Listing into Market Headwinds

When a client approaches me with the possibility of listing their home, I'll often ask them if they have thought about leasing.  When the market is bad for sellers, I figure people would appreciate my honesty by mentioning attempting to rent.  After all, what is the point of losing money if you don't have to?

Sometimes selling is the only option.  In that case, I generally get into a discussion about expanded marketing options.  For example, I'll ask the person:   Are you familiar with agents that are members of multiple associations?  In addition, I'll ask about what type of video production would you like to employ to market your home?  What about toll-free hotlines with fax back fliers... are you familiar with those?

Membership in multiple associations is key to listing effectively.  Technically, I am an Arizona real estate broker, not just a Prescott area broker.  Therefore I have joined neighboring associations including the Sedona Verde Valley Association of Realtors and the Scottsdale Area Association of Realtors.  That way I can market my listings to thousands of additional agents.

But marketing listings into market headwinds is not only my responsibility.  It is also the responsibility of the homeowner to understand that they must offer additional incentives in order to attract willing and able buyers.  My favorite enhancement is to offer additional compensation to the buyer’s agent.  Obviously, I do not insist on this point.  However I do make a strong case that this is helpful in getting listings shown and sold.  Another attractive technique is to offer to pay the buyers closing costs.  Any seller that is willing to pay up to $5,000 in buyers closing costs will gain more attention to their listing.

Like many areas of the country Prescott Valley Viewpoint and Prescott Valley Pronghorn Ranch neighborhoods have seen their valuations off as much as 20%.  Also, bank foreclosures and REO properties are more common.  Because of this, effective marketing is more important than ever.  First of all if pricing is unrealistic I will immediately respond that it will not be possible for me to list the property.  Often I get the argument “let’s price it high and see what happens”.  I will often reply “let’s not do anything and see what happens”.   The result will probably be the same.  And frankly I'm just too busy now to fool around.

And finally, just a note for long-term holders of real estate in the Prescott Arizona area: Prescott real estate will continue to be a long-term attractive investment for owner occupants and investors alike.  As we look around our area, there is evidence of the “deep pocket investors” continuing to build luxury home developments, shopping malls and purchase large tracts of land for building purposes.  Other demographic factors including a treasure trove of baby boomers with dual income sources of retirement funds and inheritances from aging parents will continue to flood Prescott homes and condos with tremendous liquidity that must go somewhere.  What better long-term investment is there than real estate?

In addition, our area will always be less expensive than California, cooler than the sweltering desert valleys of Phoenix and Tucson and much closer to regional attractions like Grand Canyon, Sedona and the Colorado River.  Come visit our relatively small community and see what market headwinds for sellers can do for a motivated buyer in today's market.  And sellers – please keep in mind if you remain flexible with price and terms...the buyers will come.

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