Real Estate Phoenix AZ

It's Beginning to Feel Alot like Last Spring

2011-01-27T07:41:00.000-08:00

Well, Real Estate in Phoenix AZ never fails to be interesting!

In the Spring of last year, housing prices were rebounding after sinking to record lows. Yes, there were alot of foreclosures, but the banks were releasing them at a measured pace, and investors were snapping them up as soon as they appeared. In fact, in most cases, there were multiple bids on many foreclosures. As a result, with steady or declining inventory, and multiple bids for many homes, the housing indeces turned around. Prices were finally going up! And not just a little bit....prices rose by close to 10% (sometimes more) in most parts of the Valley.

THEN.....the First Time Homebuyer Tax Credit expired. And with it, the housing market cooled. First time buying dried up, prices started to stagnate, and investors held back as prices weakened again. By August, the indicators had again turned negative. Prices were dropping. In fact, by December, we dropped even further than the original bottom. We officially had "Double dip" in our housing market.

BUT....it's beginning to feel alot like last spring again. We've had our busiest Dec-Jan in 5 years. According to our broker, most of the other agents are busier than ever as well. Foreclosures? Still plenty of em...but once again, they are getting multiple bids.

Buyers are returning, but this time it is not just first time buyers....people moving up into larger homes, and moving into Phoenix for jobs, are buying. Investors, sensing a bottom, are jumping in again.

If I don't miss my guess, the one thing we haven't seen that would mimic last Spring...a reasonable increase in home prices.....will start showing up in the statistics soon. And that will probably mark the beginning of an ongoing recovery, in our opinion.

Update to 2011 Forecast for Real Estate In Phoenix

2011-01-10T18:22:00.000-08:00

We're still being asked alot what will 2011 bring in Real Estate in Phoenix AZ???? While we don't have a crystal ball, we do have the advantage of spending our days in the world of buying and selling homes. Our experience is an interesting addition to what we discussed in our last blog post.

We will say that we have had the busiest December since 2005. We have had alot of leads come from the Internet on our websites. Our front desk tells us the Real Estate brokerage is hopping with business, just as we are.

We also see new buisnesses opeining up. New housing developments. In one half hour period last week, we heard 3 ads for homebuilders on the radio. Unemployment is down. Spending is up. Homes have gone down to the same price level as they year 2000.

Well, no crystal ball, but we don't hink it takes a rocket scientist to put together the above facts and conclude that with record low prices, near record low interest rate, rising employment, business growth and new housing growth, 2011 looks good for Real estate. Very good.

My take is that we will have a first half of the year much like last year, but around mid year, look for rising prices and interest rates to take hold. Nothing spectaculay, but the price gains, and the interest rate increases, will be noticeable in our opinion.

2011 Real EState Phoenix AZ Forecast

2010-12-16T19:49:00.000-08:00

Well, it's been an interesting year here at Ground Zero in Real Estate! The normal seasonal patterns have fallen by the wayside, and people are buying, or not buying, in my opionion, due to outside forces. They lost a job. Got one. Got scared. May lose a job. Heard prices are going up. Going down. What about interest rates? Wow.....buyers and sellers don't know who to believe.

One report came out about a week ago that we should give some attention to. Jay Butler, who heads up the Real Estate Institute at ASU, issued his forecast for the future of Real Estate in the Valley. And I say we should pay attention because Jay Butler has no axe to grind, so to speak. He is not a Realtor. Does not owwn a brokerage. Not with a bank. Not even with a trade group. Just ASU....and he says.......

By 2014, Real Estate in Phoenix should jump in value by 60% from todays levels. Really?

Well, let's look at the numbers. Home now are selling at 2000 prices. In other words, if you bought a home in 2000 and sold it today, you would most likely break even. So, that's 10 YEARS at 0.0% appreciation. Now, go to 2014, and you have to account for 4 MORE years, for a total of 14 years appreciation. Historically, real estate has appreciated 3-3.5%. Do the math over 14 years, and guess what....right about at 60%.

So, what sounds outlandish at first is just a return to the norm. And historically, markets return to normal. Which they almost always do, without fail.

Will the economy support a return to normal. Well, we are seeing signs here. Unemployment is down, at least a bit. Phoenix is projected to be #2 in the nation next year for job growth. Almost 20% of employers plan to hire. New commercial construction is up. Values of infill land in abandoned subdivisions have doubled this year. The number of new home communities opening has increased substantially.
In a nutshell, there IS reason to believe.....

Jay Butler may just be right.

Happy Thanksgiving to All Followers of The Real Estate Phoenix AZ Blog

2010-11-25T09:26:00.000-08:00

It's Thanksgiving, a time when all of us should reflect upon our many blessings. Throughout the year, we have heard of the many people losing homes, failed loan modifications, short sales, declining values.....the list goes on and on.

What's the good news??? It's all around us, each and every day. We live in Phoenix, AZ (if we are lucky).....it's the 5th largest city in the US, and any recession here always makes the rest of the country wonder what we are complaining about here. Even the worst of economies in Phoenix, AZ tops the average in many other parts of the country.

