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End of year 2017 Wrap up

Southwest Phoenix Real Estate Market Report  End of year wrap up  2017

Here we will look at the end of year numbers that make up the real estate market in Southwest Phoenix.  This will include active properties for sale, some properties under contract, and of course recent sales for the month ending November 2017. 

Looking at the information, one will see the trends in home values for the SouthWest Phoenix area.  IN addition, I will add commentary based on things I see in the statistics.

A Look at the housing stats for the month:

October 2017 saw a total of 527 properties sold in South West Phoenix.  The average sale price for properties sold in the month was $226,301.  That is a 6.71% increase over the same time period last year.  We also saw 17 more properties sell during the month vs. same time last year.

Below find some interesting information for specific property types and their averages:

2 bedroom:  Average sale price was $230,735

3 bedroom:  Average sale price was $207,686

4 bedroom or more:  Average sale price was $249,876

Horse property:  Average sale price was $314050

65 days on market was average time to sell

13% of homes sold for cash, the rest sold with Financing!

2.19 months current inventory

97.7% was the average list to sell ratio

What does the above stats mean?

For Buyers – 

Home buyers still have options out there, especially with the low interest rates.  There is also a lot of great down payment assistance programs that can help homebuyers into a home.  The above numbers go to show that home values have been steadily rising since 2013.  With home values rising, and interest rates rising slowly too………….it is time to get off the fence.  Waiting too long may price you out of the market.

One can find great values or at the very least market value purchase all across the valley.  The Southwest Phoenix area, which includes places like: Laveen, Avondale, Goodyear, Tolleson, Buckeye, Tonopah, are great areas to consider a home.

For Sellers –

Inventory continues to be relatively low, at 2.19 months of inventory.  Depending on the type, and price range of home, you may find you have very LITTLE competition for buyers.  If that is the case, you indeed will have the upper hand, and could potentially see multiple offers.

As mentioned above, about 13% of the homes sold in the month of November sold for cash.  That by default means that almost 87% of properties sold in the month were purchased through some sort of financing.  This directly means an appraisal was ordered. 

Notice also that properties that sold in Southwest Phoenix for the month of November sold for 97.7% of list price.  That means that on average, most properties sold for about 2.3% less than their listed price.  If one where to look even closer, they’d also see that many properties that did sell, also contributed to buyer closing fees.  I say this, so that potential sellers are realistic in their expactations based on statistical information that can be seen.

What would your home sell for in today’s market?  Find out here, for free – no obligation or costs.

Below are current homes, recently listed in the average price range for the South Phoenix area


Link to homes – The average for the area at the time

North East corner of 35th Ave and Baseline Rd

So, what is being built at the north east corner of 35th ave and baseline rd.  As many may have seen from signage on property, the owner and developer have been going through the zoning and approval process.  The short answer to what is being built, is single family homes.

Laveen Field

Details of project

The plan (in conception at least) calls for a gated community with a total of 382 lots.  The project also calls for 15% of the total area of property to be used as open spaces.  Basically the project is looking at getting approval (and may have it already) of building 4.8 dwelling units per acre.

The main entry to subdivision is to be on Baseline Rd, with a secondary access off 35th Ave.

 

At this point, I do not show any information at to when actual building and development will begin.  Project is by Woodside homes.

 

Southwest Phoenix Real Estate Market Report – November 2017

Southwest Phoenix Real Estate Market Report | November 2017

 

The South Phoenix real estate market for this month December 2017 continues to look very similar to the months past.  We continue in a seller market, but we must keep a watchful eye on interest rates and inventory levels.

 

 

A Look at the housing stats for the month:

October 2017 saw a total of 560 properties sold in South West Phoenix.  The average sale price for properties sold in the month was $211,000.  That is a 9% increase over the same time period last year.  We also saw 43 more properties sell during the month vs. same time last year.

Below find some interesting information for specific property types and their averages:

2 bedroom :  Average sale price was $255,568

3 bedroom :  Average sale price was $211,734

4 bedroom or more:  Average sale price was $248,213

Horse property:  Average sale price was $314050

59 days on market was average time to sell

12% of homes sold for cash, the rest sold with Financing!

2.07 months current inventory

 

What does the above stats mean?

For Buyers –

Well for buyers at this time, the 2.07 months of current inventory means there are fewer choices.  Values have gone up for the last year, and for the time the appreciation appears to be continuing in that direction.  Interest rates have been at historic lows, and in time will begin to rise more.  IF that happens, when that happens, then affordability may be impacted.

For Sellers –

For sellers the low inventory of 2.07 months, is a great sign.  The low level of inventory means that there are less sellers to compete with for buyers which may be looking for a property in your area and price range.  Translation is good time to sell

What would your home sell for in today’s market?  Find out here, for free – no obligation or costs.

Below are current homes, recently listed in the average price range for the South Phoenix area

 

 

 

How to market a property for sale

Where to market home for sale

In this article, we will touch on things I do, and home owners could do to market and sell a home.

