Millennials, Do You Know the True Cost of Waiting?

Millennials,  Do You Know the True Cost of Waiting?We, at Arizona Home Group, have often broken down the opportunity that exists now for Millennials who are willing and able to purchase a home NOW.

Here are a couple other ways to look at the cost of waiting….

Let’s say you’re 30 and your dream house costs $250,000 today, at 4.41% your monthly Mortgage Payment with Interest would be $1,253.38.

But you’re busy, you like your apartment, moving is such a hassle…You decide to wait till the end of next year to buy and all of a sudden, you’re 31, that same house is $270,000, at 5.7%. Your new payment per month is $1,567.08.

The difference in payment is $313.70 PER MONTH!
That’s like taking a $10 bill and tossing it out the window EVERY DAY! Or you could look at it this way:

That’s your morning coffee everyday on the way to work (Average $2) with $12 left for lunch!
There goes Friday Sushi Night! ($80 x 4)
Stressed Out? How about 3 deep tissue massages with tip!
Need a new car? You could get a brand new $22,000 car for $313.00 per month.
Let’s look at that number annually! Over the course of your new mortgage at 5.7%, your annual additional cost would be $3,764.40!

Had your eye on a vacation in the Caribbean? How about a 2-week trip through Europe? Or maybe your new house could really use a deck for entertaining. We could come up with 100’s of ways to spend $3,764, and we’re sure you could too!

Over the course of your 30 year loan, now at age 61, hopefully you are ready to retire soon, you would have spent an additional $112,932, all because when you were 30 you thought moving in 2014 was such a hassle or loved your apartment too much to leave yet.

Or maybe there wasn’t an agent out there who educated you on the true cost of waiting a year. Maybe they thought you wouldn’t be ready, but if they showed you that you could save $112,932, you’d at least listen to what they had to say.

They say hindsight is 20/20, we’d like to think that 30 years from now when you are 60, looking back, you would say to buy now…

 

Millennials,  Do You Know the True Cost of Waiting?

 

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5 Reasons to Hire a Real Estate Agent

5 Reasons to Hire a Real Estate AgentWe believe every family should feel confident when buying or selling a home…… starting with having confidence in your Realtor to help you make the best decisions.

Whether you are buying or selling a home, it can be quite an adventurous journey. You need an experienced Real Estate Professional to lead you to your ultimate goal. In this world of instant gratification and internet searches, many sellers think that they can For Sale by Owner or FSBO. The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but have rather been strengthened in recent months due to the projections of higher mortgage interest rates & home prices as the market continues to recover.

1. What do you do with all this paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.

4. What is the home you’re buying/selling really worth?

It is important for your home to be priced correctly from the start to attract the right buyers and shorten the time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to the National Association of REALTORS, “the typical FSBO home sold for $184,000 compared to $230,000 among agent-assisted home sales.” Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?

There is so much information out there on the news and the internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?

Dave Ramsey, the financial guru advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”
Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line:
You wouldn’t hike up Mt. Everest without a Sherpa, or replace the engine in your car without a trusted mechanic. Why would you make one of your most important financial decisions of your life without hiring a Real Estate Professional?

5 Reasons to Hire a Real Estate Agent

 

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Where Do The Experts Say Home Prices Are Going?

Where Do The Experts Say Home Prices Are Going?

In the latest Home Expectation Survey, Pulsenomics surveyed a nationwide panel of over 100 economists, real estate experts and investment & market strategists, to find out their prediction for home prices through 2018.

We wanted to make sure we updated our members with the visuals that you have become accustomed as soon as they were available.

If we look at Average Annual Appreciation since 1987 we can see that we are still in a recovery after the housing bubble burst in May of 2007.

 

Where Do The Experts Say Home Prices Are Going?

 As we return to a more normal market, the experts are predicting that appreciation will slow over the next 5 years. Here is the breakdown of the Projected Mean Percentage Appreciation.

Where Do The Experts Say Home Prices Are Going?

As you can see from the chart below, the most optimistic bulls of the group are predicting Cumulative House Appreciations of 27.8%, while even the bears of the group are still predicting an 11.2% appreciation by 2018.

Where Do The Experts Say Home Prices Are Going?

Where Do The Experts Say Home Prices Are Going?

 

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Where Do The Experts Say Home Prices Are Going?

 

 

Phoenix Real Estate Market is a Paradox

We have been reporting for the better part of a year now that the big slump in buyer demand is showing very little signs of ending, especially here, in the dead of summer. With that as a background it may seem surprising to learn, paradoxically, that the market has been improving for sellers over the last 4 months!

This improvement is not very large, but it is almost entirely due to a fall in supply. When buyers are severely lacking in urgency, sellers usually choose to up the stakes by dropping prices. This is NOT what has happened in 2014. Although we have seen plenty of price cuts, these were mostly from levels that were well above market. Very few sellers have been prepared to discount their homes below market. Sellers have chosen instead to either take their homes off the market or simply wait.

Neither side is showing a sense of urgency.

Historically, we expect active listings to grow between August and November, but the current rate of new listings to the market is the lowest in 14 years. Eventually demand will return to more normal levels, because everything in housing tends to be cyclical. It is anybody’s guess when this return will get under way, but we expect to be the first to notice it happening, and we will report it to YOU.

There are a few strong areas in Greater Phoenix where demand exceeds supply. These include Sun Lakes, Sun City West and Sun City. Clearly baby boomers are doing their bit. Paradise Valley, Scottsdale, Fountain Hills and Gold Canyon have all improved their balance because supply has declined faster than the rest of the valley. In general, the higher you go in price range the better demand has held up.

