why buyers don’t take list prices too seriously,

and other quirks of the system.

Here, check out the 39 homes that sold for a million $$$ or more in the Tucson Foothills this year – and see what they were originally listed for vs what they eventually sold for – and you’ll see why buyers take list prices with a big grain of salt. Plus, see what the % of sold price to list price, as published, is actually showing you and, what it’s not showing you.

Here are the numbers that you’ll see along with each property;
original list price - list price at time of sale - sold price 
+ here and there, the % of sold price/original list price (% sp/olp)

off we go,

6830 N Solaz Cuarto
$1,050,000 > $1,050,000 > $1,050,000 – (100%)
(Ok, so that’s not such a good one to start out with, but hang in there and you’ll see what I mean)

4200 N Painted Quail Place
$1,950,000 > $1,095,000 > $1,050,000 - (54%)
*using only the list price at the time of sale, the mls will report this home as having sold for 95% of list price ($1,050,000/$1,095,000 = 95%)  And while that is  technically correct, it is also, at best, only part of the picture. And it’s the part that ignores the fact that this and other homes have been reduced and reduced  before they reached a marketable price. If you’re a buyer or a seller, wouldn’t you want to have a more complete picture of the market, including  the good, the bad and the ugly???

6301 N Placita Arista
$2,395,000 > $1,100,000 > $1,100,000 (sold for 46% of original list price)
*yet the mls reports this house as having sold for 100% of list price – is that funny or what

2801 E Plaza Encantada
$1,149,000 > $1,149,000 > $1,149,000 (100%)

5910 N Mina Vista
$1,795,000 > $1,100,000 > $1,000,000 (56%)

6440 N Desert Wind Circle
$1,295,000 – $1,195,000 – $1,025,000 (79%)

6480 N Via Del Emigrado
$1,295,000 > $1,195,000 > $1,050,000

3860 E SUMO NOVENO
$1,195,000 > $1,195,000 > $1,210,000 (101%)
*this went to contract within 36 hours of being listed

6050 N Desert Sun Court
$1,198,000 > $1,198,000 > $1,000,000

3250 E Sun Cloud Place
$1,200,000 > $1,224,600 > $1,000,000 (83%)

1887 E Desert Garden Drive
$1,495,000 > $1,250,000 > $1,075,000

3550 E Entrada Del Sol
$1,450,000 > $1,295,000 > $1,030,000 (71% sp/olp)

5855 E Placita De La Zuerencia
$1,800,000 > $1,295,000 > $1,200,000 (67%)

4845 N Camino Escuela
$1,300,000 – $1,300,000 – $1,000,000 (77%)

7441 N Moon Spirit Lane
$1,350,000 – $1,350,000 – $1,100,000

3771 E Sumo Octavo
$2,195,000 – $1,350,000 – $1,200,000 (55%)

6640 N Los Leones Drive
$1,450,000 – $1,350,000 – $1,175,000

2436 E PLACITA DE LA VICTORIA
$1,800,000 – $1,385,000 – $1,150,000

6363 E Paseo Otono
$1,395,000 – $1,395,000 – $1,250,000 (90%)

6652 N Avenida De Posada
$1,895,000 – $1,495,000 – $1,420,000 (sold for 75% of original list price - which tells you something about the market - but reported by the mls as selling for 95% of list – which, if nothing else, certainly makes things look a whole lot better than they really are)

7021 N Mission Hill Lane
$2,495,000 – $1,495,000 – $1,395,000 (56%)

4630 E Palais Place
$1,495,000 – $1,495,000 - $1,100,000 (74%)

7051 E EAGLE POINT Drive
$2,499,000 – $1,495,000 – $1,350,000 (54%)
*this will show in mls reports as having sold at 90% of list price, gosh!

4150 E La Paloma Drive
$2,450,000 – $1,500,000 – $1,100,000 (sold for 45% of olp)

5280 E Mission Hill Drive
$2,900,000 – $1,500,000 – $1,220,000 (sold for 42% of olp)

4705 N Via De La Granja
$1,895,000 – $1,585,000 – $1,450,000

7264 N Ancient Mesa Place
$1,595,000 – $1,595,000 – $1,475,000

6460 N Thimble Pass
$1,997,500 – $1,599,000 - $1,475,000

6609 N Eagle Ridge Drive
$1,999,999 – $1,749,000 – $1,700,000

6954 E Gate Ridge Place
$2,150,000 -  $1,825,000 – $1,700,000

2192 E Desert Garden Drive
$2,499,000 – $1,995,000 – $1,800,000

2112 E Sentry Ridge Court
$5,900,000 – $1,999,000 – $1,765,000
*wow, that sold for barely 30% of its original list price – yet the mls will
report it as having sold for 88% of list price ($1,765,000/$1,999,000 = 88%)

5227 N Campbell Avenue
$2,695,000 – $1,999,000 – $1,600,000

1813 E Sahuaro Blossom Place
$3,200,000 – $1,999,999 – $1,900,000 (% of sp/olp is 59%)
*this, however, will be reported as selling for 95% of list price. Period.

3401 E Camino A Los Vientos
$2,900,000 – $2,000,000 – $1,925,000

3601 E Lone Hill Place
$2,350,000 – $2,200,000 – $1,800,000

7755 N Ancient Indian Drive
$2,795,000 – $2,250,000 – $2,000,000

6755 N Hole In The Wall Way
$3,200,000 – $2,495,000 – $2,200,000

7203 E Stone Canyon
$2,495,000 – $2,495,000 – $2,100,000 (84%)

Because so many list prices were still so unrealistic this past year, buyers continued to ignore them. Because buyers know that if they can’t come to agreement with sellers today, that sooner or later the prices of those homes are going to come down. So they’ll wait.

It’s a fact. Those 39 homes are all the homes that sold in the foothills this year at million or more. Look at the huge gap between where most of the homes were listed and where they eventually sold. And these are the lucky ones that did sell.

see thefoothillsToday.com
to find your Foothills home

Comments

[Arizona Home Inspection]

This is a great post. I think that way too many times buyers only look at the monthly mortgage payment and fail to account for everything else that goes with home ownership.
Principal, interest, taxes and insurance are just the beginning. Whether your a first-time buyer or thinking about moving up, you should plan for extra costs that could add up to thousands each year. Give yourself the piece of mind and get a home inspection.