Where to market home for sale

How to market

To begin, what is marketing? It is defined online (assuming also in a dictionary somewhere) as the action or business of promoting and selling products or services, including market research and advertising.

For the purpose of this article, the focus will be more on the selling and promoting and not of the actual research.

Over the years I have been in real estate, since 2004 at this point, I have seen many changes in marketing. My first experiences in real estate were in the 1990’s so I also recall marketing back in those days.

Old Marketing

Many of the marketing techniques which will be listed and described below are part of the old school marketing. Some were great, and continue to be great, while others have really in my opinion lost their appeal.

I will make a quick addition, which is that older marketing could many times take multiple days to get set up and ready to implement. For instance, flyers over 10 years ago had to many times have photos printed, then created, and only then sent off to print. This process of making a flyers could many times take 2 to 3 days or more. Wow, how times of changed!

For sale sign in yard - My experience is this still does work, and should be done. This is indeed one of the old style marketing tactics, which is indeed still working.

Flyers in a flyer box – This used to be a very much used standard of practice, and many agents at this time still do practice this method. My experience has been that often time the boxes sit empty. Many times flyers are picked up by neighborhood kids, and end up littering the streets. Also, you have no idea who picks up the flyer, so there is NO way to do any follow-ups.

Three ring binder with all properties at the brokerage office - This was really an OLD practice, but it was how realtors would share listings with other agents and brokerages. Every week listing flyers were delivered to area brokerages. In essence this was what was done prior to the MLS (multiple listing service).

Mailers – Just like it sounds, print up postcards and send them out. Ideally canvass the entire neighborhood. Cost though in last decade has really increased, and could end up costing thousands depending on size of mailing.

Open houses – Some marketing does not get old, and an open house much like the yard sign continues to work.

These are all forms of marketing that have been done for years, and some of them continue to be used by some agents. Yet, there has been many changes over the years, and there is now so much more that can be done with marketing.

New and Improved Marketing | Modern day marketing

Moving into the future, or at the least current time frame as I write this post (2017), marketing has made huge changes. In today’s market we no longer use film, all cameras are digital and the turnaround time to place a home on market, make flyers ….etc. has become all but negligible. Depending on one’s schedule, pictures can be taken, flyers made and printed all within a couple of hours. One could truly begin to give a property exposure to potential buyers and interested parties within hours.

Welcome to the era of technology, where we have for many years been using the multiple listing service (MLS) to help us market and sell homes. The MLS is the system used by realtors to share property information with other agents.

In addition to the MLS, we have access to MANY other tools to help promote properties to other real estate agents, and potential buyers, such as:

Social Media Sites (facebook, g+ and more)

Single property websites

Virtual tour websites

Search Engines – google, aol, bing, and more

Websites – zillow, trulia, oodle,

While there are many things that still get done in the old fashion way, with a twist, we also have technology at our fingertips which allows us to reach a much greater audience.

As an example, I got over _______ people to see a new listing to market over the course of a week using social media. Picture HERE

How to advertise your home for sale using today’s technology

Let us assume as we begin this journey in our advanced technological marketing journey, we already know the market and value of our home. At this point, what we really need is to reach the largest audience possible in order to help get the home sold. So we will look at current ways to advertise, some of which we mentioned above.

The Multiple Listing Service (MLS)

The MLS is what real estate agents across the US use to help promote current properties they have listed for sale. There have been many advances at this point, which allow potential buyer’s access to the MLS, through agent portals and preset searches which have been created by agents. Yet, in the end, it is a realtor controlled listing tool, which allows the realtor to input listings that they have currently on the market for sale. The MLS will allow a lot of information that will be pertinent to a potential buyer to be input, such as bedroom count, bathroom count, square footage, price, lot size, and a LOT more too. In the end, it gives an incredible wealth of information, so that a potential buyer could decide if they have an interest in the home.

One MUST be a licensed real estate agent to have access to input properties for sale. So if you are trying to sell as a FSBO (for sale by owner) this is not likely a route you can take. I will say though, in our Phoenix MLS (ARMLS) we are on track to sell about 100,000 properties this year, so it is INCREDIBLY effective.

Social Media Marketing

Social media marketing was not something that really existed going a little over 3 years back. Yet recently it has made a pretty big surge in popularity, and it is worth advertising properties via social media sources. Some examples of where one can market using social media would be:

Facebook –

Facebook is a HUGE social media site, with as of today about 1.94 billion daily users. With that kind of daily activity, it is a great place to try and get some exposure to a property for sale. In itself, I do define Facebook as a social media site, but in essence it is a huge database of people which can be used for advertising purposes. Think about it, in Facebook you have users who have input their name, email, where they live, and even through activity and posts indicate what they like, want or need. One could advertise directly to people that would be the MOST likely folks interested in buying a property, such as the one that would be marketed for sale.