And yes, home values are down in Phoenix, but homes for sale in Phoenix AZ haven't been this affordable in years. Interest rates are at record low levels. More people than ever can afford to buy a home. I see people every day thanking their lucky stars that they can now buy their first home, their vacation home, or their retirement home, here in Phoenix, when only a few years ago it was beyond their reach. I see people that are building their nest eggs by purchasing Real Estate in Phoenix. Yes, the average person can afford it....I've sold investment homes as low as $32,000....less than many people spend on a car. Prices have never been better.

I see the first buds of growth all over....Temporary help firms are advertising. New home developments are opening again. Prices of some development land have doubled. Consumer spending is up. And if I don't miss my guess, the Christmas retail season will be great.

And next year, who knows? Well, I do. We live in Phoenix, AZ. That alone will be good. Beyond that, good news will be all around us. We just need to see it. And appreciate it.

Happy Thanksgiving, from all of us at the Right Move Team.

5 Things to do Before Putting Your Home on the Market

2010-11-01T11:29:00.000-07:00

As the Real Estate Market in Phoenix, AZ continues to improve, more homes are coming on the market, and we are getiing more inquiries about listing homes. To help people out, here is a short list of things to do in order to prepare their home to sell. Remember, too, that if you want a free DVD on how to stage your home for sale, just email me at mikezahn@cox.net, and we'll be happy to send you a copy!

1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you’ll be able to make repairs before open houses begin.

2. Organize and clean. Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.

3. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.

4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.

5. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments?

Considerations When Buying Real Estate in Phoenix

2010-08-24T08:24:00.001-07:00

Buying a home in Phoenix is an important decision. Sometimes, there seems like there is so much information flying around the various media, it's easy to lose focus. Stick to the basics, and you can't go wrong. When you are buying real estate in Phoenix, here are some of the LESS common factors to consider:

The commute: What is your commute to work? What's traffic like? Do you have access to public transportation, if needed?

School districts: Do you have or plan to have school aged children? How does the school district rate? How close is the school of choice? Did you know we provide FREE School Reports rating every school in the Valley, including private and charter schools? If you want it, Just ask!

Access to shopping: How close is your favorite grocery store or mall?

Are you on city or septic? Which utility company will you use? Do you have city water or well? And don't forget access to cable or high-speed Internet!

Public safety: How close are police and fire departments? How are the emergency medical services? Is distance to the nearest hospital important to you?

Recreation Areas: Do you have recreational interests to factor into your home search? How close is the nearest park, lake, mountain, or hiking trail? If you are moving to a new community, you may want to check out playgrounds and fitness centers.

All of these factors and more contribute to a quality of life that will affect your enjoyment of your new home. When you are ready to purchase a home, we welcome the opportunity to help you. Our team closes 7 times more homes than the average Realtor, and that's because we do it right. We KNOW the in's and out's of this very challenging real esate market in Phoenx, and we can guide you every step of the way.

Buying a Home in Phoenix, AZ

2010-06-14T08:13:00.000-07:00

It's hard to believe you need to consider your next move before
purchasing real estate in Phoenix, AZ! It is always prudent to shop for a new home
with an eye on potential resale value down the road. While I can't
predict what the future will bring, here are some simple things you
can look for:

Views: Homes with a view often sell for a premium. This can be a
double edge sword as beauty is in the eye's of the beholder. Not
all buyers will place the same premium on views.

Lot Size and Shape: Level or rectangular lots are the most
desirable. Much of the value in real estate is in the home, not
the landscape. As a buyer, do not pay a premium for someone else's
landscaping efforts.

Neighborhoods: Buy a smaller house in a nicer neighborhood. Rather
than buy a large home with smaller homes around it, buy a smaller
home surrounded by larger homes. This will improve your
appreciation opportunities. Real Estate in Phoenix AZ is typically in subdivisions, and your Realtor can check the surrounding properties for you easily.

Closets: Closet space is always an issue.

Kitchens and Baths: A spacious, updated kitchen is among the most
important features in a home. Real Estate Buyers in Phoenix AZ often look for granite counters, updated cabinets, and plenty of counter space. Updated baths are also important.

Garages: The bigger the better.

Backyard Features: Decks and patios generally yield almost a
dollar-for-dollar return.

So, although it seems strange to consider your next move before making this one, Real Estate in Phoenix AZ is no diferent than any other place....location location location. It's important to have the features noted above when buying. But if they are not there, many can be added. What you can't add is location....views, lot size, size relative to neigborhood, etc. Be sure to consider these items when making your next move.

Moving and Packing in Phoenix, AZ

2010-05-23T20:15:00.000-07:00

I ran across the following article from Realtor Magazine. This is reprinted with permission from NAR, copywrite 2009. As I sell Real Estate throughout Phoenix, AZ, I am frequently asked for tips on Moving, packing, etc. This was some excellent advice, and seems to sum it up well. So, read on, follow this advice, and you'll have a much easier move.

