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Here’s a snapshot of August’s real estate statistics. Contact me if you would like a more detailed report, or if you would like me to send you a market snapshot of your neighborhood.
Thinking about selling your home in the next 7 months? Caroline Carter, author of “Smart Moves: How to Save Time and Money While Transitioning Your Home and Life,” is a home transition expert that feels that you ideally need about seven months to get your house ready to sell. Of course I’ve had sellers that get their home ready in a few weeks, but in my opinion, I agree that for some homeowners, 7 months is not to0 early to start preparing yourself. I do find that in most cases it is best if homeowners start preparing at least 3 months prior to listing their home on the MLS for sale. It really depends on how much work needs to be done on the property to get it ready for the market.
Carter’s book includes some helpful tips to help you tackle getting your home ready. Of course if you have an awesome Realtor, she can help you get a game plan together and make the process much easier! A Realtor has resources that can save you time and frustration.
1. Pace yourself.
Put a plan together and realistically set up a timeline. You will most likely still have your normal day to day life to contend with so you will need to keep that in mind. I find it is easier for my clients to schedule times to work on the house and add them to a calendar to ensure they are completed. Once you set a target date for your home to be on the MLS, you can work backward from there.
2. Get organized.
Moving is a great time to organize your belongings and hopefully when you are done you will have less to move! Start with your paperwork, sort and file your important papers and shred the rest. Make sure you keep a list of important numbers and accounts handy. And remember that you will need financial paperwork for your mortgage process. You can scan these important items for a paper free option. Make sure to use a cloud based place to store your files, or back them up on a thumb file or external drive.
Next, go room by room and organize your belongings. Determine what you are going to keep, sell, give away or toss. You can even start boxing up items that you will be keeping but won’t be using to store inside a closet.
3. Timing is everything.
Make sure you give yourself enough time to complete the organizing tasks so you can get your house on the market on your desired target date. You will also need to factor in any time you will need to complete any repairs on the property. Don’t underestimate how much time it is going to take you. By giving yourself enough time, you will make the process less stressful.
4. Take control of your stuff.
The average house has about 300,00 items! Be objective when you go through your house and take control of what you keep and what you donate or toss. Don’t lose sight of your goal to reduce the items that you will need to move. Carter uses blue painter’s tape and a black market to mark each item as pack, sell, dump and donate.
5. Out with the old.
Once you complete the sorting process, you can find numerous companies to come haul any unwanted items away. You can also contact several organizations to donate items to and they will come pick it up. Check out Goodwill, Salvation Army, and St Vincent de Paul to see if they will come and pick up your items for free. For more information visit www.donationtown.org. “Junk” removers can pick up any items that aren’t eligible for donation.
Need help planning the sell of your home? I have a proven process to help you experience success with less stress. Together we can get your home ready for the market, priced right and in front of the most potential buyers as possible. I use professional staging and photography to help attract buyers with no extra charge to you.
Contact me today for a free consultation to help you get a game plan together. Call or text Cinda Rose at 623-252=9350. Or fill out the form below.
Due to low inventory levels, Coming Soon marketing for homes that haven’t hit the market yet is becoming more and more popular. It gives a homeowner the opportunity to build up interest in their property before it hits the market on the MLS. There are a lot of terms floating around the real estate world about listings that haven’t hit the market yet! What is the difference between Delayed status, Pocket and Coming Soon listings?
Delayed Status Listings
In July of 2018, the Arizona Regional Multiple Listing Service (ARMLS) added the Delayed status for residential listings. A property can be listed on the MLS for up to 14 days prior to going Active by using the Delayed status. The listing agent actually goes into the MLS system and adds a listing like they normally would, only they use the Delayed status instead of Active. All of the property’s information, including the upcoming list price, is included on the MLS. Please note:
- No showings are allowed until the property goes Active on the MLS (even by the listing agent)
- Delayed listings are not syndicated to other websites or home search tools
- A sales price will be shown
- Your address will appear
- Days on Market does not accumulate until the listing is changed to Active on the MLS
- On the 15th day the property automatically changes status to Active and showings begin
Pocket Listings vs Delayed Status Listings
For Realtors, the term Delayed status is now used differently than the term Pocket Listing. A Delayed Status listing has been added to the MLS, while a pocket listing has not. Here’s some more information about Pocket Listings:
- Agents and sellers expose or advertise the house to whom they choose
- Showings can occur before the property is active on the MLS
- Properties can be syndicated to other websites
- Pocket listings have limited exposure
Coming Soon Marketing
Coming Soon has become more of a term for marketing properties that have not hit the market yet. Coming Soon marketing can be used for Delayed Status Listings (listed on the MLS) as well as Pocket Listings (not listed on the MLS).
Unless a seller requests otherwise, I usually do not use the Delayed Status on the MLS, instead I utilize Coming Soon marketing to start advertising online before your target Active date on the MLS. Your house will be added to various social media and real estate websites. I also spark interest through direct mail to your neighborhood. In addition, I reach out to potential buyers in my database that are looking for a home similar to yours.
