What Housing Inventory Tells Us About the Real Estate Market

Understanding housing inventory is key to understanding what condition the real estate market is in and how you should proceed, whether you’re a buyer or a seller.

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What is housing inventory and why does it matter?

Housing inventory is the total number of homes that are currently for sale on the MLS. That figure represents the active available inventory.

As far as the real estate market goes, it’s important to have a balanced inventory. Buyers and sellers should have equal opportunities to accomplish their objectives. A balanced inventory is considered four to six months’ worth of available homes on the market. For example, if there are fewer than four months of inventory, the market favors sellers. If there are more than six months of inventory, the market favors buyers.

"It’s important to have a balanced inventory."

What’s our current housing inventory like? As of right now, there are 24,000 homes available in Maricopa and Pinal County. That gives us four months’ worth of inventory. Last month, we sold 6,800 homes. The month before that, we sold 8,000. This trend tells me that the market is slightly favoring sellers. If you’re thinking about selling, now is probably the time to do it.

If we can answer any questions you might have about buying or selling real estate, please give us a call or send us an email. We’d love to help you!

Why You Should Ask Your Realtor About Lenders

Should you reach out to a real estate agent before getting a home lender? I recommend doing so for a few different reasons.

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Should you reach out to a real estate agent before getting a home lender? I think the answer is absolutely yes, and there are a few reasons why.

First of all, just like all real estate agents, not all lenders are created equal. Even though the lending process may be the same one larger banks use, the experience you have could be very different depending on the person who handles your loan.

On our team, we vet the lenders we work with. We recommend two incredible lenders: Primary Residential Mortgage and HomeStreet Bank. Both of the lenders that we work with are some of the top 50 loan originators in the country.

"Not all lenders are created equal."

Why does that matter to you? With their experience, these lenders are better suited to get your loan done. You can run into a lot of sticky situations during the loan application process, but these lenders have seen it all and they can get it done.

One of the big misconceptions out there is that big banks are easier to deal with. That is not true; the bigger the bank is, the more bureaucracy you will have to deal with. That actually makes it harder for you to get a loan.

Lastly, because of the volume of business we send our lenders, they are going to treat you well. They will go out of their way to make sure you have the most pain-free experience possible, and they will probably save you some money.

If you have any other questions about buying a home or about real estate in general, give me a call or send me an email. I would be happy to help you!

What’s a Good Number of Days on Market?

If you’re listing your home, it should be sold in under 30 days. Anything longer than that will rouse suspicion in the eyes of buyers.

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What is considered a good number of days on market?

One thing I can tell you is that listed homes aren’t like fine wines—they don’t get better with age. There’s an old adage among us real estate agents I’d like to share with you: the first offer you get is almost always the highest.

In our market right now, your home should be sold in under 30 days. If it stays listed any longer than that, people will start to wonder what’s wrong with it. The key to avoiding this is to set it up right. Most of the listings our team takes on sell within the first two weeks because we take all the necessary steps to get the best price in the least amount of time.

"Unlike fine wines, listed homes don’t age well."

If you’re trying to sell a home and it’s been listed for longer than 30 days, we’d love the opportunity to show you some strategies to breathe some life back into it. If you’re thinking about selling a home in the near future, we’d also love to show you what we do to list a home correctly the first time around.

If you have any questions about what’s going on in the market, give us a call or email us and let us know how we can serve you. We look forward to hearing from you!

Your House Has Multiple Offers. Now What?

If you find yourself with multiple offers on the home you're selling, how do you choose the best one for you? It's not always just about the highest dollar amount.

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I wanted to give some quick advice to home sellers who have received multiple offers on their home.

Say you put your home on the market, you did all the marketing correctly, and you find yourself with three offers. Is the highest offer always the best?

In a really hot market in some areas or Phoenix, some offers may even be over list price. The problem is that an offer over list price may not appraise, which could cause issues in the future.

The key is to take the highest offer that will appraise.

