Is My Home Priced For This Market?

House For Sale PriceHas your home been on the market so long that the For Sale sign out front has begun to rust? At some point you probably began to ask yourself if your home may be overpriced for the market. Here are a few thoughts to consider in making that determination before your For Sale sign completely rusts away:

  • Comparables – Is your home priced right according to comparable properties? Comparable homes that have sold recently can give you a great idea of how well your home may appraise. Active, pending listings give a great indication of where the market is and what your competition is as you try to get that next buyer. Pricing considerably higher than the Active, Pending or Sold properties probably will impede a quick sale and extend your time on market.
  • Showings – How many showings are you getting each week? Has it been a few weeks since you last saw a buyer’s agent in your home? If so, you are probably overpriced. A good sign that you are priced right is getting 3-4 showings a week from qualified buyers working with real estate agents.
  • Market Changes and Activity – What is the market doing? Are interest rates higher or lower? What’s new on the local MLS? Are there a lot of bank owned properties or short sale properties in your area? Does your area attract lots of first-time buyers or move-up buyers? All great questions to ask when deciding on how high or low to price your home.
  • Do you really want the truth? Many times sellers and real estate agents just are not ready to be honest about the situation. It’s usually far more useful to understand the realistic factors necessary to accomplish a goal than conjecture about the price you hope or wish your home will sell. Assuming that’s your position, don’t be afraid to ask your real estate agent for the honest truth: What list price does my home need to be at in order to sell in the next 30 days? Just be prepared for the answer!

Rather not figure this out on your own? Our Phoenix AZ Realtors would love to help. Contact us at www.ThompsonGroupAZ.com or 480-776-5214.

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Ways to Net More from Your House Sale

Penny Saved, Penny EarnedMy grandfather once taught me “A Penny Saved Is a Penny Earned.”  Nowhere is that more true than in the sale of a home — probably due to the number of pennies involved in the transaction. With sales price being such an important factor for a seller, few stop to think about ways to minimize the costs of selling their Phoenix Arizona Homes.  Monitoring and controlling the costs during the escrow process is key to saving thousands of dollars and to receiving larger net proceeds from the transaction. Here are some costs to keep your eye on…

One of the largest costs is commissions paid to the real estate agents. Commissions vary from 5%-7% of sales price depending on the type of real estate transaction. While lower costs may seem like a winner, many times you get what you pay for in an agent. With so much riding on the selling price, a real estate agent should bring great service, a solid marketing plan and sharp negotiating skills to the table. If your agent is bringing less to the table, you will see a lower sales price.

With every home sale, home owners are required to pay the Owner’s Title Policy and to share in the escrow fee paid to the local title/escrow company. While the fees are not negotiable, the title/escrow company used to process the transaction is negotiable. All title/escrow companies publish their fees in rate books which are readily available to review and compare.

Do you live in a Home Owners Association (HOA)? If so, then your HOA may charge a transfer fee, disclosure fee, or capital improvement fee. Few homeowners understand what their HOA will charge them for the transaction but charges may run from $500-$2000. A quick phone call to the HOA should clarify what fees are charged. While these fees are non-negotiable with the HOA, there is the possibility of negotiating/sharing the cost of these fees with the buyer for your home.

In any real estate transaction, a Home Warranty is considered a must purchase for the new buyer. The cost ranges from $325-$600 and is a negotiated item payable by the buyer or the seller. Many times home sellers pick up the cost of a Home Warranty for the first year to protect the new buyer from unforeseen repairs.

Are you in an area where 1st time home buyers are known to be moving? If so, you may want to prepare yourself for requests to contribute to the buyer’s closing costs. These contributions are generally up to 3% of purchase price and could be more. The contribution covers appraisal fees, A.L.T.A. title policy, impound accounts, origination fees and other loan costs. While the contribution to buyer loan costs can be very important to getting a home sold, stronger buyers rarely need such assistance.

Do you want to learn more about ways to control your selling costs and get the most money from the sell of your home? Contact us at (602) 753-0177 or www.ThompsonGroupAZ.com.

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Smooth Transition

A few years ago my team and I were introduced to a truly painful situation – a senior client who had suffered a major health issue and had to be cared for at a local skilled nursing facility. In addition to his health issues, he needed to sell his home quickly to pay for his medical expenses. Due to the logistics and quick nature of the sell, it was truly impossible to sell his home for the best value.

This past month, my team and I had the opportunity to work with another senior client as he sold his home and moved to a local retirement community. Planning for the sale took 6-12 months prior to the home being advertised for sale. These transactions tend to require more up-front work and a well thought-out plan since the client is moving from a house into a place of residence with a floor plan about the size of an apartment.

I believe the hard work paid off. Our client had a smooth escrow and did get the best value for his home.

