Phoenix Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Dec. 30, 2020

How to Submit a Competitive Offer

Here are the five keys to making a successful, competitive offer.

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As you may know, our current real estate market has very high demand and extremely low supply. With so many buyers competing for a limited number of homes, it’s more crucial than ever to know the ins and outs of making a confident and competitive offer. Here are the five keys to success when submitting an offer:

 

"It’s more crucial than ever to know the ins and outs of making a confident and competitive offer."

 

1. Let your agent or team guide you. Don’t allow your emotions to steer this process. Your agent’s support will help you avoid compromising what you truly want in a property for future financial stability; it can be a challenge to balance these. Your agent’s expertise will keep you competitive, so take their advice. Your agent should ensure that you’re informed and your offer is based on the home’s market value, condition, comparable properties, and the current market. 

 

2. Understand your finances. Knowing your budget, how much house you can afford, and how much you want to spend are imperative. Getting pre-qualified by a lender shows the seller that you’re serious, capable of buying, and can give you a competitive edge in a bidding war. 

 

3. Be ready to move quickly. Right now, the average home in our market is sold in just one to three days with multiple offers, so time is of the essence. 

 

4. Make a fair offer. It’s only natural to want to get the best deal possible on a house. However, submitting a low offer in a seller’s market can cause the seller to doubt how serious you are as a buyer. Don’t submit an offer that could be tossed out as soon as it’s received.

 

5. Be a flexible negotiator. After you submit your offer, the seller can accept, reject, or counter it. In a competitive market, you must stay flexible throughout the negotiations. Your position can be strengthened with an offer that includes flexible moving dates, a higher price, or minimal or no contingencies. 

 

Today’s competitive market makes it more important than ever to submit a strong offer, and a trusted real estate expert can help you rise to the top and get your offer accepted.

 

If you have any questions about making offers or real estate in general, please reach out to us via phone or email. We’d love to be your real estate resource.

Posted in Buying
Dec. 15, 2020

Happy Holidays From 10X Homes!

Here’s our special holiday message to you for this joyful season.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

Our team and I decided to shoot a short holiday video where everyone could say a few words. Watch the video above to hear each of our messages to you. We all wish you a joyful holiday season. Stay safe, and we look forward to seeing you next year!

Posted in 10x Homes Update
Nov. 19, 2020

Wishing You the Best This Thanksgiving

Our team wanted to stop by and express our gratitude for all of you.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

We’re reaching out today to say thanks for your support. Ben Orozco, Dave Garcia, and I each recorded individual messages of gratitude, which we’ve compiled into this video. We’re grateful for your support, referrals, and trust in our team above all else. This has been a turbulent year, but we’re grateful to have our health and the ability to continue helping you buy and sell homes. To see what else we’re thankful for this year, watch this short video.

Posted in 10x Homes Update
Nov. 12, 2020

How Can You Get the Best Appraisal Possible?

Here’s how to get the best appraisal possible on your home.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

How do you get the best appraisal possible on your home? Whether you’re selling or refinancing, your first step should be to make sure that your home is in top condition. Stage it, clean it, and do whatever else you need to do to make it as much of a showpiece as possible. 

 

Second, provide a list of improvements (with receipts) to the appraiser. Don’t just hand them a bag of receipts the same way you would with your accountant during tax time, either—your receipts should be organized. 

 


Although your agent may be present during the appraisal, we recommend that you not be.


 

If you’re refinancing and plan on being present during the appraisal, be friendly but not overbearing to the appraiser. You don’t want them thinking that you’re trying to influence the appraisal. If you’re selling, allow your agent to provide comparable sales to the appraiser as needed. Also, although your agent may be present during the appraisal, we recommend that you not be. After all, that’s why you have an agent in the first place. 

 

If you have questions about the appraisal process or there’s anything else I can help you with, don’t hesitate to reach out to me. I’d love to hear from you.

Posted in Selling
Nov. 2, 2020

4 Reasons Why the Election Won't Dampen the Housing Market

Tomorrow, Americans will decide our President for the next four years. That decision will have a major impact on many aspects of life in this country, but the residential real estate market will not be one of them.

Analysts will try to measure the impact feasible changes in regulations might have on housing, the effect of a possible first-time buyer program, and any number of other situations based on who wins. The housing market, however, will remain strong for four reasons:

1. Demand Is Strong among Millennials

The nation’s largest generation began entering the housing market last year as they reached the age to marry and have children – two key drivers of homeownership. As the Wall Street Journal recently reported:

“Millennials, long viewed as perennial home renters who were reluctant or unable to buy, are now emerging as a driving force in the U.S. housing market’s recent recovery.”

2. Mortgage Rates Are Historically Low

All-time low interest rates are also driving demand across all generations. Strong demand created by this rate drop has countered other economic disruptions (e.g., pandemic, recession, record unemployment).

In addition, Freddie Mac just forecasted mortgage rates to remain low through next year:

“One of the main drivers of the strong housing recovery is historically low mortgage interest rates…Given weakness in the broader economy, the Federal Reserve’s signal that its policy rate will remain low until inflation picks up, and no signs of inflation, we forecast mortgage rates to remain flat over the next year. From the third quarter of 2020 through the end of 2021, we forecast mortgage rates to remain unchanged at 3%.”