Across Greater Phoenix in July we saw 16 closed sales of homes priced over $2,000,000, down from 22 in July 2013. However the first and second quarter of 2014 saw more sales over $2,000,000 than last year and it is still possible that the third quarter could repeat this feat. We still have 39 listings under contract for homes of $2,000,000 while there were only 25 at this point last year, so the outlook remains pretty good.

Based on current trends we expect that the annual appreciation rate is probably going to stick in the 3% to 7% range for a few months before declining to zero plus or minus 2% by the end of December.
*Statistics, data, and commentary provided by ARMLS, Michael Orr, and the Cromford Report
 
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Phoenix Real Estate Market is a Paradox

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You Do Not Have to Drop Your Price to Sell Your Home

You Do Not Have to Drop Your Price to Sell Your HomeIf you’re really ready to sell your home, don’t test the market. The best thing for you to do is to price it right in the first place and then sell as close to the original asking price as possible. For the best results, price your home at current fair market value — not where prices were in 2005, or where they might be in 2015.

When your home is marked down from its original price, it’s a sure sign that your marketing plan failed. Not only have you missed the critical first two weeks when buyers and real estate professionals are most interested, but there’s no way for your home to compete with other homes that are better priced.

No one wants to waste time trying to deal with an unreasonable seller, so lowering the price may not help as much as you may think. Buyers may think something is wrong with the home, or they may decide that there’s room for even more discounts. Real estate professionals won’t get excited when your agent re-lists your home at a lower price because it’s not a new listing.

Current fair market value means your home favorably compares to recent listings and closed sales of homes most similar to yours in size, finishes, amenities and location. It also means your home is on target with price trending. If homes are dropping in price in your area, you may want to set your original price under current fair market values in order to generate more interest from buyers. If prices are trending upward, stay current – don’t price ahead. That only works in the strongest sellers’ markets when banks are more comfortable about rising prices.

Next, make sure that buyers see your home in the best light. Among real estate professionals, the most important considerations is how your home looks from the curb and how it looks online. First impressions require that you spend particular time and attention on curb appeal, from keeping your walks and drives swept, to painting the front door a fresh new color, to putting out a new welcome mat.

Photography can be your home’s best selling tool when it’s done correctly and professionally. Stage the rooms that will be photographed by removing clutter. Fluff the pillows, clear tabletops and countertops, and remove the dog’s water bowl and your children’s toys out of the viewfinder. Take a few digital shots and look for flaws – the rumpled bed, the wastebasket full of paper, or the closet bulging with clothes. Once all the flaws are removed, you’re home is ready for the professional photographer who has the right lighting and equipment to help you market your home.

In home selling, less is more. You want the home to come forward and your belongings to fade to the background. If you have too much stuff, put the excess in storage. As little as $50 to $250 for short-term storage could make the difference in the buyer’s offer price.

When buyers come to your home, they will be looking for flaws, so make sure the little details are done, especially small repairs. The less that needs to be fixed or replaced, the better maintained and the more move-in ready the home appears to the buyer.

Buyer-friendliness is a factor that can’t be underestimated. If you want a certain price for your home, make sure to give the buyer something extra to make it worth paying full price. Offer to pay closing costs up to a certain amount, or offer to leave the washer, dryer and refrigerator.

It’s not just the home that needs to be attractive. As the seller, you’re part of the whole package. You should appear buyer-friendly, just as your home should appear move-in friendly.

A home that is priced to reflect current market conditions and shows well in person and online will always sell for more than homes that aren’t maintained and marketed as well.
Source: RealtyTimes for ReMax

You Do Not Have to Drop Your Price to Sell Your Home

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How To Deal With The Neighbor From Hell

How To Deal With The Neighbor From Hell Are you living next to the neighbor from hell? You spent months finding the perfect little home, you have just moved to phoenix and the moving company recently finished delivering your worldly possessions and you’re finally starting to settle in. Then a chainsaw hacking, carving through a tree shreds your peaceful bliss. Oh, didn’t you know? You made the mistake of moving next to the neighbors from hell. These folks are awful. They let their lawn fester with junk, play obnoxiously loud music at random times in the night, never close their blinds while walking around nude, rake leaves into your once-pristine yard and give you a death glare if you mention these problems. But, don’t fear. Selling your new home and re-moving isn’t necessary, just follow these tips on how to deal with these hellish people who dare call themselves your neighbors.

Don’t Get Angry

If you feel like ferociously taking out your lack of sleep on the neighbor because they were blaring K-Pop all night through an open window, here is a tip: don’t. Reacting hastily to any situation, especially tension filled ones, can simply make the problem worse. Do your best to approach your neighbor in a friendly manner. Maybe bring over a case of beer or bottle of wine to break the ice. Let them know in a non-confrontational manner that these issues are bothering you, and give them ideas on how to fix the issue. The second thing is to mention how their behavior negatively affects you, instead of attacking them for sloppy behavior.

If they’re not willing to talk with you, then try to find a neutral mediator to oversee the discussion.

Help Them

Maybe your neighbor isn’t a bad person, but they’re super swamped with a hectic lifestyle and don’t have the time to remove the rusting car parts from their yard. Instead of condemning them, lend a hand. Offer to help pay for a junk removal company to come and haul those eyesores away; the small cost will be worth the peace of mind.

Document Everything

If the neighbor simply refuses to stop the derelict behavior, then the best option might be to bring the problem to the authorities. Be that a home owners association, the police or a lawyer. Before you can successfully do this, you’ll need to accurately document your grievances. Make sure you keep a copy of any noise complaints you might file with the police, photocopy any letters you send (be sure those are signed by you), and take photographs of the property. These will all help your case against this unruly neighbor.

 
How To Deal With The Neighbor From Hell

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