What else should you consider besides price? Well, there are always different terms and concessions in an offer. Is the buyer asking you to pay for a home warranty, closing costs, or HOA disclosure fees?

"You want the highest offer that will appraise."

You also want to look at the strength of the offer.

Is it a financed offer or a cash offer? Sometimes cash is better, but sometimes cash buyers want a discount. If the offer is financed, how much money is the buyer putting down? With an FHA loan, they could put down as little as 3.5% or they could put down as much as 20%.

Finally, you want to look at earnest money from the buyer. How much skin in the game did the buyer put out there to show their good faith in the contract?

When choosing an offer, you want to the pick the offer that is the strongest and has the best chance of closing. It's not always the highest price that gets you to that point.

If you have any questions about selecting an offer or you have questions about the Phoenix real estate market, give me a call or send me an email. I'm always here to help!

HVAC Maintenance & Repair Tips for Homeowners

With summer nearly over, I’m sure you (like me) have been reminded just how much we use our air conditioning. Soon, in the winter, you’ll be reminded of how often you use the furnace, too.

It’s one of the major systems in your home, and a surprise issue with one of these systems can be a nightmare if handled improperly. That’s why I wanted to share a video from Angie’s List that I recently saw about proper maintenance of your heating and cooling systems.

If either unit is having issues, did you know you can actually hire technicians who are specially trained to work on certain brands? For example, if you have a Trane system, you can find a tech who is trained specifically to work on Trane products.

Secondly, always remember to get a second opinion when someone recommends that you replace a system because oftentimes a repair will do. You want to be certain of this when it comes to a part of your home that should last 20 years, especially considering the cost of a replacement. 

Unfortunately, as the video points out, there are a lot of people out there who deal with these systems and prey on customers who don’t know any better. If you’re hiring a company, you should investigate them by checking out their web reviews or social media pages. 

Also, be proactive with service on these systems. If you wait until the system is broken down to get it checked out, you are now at the repair company's mercy. 

As always, if you have any real estate questions about the Phoenix area, just give me a call or send me an email. I’d be happy to answer them for you!

The Right Questions to Ask Before Buying in Phoenix

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When you start looking at homes to purchase, there are a lot of factors to keep in mind that you might not naturally think about. You don’t want to buy a home without doing your research, so here are three topics to ask questions about when you’re house hunting:

1. The neighborhood and surrounding area: We recommend you research the area by visiting it during different times of the day and different days of the week to see if there’s something you might have missed about the area.

2. How are the schools? There are some great websites you can use that will tell you exactly how a certain school district is performing compared to others in Arizona.

"We can give you a utility bill estimate."

3. What are the utility bills? We can help you estimate what to expect in monthly utility bills. For most homes, we can pull the past 12 months’ bills and give you an average.

If you have any questions for me, don’t hesitate to reach out and give me a call or send me an email. I’d love to hear from you!

4 Things That Determine Your List Price in Phoenix

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How much is your Phoenix home worth? There are 4 factors that really determine the value of your property.

1. What does inventory look like? We usually examine the market in terms of months worth of supply. Hypothetically, if there weren’t any new listings, how long would it take those homes to sell?
2. What are the average days on market? In your neighborhood, how long is it taking homes to sell on average?
3. How many active listings are in your neighborhood? Essentially, this is your competition.
4. How does your home compare to those houses? We’ll look at where you want to price your home in regards to days on the market. 

These are what to look at to sell your home for more money in less time. If you’re thinking about selling your home, give us a call and we’d be happy to give you a value that your home would sell for. Give us a call!

Strike While the Market’s Hot in Phoenix

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Should you wait to make an offer on a new listing?

You need to look first at what’s going on in the market. As of right now, the Phoenix market is pretty hot. If you’re looking for a home under $350,000 that’s upgraded and priced correctly, the home’s going to sell relatively quickly. If a home just came on the market, you may want to get in there before there’s multiple offers or other interest.

"As a buyer, you’ll probably have to show strength in your offer."

