People often ask how high they should list their home over actual value because they want to make sure and leave room for negotiation. The trick is to find the sweet spot between listing too low (leaving money on the table) and listing too high where no one wants to see the table.
For houses that have sold so far in 2014 the average list price to sale price ratio across the entire valley is .97. That means on average in Phoenix / Scottsdale / Glendale / Mesa / etc homes sell for 97% of what they are listed for.
What about in Scottsdale?
Looking at the 5,000 sales so far this year in the city of Scottsdale, the average list price is $536,441 and the average sales price is $503,621. This list price to sales price ratio comes out to 96%, a little lower than the overall Valley. However, if you separate the houses by price point it shows a little different picture.
Homes Under A Million
There were roughly 4,500 homes in Scottsdale that have sold this year for under $1,000,000. The average list price is $402,412 and the average sales price is $388,882. That’s a 97% list to sale price ratio. Interesting that the ratio is higher compared to looking at Scottsdale as a whole, that tells us the ratio for homes above a million is lower.
Homes Over A Million
The remaining 500 homes that sold for over a million had an average list price of $1,765,944 and sales price of $1,650,584. Aka 94% list to sales price ratio.
What about for the Sibbach Team – Top Scottsdale Realtors?
Like the average for all of Greater Phoenix, like the average for Scottsdale under $1,000,000, the Sibbach Team’s list to sales price average for closings in 2014 is also 97%. When we represent seller’s we never want to leave any money on the table. Our goal is to maximize the money our clients get out of the sale of their house.
We’ve found the closer you list your home to actual value, the higher the offers come in. When you list too high over value, people feel they need to lowball you to bring your number down. Listing too high can scare buyers from bringing an offer because they don’t want to insult.
We’re top Grayhawk Realtors, some of the best DC Ranch agents, and the #1 North Scottsdale Real Estate Agent by sales volume because we shoot our clients straight. It’s why consumers voted us the number one real estate team in Arizona via Ranking Arizona. We’ve sold 82 homes in the last 12 months, so we have a pretty good gauge of actual value vs listing price. A long winded way of answering the question: How high should you list your home over actual value? 3-4%.
Now the piece we excel at… what is the actual value of your house? click here