4 Mistakes to Avoid When Selling Your Home

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Avoid these 4 mistakes when selling your home to help you sell fast and for Top Dollar:

1-Feeling Emotional

When it comes to selling your home, especially your first one, it’s easy to feel emotional. You put in a lot of time and effort to find the ideal one, put money aside for a down payment and furniture, and made a lot of memories. When it comes to saying goodbye, most people struggle to keep their emotions in check, but it’s not impossible. Instead of thinking of yourself as a homeowner, start thinking of yourself as a businessperson and a salesperson once you’ve decided to sell your property. In fact, forget that you’re the one who owns the house. You’ll be able to separate yourself from the emotional components of selling the property if you approach the deal solely from a financial standpoint.

2-Setting an Unrealistic Price

Setting the correct asking price is critical no matter the current real estate market. Remember when you or your agent completed a comparative market research to determine a reasonable asking price for your home? Buyers will do the same for your home, so you should be one step ahead of them as a seller.

3-Hiding Flaws

Don’t fool yourself into believing you can get away with concealing severe property issues. During the buyer’s home inspection, any problems will be discovered. You have three options to deal with any issues. Either fix the problem before listing for sale, price the property below market value to account for it, or list the property at a normal price and offer the buyer a credit to fix the problem.

4-Not Preparing 

Decluttering, cleaning thoroughly, putting a fresh coat of paint on the walls, and getting rid of any odors will also make a good impression on buyers. This can be an overwhelming process for many, that is why the Sibbach Team has complimentary stagers to assist you with preparing your home for sale. 

Final Thoughts

It’s critical to understand how to sell a home. By avoiding costly errors, you’ll be well on your way to putting your best foot forward and accomplishing a smooth, profitable sale that every home seller desires.

Ready to sell your home? Call me today, let’s get started! 602-329-7782

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10 Reasons to Work with a Local Realtor

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1-Local Realtors will know why some homes on the same street are worth more than others.

2-They can determine accurate prices on specific homes in the neighborhood.

3-They may know who previously owned homes in the neighborhood, and why they sold them.

4-They know which streets in a neighborhood are more desirable than others.

5-They know the listing agents in the area and can negotiate with them and get the inside information.

6-They can advise you on which agents take overpriced listings and which take listings at market value.

7-They can refer you to local home inspectors, and they know if there are any inspections that should be performed that are specific to the area.

8-They know about homeowners associations that may be in the neighborhood, and what their rules and regulations are.

9-They know what attributes a buyer in that neighborhood should be seeking.

10-They know what you need to know before you even have to ask!

Functional Obsolescence Impact on Property Value

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Real estate can exhibit functional obsolescence if its design features are outdated, not useful, or not aligned with market tastes and standards, such as when an old house is located within a neighborhood of new homes.

While functional obsolescence is generally associated with rundown structures or dilapidated neighborhoods, it can also occur in the opposite case. For example, a home may have “over-improvements” when a homeowner renovates and includes features within their home that might not be necessary.

Curable Obsolescence

Curable functional obsolescence refers to any deficiency that can be cured by the property owner. For example, if physical depreciation can be fixed by repairing and renovating the subject property, then the obsolescence would be considered curable.

Incurable Obsolescence

Incurable obsolescence is when the deficiency causing the obsolescence is too costly, impractical or impossible to cure. In these cases, the deficiency is often a factor that the property owner has no control over, such as being on a busy road or under power lines.

Superadequacy  Obsolescence

The final type of functional obsolescence is known as superadequacy, this is essentially the opposite of a deficiency. Superadequacy happens when the homeowner over-improves the property for the neighborhood.

How Much Can Functional Obsolescence Impact Property Value?

If the obsolescence is due to a deficiency, it will undoubtedly lead to a decline in the valuation of the property while curable functional obsolescence will not affect the property value as much. In situations of a superadequacy, it is most likely the homeowner will not be able to get enough money out of the investment to cover the cost of the improvements made.

Ultimately, functional obsolescence creates problems even before we get offers on a home because there will be less traffic through the home resulting in more days on market, leading to only receiving low ball offers. Thus, preventing the homeowner from achieving top dollar.