When doing so, you always want to make a fair offer. Today, the market favors the seller a little bit, so a fair offer means you’re probably going to have to give up some things. As a buyer, you’ll probably have to show strength in your offer. For a stronger offer, provide more earnest money, a bigger down payment, or ask for fewer concessions.

We’re happy to answer any questions you have as either a buyer or seller, just give us a call.

Buy Brand New or Resale in Phoenix? Consider the Incentives

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Should you buy a new home in Phoenix or purchase an existing resale property?

It’s a question I get a lot and it’s a good one for the Phoenix real estate market. Typically for a brand new home, you’re looking at a cost of about 15% to 20% more than an equally-sized resale home in the same area. Sounds like a pretty expensive premium, right?

On the other hand, a brand new home comes with a warranty, and everything is brand new. The maintenance on that home over the next five to 10 years will be substantially less than a resale home.

Additionally, there are always incentives going on with different builders. Reach out to us and we’ll get you set up with a builder for a great deal on a brand new home. We study the market and we know exactly what specs are out there and which builders are offering which incentives.

If you have any questions, give us a call or send an email. We’d love to help.

Six Strategies to Add Value to Your Phoenix Home

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Today, I want to discuss six ways to upgrade your home’s look, and add value while you’re at it. Many of these are fairly inexpensive, too!

1. Reduce clutter. Over time, it’s normal to accumulate belongings to fill up your home. Start going through and clearing tabletops.

2. Eliminate grunge. Sometimes, I open my garage and there’s stuff everywhere. Clean it and reduce the junk.

3. Change lighting. Add or rearrange lamp fixtures. This one of the best and simplest ways to make a room appear bigger.

4. Upgrade hardware. It always surprises me how adding new hardware makes such a big difference.

5. Repaint. This is the least expensive yet most impactful way to upgrade your home’s look.

6. Focus on decor. Sometimes, when you’ve had furniture for a long time, you want to invest in some new decor. This could include furniture, drapes, and other fixtures.

If you’re thinking about buying or selling in the Phoenix area, give me a call or send me an email. I’m happy to answer any questions you might have about this topic or more!

Should You Invest in a Phoenix Home That Needs Renovations?

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Today, I’ll answer a question I’m often asked: “Should I buy a home that needs a lot of repairs?”

Well, first off, many people think that regardless of the necessary repairs, a property is a great deal. However, that might not be the case. Renovation expenses might contradict the initial price of the home and make you pay even more.

Ask about what’s wrong with the property. Investigate the estimated cost to address and fix all of those repairs. Figure out how much it costs to bring that property to the level of a comparable home in the neighborhood. Once you have that list of repairs and prices, we can compare it to the overall price of the home.

Secondly, if the price of the home alongside the repair expenses is worth the home’s true value, you didn’t end up with a good deal or advantage. If you’re buying a home with mass repairs, you’ll put in sweat equity to gain equity from the effort you’re putting in to fix it. Another advantage includes customizing the home your way, such as floors and wall colors, so it looks the way you prefer it.

Purchasing a property with repairs may or may not be a good deal, but there’s more to consider beyond the surface. If you’re thinking about buying or selling a home in the surrounding Phoenix area, give me a call or send me an email today!

Four Things to Consider When Moving Up in Phoenix

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You might be thinking about upscaling to a larger property in the surrounding Phoenix area. Today, we’ll cover the four things you should consider when you’re looking to buy a bigger home.

1. Get the right mortgage. Think about your ideal timeline. Ask yourself how long you plan to live in that new home. Is it your final destination? What’s better for you: a 15-year fixed or 30-year fixed loan?

2. Know the plan for your current home. What are you going to do with it? You can lease it out and turn into an investment property, or of course, sell it.
3. Research the qualification process. Ensure you are approved for the home you’re set on.
4. Think about increased costs. A bigger home entails larger expenses. For instance, this might be a bigger utility bill every month. Is that something you’re prepared for?

If you’re thinking about buying or selling, or have any real estate questions, reach out to us and let us know! Contact our office by phone or email today.