As an example, wouldn’t it be great to market your horse property for sale directly to people that have an interest in horses. Maybe even narrow that down even more by trying to place your property directly in front of people that like horses, and live in Phoenix or moving to Phoenix?

Just saying, it is a great way to get additional exposure and in the end, that is what marketing is, getting it in front of people to find the 1 right buyer.

Google Plus

Google plus is another social media site, very much like Facebook. It also has shown about 2 billion users so it also has a great possibility to help give property exposure. I have used google + and still do, but I will say it is a little bit harder in my opinion to use and understand. It is a free tool, so take some time and learn it and started getting your property the exposure it needs to get sold!

Linkedin

Linked in is yet another social media site, this one though is a little more on the professional side. Linkedin is really where you will find other professionals, who are all working on building their professional identity. It is a free tool, as well. One can do many things with linked in, including searches for particular types of buyers. For instance, if you know a new company is coming into your area, you may be able to get information on who works at those companies, and try to market directly to them. You can also write content in linkedin, and link it to someplace you’d like to send them. For example, a website you are using to market the property.

Pinterest

This is yet another social media site, and one that can be addictive just like facebook. A lot of the information you find on this site will be more graphic, photos, videos and the like which if you click on will direct you to a site with more information. This is a great way to get additional exposure, especially using photos of home or virtual tours and such.

Twitter

It is a social network where users post and interact with messages. You can FIND ANYTHING on twitter, and once you find it comment on it, follow it and so on. One can add live links into the post, which will direct users to a site of your choice, so another great way to post a property is for sale and direct them to your property.

Some sites to sell Stuff

Craigslist

This is an online portal/website where users can place things for sale. Things for sale on site include cars, trucks, junk, housing stuff, toys, clothes and so much more. You can even go on this site and find services such as pluming, air conditioning and so on, and it is a huge site with stuff all over the US and I think beyond including other countries. For the most part free. I would urge a little caution, of late there has been a fair amount of spam and even shady stuff on it I’ve come across.

Kijiji

Pretty much same as craigslist, though it has a different name. Again, you can place things on this for sale, and even find stuff for sale here as well. Beyond that they also have services, business opportunities and much more.

There are other advertising places you can find, they are all pretty similar. You will need an account, and many of them are free, but will also allow for more aggressive marketing if you pay a fee. To find more, I would recommend google online classifieds, and many will populate, the above are the most popular I’ve found.

Websites to market on

As mentioned before, my opinion is that the MLS is the king of websites to market on, yet you will need to be an agent to use that site. Yet there are other sites one can market to as well.

Zillow

This is one of the larger sites out there that helps market properties. One will need to have an account, and I believe there is no fee to place your home on the market for sale. So as a FSBO, this may be a good place to consider. This site even will help you price home too! Yet, I recommend look at the fine print because they rate themselves a “D” in getting within 10% of the final sales price. In other words their valuation is off by over 10%......................60% of the time.

Trulia

Well, the truth is that if you advertise on Zillow, you will automatically be on Trulia because Zillow is parent company and what happens on one is mimicked on the other. Actually of late, one must actually make changes on “z” and they will automatically change on “t”.

Realtor.com

Not really much difference to any of the other websites. It is another portal that showcases homes that are on the mls’s across the nation. These above are the top 3 to date.

Your personal website

This one can really be huge, and if done correctly can get a LOT of exposure. Yet, one must really know what they are doing, and spend a good amount of time in order to climb the organic searches and be found. This is called search engine optimization, and it can take time and a lot of work and effort to give you the exposure you will need.

As an example, there are 72,000 realtors in Arizona, how many can show up on the first page of a google search? Keep in mind only 10 spots are available per google search page, and you also have to contend with sites like Zillow, redfin, trulia, realtor.com and others. It is needless to say, VERY COMPETITIVE.

You could build your own website, or have someone build it. There are several options even for free websites, or at the very least very affordable.

Myself, I have started to build my own websites, and one can see some at the following places:

Laveenaz85339.com

CasasLaveen.com

Laveenhomesforsale.net

The above sites are WordPress sites, which give a lot of flexibility and allow for a good bit of creativity as well. In the end, do your homework and choose what is best. If you are just in it to sell one home, and while a website will gain a lot of exposure if done correctly, time must be invested. If time is not invested, well, then it will be money to leverage someone else’s time and your money. If just selling your home, it may not be worth your time and effort.

Single Property websites

I love the use of single property web sites as well as virtual tour websites. These are very often what I refer to as standalone websites. All that you see is about the particular home being marketing, including other information such as map of area, schools in the area, retail in the area, and the ones I use also are branded so folks know who to call. Yes, they are branded to call David Alan Baker the local realtor who has homes for sale on market, and who also works with buyers!

Great place to inform potential buyers about the home. Give as much information as possible, the benefits and features of the home, and great photos help too.

