Posted On: October 15th, 2014 5:14AM
Posted On: May 14th, 2014 4:51AM
According to the May 1st monthly housing report recently released by Arizona State University’s WP Carey School of Business, Phoenix real estate may continue a cooling trend that started in the latter part of last year. Despite being in a traditionally busy time for real estate sales, buyers simply aren’t buying except for those in the market for luxury homes which is one segment of the market that is very active due to a robust stock market.
With the number of home sales dropping in the lower to mid-level price range, there is much speculation as to why the demand for Phoenix real estate is down. One major consideration is that there simply aren’t as many buyers in the market for homes right now. A large percentage of people purchasing homes traditionally have been younger, first-time home buyers. These days, folks in this age range 18-32 (AKA Millenials) are increasingly turning to living with their parents due to poor job prospects and high student debt.
There is an abundance of potential home buyers waiting on the sidelines though, former home owners who short sold their homes or lost them to foreclosure are eligible to qualify for FHA mortgages after 3 years. Over the next few years these potential buyers will be able to apply for mortgages and it is anticipated that these so-called boomerang buyers will lift the market again.
Another factor that may ultimately stimulate the market is the fact that lenders are also being impacted by a lack of buyers. It is very likely that lenders will loosen the lending requirements they’ve been exercising since the housing market crashed.
Regardless of the reasons for the lackluster performance of Phoenix real estate, it is a great time to buy a home. Inventory is good, the bidding wars of last year are gone, sellers are more open to negotiating, seller concessions are back in most price ranges and interest rates are at near the record lows. Buyer demand can change quickly so if you are thinking about buying, don’t wait long or prices and interest rates may go up. Give me a call or text me and let me show you how I can help you with your home search.
Posted On: May 5th, 2014 4:46AM
When thinking about buying or selling a Phoenix home, there are numerous real estate agents to choose from. With all the choices, knowing which Realtor and agency to work with requires first knowing what to look for. Here are some essential qualities of a top Realtor and real estate agency:
Licensed Full-Time Agents Only: Home sellers and buyers often decide to go with a friend or someone they know to list their home. It is great to work with someone you know because the comfort and trust level may be there from the start. However, there is one exception to this rule; make sure that whomever you choose to represent you, he/she is licensed Realtor and is a full-time agent.
There are those that decide to get into real estate part time and work on weekends while working another job during the week. The challenge with part-time realtors is they tend to not be as experienced and not in-tune with the local markets. This may have an effect on pricing your home appropriately, negotiating with other realtors that are working the market full time, and several other areas. Also, with as many time sensitive documents involved in buying or selling a home, would you want an agent who can't return calls, emails or fax/email documents until they get off work at 5-6? The bottom line is if you are serious about buying or selling a home, the agent you choose should be just as serious.
Dedication and Responsiveness to the Client: Along the same lines as the previous point, it is important to choose an agent that is easy to reach and responds quickly to your questions and concerns. Realtors spend a lot of time on appointments, showings, and closings so there will be times when they cannot be reached. However, a responsive agent will make sure to be back in touch with you and able to address your questions or concerns quickly.
Agent/Agency has Vast Experience and Expertise: While it is true that every agent was once just starting out, it is important that the realtor you choose has some level of experience or at the very least is part of an experienced team. Buying a home is the largest investment you can make so you do not want to leave it up to someone without a good amount of market knowledge and experience.
Agent/Agency is Tech Savvy: Technology is a very large part of the real estate market today. A good agent or agency will have a strong Internet presence and the ability to utilize technology to widen the scope of their marketing efforts.
Agent/Agency is Effective at Marketing: For home sellers, effective marketing is essential in making sure the house receives maximum exposure. A good agent will be well-respected by other agents and agencies in the area. This gives them the ability to leverage their network of contacts to help their clients receive more prospective buyers. In addition, a top realtor should be up-to-date on all the latest and most effective trends for selling a home in today’s real estate market.
