Maricopa Real Estate Overview
March 15, 2012 By
MARICOPA COUNTY REAL ESTATE IN RECOVERY
If you have lived in the Valley of the sun for longer than 7 years, you will remember the mad rush in the real estate market of the 2005 real estate market. Most homes were receiving multiple first day offers and values were sky rocketing. Today, in comparison the first 2.5 months of 2005 to the first 2.5 months of 2012 in our Maricopa County real estate. The similarities in the chart below as something to pay attention to.
In addition to the above numbers taken from ARMLS®, it should be noted that the average DOM (days on market) for 2005 was 84 days while 2012 is only 81 days.
What does this mean to you, the Maricopa County homeowner? It means that now may be a great time to sell your home. The inventory is very low offering limited competition for your home sale. Prices are rising slightly, not at the crazy rates of 2005 but at a sustainable 3.8% on average with some areas seeing even higher increases.
If you’re looking to buy a home in Maricopa County, you will need to be prepared to make an offer the first day a home comes on the market. Your offer must have full loan approval or proof of funds (cash) for it to be considered over other multiple offers which may come in and you may need to be prepared to pay more than the list price.
Will prices continue to increase? I don’t think anyone truly knows the answer. I do know that our AZ Maricopa County real estate market is very low on inventory, the demand is very high, prices are seeing some improvement and the interest rates are still at historic lows.
If you’re interested in selling your home in the Phoenix Metro area call me for your free market analysis.
What remodel offers the most return on investment?
December 27, 2011 By
Remodeling’s annual Cost vs. Value report for 2011-2012 has just been released. The national report is broken out by region and compares the average cost for 35 popular remodeling projects with the value those projects provide at resale. Projects are also broken out between “midrange” and “upscale” home improvements.
Most exterior replacement projects have routinely rewarded home owners with more bang for their buck, and this year is no exception – with exterior replacement projects comprising seven of the top 10 most cost-effective projects nationally in terms of value recouped.
See the top seven projects here: 7 Best Remodeling Projects for the Money
See Remodeling’s full Cost vs. Value report for 2011-2012 here.
Best Bang for Your Buck Renovations
December 24, 2011 By
Most homesellers want to get the max for their money at the closing table.
Whether you’re looking to sell right away or in a few years, several sound renovation investments are worth the money, according to HGTV real estate expert Heather Unger.
Here are her renovation suggestions:
- Rev up curb appeal – A green lawn and fresh exterior paint are sure ways to attract potential buyers. Plant colorful flowers or hang flower boxes from windows, repair cracked walkways and choose a neutral, pleasing exterior color to maximize your home’s appeal.
- Upgrade the kitchen – This is where you’ll get the best return on your investment. Buyers want granite counter-tops, stainless steel appliances, modern cabinets and hardware and updated light fixtures. Think IKEA kitchen: modern and functional. For the average kitchen in a 2,000-square-foot home, you’ll spend $8,000 or more for basic upgrades.
- Redo the bathrooms – After kitchens, bathrooms are the next places to get the best bang for your buck. Granite counter-tops, modern faucets and light fixtures and tile floors are popular with buyers. The more you can do yourself, the more money you’ll save. Expect to spend about $3,000 or more. You can save even more by buying store floor models for sinks and vanities, or going to granite bone yards for materials.
- Add space – If you have the money, consider adding square footage to your home by finishing your basement, expanding the master closet or knocking down some walls to create a more open floor plan.
Low-budget options
Don’t have time or a ton of money for major renovations? Don’t worry, a clean, clutter-free home goes a long way for many buyers.
Here are Some tips:
- Make your home smell incredible. Get your air-conditioning unit professionally serviced and cleaned. Most companies charge under $150, and it goes a long way in removing household odors and allergens. Also, use plug-in fresheners and fabric deodorizing sprays.
- Steam-clean the carpets – Instead of replacing carpets, call a professional to have them steam-cleaned and watch the transformation. You will be delighted to see that steam-cleaning the carpets (price depends on carpet area) is money well-spent.
- Remove clutter – Check your closets and donate old clothes, shoes or other items that you haven’t used in the past year. Buyers want to see storage space; this goes for the other closets in your home, as well as garages, if you’re having showings, remove all personal photos and clear off all appliances and knickknacks from countertops and display shelving.
- Create an outdoor living space – Adding a sense of comfort to your patio, deck or backyard adds value to your home. Stage your patio or deck with a table and chairs, as well as an outdoor rug, lively plants, some colorful flowers or a small fountain. Get rid of unsightly weeds and keep the lawn mowed and presentable.