Search Engines

Wow, this is a potentially huge topic, but for this article let us keep it brief. To begin with, what is a search engine? A search engine is a computer program that searches for and identifies items in a database that correspond to keywords or characters, indicated by a user and used especially for finding things on the World Wide Web. This is as defined by a google search I found.

Some search engines one would be familiar with would include:

Google

Yahoo

Aol

Bing, and others.

So why I’m I writing about search engines, and how can it benefit you/me to help get a home sold? Well there are really 2 ways one can go about marketing on the World Wide Web. One is to place ads, and those can of course cost money. The other alternative is to be wise and savvy, and make things you do searchable, and easily found on the World Wide Web. Ideally, you would want to be able to create information people are looking for and guide them to it. As an example, notice photo below, the top 8 search results are for information I have posted, and these are ALL on the first page of the google search. This is why you want to know about search engines, to allow you to be found, free, on the results searched by the search engine. This is called SEO, search engine optimazation, and trust me when I say it does take time, commitment and knowhow.

Online Ads

As mentioned as an alternative to trying to get into the top organic searches done by the search engines, one can also place online ads. Ads can be placed on many sites, such as google and bing. Notice how when one does a query (search) online, you will often see up to 3 paid ads that show up on the top of the results. These are spots that you can try and pay for as well. These are what is often referred to as pay per click or ppc.

It is important to know that it is not just simply make an ad saying, “hi, my house if for sale”. One really needs to understand the potential buyer and make ads that really jump out and grab the interest of that potential buyer. Put time and effort into understanding the likely buyer, and then speak to that buyer through the ad. Craft your message wisely, and give the potential client what they are looking for, and you will likely get a lead.

One must also learn all the different pay per click (PPC) portals, and how to place an ad. What will cost be, what will you bid per click? How to judge a ROI for money spent, are all important factors to know to determine if it is worth your effort and cost? With understanding who the buyer is, one can also try to narrow and target specifically. In essence a rifle approach vs. scatter gun approach. Wouldn’t you rather place ad in front of likely buyers vs. a bunch of people who would have no interest.

I would suggest trying PPC with google and also possibly bing, as they are some of the most frequently used search engines, and will allow for a larger target audience.

Summary

In the end, marketing and advertising can be a science that will require some testing. It really is a simple concept, which can quickly become complicated if one does not know what they are doing.

This article describes many options available to market a home for sale, and many which I do on a weekly, daily, monthly basis. Yet for me, this is my job and it a passion as well. With over 13 years’ experience selling homes in Phoenix, I have had plenty of experience to learn and perfect all the above marketing methods.

Would I recommend that a home owners sell the home themselves? No, I would not recommend a home owner sell the home on their own, unless they truly know what they are doing, and can focus on the sale of the home 100%. That of course is just to get it sold, we have not even mentioned disclosures and possible liabilities. In the end, I think the cost of a realtor is worth it!

As mentioned before, I myself use almost all the above marketing methods. My goal is to give the MOST exposure possible to my client’s properties. Again though, I have been helping clients for 13 plus years, and have the knowledge and experience to employ multiple forms of marketing. If the plan is to sell FSBO, try as many as you can manage, and see how it works.

As a last reminder too, make sure to follow all LAWS and REGULATIONS. As realtors we must adhere to proper marketing, and as a home owner you will as well. Not doing things correctly…………well could lead to trouble, and cost you more than you were hoping to save by avoiding commission fees.

How to determine your homes value

Knowing the Value

When considering the sale of a home, one of the biggest determining factos on whether one can sell or not, will be based on the value of the home.  This is after all, a very important factor in this equation.

Knowing the current market value of the home and most likely sales price, will help determine whether a homeowner will be able to make enough on the sale to move foward with placing home on the market for sale.  Alternatively, one may also be able to determine whether they can sell the home in the first place.  

You may think that finding out the value of the home or likely sales price only leads to homeowner making a profit with the sale of a home.  That is not always the case, as there are several instances in which a homeowner may lose money on the sale of a home.  As an example, many homeowners in the years 2008-2013 lost homes and money during the recession.  Also, many homeowners may purchase a home only to end up having to relocate within a short period of time.  This also, will more than likely result and a homeowner having to sell at a loss.  Point is, knowing the value of the home in todays market is key in knowing whether you can and should move forward with selling your home.

Way to find out the value of your home​

So to the point, there are namely 3 ways a homeowner can go about getting or determingin the current market value of their home:

  • An Appraisal - this is something done by an appraiser, who is a professinal within the real estate industry whose sole purpose is to determine a home's current market value.  This is a professional service, and while fees will range, as of the time of this article the average cost is about $550.
  • On-line Valuation - There really is a LOT of on-line valuation sites.  The problem is in knowing whether they can be trusted and are accurate?  I for one question where many of these sites are pulling their informaiton from to determine the value of a home.  One of the biggest, we all know their name, discloses that they are only within 10% of the final sales price 60% of the time..........thats a "D".  Not good!!
  • Could ask a realtor - Well not all realtors may do this service, but many included myself do.  Also to consider is how much experience and knowledge the realtor has of the area where they are doing the valuation.  

The above are some of the choices one has to help determine the value of the home, in todays market.  The first choice will of course be one that costs the homeowner money up front, but is likely pretty accurate.  The second choice, has a 60% chance of being 10% off, which in my opinion is not a great choice.  Think about that, in an area that averages $300,000 homes sales price, they could be atleast $30,000 off!

The last choice, is likely one of the best choices to help you decide whether one is ready to move forward with the sale of their home.​  This will not cost the homeowner anything up front, it is pretty darn accurate and one can also discuss fees associated with selling and even marketing strategy.

Tips  and steps to finding out your home's value​

How will the realtor go about finding out the current market value of your home?  Also, how can you go about finding out the current value of your home?  Let me tell you exactly how you can go about finding out the value, the steps to take and the most likely price you will get in the sale.

One of the first steps will be to determine all the information about the subject property necessary for the valuation.  The subject property, is of course the home whose value is being determinted.  The minumum information you need to begin is as follows:

1.  Square footage of home

2. Age of home, or year built

3.  Lot size

4.  Bedroom count - number of bedrooms

5.  Bathroom count - number of bathrooms

6.  Parking features

7.  Does the home have a pool?

The above again, are what I feel are the minimum requirements needed to being an accurate valuation for a property.  Once this information is known about the subject property, then begin a search for similar properties which will be used for the valuation.  You will want to consider recent homes that have sold, homes that are currently under contract, and lastly homes currently for sale on the active market.

When deciding on which homes to use as comparable properties one must also consider their location and distance from the subject property.​  The ideal situation is similar homes within the same subdivision.  If one can't find homes within the same subdivision, maybe go out to neighboring subdivisions.  Most lenders and appraisers will try to stay within a 1 mile radius of the subject property.  For propreties that are like ranches, or custom homes, a larger radius may be used.  Ideally those closer are preferred but on specialty properties distance is given and allowed.

Time frames of recent sales are also very important in the consideration of comparable properties.  In order to get the most accurate value, one must look at some of the most recent home sales of the similar homes.  Lenders and appraisers, and for that matter most of us realtors as well, try to find recent sales which have occurred no more than 120 days back.  Ideally if one can find sales within 30 to 60 days that would be the perfect situation.

When looking for similar properties, the exact homes may or may not be available for comparison.  What many banks, or appraisers, or even realtors will then do is look for those that are most similar to the subject property.  Ideally, one may even be able to bracket the properties in some way based on the above criteria, and make either negative or postive adjustments based on the comparison.  This is really where some of the knowledge and experience really comes in handy.

For many valuations I have done over the years, I will try to bracket the property.  The idea is to find similar homes with differences of no more than 20% above or below subject property.  This generally will fall into the category of square footage of home, or the size of the lot.  In some cases you may get a very unique home, that maybe is the only one in the subdivision that is on a very large lot, and a adjustment must be made.  Depedning on how the simlar homes compare, then the adjustment will be made either by deducting value or adding value.

As an example if you choose another comparable home that has more bedrooms than the subject property, an adjustment will need to be made in value.  The idea is to either make a negative dollar adjustment or positive one to the comparable properties to arrive at a value for the subject home.  So the comparable property in this case would get a reduction in value for the additional value, thus making it more comparable/similar to the subject home.  One thing that you will need to consider as well, is how much of an adjustment is called for in the value.​

Making adjustments to the value

How much of an adjustment needs to be made to the comparable homes based on their differences?  That really is the million dollar questions, and I will not really be able to give you a universal answer.  All appraisers, realtors and other professionals that conduct home valuations have different values that are used.  The values will also differ, depending on the area one is working in as well (Laveen vs. Scottsdale).  As an example for value, how much value can be given for a home with:

1.  An additional bedrooms?

2.  An additional parking spot in the garage?

3.  A remodeled kitchen?

4.  A larger lot?

5.  Granite counters in kitchen vs. laminate

6.  Will additional value be given for solar?  Is it leased or owned?  Does it make a difference?

As one can see, there is a LOT to know about getting to the true market value of a home.  Unfortunately there is not a simple, press of the button, super-fast way to get the true value.  To get an accurate value for your Laveen Az home, it will require some work!  

There is a lot of work that goes into finding out the value of a home.  Starting with finding the best comparable homes to use for the valuation, as well a making adjustments in value and knowing how much to adjust that value.  As an example a home having a pool could be worth an additional $5000 to $25,000 depending on type of pool, condition of pool and the location of property.  It could also not carry any value, again depending on where the home is located.  The point I want to drive home, is that values added or taken vary.

