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Monday, April 29, 2019

A Rare Opportunity That Our 2019 Market Presents to Sellers


Our local market in 2019 is an extremely seller-friendly environment due to two major factors—but a cooldown could be on the way after this year. 

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Like anything else in life, timing is crucial, and 2019 is proving to be a banner year for our area market-wise. 

One contributing factor to our red-hot market is the fact that there’s been a surge of buyer demand from millennials, and this is great news if you’re a seller. 

Yet, despite all of this positive news, analytics experts such as CoreLogic assert that we’re in a housing bubble, and based on our piece of the national market, I believe there is some truth to these claims.
There’s truly no time like the present to jump into our market and capture top dollar for your home!
There are a couple of factors that make market conditions especially good right now, but which aren’t likely to last:
  1. Rates are still historically low. Sitting at or slightly below 5% on average across markets nationwide, today’s rates are still incredible when compared to what buyers could obtain in the past. Despite these rock-bottom lows we’re enjoying, an uptick in rates is an inevitability—there’s no way around this. Buyers will retreat to the sidelines when that happens, which makes it all the more reason to put your home on the market now. 
  2. Inventory is at a perfect balance right now. This isn’t true for all niche markets—luxury homes are sitting on the market for longer periods, for example. But if your home has visual appeal and is properly priced, it’s sure to sell fast.  
These two reasons should be major drivers in your motivation to sell if that’s been on your mind of late. These factors grant you more leverage and aren’t going to hold forever—prices will likely level off and maybe even decrease after this year. There’s truly no time like the present to jump into our market and capture top dollar for your home!   

If you’d like for my team and me to take a closer look at your property and give you an honest, accurate market valuation, please give us a call at 480-580-0171. I look forward to hearing from you!

Thursday, April 18, 2019

What Is an “As-Is” Contract and How Does it Work?


As-is contracts are widely misunderstood, so let’s explore what this arrangement really means today. 

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Despite what some may think, an as-is contract doesn’t negate the possibility of repairs. This common, but often misunderstood, kind of contract simply stipulates that the seller won’t remedy issues that aren’t consequential to a home’s structural or mechanical integrity. 

Just like any other deal, buyers may choose to back out with no consequence if the inspection results aren’t to their liking. Alternatively, they still have the option to request reasonable repairs. If the faucets don’t work, if the air conditioning unit is broken, or if there is some other significant defect with the home, the buyer is still within their rights to ask that these things be fixed—even in an as-is contract. 
It simply doesn’t make sense to walk away from a transaction over something as minor as a shower with low water pressure.
Any residential resale home will come with some minor wear and tear. In an as-is contract, this kind of everyday damage won’t be remedied by the seller. Instead, the seller will usually factor in the property’s current condition in the way they price and market the home. 

Ultimately, as-is contracts allow sellers to move quickly and buyers to secure a good deal without spending any time negotiating over scuff marks or out-of-date cabinetry. After all, excessive repair requests can easily sink a deal. In today’s market, it simply doesn’t make sense to walk away from a transaction over something as minor as a shower with low water pressure. 

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Monday, January 21, 2019

How to Tell if Your Home Is Overpriced


Many home sellers worry that their home is overpriced. Here are a few different ways to tell if it is. 

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Today I’m going to cut to the chase and answer a great question that came from one of our home sellers: “How do I know if my home is overpriced?”

In order to answer this question, I want you to assume two things first:

1. Assume that the seller has done as much as they’re going to do to improve the condition of the property.

2. Assume that the Realtor with whom the seller is working with is in the top 1% and that they have a huge marketing budget and plenty of experience.
If you go three weeks without a showing, your home is definitely overpriced.
If the above is true, the next way to determine if your home is overpriced is by listening to the market. 

The best ways to do this is by looking at the number of showings and the days on market. When we put a home on the market, we expect at least five showings in the first 10 days to two weeks. Then, we expect another five showings in the following two weeks. This means that we’re looking at a minimum of 10 showings in the first month. If you don’t have an offer in those first 30 days after 10 or more showings, then you know for a fact that your home is overpriced.

The second way to tell is if you go three full weeks without a showing. If you list with an average agent and this happens, how do you know it’s not the marketing? That's why the two items I listed above are essential in order to use the criteria I gave you.

If you want to talk more specifically about your situation or you have any questions about real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Tuesday, January 8, 2019

The Truth About Today’s Market Conditions


What’s happening right now in our market? Are we in a bubble? Find out with this quick update. 

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One question that seems to be on everyone’s mind lately is, “Are we in a bubble?” In my opinion, no, I don’t believe we are.

A bubble, by definition, is what happens when favorable market conditions are nearing an abrupt end. So while our market is at a high point, this alone does not indicate a bubble. 

In fact, real estate activity is projected to slow as we progress into 2019. This kind of gradual adjustment points to a market shift—not a bursting market bubble.
Our market still holds amazing opportunities for buyers and sellers alike.
The current state of interest rates definitely supports this. While rates have been on an upward trend, going up three times in 2018 and set to rise again this year, they are still historically low. 

In addition to this, other market statistics also reflect signs of good things to come. Homes are appreciating more slowly and taking longer to sell, and inventory is on the rise. Each of these developments indicate a slow shift in favor of buyers. 

Overall, our market still holds amazing opportunities for buyers and sellers alike. 

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.