Garages Matter at Luxury Properties16 Aug
The importance of garage space in Arizona, especially for luxury homes: A $35-40K investment would have resulted in a large pay day for this seller.
Paul had a 4,400 sq ft luxury home in Sonoran Hills but only had a 3 car garage which was a major issue for a home this size. In Arizona, most homes do not have have attics or basements, so having garage space for storage is a prerequisite especially for homes priced over a million dollars. With homes this size (5 bed/5 bath), chances are this will be more than a 3 car household.
Jeff strongly encouraged Paul to make the $35-40K investment to build addition garage space which would dramatically increase the value of the home by $75-100K and reduce days on the market.
Paul decision was not to add more garage space and we listed above value at $1,150,000.
Buyers have the option to include the number of garages in their home search. At this price range, buyers are most likely looking for a home equipped with at least 4 car garages. Jeff urged the seller to reduce the list price as the home languished on the market but the seller would not budge and the contract was ultimate cancelled. Paul ended up re-listing with another agent a few month later at Jeff’s recommend price range and sold just below $1.1M.
This contract situation led to the creation of Jeff’s re-list strategy where, if a property sits on the market for too many days, we remove it from the market and re-list in 90 days. After the 90 days period, the days and market will reset and we start anew. As of recently, the 90 day reset has been reduced to 45 days. When a property goes back on the market, we list at the same or an adjusted list price. Also, while the home is off the market, we consider possible renovations.