17 Tips for Packing Like a Pro

Moving to a new home in Phoenix, AZ can be stressful, to say the least. Make it easy on yourself by planning far in advance and making sure you’ve covered all the bases.

1. Plan ahead by organizing and budgeting. Develop a master “to do” list so you won’t forget something critical on moving day, and create an estimate of moving costs. (A moving calculator is available at REALTOR.com)

2. Sort and get rid of things you no longer want or need. Have a garage sale, donate to a charity, or recycle.

3. But don’t throw out everything. If your inclination is to just toss it, you're probably right. However, it's possible to go overboard in the heat of the moment. Ask yourself how frequently you use an item and how you’d feel if you no longer had it. That will eliminate regrets after the move.

4. Pack similar items together. Put toys with toys, kitchen utensils with kitchen utensils. It will make your life easier when it's time to unpack.

5. Decide what, if anything, you plan to move on your own. Precious items such as family photos, valuable breakables, or must-haves during the move should probably stay with you. Don't forget to keep a "necessities" bag with tissues, snacks, and other items you'll need that day.

6. Remember, most movers won’t take plants. If you don't want to leave them behind, you should plan on moving them yourself.

7. Use the right box for the item. Loose items are prone to breakage.

8. Put heavy items in small boxes so they’re easier to lift. Keep the weight of each box under 50 pounds, if possible.

9. Don’t over-pack boxes. It increases the likelihood that items inside the box will break.

10. Wrap every fragile item separately and pad bottom and sides of boxes. If necessary, purchase bubble-wrap or other packing materials from moving stores.

11. Label every box on all sides. You never know how they’ll be stacked and you don’t want to have to move other boxes aside to find out what’s there.

12. Use color-coded labels to indicate which room each item should go in. Color-code a floor plan for your new house to help movers.

13. Keep your moving documents together in a file. Include important phone numbers, driver’s name, and moving van number. Also keep your address book handy.

14. Print out a map and directions for movers. Make several copies, and highlight the route. Include your cell phone number on the map. You don’t want movers to get lost! Also make copies for friends or family who are lending a hand on moving day.

15. Back up your computer files before moving your computer. Keep the backup in a safe place, preferably at an off-site location.

16. Inspect each box and all furniture for damage as soon as it arrives.

17. Make arrangements for small children and pets. Moving can be stressful and emotional. Kids can help organize their things and pack boxes ahead of time, but, if possible, it might be best to spare them from the moving-day madness.

When buying or selling Real Estate in Phoenix, Az check with your Realtor for tips on movers, on moving, on packing, and all things related to your move. We've been through hundreds, if not thousands of moves with our clients. Take advantage of our experience.

Some Tips for Canadian Buyers

2010-04-29T06:21:00.000-07:00

Right now, the Canadian dollar is near par, and Real Estate in Phoenix AZ is down substantially off it's peak in 2006. That has led alot of Canadian buyers to look at picking up a second home here in the Phoenix area. There has not been a better time to buy for Canadians for as long as I can remember.

When buying Real Estate in Phoenix AZ, there are some things Canadians need to rememeber. First, financing is difficult, unless you have a US Social Security Number. If you don't, I have had a client get a loan through US Bank, but they are the only lender I've heard of willing to finance a US Loan for a Canadian buyer. Without that, you'll need to pay cash. If you have enough equity in your Canadian home, you can take out a second on that to pay cash for your purchase here.

The next item is your Earnest money. When buying a real estate in Phoenix AZ, all buyers are required to put down a certain amount of earnest money. You cannot write a check on a Canadian account to do so. It takes 30-45 days for an international check to clear, so Title companies will not accept is. Be prepared with cash, or to do a wire Transfer. Don't plan on opening an account here and writing a check from that....you need a US Address to open an account, and you won't have that until after you have bought.

Last, pay attention to the condition of a the home. Yes, you can get a good deal on a foreclosure. However, Real estate in Phoenix AZ is now priced where an owner occupied sale is typically priced competeitively with a foreclosure, once repair costs are factored in. When you live in another country, making repairs is difficult, time consuming, and risky. If you can avoid it, do.

That's pretty much it. Buying real estate here in Phoenix can be a smooth process if you know what to expect, and you have an agent experienced in international transactions. But if you do, and you are ready, now may just be the best time to buy you will ever see.

From Phoenix to Maui Real Estate

2010-04-11T08:39:00.001-07:00

Hello Again from Ground Zero in Phoenix Real Estate!

Today we are going to do something a bit different. I've just gotten back from Maui, and I thought it may be interesting to compare Real Estate in Phoenix to Maui. Two very different markets, but with alot of similarities too.

If you are looking for Real Estate in Phoenix, AZ you have alot more choices than Maui.....prices in Maui cluster in the $300-$600 per SQUARE FOOT range. That means that, in Phoenix Real Estate terms, your 1300 sf home that sells for $120.000 here will sell for $400,000+ in Maui. Ouch. Affordable housing there is considered below $200.000. It's an interesting Real Estate Market. Condos on the beach are less expensive than say, California, but homes inland are more expensive. Go figure?

