This comprehensive guide will show you how to sell a house in Tempe, Arizona. We will cover pricing strategies, preparing your home for the showings, why to have your home pre appraised, and finding the right real estate agent. If you are wondering what your home might sell for in today’s Tempe Real Estate Market, Call 480.458.8007 or use our free property free home value service. It only takes 15 seconds to fill. We will follow up with you once you once you receive your value estimate.
Know The Tempe Real Estate Market
It’s important to know the market. While the average single family home in Tempe is selling for around $380,000 and the average condo (townhome, lofts, etc.) is selling $230,000, there are variances everywhere. You can update yourself on the Real Estate Market with our report (s) or request a home valuation for your property here.
Choose The Best Real Estate Agent
The best real estate agent is not always defined as the biggest team or top producer, although it can be. The best agent for you is someone that will accomplish your goal. Find a Realtor® that has proven success your geographic location or home type. For example, if you are selling a luxury house, you want a luxury home agent that knows how to sell your home by telling its story. If you are selling a high rise condo, you’ll want someone that knows the high rise market. Interview a few agents and don’t choose the one that offers the lowest commission (if you are selling) or say yes to Ibuyers who work for the investors.
Set the Right Price [The CMA or BPO]
Real estate appraisers call this the appraisal and agents call this a CMA (Comparative Market Analysis) or BPO (broker price opinion). The appraisal is the most accurate of the three options and is the most expensive. A Realtor or Broker should not charge you for a CMA or BPO. The right price is the one someone is willing to pay. It is never the real estate agent that sets your price or the appraiser. While the seller may choose the list, price based on market data provided by the Realtor® or by a “need to walk away with” bottom line, the real estate market actually dictates the sales price. Once you have a look at your market competition, what sold, and what didn’t sell, your list price should be obvious. In today’s hot sellers’ market, the best strategy (overall) is to price your house just higher than the average or right at the average of these listings. A good real estate agent will guide your pricing strategy. Don’t forget to use the expired listings, the one’s that didn’t sell, to learn where NOT to price your house. Pricing your listing on the high side of the comparable could mean that you wind up chasing the price down and selling for less than what you would have if priced right to begin with.
- The Best Real Estate Agent is NOT the one who Sets Your House at the Highest Price but one who knows how to work the market in your favor!
The Right Selling Price Affects Your Bottom Line
When you’re selling your home, the price you set is a critical factor in the return you’ll receive. That’s why you need a professional evaluation from an experienced realtor. This person can provide you with an honest assessment of your home, based on several factors including:
- Market conditions
- Condition of your home
- Repairs or improvements
- Time frame
In real estate terms, market value is the price at which a particular house, in its current condition, will sell within 30, 90, 120+ days.
If the price of your home is too high, several things could happen:
- Limits buyers. Potential buyers may not view your home, because it would be out of their buying range.
- Limits showings. Other salespeople may be less reluctant to view your home.
- Used as leverage. Other realtors may use this home to sell against homes that are better priced.
- Extended stay on the market. When a home is on the market too long, it may be perceived as defective. Buyers may wonder, “what’s wrong,” or “why hasn’t this sold?”
- Lower price. An overpriced home, still on the market beyond the average selling time, could lead a lower selling price. To sell it, you will have to reduce the price, sometimes, several times. In the end, you’ll probably get less than if it had been properly priced at the start.
- Wasted time and energy. A bank appraisal is most often required to finance a home.
Agents have known it for years – Well-kept homes, properly priced in the beginning always get you the fast sale for the best price! And that’s why you need a professional to assist you in the selling of your home.
How a Realtor® estimates the Price of your property [CMA or BPO]
One of the best things a top agent does is prepare the CMA (Competitive Market Analysis) or BPO (Brokers Price Opinion) in a way that allows you, the seller to SELF DISCOVER the best list price for your house. The better the data is, the more likely you are to set the correct list price that will get your house sold fast and for top dollar. In fact, pricing a house correctly could lead to multiple offers in the right market.
Here’s what you would like to see to set your price:
- 3-5 Active( currently on the market)or Under Contract [Even Better] real estate listings similar to yours.
- 3-5 Recently Sold properties similar to yours. The more recent the better. Past 30 days, then 60, then 90 +
- 3-5 Listings that did NOT sell so you can compare the reasons why and learn from them.
- Location. Location. Location. Consider the closes properties similar to yours. That includes active, pending, under contract, and sold.
- Your 1st comp search should start a couple of months back, then a couple more, do not exceed six months.