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Phoenix Market Update – 2014 Mid-Year Review

Overall, the Phoenix Market is showing a balanced market. While there are plenty of buyers in the market, sellers are not as able to push for higher sales prices in most neighborhoods. Here are a few quick facts:

  • Overall Home Supply – At the end of April, the total number of Phoenix Homes for Sale for the entire MLS was 29,769. Year over year, this is an increase in housing inventory of 9505 units or an increase of 46.9%. The number of sold listings for the entire month of April 2014 was 7,677. Based on the April sales, the inventory of active listings represents a 3.9 month supply.
  • Local ZIP code of 85224 – The Chandler ZIP code of 85224 shows at the end of April there were a total number of 116 active real estate listings, with the total number of sold listings coming in at 67. In other words:  there is about a 1.7 month supply for this popular Chandler ZIP code.
  • City of Chandler –For the entire city of Chandler, the active inventory of homes totals 963. The number of sold homes for the month of April came in at 430 meaning that Chandler maintains a 2.2 month supply of homes.
  • Phoenix Home Sales –Year-to-date, the Phoenix MLS recorded sales of 24,712 homes – or an average of 6,178 homes per month. That puts the Phoenix market on pace to sell over 70,000 homes for 2014.

Do you need to make a move in the near future? Or are you looking to maximize your selling price? Here at the Thompson Group, our goal is to show you the BEST options for your situation. Give us a call at 480-776-5214 or find us at www.ThompsonGroupAZ.com.

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Home Improvements That Sell

In older Mesa neighborhoods, many properties could be considered “diamonds in the rough.” For one particular property, the neighborhood built was from 1983-1988. Although the home boasted an excellent location with easy access to downtown phoenix, local freeways, and lots of amenities, the property also came with everything popular from the ‘80s – vinyl flooring, brass fixtures, Formica counters, and oak cabinets. Sales in the neighborhood over the previous six months reflected the outdatedness with unimproved homes being sold at $100,000, $110,000, $113,000 and $120,000.

One of our owners decided break the mold and improve a home in this area with new paint, granite counter tops in the kitchen, tile, and carpet floors. I worked with the home owner to help select colors, materials, and contractors. The result: the home sold for $133,000. The sale netted the owner $13,000 and $17,000 more than the highest unimproved sales. When you compare to the lower sales in the area the home owner did even better! It just goes to show that refreshing and rejuvenating an older, out-of-date home can do wonders when it comes to not only selling but increasing your profits.

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Phoenix Market Fall Update – Change Is in the Air

Autumn is in the air and providing a welcome relief from the hot Phoenix summer. Along with the wonderful fall weather came the new Obama health care, government shutdowns and other changes. And the Phoenix real estate market is also seeing changes. Rising inventory and rising interest rates are turning the Phoenix sellers market of the past two years into a more balanced market. While sellers may not see the rise in home values over the next year, buyers are going to see a lot more homes to consider before buying. Overall, we should see a balanced market for both buyers and sellers.

  • Overall Home Supply  –  At the end of September, the total number of Phoenix Homes for Sale for the entire MLS was 22,300. Year over year, this is an increase in housing inventory of 1,537 units or an increase of 7.5%. The number of sold listings for the entire month of September 2013 was 6,354. Based on the September sales, the inventory of active listings represents a 3.5 month supply.
  • Local ZIP code of 85224 – The Chandler ZIP code of 85224 shows at the end of September there was a total number of 97 active real estate listings, with the total number of sold listings coming in at 71. In other words: there is about a 1.5 month supply for this popular Chandler ZIP code.
  • City of Chandler – If you are looking for a “starter” home in Chandler, inventory remains low. For the entire city of Chandler, the number of active listings for single family homes between 1,200 and 1,500 square feet is 94. The number of sold listings in September came in at 53. THAT means there is about a 1.8 month supply of starter homes in Chandler.
  • Phoenix Home Sales – Year-to-date, the Phoenix MLS recorded sales of 68,035 homes – or an average of 7,559 homes per month. That puts the Phoenix market on pace to sell over 90,000 homes for 2013.

Do you need to make a move in the near future? Or are you looking to maximize your selling price? Here at the Thompson Group, our goal is to show you the BEST options for your situation. Give us a call at 480-776-5214 or find us at www.ThompsonGroupAZ.com.

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Does Your Agent Understand Short Sales?

In most situations, a well-planned short sale of a home has a lot of advantages over foreclosures. Indeed, a close look at the Phoenix MLS shows that there are still plenty of short sales among all Phoenix Homes for Sale. However, a short sale is not to be taken lightly — preparation and experience is essential! Among the important questions to consider when pursuing a short sale is the big question: Does my Realtor understand short sales?