This also means that you need 3-4 times more for a down payment, AT A MINIMUM. Why? First, higher price equals higher amount down, even with the same percentage required. Second, FHA loans cap out, and you will need to put more money down to bring the loan down to an allowable amount.

For investors, it is interesting to note Maui County's policy on rentals. Quite a bit different than Real Estate in Phoenix AZ. If you are planning to use the home as a rental in Maui, they Double (that's right, DOUBLE, your property taxes. Imagine how THAT would go over in Phoenix.

Phoenix Real Estate is down over 50% from the bubble high of 2005. Maui homes are down about 25-30%. The belief there is that values will continue to drop some more, but in Phoenix not everyone is so sure. Prices in Phoenix have shown signs of stabilization.

In short, Real Estate in Phoenix, AZ has frankly fared more poorly than Maui. That's the bad news. The good news, is that it has created an unprecedented buying opportunity in Phoenix Real Estate. The median value is now down to $140.000. Prices are at 2003-4 levels. Sooner or later, they will return to historical norms, meaning that Real Estate in Phoenix AZ has probably 5-6 years of apprecdiation at the historical norm of 3% to catch up on now. That's 15-20% unrealized appreciation. Now that's a sound buy!

Win Win Negotiations in Phoenix Real Estate

2010-03-03T19:11:00.001-08:00

In todays Real Estate market in Phoenix, AZ, many buyers feel they can offer any price and the seller will have to accept, given market conditions. That was arguably true 2 years ago. Last year, however, was a turning point for Real Estate in Phoenix.

Over the last year, the available inventory of homes on the Phoenix AZ MLS fell by over 40%. Prices stabilized, and actually began rising at the end of the year. Recent statistics show even foreclosure prices have increased almost 2.5 % from Jan 2010 to Feb 2010.

In short, the tides are turning. To get an offer accepted, it needs to be a reasonable offer..."lowball" offers are typically rejected, and if not, usually result in a "retaliatory" counter offer, close to full price.

To ensure success, make it a win-win with both parties feeling they
have been treated fairly.

One of the best reasons to hire a real estate agent is that an
agent represents you and negotiates on your behalf. Agents act as
buffers, negotiators and advisers to help make the purchase process
a pleasurable experience.
When you make an offer, the seller can accept, decline, or counter
it. The best tips to ensure that your offer is accepted include:

1. Be pre-approved by a lender
2. Provide a substantial deposit
3. Limit your contingencies
4. Offer a fair price. Bargain, but realize that in most instances in Phoenix AZ
real estate today, the seller is not desperate.

My goal is to get you the best home under the best conditions at the best price. I will negotiate on your behalf, working hard to help you make a
smart buy.

The best negotiations are those in which the buyer and seller feel
the transaction was fair. The seller gets to move on and you get a
new home!

I'll be happy to answer any additional questions you might have
about the negotiation process. When you are ready to purchase a new
home in the Metro Phoenix, AZ area, give us a call to see what we can do for you.

What's Really Happening in Real Estate

2010-02-18T08:01:00.000-08:00

Welcome to another "Ground Zero" report on Real Estate in Phoenix Az. I've been getting alot of questions about where we are heading in the coming year. While I don't have a crystal ball, here is what I see coming, in my opinion.

We finished up 2009 with increased sales. Total Inventory of homes was cut by 1/3 to 1/2, depending on the report. While Foreclosures still dominated, and filled the market, buyer demand ate up the extra inventory, and kept prices stable. In fact, from Sept 09 through Nov 09, prices if Real Estate in Phoenix Az rose 3.5%.

The year 2010 is shaping up to be very similar. There are alot of foreclosures still due to come on the market, but I think banks have learned that flooding the market with all of them, at once, is bad for the market, and for them. It is my opinion they will continue to release them at a slower, steadier pace.

Another thing that banks have learned about Real Estate in Phoenix AZ is that fixed up homes sell better, and for more, than trashed ones. I see a trend developing where banks paint and carpet foreclosed homes, and make some repairs as needed, prior to selling them. This way they can sell for more, recouping their costs and then some. Not all banks are doing this, but some are.

And, as I said in earlier blog, 2010 will be a year of short sales. In fact, I had my first situation this past week where a bank came to client of mine, and THEY SUGGESTED A SHORT SALE IN LIEU OF A LOAN MODIFICATION!That has never happened in my experience before, but is a sign of banks being more proactive this year in the Phoenix AZ Real Estate Market, to prevent foreclosures.

Sales were a bit slower in January but February has been strong, and indicators are that they will continue to be for the coming year. Forecasters predict a 5% rise in Metro Phoenix AZ Real Estate prices in 2010,and that, along with predicted higher mortgage interest rates, suggests it is a good time to buy and invest.

Make the Right Move, into the Right House For You

2010-02-04T15:28:00.001-08:00

Last time we met, we discussed the one surprising thing to consider when buying a new home. Today, we think about the more day to day things to consider. There are many choices when thinking about buying Real Estate in Phoenix Metro Area:

Home Type: Are you looking for a single family, a multi
family, a condo, an invesment property? Are you looking for a new
construction or previously owned? If you are looking for a
previously owned, how old? There are advantages and disadvantages.