Strong Negotiator: No matter which end of the table you are sitting at, strong negotiating skills are critical. When it comes time to write an offer or examine the offers coming in, you need an agent that is experienced with this process and will make sure you leave the deal in the best financial position possible.
It is important to do your due-diligence before choosing a real estate agent. This is your money and future so spend time researching and interviewing agents/agencies to make sure you are comfortable with your realtor choice. The more time you spend up front researching the right candidate to help you buy or sell your home, the better you will feel with each step of the home buying or selling process because you can trust you are working with a good Realtor.
Posted On: April 24th, 2014 3:05PM
Let's dissect the opportunity that currently exists for the Millennial generation who are willing and able to purchase a home right now. Here are a couple other ways to look at the cost of waiting.
Let’s say you're 30 and your dream house costs $250,000 today, at 4.41% your monthly Mortgage Payment with Interest would be $1,253.38.
But you’re procrastinating, busy, you like your rental, moving is such a drag...You decide to wait till the end of next year to buy and all of a sudden, you’re 31, that same house is now $270,000 and the interest rates have increased to 5.7%. Your new monthly payment is now $1,567.08.
The difference in payment is a staggering $313.70 per month!!!
Do the math, that's over $10/day you're throwing away. your annual additional annual cost would be $3,764.40 at 5.7%.
Or a different way to look at it...
•There goes your morning coffee everyday on the way to work (Average $2) with $12 left over.
•There goes Friday date Night! ($80 x 4)
•Need a new car? You could get a 20K car for $300.00 per month.
Or what about that family vacation? Maybe your new house could really use a deck for entertaining or a kitchen/bathroom remodel? I could come up with a lot of ways to spend the extra $3,764.40, and I'm sure you could too!
Maybe you could use the $3764 to save for retirement or pay off the mortgage early? Over the course of your 30 year loan, now at age 61, hopefully you are ready to retire soon, you would have spent an additional $112,932, because when you were 30 you hesitated for one reason or another and missed out on low interest rates and lower pricing.
Or maybe there wasn’t an agent out there who educated you on the true cost of waiting.
Posted On: March 30th, 2014 6:35PM
Selling your Phoenix area home?
There many questions you can ask your listing agent but below are some very important, ones that I voluntarily discuss at all of my listing appointments.
1) How many years they have been in the business? This shouldn't be your determining factor, an agent that has been in the business 30 years doesn't make then a better agent. You want an agent that is tech savvy, invests in their education, understands the local laws and buying/selling process thoroughly, isn't so busy that you get handed off to someone else after they take the listing, and has the proper marketing package.
2) How they plan to market your property outside the MLS. Get a clear understanding of the marketing plan before you sign and hold them to it. There is so much more to marketing a property then just putting it on the local MLS. I can't tell you how many times I see seasoned agents putting bad photos of a listing on the Internet. Any picture can be enhanced with online tools. Remember, buyers are making their decision to even view the home by what they see in the online ads. Make sure they have descriptions that talk about the homes functionality so a buyer knows some of the perks before seeing the home.
3) Ask them about their track record and success rate. How many homes have the help buy and sell in their career? Read past client testimonials to get a sense of how they work, look for a common thread. Avoid testimonials from their friends, you want real client testimonials.
4) Find out what taxes and fees you are responsible for, including their professional fee.
5) Be very clear on what you are signing. Make sure the agent goes through the contract and explains each section so you have a clear understanding.
6) How often they work with buyers? An agent that works with buyers understands how the buyers think. This can help you with getting the home ready to list.
7) Is this their full time job or are they doing it part-time? Part-time efforts get part time results. Do you want a part time pilot flying the 747 you are taking to Hawaii or a dedicated professional?
8) How well they know the local market, trends, etc. You want to know how long they feel it will take to sell your home and what you should expect from the market. It is so very important for your agent to set this expectation up front.
You want an agent that is going to represent you and your property in the best possible light and will always have your best interest in mind.