3. Prices Continue to Appreciate

The continued lack of supply of existing homes for sale coupled with the surge in buyer demand has experts forecasting strong price appreciation over the next twelve months.

4. History Says So

Though it’s true that the market slows slightly in November when it’s a Presidential election year, the pace returns quickly. Here’s an explanation as to why from the Homebuilding Industry Report by BTIG:

“This may indicate that potential homebuyers may become more cautious in the face of national election uncertainty. This caution is temporary, and ultimately results in deferred sales, as the economy, jobs, interest rates and consumer confidence all have far more meaningful roles in the home purchase decision than a Presidential election result in the months that follow.”

Ali Wolf, Chief Economist for Meyers Research, also notes:

“History suggests that the slowdown is largely concentrated in the month of November. In fact, the year after a presidential election is the best of the four-year cycle. This suggests that demand for new housing is not lost because of election uncertainty, rather it gets pushed out to the following year as long as the economy stays on track.”

Bottom Line

There’s no doubt this is one of the most contentious presidential elections in our nation’s history. The outcome will have a major impact on many sectors of the economy. However, as Matthew Speakman, an economist explained last week:

“While the path of the overall economy is likely to be most directly dictated by coronavirus-related and political developments in the coming months, recent trends suggest that the housing market – which has basically withstood every pandemic-related challenge to this point – will continue its strong momentum in the months to come.

 

Posted in 10x Homes Update
Oct. 22, 2020

Should I Buy a Home Now or Wait?

I’m discussing whether now is a good time to buy or if you should wait.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

Should you buy a home now or wait? This is a question we’re getting asked often these days. The answer is no, you don’t have to wait, especially if you’ll be getting a mortgage. With rates in the 3% range, your buying power is much greater now than ever before. It’s only a matter of time before rates increase again. 

 

Here’s a good example: Not long ago, rates were at 6%. For a $300,000 mortgage, you would pay $1,800 per month, including principal and interest. Today, that same $1,800 mortgage payment correlates to a house worth $425,000. That means your buying power is $125,000 greater (or more) with today’s rates. 

 


It’s only a matter of time before rates increase again.


 

If you’ve been thinking that prices are too high or the real estate market is too competitive, think again. Even if prices were to drop by $50,000 but rates rose, you’d likely still pay more monthly, and you’ll regret not making a move now. Buyers are in a good place these days.

 

If you have any questions or want to discuss real estate, please reach out to us via phone or email. We’d be glad to help you.

Posted in Buying
Oct. 9, 2020

What Are Your Options When Selling?

Here’s a look at the pros and cons of the two most common ways to sell.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

If you've decided to sell your home, there are two main ways of doing so. 

 

First, let’s talk about selling it directly to an investor. The advantage to this method is that there is less hassle in general; you usually don’t have to prepare your home for sale, fret about making repairs, and deal with setting up showing times. Your home won’t even be listed in the MLS. For the most part, you’ll be able to move on your terms. 

 

However, the downside of selling to an investor is that you’ll usually end up with less money in your pocket—just how much less exactly depends on variables like your home’s condition and price point. 

 


With a traditional listing, you’ll have the guidance of a real estate professional.


 

The second (and most popular) way to sell your home is through a traditional listing. The advantage of doing so is that, in most cases, you’ll end up with much more money in your pocket. You’ll also have guidance and representation through every step of the sale from an experienced agent, and that includes pre-marketing, home preparation, contract negotiation, inspections, and closing. 

 

The not-so-great part about going the traditional listing route is that buyers will need to come through your property. Though there will be plenty of virtual showings as well. Most buyers will, at some point, want to see the home in person. Here’s something to keep in mind: Yes, you’ll have to set aside time to prepare your home and let strangers walk through it, but a traditional listing in this market could lead to a multiple-offer situation. 

 

If you have questions about either of the two main methods of home selling, or you’d like to discuss what’s best for your specific property, feel free to call me or my team or shoot us an email. We’d be more than happy to have a chat with you!

Posted in Selling
Sept. 22, 2020

Where’s Our Market This September?

Here’s what you should know about our real estate market right now.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

Despite a recession, the lowest mortgage interest rates in history have spurred real estate purchasing and refinancing. This rebound in the housing market has come at a critical time for the economy. 

 

Mortgage giant Freddie Mac stated that 30-year fixed-rate mortgages averaged 2.86% this past week. That’s almost 1% lower than last year. Here are some other numbers to know:

 

  • The average sale price is up 17.7% to $399,000
  • Total listings are down almost 40%
  • New listings are down more than 10%
  • Pending sales are up 25% from last year

 

Locally, we’ve been seeing homes selling in a matter of days, usually with multiple offers. Buyers looking to purchase and homeowners looking to refinance are capitalizing on interest rates and purchasing homes at a record pace. First-time homebuyer activity is up 19% in August and is currently at its highest level ever.