Location: What is your commute? Are you looking for views?
Large or small lot? Close to major streets or off the beaten path?

Size and Floor Plan: How big? How will you live in and use
the space. For example, do you want four bedrooms because you have
three children? Or will you use the extra bedrooms for a guest room
and separate office or hobby space? How you live in and use your
home will determine the size, configuration, and floor plan you
need.

Fixer-Upper: Do you want a fixer-upper? Are you looking
for an investment property? It's a great way to accumulate instant
equity. Consider financing. Beware: the cost may outweigh the
reward.

Special Features: Make sure the home has any special
features you may require, such as RV parking, central air, a
main-floor bedroom, or disability features. Are you looking for a
pool or spa?

Family Space: Family activities often center around the
kitchen, so this may be the most important room in the house.
Larger kitchens are usually better. If the home is a resale, have
the kitchens and baths been updated? How much space do you want in
your kitchen? Do you like the layout? Are new appliances important
to you?

There are a million things to consider when buying a home. You know what the number one consideration usually is, in the end? How does the home "feel" to you. Yes, it has to have all the right components, but in the end, out of the homes that DO have the right components, you pick the one that "feels" like home. So when you are out looking at homes, pay attantion to the various factors that matter, like size, location, etc. Just don't forget to notice how it "feels".

A Surprising Thing to Consider When Buying!!!

2010-01-17T16:27:00.000-08:00

It's hard to believe you need to consider your next move before
purchasing a new home! However, it is always smart to shop for a new home with an eye on potential resale value down the road. While I can't predict what the future will bring, here are some simple things you can look for:

Views: Homes with a view often sell for a premium. This can be a
double edge sword as beauty is in the eye's of the beholder. Not
all buyers will place the same premium on views.

Lot Size and Shape: Level or rectangular lots are the most desirable. Much of the value in real estate is in the home, not
the landscape. As a buyer, do not pay a premium for someone else's
landscaping efforts.

Neighborhoods: Buy a smaller house in a nicer neighborhood. Rather
than buy a large home with smaller homes around it, buy a smaller
home surrounded by larger homes. This will improve your
appreciation opportunities.

Closets: Closet space is always an issue.

Kitchens and Baths: A spacious, updated kitchen is among the most
important features in a home. Updated baths are also important.

Garages: The bigger the better.

Backyard Features: Decks and patios generally yield almost a
dollar-for-dollar return.

Remember, what may not matter to you could matter to most other buyers. This is where buyers usually wade into trouble. I'm reminded of a client who wanted to buy a home against a busy street, saying the traffic noise did not matter to them a bit. What they did not consider is that it DOES bother the majority of homebuyers. People that would come to look at their home, when they are ready to sell, would be turned off by the noise. That's why these homes take longer to sell, and sell for 5-10% less than comparable homes, typically. What you don't think about can cost you money!

I'd be happy to answer any questions you have and show you
properties that meet your needs. Please call or email me when you
are ready to look for a new home.

27 Tips to Sell Your Home Fast in the New Year

2010-01-03T06:36:00.000-08:00

27 Tips You Should Know To Get Your Home Sold Fast and For Top Dollar

"...discover how to protect and capitalize on your most important investment.."

Because your home may well be your largest asset, selling it is probably one of the most important decisions you will make in your life. To better understand the homeselling process, a guide has been prepared from current industry insider reports. Through these 27 tips you will discover how to protect and capitalize on your most important investment, reduce stress, be in control of your situation, and make the most profit possible.

1. Understand Why You Are Selling Your Home
Your motivation to sell is the determining factor as to how you will approach the process. It affects everything from what you set your asking price at to how much time, money and effort you're willing to invest in order to prepare your home for sale. For example, if your goal is for a quick sale, this would determine one approach. If you want to maximize your profit, the sales process might take longer thus determining a different approach.

2. Keep the Reason(s) You are Selling to Yourself
The reason(s) you are selling your home will affect the way you negotiate its sale. By keeping this to yourself you don't provide ammunition to your prospective buyers. For example, should they learn that you must move quickly, you could be placed at a disadvantage in the negotiation process. When asked, simply say that your housing needs have changed. Remember, the reason( s) you are selling is only for you to know .

3. Before Setting a Price - Do Your Homework
When you set your price, you make buyers aware of the absolute maximum they have to pay for your home. As a seller, you will want to get a selling price as close to the list price as possible. If you start out by pricing too high you run the risk of not being taken seriously by buyers and their agents. If you are pricing too low it can result in selling for much less than you were hoping for.
Setting Your Home's Sale Price
If You Live in a Subdivision - If your home is comprised of similar or identical floor plans, built in the same period, simply look at recent sales in your neighborhood subdivision to give you a good idea of what your home is worth.
If You Live in An Older Neighborhood - As neighborhoods change over time each home may be different in minor or substantial ways and you will probably find that there aren't many homes truly comparable to yourown. In this case you may want to consider seeking a Realtor ® to help you with the pricing process.
If You Decide to Sell On Your Own - A good way to establish a value is to look at homes that have sold in your neighborhood within the past 6 months, including those now on the market. This is how prospective buyers will assess the worth of your home. Also a trip to City Hall can provide you with home sale information in its public records, for most communities.