When you use the Delayed Status you are revealing your list price to other sellers that are getting ready to list their property for sale, i.e., the competition. By letting them know your sales price, you may help them price their property and cause theirs to sell first.
Please note that I always suggest to sellers to hold off on responding to all requests for showings, as well as all offers during the Coming Soon marketing period. Once your property is Active on the MLS you are getting the maximum exposure so you can ensure that most likely a better offer isn’t out there. It’s my obligation as your Realtor to get you the absolute best terms and conditions and the Coming Soon advertising period alone does not provide maximum exposure, it’s essential to have your property on the MLS to be in front of the most amount of potential buyers. Our goal with Coming Soon marketing is to stir up some interest so we can have more showings your first weekend on the market.
If you have any questions about Coming Soon marketing, Delayed Status listings or Pocket listings please feel free to contact me. My goal is to help you sell your home and experience success with less stress!
Even if you are months out from selling your home, it’s time for us to have a conversation. I can help you get a game plan together for getting your house ready for the market, priced right and in front of the most people. Simply fill out the form below. I look forward to hearing from you!
Professional stagers spend their time making properties shine so they attract buyers. Their job is to take your home and turn it into a neutral atmosphere that buyers can see themselves living in. Having a dirty home can be a negative to potential buyer so professional home stagers have some tricks up their sleeves for quick and easy cleaning.
Looking for an experience Realtor with advance training and systems in place to ensure you have a successful sale with less stress? You’ve come to the right place! Hire me and I will include a Staging Transformation from a local professional stager as well as a photo shoot from a local professional photographer. Let me help you get your property ready for the market so you will shine above your competition! Please fill out the form below to request a phone consultation to see if I can help you achieve your real estate goals. I look forward to hearing from you!
Tips for Selling in Summer
In Arizona, summer has traditionally been a great time to sell a home. Many families take advantage of moving when the kids are out of school.
With more homes on the market, how can you maximize your potential for a great offer among the options? Fortunately, you can take a few steps to ensure your home stands out from the crowd.
Tips for Selling in Summer
Control the Climate – The first thing a buyer will notice when they walk into a home is the temperature. When the weather is hot outside, it’s critical you keep your home cool. Homes that feel warm or hot are not as attractive to buyers when they are out home shopping. A larger air conditioning bill is a small price to pay for a top dollar offer.
Let in the Sun – It might be tempting to close the blinds to save money on air conditioning, but bright, sunny rooms are always more appealing; leave enough open to showcase natural light.
Extend Outdoors – Today’s lifestyle includes the outdoor areas and more and more homes feature outdoor living and dining areas. Regardless of your home’s features, maximize the impact of your yard with furniture, BBQs and manicured landscaping. Keep an eye on your patio and make sure to keep your outdoor area looking clean! It’s easy for it to get dusty in Arizona.
Spring Clean – A fresh, decluttered home with a lighter, seasonal color scheme will be visually appealing to your buyers. Replace dark pillows, linen and accents with softer colors which make the rooms seem larger. Make sure your home is dressed for summer success. Welcoming outdoor spaces and bright sunny rooms combined with inviting air conditioned rooms will ensure you get the best possible offer.
Contact me today for more information about selling your home!
There is a saying in real estate that a home is only worth what someone will pay for it. However, if a buyer is using a lender to finance the purchase, the sales price will also be subject to an appraisal completed by a residential real estate appraiser. When determining the market value of your home, we will need to first consider what price will attract buyers and second, we will need to determine what price an appraiser will value your home.
What is an appraisal? A Real Estate Appraisal is a methodical process of developing an opinion of value for real property. An appraiser comes out to your property and does a walk thru. For lending purposes, appraisers are required to abide by guidelines as set by the appropriate agency (Fannie Mae, Freddie Mac, FHA) for the mortgage the buyer is applying for.
What does an appraiser look for? An appraiser will first look for homes that are comparable to yours in the same subdivision that have sold in the last 3 months. If not enough properties are found, the appraiser will expand the search to include properties that have sold in the last 6 months. If there are still not enough comparable homes to determine the value, the appraiser will expand outside of your subdivision or community. An appraiser will also look at comparable homes currently on the market to determine where the overall value of the homes are headed (up or down in value).
It’s important to remember two rules regarding the valuation of Residential Real Property.
Rule #1: Price per square foot is the WORSE possible way to measure value. An appraiser rarely uses the price per square foot when determining their opinion of value. This method does not take into account upgrades, condition or many other items that affect the value of a property.
Rule #2: Don’t compare apples to oranges. Appraisers make “adjustments” to the value of your home based on the sold comparable properties. Let’s say your house is an apple. You cannot take an orange and make adjustments to that orange in an attempt to create an apple. When determining the value of a property it is important to find other apples to compare your property to.
Example of comparing apples to oranges:
A single level 3 bedroom, 2 bathroom, 2 car garage at 1800 SQFT cannot be compared to a two story, 4 bedroom, 2.5 bathroom, 3 car garage at 2400 SQFT. This is not acceptable practice for any of the lending agencies (Fannie Mae, Freddie Mac, FHA). The apple must be compared to other apples. Fannie Mae, Freddie Mac and FHA have established appraisal guidelines that prohibits adjustments bigger than 10% of the value, reinforcing the idea of comparing apples to apples. Conventional loans have different appraisal guidelines. Talk to your lender about what type of financing you will be using and if there are any potential appraisal issues you need to know about.
