In a highly competitive Phoenix real estate market that regularly sees thousands of new listings each month, the agents at Tru Realty are often asked …
That question is best answered after engaging our client with some expert analysis that I’ll share below. Complicating the answer is the fact that the overall market can differ from the submarket meaning your home in Arcadia could be positioned much differently from your home in North Scottsdale. Both homes could be trending differently from the Phoenix market as a whole.
In our real estate agent training, I work to make sure that the Tru Realty agents have the skill set and information necessary to make them experts at understanding market conditions. This allows them to consult their clients on achieving the best possible position for their home sale and subsequent home purchase. Understanding market conditions also helps frame expectations with the client on sale price, expected listing duration, and purchase price.
There are three basic steps to reading the market:
Identify the Submarket
Step 1 is to identify the location of the home being sold and the desired area that a seller is looking to purchase. As the pundits always say, the three most important words in real estate are location, location, location. This sets the course for our client’s journey and the guidance we need to provide as real estate professionals.
Pull The Market Data
Step 2 is to pull the specific location data from the MLS via map search. This provides you as the real estate agent with what’s available, what’s pending, and what’s recently been sold.
Analyze What Homes Are Available, Pending, Or Sold
Step 3 is to analyze what the available homes to sold home ratio is. For example, if there is a list of 15 homes, 5 are available, 4 are pending and 6 are sold, this gives us a 5:10 ratio; making this particular neighborhood more of a seller’s market. A seller’s market is reflected by a market where there are a greater number of homes sold and pending than what is available for purchase. You can work this math for any given neighborhood where you have a client who is looking to buy or sell a home.
At Tru Realty, providing our clients with the information they need to have an excellent real estate experience is a priority. Understanding market conditions and explaining these factors to our valued clients is just one way we excel at buying and selling homes.
Asher Cohen is a licensed Realtor and Director of Sales at Tru Realty. He specializes in residential real estate in the greater Phoenix area. Asher and his team are committed to professional, reliable, and knowledgeable service to all of their clients—from first time home buyers to seasoned investors. He’s experienced in all facets of the market and takes great pride in listening to his clients’ needs to provide the best possible service.