Phoenix, AZ - Upscale subdivision neslted in hills, well-manicured common areas and homes, many tot-lots, top-rated Elementary School and High School within walking distance, well-managed HOA.
In this area, the owner's of a property divorce, and the property must be sold. It has been "customized" to suite their specific design tastes, which is not the current market trend. They list the home without making any changes to the décor. The home sits on the market for 9 months, with several low offers due to the cost of "changing" the décor. This same floor plan is selling in the mid to low $600,000's at the time. The listing expires.
Another Realtor is contracted to list the home, again no changes are made to the décor. The home sits for several more months without selling. It has now been on the market over one year.
The owner(s) take the home off the market for 90 days and make some partial changes, broadening the market appeal of the property (which is now vacant). Another Realtor puts the home back on the market (third time's the charm?). This particular Realtor initially lists the property in a range that the other homeowner's in the area consider low, but they understand because they are all aware of the "situation."
Then the slash and burn begins. As a Realtor who lists, sells and lives in the neighborhood, it is like watching a train wreck. No one can quite look away. Everyone is waiting to see how far this will go, and the other homeowner's are appalled and getting mad as heck that their property values are being lowered on a daily basis in an already difficult market. They are keeping more current on each price reduction than most of the Realtors in the area!
In the Phoenix market it is likely the home will close for less than the list price. The current list price is more than $100,000 below similar properties that are being marketed and sold within the neighborhood.
My question is two-fold - how does being the lowest priced Realtor in the area affect your future for clients in that area? and -- do you think that an overly dramatic low price conveys to potential buyers the image of a problem property?
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