East Valley Real Estate News & Market Trends

 

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

 

 

July 30, 2018

4 myths about selling your home

THE 4 MOST COMMON MYTHS ABOUT SELLING A HOME

What more could you want than to get your home sold for top dollar in short order without any hassles?  That's what every home seller wants but often they dont take the time to get the right information to help make that happen.   

If you take a moment and read on, I will debunk the 4 most common myths about selling a home. Being armed with good information before you put the property on the market,helps you on your way to a successful sale.

 

MYTH 1: If a home gets an offer quickly it was probably priced too low.

REALITY: The day your home goes on the market, there are already qualified, motivated buyers in the market whose criteria matches your home.  Often these are buyers who have already made offers on other homes and got beat out by a competing offer, so when your home hits the market there are often multiple buyers interested in your home.  And when it’s priced and marketed correctly, these buyers will act quickly because they don’t want to risk losing the house to another buyer.

 
MYTH 2: If we are willing to wait long enough we’ll get more for our home.

REALITY: There is a correlation between time on the market and the property getting top value, but not the correlation many sellers think.  Generally, the longer it takes, the less the seller makes.

Why?  Because of the WWWTH Syndrome (“What Wrong With That House”).  If a property has been on the market for an extended period of time, buyers begin to wonder why no one has bought that house.  The result is often lower offers or no offer at all.

 
MYTH 3: Better marketing of my home will get me a higher price.

REALITY: The reality is that marketing does not make your home worth any more.  The importance of effective marketing is to put your home in front of the highest number of qualified buyers to get full market value for it.  Have you ever heard of a home selling for more than the market value because it had great fliers and a cool website?

 
MYTH 4: I will just wait until the right buyer comes along who is willing to pay the price I want for my home.

REALITY: It is statistically proven that the longer a house sits on the market the lower the offers it will generate, whether it has price reductions or not.  When new buyers come into the market, they want the fresh inventory, not the stale listings that all the previous buyers have rejected.  Your home becomes a “been there, done that” property on the MLS, making agents and buyers much more likely to submit low offers, or even worse, pass over it completely.

Pricing your home right (properly) from the beginning will bring you the most qualified buyers and get you the most amount of money, in the best amount of time, with the least amount of hassles.

 

July 23, 2018

When is the best time to sell my house?

The mysteries of the universe reach far and wide but the one universal question that keeps many of us up late at night is, "When is the best time to sell my house?"

Studies have been done, statistics analyzed, market trends plotted and mapped, and yet the answer seems to elude us.  I am here today to reveal the true answer to one of the greatest questions ever asked!

When is the best time to sell my house?  NOW is the best time to sell your house. Whether you are reading this on the day it was written, or some random date in the future, the answer remains the same.

You see, once you have made the decision to sell your house, NOW, whenever that is, becomes the best time to do it.

Making that decision is one of the biggest steps in the whole process.  Why?  Selling your house is often a very emotional decision.  You have raised your children in this house and you can still see the pencil marks from the growth charts in the laundry room door jamb. Or, the family room has served as the  backdrop for many great family get togethers, or, like one of my current clients, maybe you grew up in the house yourself and it has been the family home for over 50 years.

The good news is you have many wonderful memories to cherish. However, once the decision to sell is made, you need to detach yourself emotionally from the house and view it as a business transaction.

Often, a seller who is still emotionally invested in the house will actually sabotage themselves without even realizing it.  They will price the house higher than what it is actually worth and then it will grow stale on the market and that brings on a whole other set of problems.

Once the decision to sell has been made, follow the advice of your Realtor and begin to emotionally detach from the house.  Your Realtor will be able to offer suggestions that will help you transition to viewing your home as a "product for sale" rather than the warm, memory filled home that it was for so long.  And that mindset is crucial to getting top dollar for your house.

Again, when is the best time to sell my house?  NOW!  Here is another reason why.

