The land sales that are taking place today, and there are quite a few, are those that are aggressively and realistically priced. Some seller’s believe that their property has fallen 20% in value since 2005 or 2006 but in reality that number is closer to 50 or 60% and sometimes more. And unfortunately, that is true for pretty much the entire Tucson Land Market. When a market is trending downward, you not only have to price aggressively but have to price WELL BELOW current value to induce buyers to act now rather than wait for further, expected reductions. You have to leap frog below current value. Every day in the MLS system there are between 3 and 10 price reductions on land and virtually no price increases. Seller’s are trying to find the price point that will create a sale.

For example, in the MLS today, a 4 acre, custom parcel with all utilities on the southwest side that was bought for $150,000 in 2005 was reduced to $65,000. It was priced at $95,000 with no activity but now I think it will sell. Also, a gated 4 1/4 acre parcel at Butterfly Mountain (a high end Tortolita Mtn. Subdivision) which was purchased for $299,000 in 2005 was reduced to $129,000. That’s an aggressive, and what I believe, an appropriate price to create a sale in short order. I also noticed that a 1 acre lot in Coyote Ridge, an Oro Valley subdivision, that was bought for $340,000 in 2005, sold for $146,000.

Seller’s must look at the facts and Realtor’s must know how to find and present them.

This entry was posted on Friday, August 20th, 2010 at 8:39 am and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.