4. Do Some "Home Shopping" Yourself
The best way to learn about your competition and discover what turns buyers off is to check out other open houses. Note floor plans, condition, appearance, size of lot, location and other features. Particularly note, not only the asking prices but what they are actually selling for. Remember, if you're serious about getting your home sold fast, don't price it higher than your neighbor's.

5. When Getting an Appraisal is a Benefit
Sometimes a good appraisal can be a benefit in marketing your home. Getting an appraisal is a good way to let prospective buyers know that your home can be financed. However, an appraisal does cost money, has a limited life, and there’s no guarantee you’ll like the figure you hear.

6. Tax Assessments - What They Really Mean
Some people think that tax assessments are a way of evaluating a home. The difficulty here is that assessments are based on a number of criteria that may not be related to property values, so they may not necessarily reflect your home's true value.

7. Deciding Upon a Realtor® According to the National Association of Realtors, nearly two-thirds of the people surveyed who sell their own homes say they wouldn't do it again themselves. Primary reasons included setting a price, marketing handicaps, liability concerns, and time constraints. When deciding upon a Realtor® , consider two or three. Be as wary of quotes that are too low as those that are too high.
All Realtors® are not the same! A professional Realtor® knows the market and has information on past sales, current listings, a marketing plan, and will provide their background and references. Evaluate each candidate carefully on the basis of their experience, qualifications, enthusiasm and personality. Be sure you choose someone that you trust and feel confident that they will do a good job on your behalf.
If you choose to sell on your own, you can still talk to a Realtor® . Many are more than willing to help do-it-your-selfers with paperwork, contracts, etc. and should problems arise, you now have someone you can readily call upon.

8. Ensure You Have Room to Negotiate
Before settling on your asking price make sure you leave yourself enough room in which to bargain. For example, set your lowest and highest selling price. Then check your priorities to know if you'll price high to maximize your profit or price closer to market value if you want sell quickly.

9. Appearances Do Matter - Make them Count!
Appearance is so critical that it would be unwise to ignore this when selling your home. The look and "feel" of your home will generate a greater emotional response than any other factor. Prospective buyers react to what they see, hear, feel, and smell even though you may have priced your home to sell.

10. Invite the Honest Opinions of Others
The biggest mistake you can make at this point is to rely solely on your own judgment. Don't be shy about seeking the honest opinions of others. You need to be objective about your home's good points as well as bad. Fortunately, your Realtor® will be unabashed about discussing what should be done to make your home more marketable.

11. Get it Spic n' Span Clean and Fix Everything, Even If It Seems Insignificant
Scrub, scour, tidy up, straighten, get rid of the clutter, declare war on dust, repair squeaks, the light switch that doesn't work, and the tiny crack in the bathroom mirror because these can be deal-killers and you'll never know what turns buyers off. Remember, you're not just competing with other resale homes, but brand-new ones as well.

12. Allow Prospective Buyers to Visualize Themselves in Your Home
The last thing you want prospective buyers to feel when viewing your home is that they may be intruding into someone's life. Avoid clutter such as too many knick-knacks, etc. Decorate in neutral colors, like white or beige and place a few carefully chosen items to add warmth and character. You can enhance the attractiveness of your home with a well-placed vase of flowers or potpourri in the bathroom. Home-decor magazines are great for tips.

13. Deal Killer Odors - Must Go!
You may not realize but odd smells like traces of food, pets and smoking odors can kill deals quickly. If prospective buyers know you have a dog, or that you smoke, they'll start being aware of odors and seeing stains that may not even exist. Don't leave any clues.

14. Be a Smart Seller - Disclose Everything
Smart sellers are proactive in disclosing all known defects to their buyers in writing. This can reduce liability and prevent lawsuits later on.

15. It's Better With More Prospects
When you maximize your home's marketability, you will most likely attract more than one prospective buyer. It is much better to have several buyers because they will compete with each other; a single buyer will end up competing with you.

16. Keep Emotions in Check During Negotiations
Let go of the emotion you've invested in your home. Be detached, using a business-like manner in your negotiations. You'll definitely have an advantage over those who get caught up emotionally in the situation.

17. Learn Why Your Buyer is Motivated
The better you know your buyers the better you can use the negotiation process to your advantage. This allows you to control the pace and duration of the process.
As a rule, buyers are looking to purchase the best affordable property for the least amount of money. Knowing what motivates them enables you to negotiate more effectively. For example, does your buyer need to move quickly. Armed with this information you are in a better position to bargain.

18. What the Buyer Can Really Pay
As soon as possible, try to learn the amount of mortgage the buyer is qualified to carry and how much his/her down payment is. If their offer is low, ask their Realtor® about the buyer's ability to pay what your home is worth.