The day your home goes on the market, there are already qualified, motivated buyers in the market whose criteria matches your home.  Often these are buyers who have already made offers on other homes and got beat out by a competing offer, so when your home hits the market there are often multiple buyers interested in your home.
And, when it’s priced and marketed correctly, these buyers will act quickly because they don’t want to risk losing the house to another buyer.

Are there seasonal trends to the home selling process?  Of course there are but these trends need not be the determining factor as to when the best time for you to sell your home is.

Do things slow down during the Holidays?  Yes they do. But, those who ARE out shopping for homes are SERIOUS buyers who are ready to purchase and those are the ones you do not want to miss out out on.

Do things typically pick up in the spring time?  Yes they do.  There are more buyers out looking but there are also more houses on the market competing for those buyers.

Need more reasons?  Try this one.

Many sellers feel like if they just wait it out, the perfect buyer will come along and pay them what they want for their house.

There is a correlation between time on the market and the property getting top value, but not the correlation many sellers think.  Generally, the longer it takes, the less the seller makes.

Why?  Because of the WWWTH Syndrome (“What Wrong With That House”).  If a property has been on the market for an extended period of time, buyers begin to wonder why no one has bought that house.  The result is often lower offers or no offer at all.

Infact, statistics prove that the first offer on the house generally is the best offer.  Work with that first offer now to negotiate the most money you can for your house.  Waiting for something better to come along seldom has a better ending.  NOW is the best time to sell your house.

It is statistically proven that the longer a house sits on the market the lower the offers it will generate, whether it has price reductions or not.  When new buyers come into the market, they want the fresh inventory, not the stale listings that all the previous buyers have rejected.  Your home becomes a “been there, done that” property on the MLS, making agents and buyers much more likely to submit low offers, or even worse, pass over it completely.

Just like at the bakery, do you want the day old bread or the warm fresh bread right out of the oven?

When is the best time to sell my house?  As soon as you have made the decision to do so.  Arguements can be made for different seasons of the calendar but the reality is the best time to sell your house is now, when it it right for YOU, whenever that may be.

If now is the best time for you, I invite you to get together with me and explore your options and see what it would take to get your house sold and get you on to the next chapter in this very excting adventure called life.

(This content was originally published on my blog at https://activerain.com/blogsview/4851102/when-is-the-best-time-to-sell-my-house-)

July 22, 2018

I want to sell my home myself

 

Recently, an acquaintance approached me and asked if I was "still a 6% guy" or if I would consider reducing my fees to gain a listing. He explained that his girlfriend was about to list her home with an agent friend of hers and he had told her that "a true friend wouldn't charge 6%" so he reached out to me.  We have had this conversation several times over the years so I left it at "I guess we will have to agree to disagree" on the definition of a "true friend".

 

But, that got me thinking and I was reminded of a time a while ago when this same person said he didnt want to pay a commission when selling his house so  he was going to get licensed and sell it himself.  He thought this would be a great savings.  Ultimately, he never went to school nor did he ever sell his house.

I imagine this guy is not alone in his thoughts about paying a commission to a Realtor and many people have the thought, "I want to sell my house myself".

Everyone wants to save a buck. I get that. We all want discounts at the store, restaurants and many other places. Being fiscally responsible is a very important characteristic.

However, when it comes to the largest financial transaction of your life, the sale or purchase of a home, it makes sense to use a professional to ensure the job is done right and because it is vital to have an advocate in your corner.

If you are thinking of selling your home yourself, there are some things you ought to know. 

  • Do you know how to prepare your home for sale?

  • Are you knowledgeable in setting the right price for your home?

  •  Do you have the ability to negotiate the sale? You’ll be paying the buyers agent +/- 3% to negotiate AGAINST you.

  • Are you prepared to field all the calls and make time to set and keep all the appointments?

  • Are you prepared to qualify a legitimate buyer?

  • Do you understand all of the steps that take place after an agreement has been reached?

  • Do you know the most effective way to advertise your home?

This is just a handful of the many questions you will need to be able to answer when you are struck with the thought, "I want to sell my house myself".

But wait!  There's more.....

According to the 2015 Profile of Home Buyers and Sellers, which is a study conducted by the National Association of Realtors, you may want to rethink your strategy.

