An Exciting Update on the Phoenix Real Estate Market

Phoenix is still in a strong seller’s market. However, those days could be coming to an end soon.

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I’d like to cover a few things today about the Phoenix housing market that I think you’ll be interested in hearing. The latest numbers are in, and they show us where our market is at and where it’s headed.

Here in Arizona, only 12% of homeowners are still “under water” on their homes in terms of equity. Most people are either able to sell for a profit or have started to build even more equity than they had before the market crash. There were only about 360 homes that were foreclosed last month. It might sound like a lot, but compared to where we were at 10 years ago, it’s nothing.

We are predicting a strong seller’s market for 2017 with modest appreciation. Realtor.com expects sales to increase by about 1.7% from last year. A steady rise in sales and appreciation are both signs of a healthy market.

Where we go from here is debatable. We are more than 10 years into the current housing cycle, which takes about 10 years to complete from peak to valley. We’re playing with house money right now, so to speak. Keep in mind that the market will look a lot different in the next year or two.
We’re in year 10 of a 10-year cycle.
Affordability in Phoenix right now is high. The salary needed to afford a median-priced home in Phoenix right now is $44,000. For first-time buyers who qualify for specific criteria, homes are even more affordable.

For example, a program in Maricopa County for first-time homebuyers gifts them with up to 3.5% for a down payment. This is a grant and doesn’t need to be repaid. If you also negotiate with the seller to pay for closing costs, you could get into a home for $0 out of pocket. How amazing is that? Keep in mind that there are a few criteria you need to meet, including a 620 credit score and a yearly income under $88,000.

If you have any questions for me about the market or if you’re looking to buy or sell a home, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

What To Do If Your House Doesn’t Appraise?

Today I’m back with part two of the “Importance of Representation After Contract” to go over why you need to have representation during the appraisal process.

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I’m back for part two of the “Importance of Representation After Contract.” Today I’ll go over the why it’s so important to keep your representation during the appraisal process.

So what is an appraisal?

An appraisal is a valuation done on a property by a professional known as an appraiser.

On the buyer’s side, if the appraisal does not come in at the contract price, you have three options. The first is to walk away from the sale. The second is to ask the seller to come down in price to the appraised value and the third is to meet somewhere in the middle. However, the third option requires the buyer to come up with extra cash out of pocket.

The seller, on the other hand, needs to sell their home first to the buyer and then to the appraiser. We help our sellers by providing an appraiser with anything they might need to see the value in a home that the seller and the buyer have agreed to.
We make sure our clients are taken care of all the way through closing.
A gentleman once came into my office whose home had been on the market for more than 160 days. He finally thought he had it sold, but the appraisal came in $30,000 lower than what he and the buyer had agreed to. He couldn’t reduce the price that low, so the sale fell through. I went through his appraisal and I found a few things that weren’t quite right. Unlike his agent, I would have disputed the appraisal to see if we could get a more accurate value.

I believe this is a great example of why you need to make sure you have representation even after the contract is signed. We work very hard for our clients during the appraisal process and really try to make sure they are taken care of all the way through closing.

If you have any further questions about this topic or you have any other real estate questions, please feel free to give me a call or send me an email. I look forward to hearing from you!

Why Representation Matters After Your Home Sells

I believe having good representation after a home contract has been is accepted is just as (if not more) important than it is before a purchase agreement is accepted. Here's why.

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In my opinion, your representation after you execute a purchase contract on a property is just as important (if not more important) than your representation when you first buy a home and negotiate a contract. Most people don't even consider the representation afterward.

I've personally seen tens of thousands of dollars saved that would have otherwise gone out the window if there had been bad or no advice given to the client. There are two main points for this: the inspection period and the appraisal. Today, we'll just talk about the inspection period. We'll cover appraisals next time.
Not having good representation after a contract is accepted could cost you thousands of dollars.

As for the inspection period, the buyer will do all their due diligence. When they do this, they have the right to as many inspections as they want. When they're done at the end of the 10-day inspection period, they'll submit a report of what they want the seller to fix in writing. Many sellers don't want the deal to fall through, so they capitulate and give the buyer most of what they want—this can be a grave mistake due to all the money riding on those repairs. 

That's why it's good to have someone in your corner representing you who has contacts with good contractors and vendors so they can get estimates for the costs of these repairs. That way, you'll have everything at your disposal to make an informed decision. Secondly, you want great representation for their ability to negotiate and ask open-ended questions to the other agent and find out whether the buyer truly loves the house or they're on the fence about it. This can also help you get a sense of how important certain repairs are to them.

These are all things that a good agent will do for a seller after the contract has been accepted. If you have any other questions about this topic, I'd love to help you out. Negotiation can be fun and there's a level or art and skill to it, so give me a call or send me an email soon and let's get the conversation started!