To help you evaluate how prepared your Realtor is for handling a short sale, have a discussion with him or her about the short sale process, and be sure to ask lots of questions. If you don’t hear the answers or the knowledge and familiarity that you’re looking for, be prepared to keep looking for a Realtor that’s equipped to help you.

  1. Who is the service company and what do they do in the process? In general, the service company of the mortgage is the name on the mortgage statement you receive every month. Bank of America, Chase and Wells Fargo are common service companies. In most cases, the service companies are only in charge of processing the file and have very little to do in the decision-making process and negotiation of the sale itself.
  2. Who is the investor? Fannie Mae, Freddie Mack and Ginne Mae tend to be the investors of the majority of loans. Large service companies such as Bank of America, Chase and Wells Fargo may also be an investor on a mortgage. The investor is usually the decision- maker on each loan and has specific guidelines to follow in negotiating a short sale. Experience in negotiating with different investor guidelines is essential experience for a Realtor to have in order to have a successful close of escrow
  3. Who is the MI Company? Not all loans have MI (mortgage insurance), but some do. In the event that there is MI on a loan, you be certain that the MI Company is going to negotiate with you (the seller) before allowing a close of escrow. The MI Company is generally covering the loss in the short sale and paying out the investor for the loss on the mortgage, So, the goal of the MI Company is to reduce the lost payout as much as possible.
  4. How will each be negotiating with me? This is a great question for an agent. Negotiating with service companies, investors and MI Companies is not like negotiating a normal purchase contract. The process is bureaucratic, paperwork-intensive, and detailed. Experience really pays here and a good Realtor will know how to get it done and cost you very little at closing. However, a lack of experience and less-than-thorough paperwork by your agent could result in you writing a large check at closing, or worse, a foreclosure.
  5. What are the potential tax consequences? In every short sale, there are potential tax consequences that a seller must deal with. Asking your CPA or tax advisor about your particular situation and possible consequences is a very important part of planning for your future. A Realtor should have some general knowledge of the potential consequences as well as a good reference for you to get further help, but should also encourage you to discuss with your CPA or tax advisor.
  6. What are the potential liabilities after closing? Most loans are written as “non-recourse”, meaning that the lender will not be able to pursue you in the future for a loss incurred. However, some loans are recourse loans in which the financial institution may choose to pursue legal and collection avenues for the loss. When working with a recourse loan, there may be future liability and it is wise to consult an attorney about the situation.

Our Phoenix AZ Realtors have the short sale knowledge and experience to help you succeed – contact us at www.ThompsonGroupAZ.com or 480-776-5214.

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Getting Ready to Sell? … Freshen Up the Inside

A prospective buyer’s willingness to buy more quickly – and at a higher price – is often driven by emotion. A home that shows exceptionally well helps arouse the prospective buyer’s emotional desires for that home. First impressions count. That’s why you’ll see neat, clean homes getting snatched up while others just sit there on the market. Builders of homes in the Phoenix Real Estate market spend hundreds of thousands of dollars to stage a model home properly, and they do this for good reason. Buyers will buy the perceived value of the property.  Buyers buy the image and feeling that a received from experiencing the property.

The emotions that you, the Seller, are trying to stimulate are triggered by sensory experiences. Aim for the senses – especially touch, smell, and sight. Uncluttered, clean, fresh-smelling homes sell faster and for higher prices. Try to clear your mind of any preconceived notions, then walk into your house, close the door, look around… and truly feel your house. Then consider these steps:

  • Organize and de-clutter! Remove clutter from countertops, desks, and garage. Remove excess furniture. Organize closets, drawers, storage areas. Throw away, sell or store excess! Rent a storage unit if necessary. Clutter makes the home appear smaller and masks the home’s good points.
  • Freshen up interior paint as needed. Again, fresh paint is the best bang for the buck. Light, neutral colors such as beige, white, or off-white have a broader appeal and can make small rooms seem larger and airier. Remove ‘tired’ or busy wallpaper. Brighten drab garage interiors, storage areas with fresh paint. Paint/stain woodwork as necessary.
  • Make kitchen and bathrooms sparkle. Clean/oil cabinets, clean appliances/fixtures. Add fragrances. New color-coordinated towels are an excellent investment. Fresh looking kitchen and bathrooms will often make or break a sale.
  • Clean floors and carpeting. Add carpet freshener to carpeting which is ‘tired’ or to eliminate smoking or pet odors. If you have a smoker in the house, ask that person to smoke outside and to dispose of the ’spent’ smokes in the trash.
  • Make minor repairs. Tighten loose knobs, fix leaky faucets, lubricate squeaky hinges, replace filters, tighten loose banisters, repair doors and doorknobs, remove stains, and make sure your doorbell works.
  • Make sure all lighting fixtures work. Add new bulbs with the highest wattage allowed to make your rooms seem brighter. Light, airy homes seem bigger and more inviting. It’s well worth the extra cost.
  • Is the fireplace in good working order? Remove ashes from the fireplace and add fresh logs.
  • Buy fresh, colorful indoor flowers or plants. They get a lot of mileage, and they will enhance your new home as well.
  • Exterminate. One bug, dead or alive, will make a bad impression on prospective buyers. Hire a professional.

