How much under list price are homes selling for in the Phoenix area?

“How much under list price are homes selling for in the Phoenix area?” This is one of the most common questions I get from buyers.  Most of my buyers are coming from out of state or another country and they’ve heard stories of the unbelievable deals you can get on homes for sale in the Phoenix area.  

Are there deals out there?  Of course there are but many of those “deals” are not the type of home my buyers have been looking for.  Most want a home in close to model condition with as many upgrades as possible.  They’re not looking for a home with missing ceiling fans and wires hanging out of the ceiling, stained carpet, vinyl flooring and a dirt backyard.

So what ARE homes selling for?  Well…they’re not selling for full price, that’s a given.  Most offers on my listings are coming in at 10% under list price but most of those buyers are just testing.  They know they are going to get a counter offer and if they’re lucky the seller will split the difference with them. 

Some buyers are being coached by alien forces that if you aren’t getting the home for at least 8% under list, you’re not getting a good deal.  Ok…STOP THE MADNESS!

There’s a lot that will go in to determining what a home is worth and that’s where I come in.  You’ve found the home of your dreams.  It’s upgraded nicely and is better than any other home you’ve seen.  First things first. I’ll run comparative sales & listings in the neighborhood.  How does this one compare? 

Next we’re going to look into how long it has been on the market.  Have there been any price reductions?  Is the seller displaying classic signs of desperation, like multiple price reductions especially a nice big one recently?

Or, has the home been overpriced on the market for 200 days without a price reduction?  That’s telling me the seller may have unrealistic expectations and may not budge, or if seller does budge…you may be in for a rocky escrow fighting for every morsel from fixing a leaky roof to installing a simple high loop in the dishwasher line.

Then there’s all the classics to consider…location (does it back to a busy road or train track?), and upgrades (gramas avocado green linoleum and harvest gold appliances are just not going to cut it anymore). And let’s not forget…is this the PERFECT home for you.  Don’t forget to give that some value.  Don’t cut off your nose to spite your face and walk away from the perfect home because you’re not getting it for 8% under list.  Remember, not every home is priced 8% over value…some homes are actually already priced at a “great deal”.  Don’t get wrapped up in negotiating so you can boast to your friends about how much under list you paid for your home.

However, when It’s all said and done, a good agent can guide you to strategically get you the home you love for the very best price, by not insulting the seller if a lowball offer is not in line with what all other factors are saying. 

So, you still want to know “how much under list price are  homes selling for in the Phoenix area? Here’s a list of last week’s list price/sales price ratios in the East Valley as well as current number of homes for sale in each area.  Information that may help you in your quest for the ultimate great real estate deal!

  6/1/08 Chandler  
Ahwatukee     Active Listings 1941
Active Listings 655 Average List Price $435,549
Average List Price $546,420 Average Days on Market 137
Average Days on Market 137 Prior Week  
Prior Week   Sale Recorded (Closed) 88
Sale Recorded (Closed) 39 Average List Price $307,767
Average List Price $372,668 Average Sales Price $293,111
Average Sales Price $359,625 Average Sales to List Ratio -5%
Average Sales to List Ratio -3%
Fountain Hills     Gilbert  
Active Listings 503 Active Listings 2256
Average List Price $1,016,881 Average List Price $398,535
Average Days on Market 188 Average Days on Market 135
Prior Week   Prior Week  
Sale Recorded (Closed) 12 Sale Recorded (Closed) 110
Average List Price $583,398 Average List Price $297,969
Average Sales Price $555,483 Average Sales Price $286,161
Average Sales to  List Ratio -5% Average Sales to List Ratio -4%
Maricopa     Mesa  
Active Listings 835 Active Listings 3311
Average List Price $200,084 Average List Price $358,611
Average Days on Market 117 Average Days on Market 139
Prior Week   Prior Week  
Sale Recorded (Closed) 42 Sale Recorded (Closed) 116
Average List Price $157,674 Average List Price $283,088
Average Sales Price $154,874 Average Sales Price $269,256
Average Sales to List Ratio -2% Average Sales to List Ratio -5%
Paradise Valley     Queen Creek  
Active Listings 454 Active Listings 1620
Average List Price $3,637,676 Average List Price $279,860
Average Days on Market 217 Average Days on Market 135
Prior Week   Prior Week  
Sale Recorded (Closed) 4 Sale Recorded (Closed) 107
Average List Price $2,105,000 Average List Price $167,702
Average Sales Price $1,839,250 Average Sales Price $165,832
Average Sales to List Ratio -13% Average Sales to List Ratio -1%
Scottsdale     Sun Lakes  
Active Listings 4062 Active Listings 213
Average List Price $1,277,429 Average List Price $323,988
Average Days on Market 184 Average Days on Market 187
Prior Week   Prior Week  
Sale Recorded (Closed) 83 Sale Recorded (Closed) 10
Average List Price $717,377 Average List Price $286,490
Average Sales Price $659,682 Average Sales Price $267,950
Average Sales to List Ratio -8% Average Sales to List Ratio -6%
Tempe        
Active Listings 496
Average List Price $389,526
Average Days on Market 117
Prior Week  
Sale Recorded (Closed) 37
Average List Price $294,514
Average Sales Price $285,158
Average Sales to List Ratio -3%      

Visit www.AmySellsAZ.com for complete weekly market updates on Phoenix East Valley Real Estate.

Amy Jones RealtorAmy Jones specializes in residential, vacation homes & cabins, as well as retirement communities in the communities of Ahwatukee, Chandler, Fountain Hills, Gilbert, Maricopa, Mesa, Paradise Valley, Queen Creek, Scottsdale, Sun Lakes, and Tempe