For those of you that watch late night television you have probably seen the commercial featuring television personality Alex Trebeck where people ask “What’s my price Alex? It doesn’t matter who asks and what situation they are in, Alex always responds with the same price.
This commercial got me thinking the other day about pricing strategies for selling a home in the Phoenix market. The Phoenix market has been good for sellers for several years. I expect that to continue for the near term.
But one of the things that are very unique about the Phoenix market is the buyers. Buyers come to Phoenix from all over the country. Many come here having just sold their home in the last place that they lived and bring with them a pre-conceived notion of how to buy a home.
Some are cash buyers. Others require substantial financing. Some buyers are used to paying full price, sometimes above full price, to get the house they want. They have no problem making a full price initial offer. Some buyers expect that regardless of the list price they want a discount. Negotiating is part of their process. Receiving a low initial offer may only be the start of the negotiation.
What is a listing agent to do? Do you price it low and hope for a bidding war? Do you price it a little high with the intent to negotiate? Do you price it fairly but then refuse to negotiate? I have even seen attempts to list at a higher price while offering allowances or concessions in the MLS.
Regardless of which strategy you choose, your goal should always be the same. Get the best deal you can for your client.
Sometimes an offer isn’t just about price there may be other terms that can make the deal a win-win. When the buyer says, “What’s my price?” Remember, each buyer is unique. Each offer is unique.
Joe Domino is a Realtor® serving the Phoenix & Scottsdale metro area. You can find more great information by visiting his website at www.Scottsdale-AZHomes.com.
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