 


There just aren’t enough homes for sale to meet demand.


 

With just 1.5 months of inventory, we’re clearly in a seller’s market. Right now, buyers are actively searching for homes, but there just aren’t as many for sale to meet the need. This makes it an ideal time to sell. 

 

If you have any questions for me about our market or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Posted in Market Updates
Sept. 2, 2020

How Do I Sell in This Competitive Market?

Here’s what sellers should know about navigating this competitive market.

Looking to buy a Phoenix home? Click here to see our featured listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

How can you sell in this competitive real estate market? The first key is making sure you have expert representation. I’m not just talking about someone who has negotiated a few contracts or knows a thing or two about the industry; you need to partner with a professional who has experience in a competitive market, a proven, repeatable plan for marketing, negotiating, and effectively handling any hiccups that may arise along the way. 

 

The ability to assess multiple offers is critical. Start by looking at whether it’s a financed offer or a cash offer, and if it’s the latter, does the buyer have proof of funds? A letter from their dear uncle, cousin Vinny, or Mickey Mouse himself saying that they have the money won’t cut it—proof of funds is evidence provided by a financial institution. If a loan is involved in the process, the agent should reach out to that borrower’s lender and confirm what’s detailed in the letter. The more information you can find out, the more protected you’ll be. 

 

Don’t jump too quickly. An offer that seems too good to be true most likely is so, and buyers who dangle jaw-dropping offers in front of you tend to be the ones who cancel within the inspection period or if something doesn’t go exactly according to their plan. However, by the same token, you don’t want to wait too long thinking you’ll just keep accruing more and more offers. Is there truly going to be a better offer?

 


Make sure the negotiation is such that the buyers can genuinely feel good about what they’re getting out of it.


 

If you’ve only received financed offers since going live on the market, then you need to remember that what you can get for your home is limited to a financial institution’s assessment of value; you want to make sure that your buyers don’t try to hold out on the appraisal contingency. That’s a surefire way to lose time. That being said, there are buyers that may be willing to pay above appraised value.

 

You’ll also want to discuss your plan to move with your agent up front. Will you need a simultaneous transaction, meaning you’ll close on your new home the same day you settle your sale? If so, certain provisions need to be made to make sure you won’t have to stay in a hotel between properties. We’ve been able to negotiate staying in the home after closing—it’s an uncommon strategy, but it has been used successfully in our market. 

 

When negotiating, make sure that everyone feels like they’re winning. That doesn’t mean you have to sacrifice money, but you do want to make sure the agreement is such that the buyers can genuinely feel good about what they’re getting out of it. That being said, my final piece is to make sure that whatever offer you accept is the right price and time frame for you. Again, clearly explain your motivations for selling to your agent up front so they can champion your interests throughout the whole selling process, and make sure the offer you select checks the necessary boxes. 

 

Please feel free to reach out to me via phone or email if you have follow-up questions about this or any other real estate-related topic, as I’d be more than happy to chat with you! I’m here to be of assistance in your home selling journey.

Posted in Selling
Aug. 19, 2020

How Do You Successfully Buy in a Competitive Market?

These tips will help you buy a home successfully in our current market.

Looking to buy a Phoenix home? Click here to see our available listings. 
Looking to sell your home? Click here to get an INSTANT property valuation now!

 

Our Phoenix market has recovered quite a bit since the pandemic started. Homes are selling quickly, and the situation is very competitive for buyers out there. If you’re thinking of buying a home, there are several tips to remember to find and close on the right home at the right price.  

 

First, make sure you have expert representation. A new or inexperienced agent probably won’t be able to help you very well in our current market. My team and I have been helping clients since 2005, so we know a thing or two about winning in a competitive market. 

 

After that, get pre-approved. By this I mean a full loan pre-approval, not just a pre-qualification letter or a quick phone conversation with a lender. If you plan on buying with cash, now’s the time to gather your proof of funds. This proof needs to be from a banking institution, not a friend who says they’ll loan you the money.

 


A home’s market value is what it’s worth right now—not six months ago.


 

Next, avoid asking for scary stuff. “Scary stuff” means whatever the seller finds scary. For example, it’s scary to ask them to accept your offer if it’s contingent on the sale of your current home. It’s also scary to ask them for closing costs or to make repairs on the house. You’re better off negotiating the contract in good faith and addressing potential repairs after any issues are found in the inspection. 

 

Also, don’t be afraid to pay market value in a competitive market. A home’s market value is what it’s worth right now—not six months ago. No one’s stealing a property in this market (unless it’s a gutted property). Getting a great deal right now just means getting a great home. I’m not suggesting that you overpay for a property; just be willing to pay market value to get the home you want. 

 

Lastly, include a video as part of your offer to engage with the seller (which you can refer to in the contract). This video should be personal. Tell the seller what you love about their home, how you and your family plan on acclimating to the neighborhood, etc. If you aren’t able to create a video, the next best thing would be to write a letter with the same information. 

 

If you’d like to know more about buying in a competitive market or have any real estate questions at all, don’t hesitate to reach out to me. I’m here to help.

Posted in Market Updates