborhood. I've never found anyone who wanted to be in that position.
Isn't it satisfying when they listen to us and are willing to be educated. Too often emotion gets in the way of common sense and while I want them to fall in love with something, sometimes it's my job to say "but..." and give them some more info. I'm glad your market is so great - and great place to live, or at least to visit - I haven't lived there.
I like your resourcefulness in researching that home to find out why it had been on the market so long. People dismiss stale listings all the time, yet sometimes they are hidden gems. What a great story for your future buyers to read - demonstrating the value of having a thoughtful agent on your side, helping you understand the market and patient enough to look at all the factors in making a decision - emotional and financial.
Since most people are visual learners, as opposed to auditory learners, having your iPad and SHOWING them is really smart business, Anna. Congratulations to you!
Evelyn well you know what I'm talking about! Great talking with you the other day!
Gretchen - agreed!
Cathy and some figure it out sooner rather than TOO LATE. Which can easily happen in our HOT HOT HOT Phoenix real estate market.
Rich - the previous agent had it for over a year or so. This agent only for 90 days. I am glad the first one wasn't dealing with a full deck of market knowledge. It worked well for my clients.
Christine - it surely pays off in the long run for everyone!
Gabe - exactly which I was afraid of on this one. I am totally surprised another agent didn't figure this one out.
Slyvie - yes sometimes it just takes more time and it's all good!
Diane - good to now go buy one!
Travis - try to take a couple of classes for those that are smarter than us. I did and it was fab!
Christine - good luck with your buyer!
Rachel - ipads top phones in a heart beat. Most folks cant' read what's on the phone and you can't really tell the story.
Rob - just part of our job! I like your stuff on facebook!
Kimo - thanks
Ann - yes that happens more than one realizes. They say they want this but end up with that. It's all good. This lady didn't want a pool because of young grandbabies. I was very careful about that as it would be so sad if she got a pool thinking it was her only choice and then something happened.
Terry - totally! I love being spoiled!
Jirius - This one was interesting for sure. Great people - I'd do whatever I needed to for them!
Ric - :) it is the NOW!
Marsha - most do not for sure.
Mary - I'm one of those that gives me advice and shows the facts. Most folks are willing to listen and take heed. And Phoenix is a wonderful place to live! I love it here!
MC I've always enjoyed hunting out the good deals for my clients if I think it's a good fit. It's kind of fun when it works so well.
Paddy - important thing to know.
Lottie exactly. Especially when it's an emotional time.
Dear Anna,
Price does not equal value. That is where your expertise comes in. Glad Phoenix is rising from the ashes.
Most agents would have tried selling her the overpriced house - it was what she wanted after all. I look out for value and future resale for my clients and I would have done the same thing. Congrats on getting the offer accepted!
Congratulations Anna, It looks like your persistance and technology paid off!
You are a smart cookie! Let the data speak for itself and let the buyer come to the right conclusion. Well done!
So much easier for us to see the logic in the decision, as our emotions are in check. My guess is that when we are the ones in doing the buying or selling, logic goes out the door for us too!
I have some client going through the same thing. The bargain home or the home they really want in a particular area.
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