19. When the Buyer Would Like to Close
Quite often, when buyers would "like" to close is when they need to close. Knowledge of their deadlines for completing negotiations again creates a negotiating advantage for you.

20. Never Sign a Deal on Your Next Home Until You Sell Your Current Home
Beware of closing on your new home while you're still making mortgage payments on the old one or you might end up becoming a seller who is eager (even desperate) for the first deal that comes along.

21. Moving Out Before You Sell Can Put You at a Disadvantage
It has been proven that it's more difficult to sell a home that is vacant because it becomes forlorn looking, forgotten, no longer an appealing sight. Buyers start getting the message that you have a another home and are probably motivated to sell. This could cost you thousands of dollars.

22. Deadlines Create A Serious Disadvantage
Don't try to sell by a certain date. This adds unnecessary pressure and is a serious disadvantage in negotiations.

23. A Low Offer - Don't Take It Personally
Invariably the initial offer is below what both you and the buyer knows he'll pay for your property. Don't be upset, evaluate the offer objectively. Ensure it spells out the offering price, sufficient deposit, amount of down payment, mortgage amount, a closing date and any special requests. This can simply provide a starting point from which you can negotiate.

24. Turn That Low Offer Around
You can counter a low offer or even an offer that’s just under your asking price. This lets the buyer know that the first offer isn’t seen as being a serious one. Now you’ll be negotiating only with buyers with serious offers.

25. Maybe the Buyer's Not Qualified
If you feel an offer is inadequate, now is the time to make sure the buyer is qualified to carry the size of mortgage the deal requires. Inquire how they arrived at their figure, and suggest they compare your price to the prices of homes for sale in your neighborhood.

26. Ensure the Contract is Complete
To avoid problems, ensure that all terms, costs and responsibilities are spelled out in the contract of sale. It should include such items as the date it was made, names of parties involved, address of property being sold, purchase price, where deposit monies will be held, date for loan approval, date and place of closing, type of deed, including any contingencies that remain to be settled and what personal property is included (or not) in the sale.

27. Resist Deviating From the Contract
For example, if the buyer requests a move-in prior to closing, just say no and that you’ve been advised against it. Now is not the time to take any chances of the deal falling through.

These 9 Steps Make a Problem Free Purchase

2009-12-23T18:37:00.000-08:00

Buying a home is complicated process in todays world, but we strive to make it an easy, stress free process. Below are 9 things to be aware of when buying a home. Addressing these issues will help you to avoid problems down the road.

"A systemized approach to the home buying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you."

No matter which way you look at it, buying a home is a major investment. But for many homebuyers, it can be an even more expensive process than it needs to be since they fall prey to at least a few of the many common and costly mistakes which trap them into either:
paying too much for the home they want, or
losing their dream home to another buyer or,
(worse) buying the wrong home for their needs.
A systemized approach to the home buying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you.

This important report discusses the 9 most common and costly homebuyer traps, how to identify them, and what you can do to avoid them:

1. Bidding Blind
What price should you offer when you bid on a home? Is the seller’s asking price too high, or does it represent a great deal. If you fail to research the market in order to understand what comparable homes are selling for, making your offer would be like bidding blind. Without this knowledge of market value, you could easily bid too much, or fail to make a competitive offer at all on an excellent value.

2. Buying the Wrong Home
What are you looking for in a home? A simple enough question, but the answer can be quite complex. More often than not, buyers have been swept up in the emotion and excitement of the buying process only to find themselves the owner of a home that is either too big or too small. Maybe they’re stuck with a longer than desired commute to work, or a dozen more fix-ups than they really want to deal with now that the excitement has died down. Take the time upfront to clearly define your wants and needs. Put it in writing and then use it as a yard stick with which to measure every home you look at.

3. Unclear Title
Make sure very early on in the negotiation that you will own your new home free and clear by having a title search completed. The last thing you want to discover when you’re in the back stretch of a transaction is that there are encumbrances on the property such as tax liens, undisclosed owners, easements, leases or the like.

4. Inaccurate Survey
As part of your offer to purchase, make sure you request an updated property survey which clearly marks your boundaries, if the property boundaries are not clearly marked. If the survey is not current, you may find that there are structural changes that are not shown (e.g. additions to the house, a new swimming pool, a neighbor’s new fence which is extending a boundary line, etc.). Be very clear on these issues.

5. Undisclosed Fix-ups
Don’t expect every seller to own up to every physical detail that will need to be attended to. Both you and the seller are out to maximize your investment. Ensure that you conduct a thorough inspection of the home early in the process. Consider hiring an independent inspector to objectively view the home inside and out, and make the final contract contingent upon this inspector’s report. This inspector should be able to give you a report of any item that needs to be fixed with associated, approximate cost.

6. Not Getting Mortgage Pre-approval
Pre-approval is fast, easy and free. It is also REQUIRED to submit an offer in Arizona. When you have a pre-approved mortgage, you can shop for your home with a greater sense of freedom and security, knowing that the money will be there when you find the home of your dreams.