Consider this:

  • Only eight percent (down from nine percent) of recent home sales were FSBO sales. This is the lowest share recorded since this report started in 1981. (This means that 92% of all homes sold were agent assisted homes.  That leaves a mighty small pool of opportunity for the do it your selfer.)
  • The median age for FSBO sellers is 54 years.
  • Seventy-seven percent of FSBO sales were by married couples that have a median income of $104,100.
  • FSBOs typically sold for less than the selling price of agent assisted homes; FSBO homes sold at a median of $210,000(up from $208,700 the year prior), yet lower than the median of all homes at $245,000. (Did you catch that? Let me say it again: FSBOs typically sold for less than the selling price of agent assisted homes)
  • FSBO homes sold more quickly on the market than agent assisted homes. (Great news, right?  Hold on...) All FSBO homes typically sold in less than two weeks—often because homes are sold to someone the seller knows. (Statistics show that more than half of all FSBO's sold to someone they already knew.  Factor that into the already small pool of FSBO buyers, and your pool of buyers has evaporated to a small puddle.)
  • Seventy percent of successful FSBO sellers were satisfied with the process of selling their home.
  • Nine in 10 FSBO sellers who both knew and did not know the buyer were satisfied with the home selling process.

The type of buyer that will typically call you, the guy who says "I want to sell my home myself", is the discount buyer. They dont want a professional involved in the transaction, like, for example, an agent that actually knows the value of the property.

Their goal is to buy your house for as cheap as they can. They will always expect you to discount your price because there are no agents involved.

And, dont forget, as a FSBO, you are already severely limiting your buyer pool. If you are not willing to offer a  co broke percentage to a buyer’s agent, you have reduced your meager little pool even more.

Finding a qualified, unrepresented buyer, will be a daunting task. So…..for the sake of argument, let’s say that you are willing to offer a 3% co broke to a buyer’s agent. You are halfway there now. Is saving the other 3% (or whatever amount an agent in your area may charge for his services) worth the extra effort and rsik you take in selling your home on your own?

Given all the marketing resources a Realtor has available to him/her, and the time and energy they would devote to getting your home sold, wouldn’t you agree that the other 3% would be money well spent?

 

After you have considered the above information, and you still want to proceed on your own, I wish you the very best.  If on the other hand, you are curious and would like to simply explore your options, with a true Real Estate Professional, who will have your best interests in mind, and who will be your advocate in the selling process, please call me TODAY. The consultation is FREE, with No Obligation.

And, If I am not the right guy for you, and I cant help you achieve your goal of selling your home, I will tell you upfront, becuase I would rather let you go now, rather than let you down later.

Still thinking "I want to sell my home myself"?

 

 

July 22, 2018

What is involved in a Closing?

Not too long ago, I was sitting at the Closing Table with my buyers and they were signing all the necessary documents at the Title Compnay.  Excitement and anticipation were running high as this was the final step in closing on their new home.

They were moving from a city about three hours away and all of their belongings were packed away in a U-Haul truck which was parked in a nearby hotel parking lot.

Within the next 24-48 hours, my clients would be settling in to their perfect dream home.

SCREEEECH!!!

Hold the phone!  Have you ever seen an inflatable bounce house rapidly deflate?  That is what happened at the closing table.

My clients were small business owners and were self employed.  Qualifying and cash to close was never an issue.  However, those pesky business taxes can be so confusing.  You see, personal tax day is April 15th, as we all know, but business tax day is October 15th and it was looming.

Working with a strong, knowledgeable mortgage broker, we had cleared all of the hurdles with just days to spare.  IRS tax transcripts can be difficult to obtain and the lender had required the past two years transcripts.

Then, without any warning, while signing the documents, we learned the lender now wanted three years worth of transcripts.  This deal had already been delayed and had been revived from life support previously and this was the straw that broke the camel's back.

With no way to obtain the transcripts from three years ago in a matter of hours, the deal fell apart. My clients lived in a hotel for the next 6 weeks until they were able to close on a different home.

