By Mike Bodeen · 12 July 2021
It’s a nice 1529 SqFt single family 2 bedroom detached home in Anthem. A few months ago the owners had decided to upgrade their original Corian countertops to Quartz. But as life so continuously reminds us, things change. In this case the husband, and one of my closest friends, suddenly stepped into eternity. The wife decided it was time for assisted living, so arrangements were made by family members to help accomplish that, and The Bodeen Team, using the existing furnishings, staged the home for sale. We recommended the seller cancel the counter-top purchase, which they did.
The home had no updating. Original roof and AC. The comparable sales for two-bedroom homes in this community were in the mid to upper $200,000’s, but those closed 6-7 months ago which were too long in this market. The “comps,” on a per square foot (PSF) price however, for current sales, showed 3 BR units selling up to $345,000. Being a two bedroom unit and calculating that the PSF difference between a 2 and 3 bedroom home in this neighborhood was 5%-10% lower for the 2 BR’s. We priced the home at $325,000 figuring that there was a good chance to get competitive offers over asking price, but you’re never really sure.
We placed a sign on the property and put the home in the MLS “Coming Soon” category at the $325,000 price. A woman who drives this community on a daily basis called me to inquire. When informed about the price and that it was just two bedrooms, she scoffed, “that is sooooo over-priced – it’s ridiculous!” I thanked her for her opinion.
The home went on the market the next day, a Friday. We had offers of $335,000, and two at about $355,000 and $359,000. One for cash. One for half cash down. The property sold at $359,000 on the following Monday.
2021 has been the highest percentage of home sales over list price ever. In the wild 2009 market 39% of homes sold for over list. That had been the record. The fewest homes over list to sell was November of 2007 when only 8% sold.
Then, this weekend, we listed a home on Beardsley and Cave Creek Road. Again, The Bodeen Team staged the property. It was a nice 4 BR home with 1750 SqFt but with no upgrades. It had a very small pool. It does have one glaring problem. It looked at and heard, the #101 freeway, which usually is a 10% or more locational hit on value.
Well, we priced this home at $415,000.00. Jonathan expressed to the owner that he was optimistic that we’ll get good activity, but with the locational drawback, you never know. Listed on Friday, over 30 showings and 12 offers later, the home sold for $460,000, with no appraisal, no inspection contingency (as is), short closing, and a 30 day free rent back to the seller. All offers were over list price!
So how many homes sell for over list price these days? The answer is 60% of all homes. For homes priced below $500,000 it’s up to 71%. For homes priced over $1,000,000 the range is 9% to 31%. 19% of homes priced over $3,000,000 are selling over list as well.
Here are some charts of interest: