Selling a home requires a ton of paperwork, so make sure you’re prepared.

Are you looking to sell a home? At times, it may seem like you are adrift on an endless sea of paperwork. So many documents are required during the sale of a home that it can be confusing and worrisome. It’s easy to become overwhelmed, which is why we've put together this brief primer to help you navigate the process. This isn’t an exhaustive list of all the documents you might need during a sale, but it should help you get the ball rolling.

1. Pre-listing paperwork. Your agent should help you through this to ease the uncertainty. Put simply, this is when you need to gather documentation for your ownership of the property and any changes you’ve made. This might include things like a CLUE report, receipts and other documents for recent improvements, warranties, other information regarding your appliances, and any records relating to an HOA or other agreements. The disclosures and documentation required by a seller can vary widely depending on your specific situation and location, so be sure to connect with trusted, local real estate agents like us to help you with gathering these documents.

"The right agent can help you identify, find, generate, or apply for all of the necessary documents."

2. Listing paperwork. This one is a lot easier for the homeowner. This will include things like disclosure paperwork, HOA details, and a listing agreement. Much of this paperwork should have been gathered before listing, and much of it will be the responsibility of your real estate agent. Be sure to work closely with your agent to make sure that you have all of the necessary documents.

3. The offer and closing paperwork. This is another step in the process that is heavy on documentation. Much of it will be included in the prior steps, but you’ll also need new things like the purchase offer, appraisals, and inspections. You’ll already have some of this paperwork, you’ll receive some of it during the selling process, and other parts will be generated by your real estate agent and the mortgage companies. The most important things you’ll want to have on hand during this process are your identification and the deed to the home.

As I said before, this is not a complete list of the paperwork you’ll need. Plus, your specific city, county, and state might have different requirements. If you’re feeling overwhelmed, remember that this is why you need trusted, local real estate agents like us on your side. We’re experts in the buying and selling process, and we can help you identify, find, generate, or apply for all of the necessary documents that you will need for your specific sale.

Although you are responsible for providing the information and disclosures, a service-oriented agent or team can help guide you through the process to ease your mind and minimize the risks associated with selling a property in Arizona.

If you’re getting ready to sail the sea of paperwork required for a successful home sale, reach out to us. Call or email us anytime, as we are here to help you with all of your real estate needs.

Looking to Sell Your Home?

The three areas that inspectors typically check during home inspections.

Do you know what things a home inspector looks for when they visit a property? Home inspectors will investigate every nook and cranny from the foundation to the roof to find anything that might affect the property’s value. Here are the main things that they will check:

1. Roof. Inspectors look for leaks, damaged or missing shingles, and signs of moisture. They also look for any problems with the flashing, gutters, vents, attic ventilation, and skylights, if your home has them. Make sure everything is watertight to avoid any major issues.

"Home inspections reveal the current condition of the home."

2. Structure. The foundation of the home should be solid and be able to stand the test of time. The inspector will usually check for cracks in the foundation or water damage to the siding or supports, and visible damage or defect in the trusses.

3. Systems. The HVAC, filtration, plumbing, and electrical systems will all be thoroughly inspected to make sure they are all working properly and have no safety compromises. If they’re damaged or faulty, you should find out how much it costs to repair or replace them.

Depending on the condition of the home, this can be a scary report, but take note of these areas and keep them in working order because the results of the inspection can influence your final price. Your Realtor is also there to help you understand the report and negotiate any repairs. If you have any questions, feel free to reach out to me by phone or email. I look forward to hearing from you!

Looking to Sell Your Home?

This knowledge will help you avoid accidentally losing your earnest money.

Can a seller take your earnest money if you change loan programs? Let’s say you’re prequalified and found the perfect home, so you sign an agreement with the seller, and everyone agrees on the price and terms. Then, you learn that you can get a lower interest rate. If you decide to change loans and get a better rate, can the seller take your earnest money?

The truth is that the answer depends on a few things. First, we will assume that you’re buying in Arizona according to the terms of the purchase contract that we’re currently using The problem comes when the buyer and their agent don't fully understand the contract. We want to prevent buyers from putting themselves in this tough position, so here are some things you should understand before acting on switching your loan.

"Remember that some changes require the seller’s written consent."

Start by asking yourself if you’re within 10 days of contract acceptance and if you’ve notified the seller. The contract requires that you notify the seller if you make certain changes within the first 10 days, and some of the changes may require the seller’s written consent.