That closing went smooth and there were no issues.  Why, because we had everything in place (this time) to ensure a successful clsoing.

So, you may ask, "What is involved in a closing?"

Among various other tasks, the title company will coordinate with the mortgage lender to receive the loan documents for closing.  Once the Escrow Officer receives those documents, he/she review all forms and ensure compliance with the lender requirements for closing. 

With these documents, the Escrow Officer is then able to complete the Closing Documents.These documents, formerly known as the HUD-1, are some of the most important documents to sign because they detail all of the costs associated with the purchase and sale of the property. 

When you get a mortgage, you will need to pay closing costs, which are fees – charged by lenders and third parties -- related to the purchase of the home. So, in addition to owing the lender the down payment on the home and the principal and interest related to the mortgage, you will also owe the lender and third parties closing costs, which you usually pay at the time that you close on your mortgage.

Most of the time, it is the home buyer and the home seller who pay the closing costs.  Some costs are always attached to the buyer, other costs are always attached to the seller and everything else can be negotiable.

What charges go into your total closing costs?

Closing costs vary widely based on where you live and the property you buy. Closing costs often include things such as:

  • A fee for running your credit report.

  • A loan origination fee, which lenders charge for processing the loan paperwork for you.

  • Attorney’s fees.

  • Charges for any inspection required or requested by the lender or you.

  • Discount points, which are fees you pay in exchange for a lower interest rate.

  • Appraisal fee.

  • Survey fee, which covers the cost of verifying property lines.

  • Title insurance, which protects the lender in case the title isn’t clean.

  • Title search fees, which pay for a background check on the title to make sure there aren't things such as unpaid mortgages or tax liens on the property.

  • Escrow deposit, which may pay for a couple months' property taxes and private mortgage insurance.

  • Recording fee, which is paid to a city or county in exchange for recording the new land records.

  • Underwriting fee, which covers the cost of evaluating a mortgage loan application

 How much will you pay in closing costs?

Typically, home buyers will pay between about 2 and 5 percent of the purchase price of their home in closing costs. So, if your home cost $150,000, you might pay between $3,000 and $7,500 in closing costs. On average, buyers pay roughly $3,700 in closing costs, according to a recent survey.

At closing, all documents are explained to all parties prior to signing.  Settlement lasts approximately one hour.  After closing, the Title Company will disburse all the monies collected at settlement pay off and release the existing mortgages on the property and prepare the loan documents to be returned to the lender.

It is the responsibility of the Title Company to make sure all documents are properly recorded in the courthouse, such as the new deed and mortgage.  They will also ascertain the release of any existing liens on the property.

Once the paperwork has recorded, ownership of the property transfers to the buyers and they will recieve thge keys to their new home.

What can I do to assist with a successful closing?

You will need a strong Realtor and a strong mortgage broker advocating for you.  That said, your responsibility is to follow their instructions and respond to their requests in a timely manner. Time is of the essence and any delay on your part in providing requested documents/information could literally be the difference in getting into your new home or not.

Remember my clients at the beginning of this post?  There may have been some teeth pulling in getting all of their documents together and we saw how well that worked out for them!

Also, DO NOT MAKE ANY SIGNIFICANT purchases during the escrow period.  Especially on credit.  A credit check was conducted when you were approved for your mortgage and it will be done again at closing to ensure nothing has changed.

Resist the temptation to go and buy new furntiure or decorations for the new place until AFTER all the ink has dried and you are in your new home.

Avoid applying for new credit, even if you get 20% off on today's purchase at Kohl's.  It could kill your ability to close the loan.

The escrow process does not need to be difficult.  By staying in close touch with your Realtor and your loan officer, and by responding to their requests in a timely manner, you should have no problems or surprises when you are finally seated at the closing table. 

Can something come out of nowhere and attempt to derail the deal? Of course! But, that's what keeps it interesting!

In most cases however, it all ends with "Congratulations!  Welcome to your new home!"

 

July 31, 2017

Curious About Local Real Estate?

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We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

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