In the end one now has a 4th option for determining the value of their home, they can use the above information and determine their own homes value.  Find similar homes as explained, and make adjustments as necessary to arrive at the present value of your home.  You will need to study the market, and values of other homes in area, to help determine the best adjustment amount to use if bracketing.  

If considering selling though, my strongest recommendation though would be to consult a realtor who specializes in your area.  My name is David Alan Baker, and I am a Laveen and South Phoenix realtor,  I've specialized in the area since 2004 and would like the opportunity to earn your business.

How to Sell Your Property





Been Considering the sale of your Laveen Home?

If you have been considering selling your Laveen home, you have likely been asking yourself many questions. My goal in this and many articles I have written, and likely will write, is to help you along the way and to answer some if not all of the questions you may be asking. Many would include the process of the sale, when is the best time to sell a home, or even if you can sell the home yourself. While this may at

Knowing the property value

One of the first questions most homeowners want to know, is “What is my home's value?”. It is, I must say a very important question, and a key factor in the decision of selling property. So how does want go about determining the actual and current market value of a home:

  1. Could get an appraisal – An appraisal is a formal and professionally done valuation of the property.
  2. Online Valuation - There are so many online valuation sites at this time, but how accurate are they? After all, you want to make a decision based a "real number".
  3. Could ask a realtor to give you a property valuation.

All of the above are some of the ways in which you could find out the value of the home. To fully disclose however, I would say that option 2 is really not a good choice. Many of the online portals will even disclose on their website that they come within 10% of final sales price only 60% of the time! Do you remember going to school? A 60% was not something that we wanted to take home and share with our parents, it was something were afraid to share, because it is almost failing. So begs the questions, why would anyone want to determine the potential sales price of any property, with something that is SO inaccurate?

Knowing the competition

When selling a home, it is always a good idea to know the value of the home, but also I think it is good to know what and who your competion will be during the sales process. What is competition for a homeowner considering the sale of property? Simply put, competition are all the other properties within the area that are likely similar enough to subject property. All these other homes will be competing along with your home "the subject property", to procure a buyer. This is important and knowing what the competition is should be spelled out clearly.

As an example, would horse property for sale be competition for a condo for sale in the central Phoenix area? Not likely. The buyers likely looking to buy horse property would never consider a condo, just like buyers looking for condos would likely never consider horse property. Competition will be other properties that bear the same resemblance, features, benefits, area, price range and likely buyers as the subject property.

Knowing time to sell and averages

Any important decision needs to be based on facts. Some of the most important facts are those that will help a home owner decide time frames and averages for an area or even property type. You may ask, why this is important, and I would like to share the why.

If a home owner/property owner is planning to make a move, they are likely to have a time in mind as to when the move would be ideally taking place. As an example, let us assume a Laveen property owner has to relocate for a new job out of state. To keep this as simple as possible for this example we will just assume a start date 3 months in the future. Knowing he needs to be in another state in 3 months, when should he/she place the home on market in order to make the sale as close to move as possible? Knowing the average times to sell recent sales, or even properties under contract in Laveen are going to be key in the decision as to when will be the best time to place home on market.

  1. What is the least amount of time of time a Laveen property has taken to sell
  2. What is the average time to sell for sold properties recently
  3. What is the longest time for recent sale
  4. What is the average time for active properties on the market
  5. What is the average time for properties under contract

All the above numbers are very important in helping a home owner make the best decision in order to reach their goals in the selling process. If properties are taking a little longer to sell, maybe placing property on market earlier will be the decision that will need to be made. Yet, if properties are selling super quickly, well then they have the option to hold off on placing on market until they are closer to their move date.

The information given by these numbers will not be able to read the future. They are not a crystal ball for how the sale of any property will play out. Yet these numbers can and will allow a property owner to take advantage of all information on hand in order to make the best decision in their interest.

Knowing the real estate market

Real estate professionals and many who dabble in it as well are very familiar with knowing about the different types of markets. In essence a market is a description of the current inventory levels. Depending on the national economy, the state economy, and the local economy which are all financial drivers in the real estate market, we will have different markets types.

A buyer market - A time where there is a larger inventory of homes

A seller market - A time when inventory levels are lower

A transitional market - A time with a balanced inventory of homes

Understanding the current real estate market can help a homeowner with expectations during the home sale process. Is it a market that will favor the homeowner at the time of placing the home on market for sale, or will it benefit the buyer more? Knowledge of the market, and the inventory level can also lead to a better understand as to how to negotiate in your best interest.

Who is the most likely buyer for your Laveen Arizona home?

When you look at your property, who do you think will be the most likely buyer? One could likely look within and see what was the deciding factor and maybe even situation at the time the property was originally purchased. One could really go deep into the thought process for “who will be the most likely buyer for the property”?

Is the property more enticing to people living a certain type of lifestyle?

Is the property more enticing to people based on its location?

Is property one that will appeal to different family make-ups? By this I mean, single, divorced, family, small family, large, extended…….