When do you need this written consent? You need written consent if the change affects your ability to be approved for a loan, increases the seller’s closing costs, or delays the closing. A few specific examples would include if you’re changing lenders, switching from conventional financing to a VA or FHA loan, or changing the terms of the contract. If you stay within the same loan program and with the same lender but decide to buy down your interest rate, your earnest money should not be at risk.

If you have any questions about the market or real estate in general, reach out by phone, email, or click this link to submit a contact request. We look forward to hearing from you soon.

Looking to Buy a Home?

Three things you should do to successfully sell a fixer-upper.

The selling process is already difficult enough, but when you add noticeable problems with the property into the equation, it can make the home sale even more complicated. Inventory has increased, and buyers have more options to choose from. Your home, which needs repairs, won’t likely be their first choice, and those who are interested in purchasing may make an offer that’s much less than what you wanted to sell it for.

Selling a house with major issues takes a lot of work, and there’s never enough time to do it. The longer the home stays with you, the more expensive the costs of repairs and maintenance will be. If you don’t act soon, that property could end up becoming a liability. Fortunately, there are ways to reach the closing table and make a profit. To sell a fixer-upper, here are three things you should do:

1. Your real estate agent should be able to provide a referral for home inspectors. You know the property is in bad shape, but you’re not exactly sure to what extent. This is where a professional can help. A home inspector will locate the problems and give you a complete rundown of them. Once you’ve identified what has to be fixed, you can evaluate whether you can afford the repairs and replacements or sell as-is. Also, remember that disclosing the issues of your home to would-be buyers is required by the law. You want to be as transparent as possible to avoid any legal repercussions later. 

"The worse the home’s condition is, the bigger the pool of investment buyers will be."

2. Your real estate agent should be able to provide multiple cash offers from investors while at the same time looking out for your best interest. The worse the home’s condition is, the bigger the pool of investment buyers will be. Real estate investors don’t want to live in that house. They want to repair and upgrade it so they can sell it and earn a profit. Bargain hunters, on the other hand, are in search of their dream homes. They are willing to put in the elbow grease needed to make a property livable and will overlook a few flaws, as long as they love the location.

3. Work with a real estate professional. Be realistic with your price. Whatever market we’re in, pricing your home correctly will always be critical. This is especially true for homes that are not in the best condition. An experienced real estate agent can use their resources and connections to ensure that you get the best possible deal for your sale. They can also be your advocate and expert throughout the process, helping you navigate any legal or financial issues that may arise. 

It’s possible to sell a home that requires work. If you follow these tips, you will confidently get to closing. For more tips on how to successfully sell a fixer-upper, contact a reputable real estate professional. They will be happy to be your real estate consultant!

Looking to Sell Your Home?

Three home upgrades will fetch you a high return on your investment.

When preparing your house for sale, you may be led to believe that the more upgrades you make, the higher the price you can list for. However, not all home upgrades are created equal; some will have you pouring money down the drain, while others will get you immediate resale value. Understanding which projects to take on can help you make thousands of dollars more. So, what home improvements should you do if you want to get a fantastic return on your investment?

To answer this question, we have to take into consideration the changes that happened in the past few years. Our homes were recently put through a massive re-evaluation. In response to the pandemic, there are now certain features in a home that have become much more attractive to buyers. If you can include them in your upgrades, you can increase the value of your house and turn it into a coveted property in the market. In particular, there are three projects you’ll want to take on:

1. Add more usable square footage. According to a 2020 survey, the need for more space was among the top reasons why people move. Projects such as creating a home office space, and building an open floor plan can give you that additional space that buyers want nowadays. 

The National Association of Home Builders (NAHB) identifies home offices as one of the new design trend interests in 2022. In addition, the NAHB found that 85% of buyers want an open layout between the kitchen area and the dining room.

"Understanding which projects to take on can help you make thousands of dollars more."

2. Improve your curb appeal. One of the best ways to improve your home’s curb appeal is by focusing on your landscaping. Make your home look more enticing by adding healthy plants and blooming flowers to your yard. To make even more of a statement, slap a fresh coat of paint on your house’s exterior. However, not all changes have to be big and grand. Sometimes small details like updating your mailbox and house number will catch the attention of buyers.

3. Upgrade your outdoor space. Functional outdoor spaces such as a deck, a fireplace, or an outdoor kitchen are now more valued due to the pandemic. If your home has a nice exterior living area, buyers can imagine themselves enjoying the fresh air as they indulge in outdoor activities. If you already have an outdoor oasis, pressure wash or make repairs if necessary for a low-cost way to improve your home’s value.

Home improvements can be expensive, so you want to make sure you’re investing in the right projects. If you’re not sure whether your renovation plans are worth pursuing, feel free to call or email us. We're happy to give you real estate advice and help you get the best value for your home.

