As of January 2023, year-over-year sale prices in the Tucson real estate market rose by 5.1%. But total sales decreased by more than 40%. After many months of experiencing a seller's market where homes sold for above asking and in a matter of days, it has now become more of a balanced market. However, sellers should not despair. Buyers are still out there looking for a Tucson home to purchase. But they expect to pay an appropriate price for it. Here are a few pricing strategies you may want to consider before you list your home.
Pricing Strategies for the Home Seller
This is why you need a great Tucson REALTOR® on your side. They can find out the current market value of your home. Many real estate experts suggest that you list your property for that amount to draw in potential buyers.
Below Market Value
Another one of the pricing strategies that home sellers employ is listing it slightly below market value. Why? Well, most people look for a bargain, right? By listing even $5,000 below market value, you may receive an offer quickly. Sometimes, you might receive multiple offers and drive your final sale price up. However, that is risky in today's market. You might end up with only one offer at the lower list price or maybe even slightly lower than that.
Above Market Value
Finally, you might want to try listing your Tucson home above market value. In a seller's market, we see buyers paying higher than market value for homes. But today, it might mean sitting on the market for a while and eventually reducing your price anyway. Plus, even if you receive an offer for the above market price, anyone who needs to finance their purchase must get an appraisal for the property. If your property does not appraise for the sale price, the lender will not approve the buyer's loan. That means that your buyer may end up walking away. And, unless you lower your price, you face the possibility of this happening over and over again.
Discuss pricing strategies with your REALTOR® before settling on an initial list price. They know the market. They have the experience. Trust them to steer you in the right direction. If you don't trust them, you might want to look for another one.
Rebecca Schulte, Schulte Real Estate Group, Your Source for Tucson Real Estate