Is the home one that will interest buyers with larger families?

The more one knows about the most likely end buyer, the better one can go about selling property. Once you have an idea of who the likely buyer will be on a property for sale, one can market a little more specifically to that demographic.

What type of financing will buyer likely use

This is not likely something that a homeowner will consider much, especially if they decide to use a professional realtor. Yet, if a homeowner decides to try to sell the home on their own (FSBO), then I think it should be something they would want to consider knowing.

Above we discussed, who may be a likely buyer for the home, and now we also look a little at what type of financing the buyers may use to purchase the home.

Cash - simple enough, a buyer comes to the table with money in hand (check, cashier or wire transfer to finalize the deal)

Conventional loan - a type of loan that is done, down payments vary a bit

FHA Loan - this is a loan which is backed by the Federal Housing Administration.

VA loan - this is a loan which is for veterans.

How to market your Laveen home for sale

When and where can you market your home for sale?  There are many sources of marketing, one could chose on way or try to market in as many as possible.  I would say, any good realtor, one that is experienced and professional will have some kind of marketing plan.

Some ideas and places one could consider to market their property:

  • Postcards
  • Advertise in a local newspaper
  • Send information out to neighbors
  • Market online
  • Market via social media
  • Contact realtors in area that may be working with buyers

As a local realtor, I always try to stay current on the real estate market and of course marketing trends as well.  As of this posting, one of the best ways to reach an audience that potentially would be looking to buy a home is online.  Matter a fact, almost 97% of buyers start their home search online, so follow the crowd (buyers).

For a real in depth look at marketing, even some tips on how to market on your very own, visit my post "how to market a property for sale".​

Should you make repairs prior to selling the home

What is the minimum you should do to the home to get the HIGHEST amount out of the sale of the home?  Is there anything that you really NEED to do to the home to make it more marketable or appealing to potential buyers?  Can you sell your home "as is"?  Will you get less money for the sale of the home if you don't make repairs?

Wish I could tell you that there is a quick, fast, and easy response to these and many other questions.  I have been in real estate for going on 13 years, have done 100's of deals, and in truth they are all a little different.  Not only is the sale different because maybe the houses are not similar, or maybe they are in different locations, different conditions, and VERY IMPORTANT is also considering the over all real estate market at the time of the sale.

As an quick example, making some minor cosmetic repairs for homes in the 2009-2011 period may not really have been advisable for many of my clients.  Most at that time were actually going through a distress situation, and when a homeowner will not profit from the sale I don't suggest they invest money into a losing situation.  If we were selling back in 2004-2007, then I may have advised clients to make some repairs and even some improvements.  Back then, having granite counters could easily get you more return on investment than was put into project.  The simple point is, you need to do your homework.  Understand the current market, understand the cost of repairs and will it provide a sufficient return on investment to make it worthwhile.  Also, if repairs is NOT done, will it have a detrimental affect on the marketability of the property?

Sales Information April 2017

Abril 2017

Find below sales information for April 2017 for the Laveen Arizona area.  Of course we will be looking at a lot of current statistical information, for the month of April, but also making use of the recent sales information for Laveen in the month ending March 2017.

 

159 properties currently for sale

131 properties currently under contract

87 properties sold in month of March 2017

1.83 months of current inventory

$110.83 was average $/square foot for homes sold

$150,000 was the lowest sale

$1,190,000 was the highest – FYI – this was highest in YEARS!

74 was average days on market for sold properties

$122.71 is current average dollar a square foot for active listings

 

Commentary for Laveen Az real estate market

When the inventory level is under 3 months, it is a seller market.  At this time as reported above, Laveen real estate market stands at 1.83 months, which is indeed still a seller market.  Basically, a great time to sell.  Home values have gone up, rapidly at first in 2013 and steadily since 2014.  It remains a great time to sell.

 

Seller Tip #1 | How to help your home sell

Make a good first Impression

​A first impression is something that can never be done again, once you have made it, it is DONE.  This was also something that I had originally started hearing when I was a young boy, mom would always says it is important to make a good first impression.  Well, not much has changed it seems, because I now I'm telling people, just like my mother that the first impression one makes is very important.

​When a potential buyer has decided to come and view your home, this is GREAT news.  After all, when a homeowner places their home on the market it is usually to get it sold.  In order to get the home sold, it is very common to need a buyer.  So again, when a buyer decides to come through the front door of the home, this is indeed good news.  It shows that the buyer has interest in a home, and very likely similar to the one they are about to walk into.  You see, in today's world, many buyers would have already seen some photos of home and are aware of the overall aspects of the home.  Things such as how many bedrooms, bathrooms and maybe square footage and price.

Once the potential buyer has decided that the home poses a big enough interest to them, they schedule that appointment, right?​  So going back to the beginning, now that they are at the home we need to make a good first impression.