Looking to Sell Your Home?

Looking at the data proves that the housing market isn’t crashing.

Today's housing inventory proves the market isn't headed for a crash. Whether or not you owned a home in 2008, you likely remember the housing crash that took place back then, and news about an economic slowdown happening today may bring back those concerns and bring everything back to the surface. Now, while those feelings are understandable, data can help reassure you that the situation today is nothing like it was in 2008.

One of the key reasons why the market won't crash this time is the current undersupply of inventory. Housing supply comes from three key places: one, current homeowners putting their homes on the market up for sale. Two, newly-built homes coming onto the market. Three, distressed properties, which consist of short sales and foreclosures. For the market to crash, you'd have to make a case for an oversupply of inventory headed to the market, and the numbers just don't support that.

So let's take a deeper look at where inventory is coming from today. This will help prove why the housing market isn't headed for a crash. The first one is current homeowners putting their homes up for sale. Even though the housing supply is increasing this year, there's still a limited number of existing homes available. Look at the graph at 1:21 in the video, and it'll help illustrate the point. Based on the latest weekly data, inventory is up 27.8% nationally compared to the same week last year, which is shown in blue. Compared to the same week in 2019, which is in red, it's still down by 42.6%. So what does this mean? Inventory is still historically low. There are still more buyers and sellers, and there simply aren't enough homes on the market to cause prices to crash. There would need to be a flood of people getting ready to sell their houses in order to tip the scales toward a buyer's market, and that level of activity simply isn't there.

The second factor is newly-built homes. There's also a lot of talk about what's happening with newly-built homes on the market, and that may make you wonder if we're overbuilding. Still, the fact is we're noticing that homebuilders are slowing down their production rate now. They're being very intentional about not overbuilding homes as they did during the 2008 bubble.

"The factual data can help reassure you that the situation today is nothing like it was in 2008."

The third place inventory comes from is distressed properties—short sales or foreclosures. We do not have very many foreclosures and I don’t see that happening any time soon. Most homeowners in Arizona have a lot of equity. This allows them to sell traditionally and still come out ahead if they get into financial trouble. If they were upside down in equity they would have to participate in a short sale or the mortgage company would foreclose. Back in the housing crisis, there was a flood of foreclosures due to lending standards that allowed many people to secure a home loan they couldn't truly afford. Today, lending standards are much tighter, and this results in more qualified buyers and far fewer foreclosures—certainly very few in the Phoenix market. The graph at 2:51 in the video uses data from Adam Data Solutions on properties with foreclosure filings. This should help paint a picture of how things have changed since the crash. The graph shows how, in the time around the housing crash, there were over one million foreclosure filings per year. As the lenders and the lending standards tightened since then, you'll see the activity starting to decline. 

The 2020 and 2021 forbearance programs—those helped to prevent a repeat of the wave of foreclosures that we saw in 2008. The forbearance program was a game changer because it gave homeowners options they never had before; they can defer their loans or modify loans, which appears to have been successful. It shows that four out of every five homeowners come out of forbearance; either they were paid in full or they worked out a repayment plan to avoid foreclosure. These are a few of the biggest reasons there won't be a wave of foreclosures coming to the market. 

The bottom line is this: Although housing supply is growing this year, the market certainly isn't anywhere near the inventory levels that would cause prices to drop significantly or crash. That's why inventory tells us the housing market won’t crash. I've been in this business for 33 years now. I've been through three cycle changes. I've been through the foreclosures of 2007 and 2008. I can tell you that we are nowhere near a crash, and I don't see it happening. There just aren't enough houses on the market.

I know that there's a lot of data here. If you have any questions about the market or real estate in general, don’t hesitate to reach out by phone, email, or click this link to submit a contact request. We look forward to hearing from you soon.

Here’s what homebuyers need to know about interest rate buydowns.

What is a 2-1 mortgage rate buydown? Also known as an interest rate buydown, this is a financing option that gives a borrower a discounted rate on their mortgage either for the life of the loan or a shorter period. 

There are two common types of mortgage rate buydowns. The first is a standard rate buydown, where you pay a fee upfront to lower your rate for the entire length of the loan. The cost depends on the state of the current mortgage market. 

"2-1 buydowns have no risk, unlike adjustable-rate mortgages."

The other common type is a 2-1 buydown. With this option, your rate is discounted for the first two years. Then it rises to a regular, permanent rate. Typically, your rate is 2% lower in the first year, 1% lower in the second, and undiscounted for the rest of the loan. The cost of this option also depends on the current mortgage market. 