7. Contract Misses
If a seller fails to comply to the letter of the contract by neglecting to attend to some repair issues, or changing the spirit of the agreement in some way, this could delay the final closing and settlement. Agree ahead of time on a dollar amount for an escrow fund to cover items that the seller fails to follow through on. Prepare a list of agreed issues, walk through them, and check them off one by one.

8. Hidden Costs
Make sure you identify and uncover all costs - large and small - far enough ahead of time. When a transaction closes, you will sometimes find fees for this or that sneaking through after the “sub”-total fees such as loan disbursement charges, underwriting fees etc. Understand these in advance by having your lender project total charges for you in writing.

9. Rushing the Closing
Take your time during this critical part of the process, and insist on seeing all paperwork the day before you sign. Make sure this documentation perfectly reflects your understanding of the transaction, and that nothing has been added or subtracted. Is the interest rate right? Is everything covered? If you rush this process on the day of closing, you may run into a last minute snag that you can’t fix without compromising the terms of the deal, the financing, or even the sale itself.

Now is the Time to Stop Renting!

2009-12-04T22:27:00.000-08:00

Don’t Pay Another Cent in Rent To Your Landlord . . .

"If you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours."

It’s a dream we all have - to own our own home and stop paying rent. But if you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours. How could it when you’re not even permitted to bang in a nail or two without a hassle. You feel like you’re stuck in the renter’s rut with no way of rising up out of it and owning your own home.

Don’t Feel Trapped Anymore

It doesn’t matter how long you’ve been renting, or how insurmountable your financial situation may seem. The truth is, there are some little known facts that can help you get over the hump, and transfer your status from renter to homeowner. With this information, you will begin to see how you really can:
-save for a down payment
-stop lining your landlord’s pockets, and
-stop wasting thousands of dollars on rent.

6 Little Known Facts That Can Help You

Buy Your First Home
The problem that most renters face isn’t your ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a down payment on something more permanent.
But saving for this lump sum doesn’t have to be as difficult as you might think. Consider the following 6 important points:
1. You can buy a home with much less down than you think
There are some local or federal government programs (such as 1st time buyer programs) to help people get into the housing market. You can qualify as a first time buyer even if your spouse has owned a home before as long as your name was not registered. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your options.

2. You may be able to get your lender to help you with your down payment and closing costs
Even if you do not have enough cash for a down payment, if you are debt free, and own an asset free and clear (such as a car for example), a lending institution may be able to lend you the down payment for your home by securing it against this asset.

3. You may be able to find a seller to help you buy and finance your home
Some sellers may be willing to hold a second mortgage for you as a seller take-back. In this case, the seller becomes your lending institution. Instead of paying this seller a lump sum full amount for his or her home, you would pay monthly mortgage installments.

4. You may be able to create a cash down payment without actually going into debt
By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a down payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end.

5. You can buy a home even if you have problems with your credit rating
If you can come up with more than the minimum down payment, or can secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a seller take-back mortgage could also help you in this situation.

6. You can, and should, get pre-approved for a home loan before you go looking for a home
Pre-approval is easy, and can give you complete peace-of-mind when shopping for your home. Mortgage experts can obtain written pre-approval for you at no cost and no obligation, and it can all be done quite easily over-the-phone. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a completed credit application, and a certificate which guarantees you a mortgage to the specified level when you find the home you’re looking for. Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make the difference between obtaining a mortgage, and being stuck in the renter’s rut forever. Typically there is no cost or obligation to enquire.

There are many important issues you should be aware of that affect you as a renter. Why on earth would you continue to lose thousands by throwing it away on rent when with your agent you could take a few minutes to discuss your specific needs so that you can stop renting and start owning.
This conversation costs you nothing. And, of course, you shouldn’t have to feel obligated to buy a home at the time you review this. But by taking the time to explore your options, and learn about the ways you can afford to buy a home, think how prepared and relaxed you’ll be when you are ready to make this important step.

2010 Will be the Year of the Short Sale

2009-12-02T13:42:00.000-08:00

Hello again from Ground Zero in Real Estate!

It looks like 2010 will be THE year for short sales. A short sale is when you attempt to sell your home for less than what you owe to the bank. In the past, banks have been hesitant to do this (wonder why?). However, over this past year, bank's attitudes have slowly changed, as they are beginning to realize that they will probably get more in a short sale than a foreclosure.

What does this mean to you? Well, if you are a seller, and you thought there was no way to sell your home because you are upside down, that may no longer be true. A short sale WILL hurt your credit, but less than a foreclosure would. If you are a buyer, it means that next year, about HALF of the homes you are shown will be short sales.

What this means for buyers is that you will need to consider short sales when house hunting. They will make sense for you IF you do not have to move soon. A short sale still takes at least TWICE as long to close as a regular or bank owned home. If that doesn't matter to you, you can make a pretty sweet deal with a short sale in the coming year. Oh, and by the way, be aware that it may take a couple tries. Even with the improvements, only about half of short sales have offers accepted by the bank and are ultimately sold. Again, be patient, and you could net a great deal.