Example of comparing apples to apples:
A single level 3 bedroom, 2 bathroom, 2 car garage at 1800 SQFT compared to a similar single level 3 bedroom, 2 bathroom house but with a pool or a 3rd car garage. An appraiser can make adjustments for items such as pools, garage spaces, kitchen and bath renovations, flooring, solar energy (does not include leased solar equipment), or even the number of bedrooms. The goal is to find comparable properties with the least amount of adjustments needed.
The adjustments that an appraiser makes can vary from appraiser to appraiser, but there is a general consensus of adjustment amounts that are being used in our market today. For example, an adjustment for a pool or lack of pool is typically $8000 to $10,000 in the West Valley area and an adjustment for a 3rd car garage stall (not tandem) is typically $3000 to $6000. It’s important to keep these items in mind when looking at comparable properties to determine your best list price.
If you have any questions about adjustments please contact me. Looking for a Realtor to help sell your property? I’d be honored to help you experience success with the sale of your home!
What is the largest generation of buyers?
When you are are selling your home it is important to consider what type of buyer you will be marketing to. According to the National Association of Realtors (NAR) 2019 Home Buyer and Seller Generational Trends report, 37% of all buyers in today’s market are Millennials, making them the largest generation of home buyers.
For the purpose of this report, Millennials have been divided into two groups, Younger Millennials (buyers 21 to 28) and Older Millennials (buyers 29 to 38). The Older Millennials make up 26% of all home buyers, 2% more than the second largest generation of buyers right now, the Gen Xers that make up 24% of all buyers. The Younger Millennials make up the remaining 11%.
Millennials are using real estate agents to purchase their home, in fact 92% of Younger Millennials used a real estate agent. How are they searching for homes? 92% of Millennials used the internet. After they viewed the homes online, 68% walked through the homes they viewed online and over 40% looked at the exterior of the home but did not walk through the home.
What are the most important features for online listing marketing? 90% of Younger Millennials and 91% of Older Millennials felt that the most useful feature for an online listing is the photos. 83% Younger Millennials and 85% of Older Millennials felt that detailed information about properties for sale was useful.
94% of Younger Millennials and 88% of Older Millennials purchased a resale home, which is higher than the average of 86% of all buyers that bought a resale home over a new construction home.
How much are they spending on a new home? For Younger Millennials, 27% purchased a home priced in the $200,000’s and 23% bought a home priced from $150,000 to $199,999. Only 15% of Younger Millennials bought a home over $300,000. For Older Millennials a larger percentage (43%) purchased a home over $100,000. 42% purchase a home priced $150,000 to $299,999.
What does all of this information mean? If your home is worth $300,000 or less, there’s a high possibility that it would appeal to a Millennial. Since they are the largest generation of home buyers it’s important to make sure your property appeals to them online. It must look and feel move-in ready. The use of staging and professional photographer is essential to marketing your property online to Millennials.
I include a free staging transformation* and free professional photo shoot with all of my listings! Contact me today to schedule a phone consultation, I’d love to help you get a game plan together for selling your home!
*Staging transformation for owner occupied homes with existing furnishings only. Small staging touches can be added to vacant properties.
Owning a home is the first step to building equity. Tenants build equity but not for themselves; they build it for the owners.
Equity is the difference in the value of the home and what is owed on the home. There are two dynamics that cause this to grow: appreciation and principal reduction.
As the home increases in value, it is said to appreciate. Various authorities will annualize an appreciation rate based on average sales prices from one year to the next. Since appreciation is based on supply and demand as well as economic conditions, it will not be the same year after year. If you looked at a ten to twelve-year period, some would be higher than others and there may even be some individual years that it is flat or even declined. For the most part, values tend to appreciate over time.
Most mortgages are amortized which means that a portion of the payment each month is applied to the principal in order to pay off the loan by the end of the term. A $300,000 mortgage at 4.5% for 30 years has $395.06 applied to the principal with the first payment. A slightly larger amount is applied to the principal each following month until the loan is paid with the 360thpayment.
If additional principal payments are made, it will save interest, build equity faster and shorten the term of the mortgage. Using the previous example, if an additional $250.00 principal contribution was made with each payment, it would only take 270 payments to retire the loan instead of 360. It would save $69,305 in interest and shorten the mortgage by 7.5 years.
To see the dynamics of equity due to appreciation and principal reduction, look at the Rent vs. Own. To see the effect of making additional principal contributions on your equity, look at the Equity Accelerator.
If you would like to know the current market value of your property so you can determine how much equity you have, please contact me at firstname.lastname@example.org or call 623-252-9350. I look forward to hearing from you!
Buy or sell a property with me and I will provide you with your own personal moving concierge!
Contact me today to schedule a phone consultation to see how I can help you achieve your real estate goals.