How to Whip Your Home into Shape Before Selling

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Today we wanted to stop by and give you some advice on selling your home. Many people are selling this spring in Phoenix, so we’ve got four ways you can whip your home into shape by the time it hits the hot market. Here they are:

1. Look at your major appliances.

Check their ages, and have them inspected for condition. These big-ticket items are an example of something a buyer will ask you to replace, depending on how old they are.

2. Get in the buyer’s mindset.

The best way to make sure you don’t miss anything when preparing your home for sale is by getting into the buyer’s mindset.  Walk through your home and think of things that a buyer might ask you to fix, whether it’s a leaky faucet or chipped paint.

3. Bring in the pros.

Bring in a home inspector before you list so you make sure that nothing is missed. If we can catch a lot of the little things up-front, it makes the buyer more comfortable when it comes time to make an offer.

4. Decide what to remodel.

There are going to be a lot of items on the inspection report, but you don’t have to completely fix them all. Don’t remodel everything, just take care of the things that will add value to your home and get you your money back.

We can help with all of this. If you have any questions for us, feel free to give us a call or send us an email. We look forward to hearing from you!

Four Questions You Need to Ask Before Signing a Mortgage in Phoenix

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Today I want to discuss four different questions you need to ask before you sign a mortgage. Let's dive right in.

1. What's the APR?

2. Does it carry a pre-payment penalty?

3. Does this work with your timeline?
Look at the GFE and the HUD-1 together. Make sure that the good faith estimate that you got matches the HUD-1 at closing.

4. How long will your rate lock, and what is the maximum cap?
If you're out looking for a home you probably don't have a property locked up, so you want to make sure to manage the rate lock and work with your agent and your lender to make sure that they match.

We can help you with this process. We know a lot of great mortgage lenders in Phoenix, so please don't hesitate to reach out to us about this.

We look forward to hearing from you!

Four Selling Mistakes to Avoid in Phoenix

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As a tailored agent, I’ve come across some huge real estate mistakes in the Phoenix area. Often, these mistakes are easy to make but even easier to avoid. Check out four common ones that happen with home sales.

1. Trying to sell your home on your own. The market has changed significantly in the past ten years. The Internet has changed how the industry operates. If you go FSBO, you miss tons of exposure, especially with international buyers. Arizona has a high international sale volume!
2. Overpricing your home. Overpricing your home is like it’s not even for sale. It won’t sell if it’s priced out of the market.
3. Using lousy photos. Before, the first showing happened with the first people visiting your home. Now, the first showing begins online with photos of your property. If the photos aren't crisp and polished, agents and buyers will overlook your home for one that’s presented better.
4. Not cleaning up the landscaping. Cleaning up your landscape can do wonders! I don’t know how many times I walk through a nice home where the yards aren’t tended to.

These are the four common mistakes we experience. If you have any questions about these mistakes or want to sell for top dollar, give me a call or email today! I'm happy to help and serve you.

5 Lessons We Learned from the Housing Crisis

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Recently, I read an interesting article about what we learned from the housing crisis. I wanted to share these five financial lessons with you today.

1. Your home isn't always an investment. In 2005 and 2006, people were wildly speculating. No one had really seen home prices go down. Now, we are aware that value will go up and down over time.

2. Every homeowner should have an emergency fund. Back in the day, there were all kinds of sketchy loans: 100%, no money down, etc. It's important for homeowners to have an emergency fund for any repairs that you might need to make to the home.

3. Be aware of risky mortgages. Interest rates still are historically low, but they will increase next year. If you're buying a home now, lock in that low rate on a 30-year fixed mortgage.

4. Buy what feels comfortable. Things change. You might get a new job in a year, or start a family, or need to downsize. Buy what feels comfortable to you now.

Homeownership isn't for everybody. If you have to travel or move around a lot for your job, you might be better off renting. It really depends on your situation.

If you have any questions about today's video or real estate, give me a call or send me an email. I would be happy to help you!