2-1 buydowns have many benefits. They’ll help you qualify for a loan and let you ease into homeownership. Unlike an adjustable-rate mortgage, your rate is fixed after two years, so you don’t have to worry about it increasing beyond what you can afford. 

This can be a complicated topic, so reach out if you have any questions. Also, if you have any questions about the market or real estate in general, don’t hesitate to reach out by phone, email, or click this link to submit a contact request. We look forward to hearing from you soon.

The best decisions in a changing market start with accurate data.

Are you interested in finding out how to sell in a changing market? Today, we’ll walk you through what we do to help our clients determine the right time to sell and how to stay safe in a changing market. 

It has been a while since we experienced a shift like this. The market is moving from a strong seller’s market to a balanced one. A balanced market is when the buyer demand is equal to the available supply of homes for sale, and that happens at around six months’ worth of housing inventory.

What does it take to sell safely in a changing market? It all starts with accurate, relevant data, and there’s much more information needed during a market shift than in a hot seller’s market. We have to gather data and make decisions based on it and our clients’ needs. 

"The proper data drives safe decision-making."

Make no mistake, marketing, negotiation, and the right closing team still come into play, but it all starts with data. Although data can be boring for some people, it’s also the best tool to help you make fact-based decisions and ensure your judgment isn’t clouded by emotion.

What data do we keep a close watch on? Hyperlocal market trends, absorption rate, marketing trend response, showing activity, buyer feedback, mortgage rates, inflation, economic impacts, changing buyer demographics, and much more. 

If you’re interested in learning more, reach out to us by phone, email, or click this link to submit a contact request. We look forward to hearing from you soon.

The majority of homeowners will still have a great equity position.

Today we’ll be sharing some urgent news every buyer and seller should know in this quickly changing market:

1. Sales. Sales are down 5.1% month over month and down 9.3% compared to last year. 

2. Inventory levels. New listings added have a month-over-month increase of 13.4%, while the year-over-year comparison has increased by more than 21%. Total inventory has a month-over-month increase of 37.5%, while the year-over-year difference reflects a significant increase of 44.4%.

3. Active listings. The active listings are double what they were last year and up 100% year over year, and almost 40% of that is in the past 30 days. The increase in supply is due to the drop in demand. Listings under contract are down 15.6% year over year.

4. Pricing. Average new listing prices are up 24.3% year-over-year but are expected to change, and average sales price is up 16.7% year-over-year, while the year-over-year median sales price is also up 21.8%. 

“The majority of homeowners will still have a great equity position.”

Now buyers have more active listings to choose from every week. If this pace continues, a market balance, where there is an equal balance between buyers and sellers and neither have a clear advantage, is possible as soon as mid-August. There will also be more price reductions and an increase on days on market. 

We’ve shared with our clients that an adjustment is likely but we did not anticipate such a fast and dramatic change. The last time we saw a similar market cooldown was in 2005, but 2022 seems like a more striking reversal than we experienced back then. At 2:27 in the video, the chart illustrates this phenomenon.

Fortunately for sellers, even if we experience a normalization in values, the majority of homeowners will still have a great equity position due to the increase in home values over the past few years. If you plan on selling, the safest advice we can give you is to sell as soon as possible because we consider it an urgent real estate decision in this market. 

If you have more questions about the market or real estate in general, don’t hesitate to reach out at (602) 352-3600 or click this link to submit a contact request. We look forward to hearing from you soon.

Here’s why an economic recession isn’t all bad news for homeowners.

The one thing that every homeowner needs to understand about a recession is that it does not equal a housing crisis. Everywhere you look, experts are warning us of a recession and potential crash. Even if the market corrects, an economic slowdown doesn't mean homes will lose value. 

Take a look at the graph at 0:40. There have been six recessions in this country since 1980. However, home prices actually appreciated during four of those recessions. When the economy slows down, it doesn’t mean home values will depreciate. The only times they have depreciated were during the savings and loan crisis of 1991 and the housing crash of 2008.

“History has proven that a recession doesn't equal a housing crisis.”

Most people just remember the 2008 crash and think we’ll go through something similar if we have another recession. That's just not true. Today’s fundamentals are very different from what they were in 2008. Mortgage lending and banking practices are much more stable than they have been in the past.

History has proven that a recession doesn't equal a housing crisis, and even if one comes, we won’t necessarily see homes drop in value due to our current market conditions. If you have any questions about the market or real estate in general, don’t hesitate to reach out by phone, email, or click this link to submit a contact request. We look forward to hearing from you soon.