​Declutter your Home

So, the heading for this next section really is the summary of what the TIP #1 is, declutter.  If you are standing in your living room, which also happens to be right next to the kitchen, and you can not see the kitchen from the stacked boxes there is a problem.  First, you may be a hoarder and that is a problem.  Luckily in my 12 years plus of selling real estate here in the South Phoenix and Laveen area, I have not had many people that would even come close to being called hoarders.  Yet, there are those who could benefit from this Seller tip, and that is to declutter.

​What is decluttering entail?

When it comes down to it, decluttering is removing all excess items that don't need to be in the home.​  One thing you can ask yourself is the following: "would removing this make the home look better?", or even possibly "do I need to have this out at this time?".  If the answer to these questions is no, then it would likely be a good idea to remove it.

So to give you an idea, let me use some examples.  Lets say that there is an area of the house, that does not get used very much.  As it is not in constant use, maybe just maybe the powers that be decided to go ahead and place one thing, then maybe another into the area for storage.  Well over time, that area of storage just grew and grew, to the point where not there is huge amounts of storage going on in this room.  Let us call this room the GARAGE, and due to the excess storage going on in the garage, vehicles are not able to be parked.  In addition, maybe on really can't even see the full garage well, because there is so much being stored.​

When it comes down to it, wouldn't you as a potential buyer really want to be able to see the entire home?  So if you do have rooms that are full of storage items, it may be something you really want to deal with before placing it on the market for sale.  Again, making that good first impression is huge.  It is very important to make sure you allow the buyer to see the home, and the potential, so they can see if they have an interest to move forward with an offer.  Chances are, if you place home on market you will eventually sell anyway.  So why not start packing a little, so you can make sure to make that best first impression.​

Sales information February 2017

As per usual, let us review what has been going on with the real estate market in Laveen Arizona by looking at current and some past sales information.  We will follow up the statistics given, with a brief commentary.

Current Homes for sale and Recent sales information

135 active properties for sale

103 properties currently under contract

57 properties sold in January 2017

$210,344 was average sale price

$106.10 was average $/sq ft for homes that did sell

$158,000 was the low sale for month

$290,000 was the high sale for month

2.37 is current inventory

90 – average days on market for active listings

$121.31 is average list price/sq ft

 

Commentary

Well, it continues to be a seller market in Laveen Az 85339.  This is great news for home owners that are currently considering selling!  The reason is simple, inventory levels are still low and values have gone up over the last 3 years now.  I’ve mentioned before, we have seen double digit increase in home values since 2013, but I DO NOT think we are likely to see it continue that way on a yearly basis.  My reasoning is that I fully expected to see a large up swing in home values, and it was because home values had over corrected after the market crash.  We saw home values plummet way beyond what it should have, and that value needed to correct itself.  Once the economy improved a bit, we did see home values increase quickly (30% in 2013), and it was because it needed to correct itself.  We have not seen such an increase again, and likely will not.

So, is it a good time to sell?  Yes it is, it is a seller market and inventory levels for active homes on market are low, so this will benefit home sellers.  Values as indicated have gone up, so you should and will have equity in the home (most folks).

Sales Information January 2017

Welcome to the new year here in Laveen Az.  As always we will look to review information from the current activity in the market, as well as the most recent sales, in this case the month ending December 2016.  Keep in mind when reviewing this information, that all information is for the entire Laveen Az 85339 zip code, and all property types.  If you’re considering selling your home, it would be wise to look at recent and current sale information for homes similar to your own.

Current Real estate information

137 properties currently for sale

103 properties currently under contract

86 properties sold in Laveen Az in December 2016

67 was average days on market for sold homes

$108.22 was the average dollar a square foot

$233,305 was the average sale price

99% was the average list to sale ratio ( homes on average sold 1% under list on the mls)

$142,700 was the low sale price

$615,000 was the high sale price

 

Two last interesting numbers to through in the mix:

96 was average days on market for active homes on market

$124.55 is average dollar a square foot for listed homes (active)

 

Commentary – Homes in Laveen are indeed selling, and they have been as can be seen from numbers going back a year.  It is and has been a seller market in the area, which of course benefits the sellers.  This is because there is a lower inventory of homes.  What I do like to point out today is that the average days on market for sold homes is about 30 days lower than those currently on the market.  Also the average sale price per square foot is about $16 dollars less a square foot as well.  That means in many cases, that homes on the market are not priced right, and as such, are staying on the market longer.  It is not until homes come down to market value that they end up selling, and even then the average is still 1% under the last listed price.

Lastly, only 4 homes where purchase with cash!  That means that 95% of the homes bought/sold are being financed!  Do YOU KNOW what has to happen on a financed home?  Yup, an appraisal, and that means that other similar homes will be used to determine the value of the home.  So, if other similar homes have sold for “x” dollars the chance of you getting “x + $$$” are not to good.

Food for thought.

I’m a Laveen area realtor, and have been since 2004.  Hope you find this information beneficial.