The key to coming up with the right price is in choosing the best possible “comps”. Whenever possible, the comparable properties should be in the same neighborhood. If not the same neighborhood, within the same immediate area (within a mile), or such as the elementary school zone or district. If not in the immediate area, then possibly the zip code. If not, then go beyond that.
Next, the size and bedrooms should be close. Square feet comparative properties should not have a large difference. Best to stay within 200-300 square feet. If a larger difference is noted, a price per square foot adjustment should be made.
Tempe houses are referred to as “Cookie Cutter” houses. Depending on the year and the builder, floorplans didn’t differ much. Each builder tends to offer 4 or 5 models. Because of this knowledge, homes are generally grouped into price ranges based on size and location. While upgrades can sell a home faster, they won’t necessarily bring in a higher sales price.
If you hire a top agent in Tempe that really knows how to market a property (Juan Pesqueira, Realtor), your upgrades and features will be highlighted in a way that showcases your house to break through the Cookie Cutter label.
Will I get a higher price for my house because it has a pool?
The answer depends on your market and recent sales and for someone’s desire to buy your property. Having a pool does not automatically increase your property value. Yet in a real estate market like we have here in Tempe, pools are a popular feature. With larger lots harder to come by, listings that feature a pool could bring in a higher sales price even if only $5-$10K+. Refer to the previous section on the CMA.
How can I Increase my Home Value?
While these things won’t necessarily increase your home’s, value compared to active listings and recent sales, they can get more showings and more interest which can bring in a higher number of offers and higher offers (potentially multiple offers in a hot market)
- Paint and Carpet
- Do repairs in advance
- Use “selling” colors
- Remove Pets and odors where possible
- Make showings easy
- Include a Home Warranty
- Stage your home to sell for more value. This one is easy to debate. I have sold homes with or without furniture and do not believe it adds much value unless you’re trying to hide or enhance something.
- De-clutter. Clutter makes the home appear smaller and of lesser value
- Use the Best real estate agent that will feature your home at its finest.
What are the Costs Involved in Selling a home?
While selling a house is going to vary in costs from transaction to transaction, there are some seller fees you can expect to pay. You’ll have the Agent commissions, Title Fees, and Concessions to the buyer. The fees a seller pays vary in a buyer’s market vs. a seller’s market.
Average Real Estate Commission when Selling a House
There isn’t one. All commissions are negotiable. What you will see here in Tempe, is that the seller (unless selling by owner) generally pays the listing agent (the agent that markets your property) as well as the buyer’s agent (the agent that procures the buyer). This can be an even split or a higher amount can be offered to one side or the other. Keep in mind that the commission you offer is shown on the MLS sheets. Let’s say you negotiate a 6% listing agreement with your listing agent. You could give your listing agent 3% and the buyer’s agent 3%. You could give the listing agent 4%, and the buyer side 2% or the listing agent 2% and the buyer side 4%. It’s up to you to have this conversation with your agent and discuss why you might do this.
While you may think the real estate, agent is “making out like a bandit”, you should know that the average real estate agent in Arizona makes less than $50,000 a year. When they accept a 3% listing, a portion is going to their brokerage, into costs of doing business such as occupancy, licenses, team members, gas and insurance and so forth. Their profit is probably 1%. This is why it’s tricky to consider someone who discounts their commission. You must wonder just exactly what they are cutting to take that listing and how that affects your home sale!
What is the Average Time to Sell a House in Tempe, Arizona?
The average says on market for a Single Family Home (average $380,413) in Tempe is 51 days and declining. May hit as low of 0! A Condo (townhome, loft, etc.) in Tempe (all sizes and price ranges included) sells in 39 days on Average with a $230,000 sales price for early 2020.
Paying Taxes when Selling a House
You may already know that, if you sell your property, you may exclude up to $250,000 of your capital gain from your taxes.
Most homeowners do not pay tax on a home sale. This is because the Internal Revenue Service lets you exclude gains of up to $250,000 from your tax return, not every property qualifies for the exemption, however, and there are limits on how often you can claim the benefit. Another option would be do a 1031 Exchange in Arizona to avoid taxes all together. I am not an accountant so its best you consult an accountant for accurate home taxes and or to do a 1031 property exchange in Arizona. However, if you are doing a 1031 exchange in Arizona make sure to hire a real estate agent with experience doing 1031 exchange transaction.
Do Open Houses Sell Homes?
Yes. Maybe not yours though. a Real Estate agent holds a house open for a couple of reasons. Of course, the first is to gain the most exposure possible for the seller.