Selling your home is a process, not a single event. Getting your home ready to sell is part of that process. As you prepare to put your home on the market, make sure to pay close attention to how your home is prepared to show – it can make all the difference in the world.

Do you need help?  Contact us at www.ThompsonGroupAZ.com or 480-776-5214 to get started.

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Quick and Easy Ways to Dress Up a Home’s Exterior

A home that shows exceptionally well helps arouse the prospective buyer’s emotional desire to buy more quickly at a higher price. First impressions count! That’s why neat, clean homes often get snatched up quickly, while others just sit on the market. Builders of homes in the Phoenix Real Estate market spend hundreds of thousands of dollars to stage model homes properly. They do this for good reason. Buyers will buy the perceived value of the property… the image and feeling that they get from experiencing the property. It’s often been said that buyers buy on emotion.

Stand across the street and look at your home from a potential buyer’s viewpoint. Next, go to the corners of your back yard and look at your home with the critical eye of a buyer. Consider the following:

  • The buyer’s strongest first impression of your home is with the front outside entry and door. Make this area fresh and inviting with plants, flowers, and as needed, fresh paint. Make purchases which enhance the appearance of your home—large planters, new entry mats. You can take these items with you to your new home!
  • Is there ‘clutter’ in the front or back yard?  Debris, leaves, dead branches, old swing sets, broken lawn furniture? Pick up tools and toys from the yard. Put garbage cans in the garage and shut the door. Are there too many cars parked in the front or driveway?
  • Is the lawn trimmed, edged, weed-free, and fertilized? Edge between your lawn, drive, and walkways. Are the flower and shrubbery beds pruned, free of debris, and fresh looking? Do they need fresh mulch or plants? Repair cracks and pull weeks from walkways and the driveway. If you are an absentee seller, make arrangements for lawn care.
  • Is the exterior paint fresh? Hose it down to remove dust and cobwebs. Touch up or repaint as needed. The expense of repainting has an excellent return on the dollar.
  • Are all outside systems working? Is the sprinkler system functioning properly? Have the cooling and heating units been serviced?

Selling your Phoenix Arizona Home isn’t a single event – it’s a process. And, part of that process is getting your home itself ready to sell. As you prepare to put your home on the market, make sure to pay close attention to how your home is prepared to show – it can make all the difference in the world.

The Thompson Group is well versed in home presentation and can help you get your home ready to sell. In today’s market there are thousands of Phoenix Homes for Sale. If you don’t want to be just another home on the Phoenix MLS, give us a call today and we’ll help you stand out from the crowd. Contact us at www.ThompsonGroupAZ.com or 480-776-5214.

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Phoenix Market Mid-Year Update: Summer Is Hot for Sellers

The Phoenix Real Estate market continues to maintain low housing inventory levels and above average appreciation for property owners. For buyers,  Phoenix Arizona Homes continue to be difficult to find and rising values are pinching purchasing budgets. At the same time home owners are enjoying nice appreciation on their homes. Here are few quick mid-year facts on the market:

  • Overall Home Supply  –  At the end of June, the total number of Phoenix Homes for Sale for the entire MLS was 19,029. Year over year, this is a reduction in housing inventory of 270 units. The number of sold listings for the entire month of June 2013 was 9,310. Based on the June sales, the inventory of active listings represents a 1.7-month supply. With such a limited supply of homes available to buyers, sellers should continue to be able to ask for higher sales prices on their Phoenix homes.
  • Local ZIP code of 85224 – The Chandler ZIP code of 85224 shows at the end of June there was a total number of 70 active real estate listings, with the total number of sold listings coming in at 80. In other words:  there’s less than a month supply for this popular Chandler ZIP code.
  • City of Chandler  –  If you are looking for a “starter” home in Chandler, inventory remains low. For the entire city of Chandler, the number of active listings for single family homes between 1,200 and 1,500 square feet is 41. The number of sold listings in June came in at 70. THAT means there is less than a one-month supply of homes.
  • Phoenix Home Sales  – Year-to-date, the Phoenix MLS recorded sales of 47,901 homes  –  or an average of 7,983 homes per month. That puts the Phoenix market on pace to sell over 95,000 homes for 2013.

Do you need to consider a short sale to unload a burden of debt? Or are you looking to maximize your selling price? Here at the Thompson Group, our goal is to show you the BEST options for your situation. Give us a call at 480-776-5214 or find us at www.ThompsonGroupAZ.com .

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