What Does Short Sale Mean?
December 10, 2011 By
Buying Short Sales: What You Need to Know
As the real estate market remains volatile, one of the best options for many new homebuyers is purchasing a short sale home. But, what does “short sale” mean? A short sale is when lenders have the opportunity to sell a property before the bank forecloses on the home rather than after. While buying short sales creates the opportunity for real estate investors to pay well-below-average housing prices for properties within ideal locations, there are still drawbacks.
If you’re interested in buying short sales, here are a few things you need to be aware of:
Why Banks Short Sale Pre-Foreclosure Homes
The last thing a bank wants to do is own a property secured by the bank’s loans. When a property owner is in default and owes more than what the home is currently worth, the bank will work with the seller to offer the property for less than they owe on the mortgage loan.
How much money will banks take off? When buying short sales, how much should I expect prices to fluctuate? On average, banks estimate that holding on to the property after foreclosure will cost up to 18 percent of the home value to complete the inspection, appraisals, repair and maintenance. Instead, it is a much easier and financially sound decision for banks to sell the home short to avoid any third-party inspection process.
The Negative Side of Buying Short Sales
Buying short sales might seem like a good deal for the buyer, but that’s not always the case. Here are three major conflicts buyers and sellers face when a short sale, pre-foreclosed home is on the market:
- Time: Don’t let the name fool you. Buying short sales takes a very long time. There’s a whole gambit of scenarios of why a short sale might be delayed, but many of the hurdles buyers have to overcome have to deal with secondary financing on the homeowner’s original mortgage, bank processing delays and private mortgage insurance policy breakdowns. Buying short sales is a very complex process, which can leave the short sell buyer in housing limbo for up to six months.
- Condition: Short sale homes often need additional maintenance and repairs. When the current property owner is unable to pay the mortgage on the home, more often than not the condition of the property diminishes over time. Additionally, short sale homebuyers should take into account that the property will have had more than one previous owner, which adds to the wear and tear.
- Lender Restrictions: Banks can renegotiate a short sale at the last second. If a new law passes, the market begins to change or the bank finds out more information about the property, they reserve the right to change the terms of the contract at any point in the process. Banks will also refuse to pay for extra services like seller closing costs or inspections. If you want something specific inspected on the property, you’re probably going to pay for it yourself.
Short sale homes are the real estate market’s diamond in the rough. It’s true that buying short sales can be a very tricky process, but for the flexible and patient homebuyer, the short sale home can be the dream house they’ve been searching for. If you are looking for a short sale in Arizona click here.
Realtor.com survey: Holidays are ‘good time to sell’
December 6, 2011 By
Real estate pros say ’tis the season for more serious buyers, less competition
Most real estate professionals always advise sellers to list their homes during the holiday season rather than waiting, citing more serious buyers and less competition among properties, according to a recent survey from Realtor.com.
The property search site’s Holiday Home Selling Survey gathered responses from 429 real estate professionals surveyed online between Oct. 26, 2011, and Nov. 8, 2011. The “holiday season” was defined as Nov. 23, 2011, to Jan. 2, 2012.
Among respondents, 60 percent said they would always advise a seller to list a home during the holiday season and agreed that “it’s a good time to sell,” while 30 percent said they would sometimes advise it if the seller were motivated. Only 1 percent said they would never advise it because “selling during the holiday season is always a bad idea.”
The vast majority of respondents, 79 percent, said more serious buyers were one of the biggest benefits of listing during the holidays, while 61 percent said less competition among homes was a plus. Only 17 percent said cold weather making homes look cozy was an advantage.
Indeed, 39 percent of respondents cited winter weather as one of the biggest challenges to putting a home on the market during the holidays. An equal share said buyer vacation and celebration schedules were a problem.
But the biggest challenge, noted by 63 percent of respondents, was keeping a home “open house ready,” meaning clean and staged, during this time of year.
Selling a home during the holidays requires employing different strategies from selling a home during other times of the year, according to the survey.
More than eight out of 10 respondents said online listing photos were particularly crucial for homes listed during the holiday season. The main reasons cited were that buyers attend fewer open houses because of busy schedules or winter weather, while sellers also host fewer open houses during this time.
The majority of respondents, 74 percent, said pricing a home to sell was even more important during the holiday season, and 40 percent said staging a home was more important at this time of year. Nearly a third said being flexible with contract terms such as move-in dates and when closing costs were paid was more essential during the holidays.