The other is to gain exposure for them. This is not bad thing, it’s a win, win. If a buyer comes into the property, and can’t afford your house, but is qualified for one a couple blocks away, the real estate agent might be able to help them as well. Nosy neighbor might/will pop in to see your house because they want to sell theirs and would like to compare. The Realtor® may have a new listing client.
The best real estate agent will learn your neighborhood and have copies of SOLD comparable on hand to discuss why your property is a great offer to a potential buyer. They will have feature lists and can talk intelligently on the not so obvious features of a home (such as the air conditioning, new roof, or water filtration system.)
There are times when that perfect buyer pops into your open house at the perfect time and makes an offer. While it may not be something you require of your agent, it may be something you permit for additional exposure. Do keep in mind to tuck away valuables and understand that a lot of people will be walking through your home.
Selling a House “as is”
While you can sell a house in “As Is” condition, this doesn’t remove you from the obligation of filling out the Seller’s Property Disclosure Statement form. This form requires you to disclose all material facts to the potential buyer. ‘As Is’ is generally a statement that the seller won’t make repairs. The buyer still always has a right to a home inspection.
When is the best time to sell a house?
Stating the obvious, sell in a seller’s market and buy in a buyer’s market wherever possible.
Home is where you lay your hat, but you may one day find that your hat doesn’t belong there anymore.
What Goes Up Must Come Down
The fluctuations on the market may be giving you the nagging feeling that you need to be constantly looking over your shoulder in case you miss any local or national real estate trends. And your apprehension would be justified if the events of 2008 are anything to go by.
Your decision to move out may or may not be in sync with market trends, or with your better half’s opinion, for that matter. It’s safe to assume that the state of the economy is reflected in the property market, and having a wider perspective could help you anticipate the outcome of your decision, pin-point the best time to act and find closure with the way things pan out. Still, deep down, you’re probably aware, like so many of us, that you’re grasping at straws. There’s no point trying to predict what the market will be like ten years from now. You’d just as soon find your answers in a crystal ball than by analyzing real estate statistics for the best time to sell a house.
Know the Tempe buyer market
Tempe, Arizona real estate is busy year round. Some properties might attract parents of college students or investors who are looking buy rental property. These parents and investors like to buy during school session/summertime and have ready to lease or for the kids’ occupancy for the upcoming semester. You have 2nd or vacation home buyers, these buyers typically begin searching once the weather cools down (think snowbirds), some nut jobs like to look during the hot summers and that ok. Finally, you have the 1st time home buyers, millennials, etc. and they don’t care about season, they are looking year round, and use apps for that. Bottom line don’t over think, if you need to sell, must sell don’t hesitate. Tempe, Arizona has no off season but if you play the timing right will result in more buyers competing for your home.
What is the Worst Month To Sell a House?
In Arizona, there isn’t one. We don’t have snow to combat or seasons of change to concern ourselves with. While it’s true that there are often less buyers out during the holiday season, hot summer days we find those buyers to be incredibly serious about making a purchase.
Why Isn’t My House Selling (2nd times the charm)?
- *Overpriced – Most often this is the issue
- Competitive area offers buyer many choices
- Needs paint and/or carpet
- Smoke Smell
- Animal Smell
- Clutter makes house look small
- Not enough exposure to the market (not in MLS?)
- Neighbors or neighborhood is unappealing
- Too Personalized
- Something nearby unappealing such as power lines, traffic, noise, smells.
- Stigmatized Property (such as a murder).
- Showings are too hard to schedule (no lock box, showing availability is minimal)
- Bad photos of property in MLS listing Portals online decreasing opportunity
- Because you didn’t hire Juan Pesqueira! Call us next round 480.458.8007
If you have something causing your house not to sell, you need a creative agent and an aggressive pricing and marketing strategy.
Selling a house with Tenants
There are many reasons someone might need to sell a tenant-occupied property in Tempe or in the Valley of the Sun (Arizona).
You hate being a landlord, landlord life is not for you! You want to take advantage of Tempe, Arizona hot sellers’ market. You are looking to move money elsewhere. If you must sell a home with tenants its best to tread lightly and do some research. Everyday homes in Phoenix, Scottsdale, Tempe, Chandler, Mesa, Gilbert, Glendale, Peoria, and through Maricopa County Arizona are being sold with tenants in place. Here lies the good, the bad, and the ugly of selling a home with tenants plus some advice and guidance from top Realtor
I want to Sell My House
Awesome! Juan Pesqueira is licensed with Attorneys Realty Scottsdale and services Tempe, Scottsdale, Paradise Valley, and throughout Phoenix-Metro. I would be honored to have the opportunity to connect you with one. Contact 480.458.8007. Below is some of my recent SOLD in Tempe.