Want to Sell Your House? Price it Right!

Want to Sell Your House? Price it Right! Though it is a great time to sell your house, pricing it right is crucial.

The housing market is recovering nicely. Prices have increased nationally by double digits over the last twelve months. Competition from the shadow inventory of lower priced distressed properties (foreclosures and short sales) is diminishing rapidly. Now may be the perfect time to sell your home and move to the dream house or beautiful location your family has always talked about.

The one suggestion we would definitely offer: DON’T OVERPRICE IT!!

Even though prices have increased by more than 10% over the last year, the acceleration of appreciation has slowed dramatically over the last few months. As an example, in their April Home Price Index Report, CoreLogic revealed that home prices actually depreciated by .08% this month as compared to last month’s report. What concerns us is that Trulia just reported that asking prices are still continuing to increase.

Because investor purchases are declining and there are more listings coming onto the market, we believe that sellers should be very cautious when they price their house. The alternative might be that you could lose money by overpricing your home at the start as explained in a research study on the matter.

 

 

A Home’s Cost vs. Price Explained

A Home’s Cost vs. Price Explained We have often talked about the difference between COST and PRICE. As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first time or repeat buyer, you must not be concerned about price but instead about the ‘long term cost’ of the home.

Let us explain.

Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number. 

The results of their latest survey

  • Home values will appreciate by 4.6% in 2014.
  • The cumulative appreciation will be 19.5% by 2018.
  • That means the average annual appreciation will be 3.6% over the next 5 years.
  • Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 11.2% by 2018.

If we consider that a nationwide panel of over one hundred economists, real estate experts and investment & market strategists projected that home values would appreciate by approximately 4% from now to the end of 2015.

….and consider Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30 year fixed mortgage rate will be 5.0% by the end of next year.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:

A Home’s Cost vs. Price Explained

Why Isn’t My Home Selling?

Why Isnt My Home Selling?

Arizona Home Group Featured Listings

Why Isnt My Home Selling?

Coming to the Market

 

14000 N. 94th Street #2181

Why Isnt My Home Selling?

Why Isnt My Home Selling?

Active Listings


Exudes Pride of Ownership
Sought after Mesa Community
$285,000

Why Isnt My Home Selling?
www.2747North26thStreet.com
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Huge Remodeled 5 Bedrooms
2 Master Suites
$235,000

Why Isnt My Home Selling?
www.3114WestLynneLane.com

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Why Isnt My Home Selling?

Pending

Like New, Simply Gorgeous
Gated Community

$255,000

Why Isnt My Home Selling?
www.2316WestMineralRoad.com

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Perfect for Snowbirds
Condo in Fountain Hills

$140,000

Why Isnt My Home Selling?

www.12851NorthMimosaDriveUnit103.com
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Why Isnt My Home Selling?

Sold

Lovingly Cared For
Immaculate Home Awaits New Owners
$400,000

Why Isnt My Home Selling?
www.4635EastKingsAvenue.com
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Lots of “TLC”
In Prime Scottsdale
Neighborhood
$340,000

Why Isnt My Home Selling?
www.11056EastMaryKatherineDrive.com

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Meticulously Maintained
Gorgeously Upgraded
$335,000

Why Isnt My Home Selling?

www.14217North50thStreet.com
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Why Isnt My Home Selling?


Future Homeowners Share American Dream

It seems that the belief that homeownership as a huge part of the American Dream still beats in the hearts of the young people of this country.

Future Homeowners Share American Dream Two recently released reports indicate that both young adults (Millennials) and teenagers (Generation Z) still see homeownership as an important piece of their future success.

A report by The Demand Institute, Millennials and Their Homes: Still Seeking the American Dream, revealed that the Millennial Generation is optimistic about their financial future and still believe in homeownership. The findings were based on a survey of millennial households (ages 18 to 29).

The report predicted that:

  • 8.3 million new Millennial (Gen Y) households will form in the next five years
  • $1.6 trillion will be spent on home purchases by Millennials and $600 billion on rent over the next five years

Millennials optimistic about their finances and homeownership

Of those surveyed:

  • 74% expect to move within the next five years
  • 79% expect their financial situation to improve
  • 75% believe homeownership is an important long-term goal
  • 73% believe homeownership is an excellent investment
  • 24% already own their home and
  • An additional 60% plan to buy a home in the future
  • 44% do think it would be difficult to qualify for a mortgage

What about the next generation (today’s teenagers)?

A recent survey by Better Homes and Gardens® revealed that Generation Z (teens ages 13-17) is very traditional in their views toward homeownership and is willing to sacrifice to attain the American Dream.

Findings from the survey show:

  • 82% of Gen Z teens indicate that homeownership is the most important factor in achieving the American Dream.
  • 89% said owning a home is part of their interpretation of the American Dream
  • 97% believe they will own a home
  • 77% percent chose owning a home over owning a business

Future Homeowners Share American Dream

Future Homeowners Share American Dream

Begin Your Home Search Today

 

Future Homeowners Share American Dream

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A Homeowner’s Net Worth is 36x Greater Than A Renter!

A Homeowner’s Net Worth is 36x Greater Than A Renter!Over the last six years, homeownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth.

The Federal Reserve conducts a Survey of Consumer Finances, every three years, and just released their latest edition this past week.

Some of the findings revealed in their report:

  • The average American family has a net worth of $81,200
  • Of that net worth, 61.4% ($49,856) of it is in home equity
  • A homeowner’s net worth is over 36 times greater than that of a renter
  • The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400

Bottom Line

The Fed study found that homeownership is still a great way for a family to build wealth in America.

 

A Homeowner’s Net Worth is 36x Greater Than A Renter!

Begin Your Home Search Today

 

A Homeowner’s Net Worth is 36x Greater Than A Renter!

Join Us On Facebook

 

 

 

 

 

 

 

 

What You Don’t Want to Hear From Your Listing Agent

What You Dont Want to Hear From Your Listing AgentYou’ve decided to sell your house. You begin to interview potential real estate agents to help you through the process.

You need someone you trust enough to:

  1. Set the market value on possibly the largest asset your family owns (your home)
  2. Set the time schedule for the successful liquidation of that asset
  3. Set the fee for the services required to liquidate that asset

An agent must be concerned first and foremost about you and your family in order to garner that degree of trust.  Make sure this is the case.

Be careful if the agent you are interviewing begins the interview by:

  1. Bragging about their success
  2. Bragging about their company’s success

An agent’s success and the success of their company can be important considerations when deciding on the right real estate professional to represent you in the sale of the house. However, you first need to know they care about what you need and what you expect from the sale. If the agent is not interested in first establishing your needs, how successful they may seem is much less important.

Look for someone with the ‘heart of a teacher’ who comes in prepared well enough to explain the current real estate market and patient enough to take the time to show how it may impact the sale of your home. Not someone only interested in trying to sell you on how great they are.

You have many agents from which to choose. Pick someone who truly cares… call the Arizona Home Group.

Find Out What Your Home is Worth in Today’s Housing Market.