The way a home is staged during this time of year is also significant, according to the survey. Almost all respondents said they advised sellers to put up some seasonal decorations, though there were differing opinions on the types of decorations.
A 37 percent plurality said homeowners should put up some nonreligious holiday decorations to make a home feel inviting, while 28 percent said sellers should put up all of their holiday decorations, including religious ones, to make their home feel festive, the survey said.
A similar share, 27 percent, said sellers should put up seasonal decor that is not suggestive of specific holidays, while 8 percent of respondents advised sellers to stage their home without any decorations at all.
Eighty percent of respondents said they encourage sellers to light their fireplace when staging a home during the holiday season, while 62 percent said they suggested sellers update outdoor lighting because the buyer is more likely to see the home at night due to shorter days.
Other popular staging advice for sellers included using winter-scented home fragrances before an open house, making the home feel more cozy through reading nooks and blankets on couches and beds, setting the table to showcase holiday entertaining, and playing seasonal music that is not specific to a particular holiday, the survey said.
By Inman News
Inman News™
Should I Take My Home Off The Market During The Holidays?
November 28, 2011 By
When you look at your holiday calendars you may find the months already overloaded with seasonal obligations — shopping, entertaining, children’s pageants, charity work, decorating the house, and so much more. If you are also trying to sell your home, you are under extra pressure to keep your home in “showtime” condition. And that could be the last thing you need before the holiday spirit is broken.
It is understandable why you would be tempted to take your home off the market during the holidays. And the list of justifications is long. If you are too busy, buyers may be also, and you may find your efforts unrewarded by enough showings. And what if you do get an offer? You may be faced with the possibility of packing and moving during the busiest time of the year. Besides, you can give your house a rest, and it will have better momentum after the holidays. Better to just pack it in and start fresh in January, right?
But wait! Top-selling Realtor Jennie Ling says taking your home off the market during the Christmas season is a mistake. A vice president of Virginia Cook REALTORS® and the number one sales person in her company for almost every one of her more than 35 years in the real estate business, Ling exclaims, “The house sure isn’t going to sell off the market! What is the advantage of that? So you’re busy. Let your Realtor do the work. You can leave in the morning, go to work, go shopping, and let your Realtor take care of things.”
“The holidays are my best-selling period. Why? Because most people take off work sometime during the season. The husband and wife are both off and want to see houses. I showed homes on New Year’s Day last year. I like the holidays because the buyers have more time, and they can look at homes together.”
Before you take your home off the market, consider the following points:
- Although buyer activity may appear to slow down, the buyers who are actively looking during the holidays are that much more serious. Ling believes the home market is no more affected at Christmas than during other “busy” period. If that were so, the market would shut down throughout the year as families concentrate on spring weddings, June graduations, summer vacations, and autumn back-to-school activities.
- Many buyers deliberately choose to shop for a home after the busy spring and summer rush. They know that it will be easier to look, and that negotiations will be less stressful. They may not have children, or they may have grown children, so moving to accommodate the school year isn’t a consideration. Finding the right home at the right price, however, is.
- Relocating families often don’t have a choice in when they can leave for their new destination. Although 68 percent of transferring families have children, many families have to transfer during the middle of the school year. These families are that much more motivated to get their families settled in before either before the January semester begins, or to arrange for the move during spring break in March. If you sign a contract by New Year’s Eve, the timing couldn’t be more perfect.
- At Christmastime, our culture focuses on family and the home. Preparing for the indoor activities of winter is one of the most enjoyable periods of family life. Allowing buyers to view your home during this most hospitable of seasons lets them better picture their own family life in the attractive environment you have created.
- When is your home ever more beautiful and inviting? You have cleaned and decorated, and your home looks like a picture postcard. If the results are good enough for family and friends, they will surely be good enough to impress your buyers. Get the family team on board to do a five-minute blitz pick-up every morning to keep holiday messes to a minimum.
- With reduced inventories and motivated buyers, you will have all the members of the MLS on your team. You may find you have more showings than you would if your marketed your home during a busier time of the year.
- If you do get a contract, you can arrange the terms to suit your needs. If moving during the holidays isn’t an option, you can put in the closing date of your choice. “Most people can close 30 to 60 days after a contract is written, so there is plenty of time,” Ling says. “Possession and closings are are very negotiable.”
by Realty Times Staff
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