From June Gloom to June Bloom

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Last year, 2020 – the ultimate “June Gloom”. This year, 2021 is bringing us “June Bloom”! See the red demand line in the chart coming down? How about the blue supply line that has just begun to sideways?

Historically speaking, summer is a busy season for real estate as families prefer to move when the kids are out of school, yet 2020 was an anomaly. Covid-19 test results were peaking last summer, so most of us stayed home to self-quarantine in an effort to keep our families healthy. The real estate market dramatically changed because homeowners took down their for-sale signs because they did not want people (and germs!) entering their homes. This led to even lower supply numbers than we previously had seen.

Demand remained constant because of lower interest rates. As demand remained strong and supply fell we saw prices rise. Supply fell because of a few factors:

  1. Record low building across the country as home builders were still gun shy from the last boom/bust.
  2. Sellers are pulling homes off the market because they didn’t want to invite covid into their home.
  3. Sellers started to see the value of their homes go and it’s hard to sell an appreciating asset.

Multiple offers became the norm. Buyers had to come out of pocket to cover the difference between appraised values and purchase price. Let me say that in a different way. Buyers had to have more cash to buy a house than the norm because when they were under contract for $315,000 or $3,500,000 and the home would only appraise for $300,000 or $3,000,000 it meant they had to negotiate down the seller or come out of pocket to cover the price above appraised value.

Look at these Cromford Market Index numbers  – Cromford Market Index is how balanced the market is between buyers and sellers. 100 is balanced. We’ve been at record highs, but all cities except for Surprise has turned back towards balanced.

Why June Bloom?

Today, as we prepare to turn the calendar to June and summer 2021 is upon us, the real estate market is slowly turning back to normal. Mask mandates are being lifted and for sale signs are going back up – even though we’re still severely under average supply levels.

Because the higher-priced houses have closed and can now be used for appraisals, it’s easier and requires less cash to buy a house today than in February. Appraisals catching up to values means less cash needed to buy a house at the agreed-upon contract price. We actually had a contract for a buyer at $315,000 this week that appraised for $330,000!! Woo-hoo!! Instead of coming to the table with $15k cash, they came to the table with $15,000 of equity.

In the chart below you can see the Cromford Market Index turned 3 months ago! That’s a good thing. Another reason why I love this chart is because the CMI is overlaid on average appreciation levels. You can see the last time the CMI dipped below balanced, it took almost a year for prices to stop appreciating.

Supply has started to creep up.

Demand is starting to creep down.

We’re by no means back to a “buyer’s market” but at least we’re done going to an ultra extreme “seller’s market”.

If you are a buyer and were worn out by the craziness and cash reserve requirements, the good news is it’s getting a little easier. Yes, prices are higher than a year ago, but at least the difference in purchase price can be financed.

2021: The Year to Save THOUSANDS on Commissions

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2021

Supply & Demand
Active listing count in ARMLS is the lowest ever, with only 4364 properties for sale. The average number of active listings for this millennium is 28,539!

Last year finished as the 2nd highest number of sales through MLS; 105,368. The record in 2005 was 106,810. We have 40% more people in Metro-Phoenix in 2021 vs 2005 but we haven’t seen the number of sales exceed that record year.

When Will This Market Stop?
Two most important watch items – declining stock market will hurt the luxury momentum and/or interest rates rising at a quick pace. In 2013 interest rates rose by 1% and inventory rose by 11,000 homes immediately following.

Lower Commissions
One of our new tools in 2021 allows the seller to pay half of the traditional fees to sell. We’re excited to talk with you about it!

Last but not least, THANK YOU!
We’ve helped more clients this past year than ever. We appreciate your continued support and love bringing commission savings tools to you.

Call or Text me at 602-329-7782!

www.GoodGlendaleHomesForSale.com

Homebuying During the Coronavirus

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house for saleWith mortgage rates at all-time lows and an uncertain future due to the current Covid-19 pandemic, is now a good time to buy a home? It may feel contradictory to purchase a home at this time, however, for people who feel confident about their job security and finances, this might be the perfect time to buy.

Why Making the Move Now May Be Right for You

House hunting during the coronavirus can have its benefits. There may be less competition for the houses in the areas where you might be planning to move, and sellers may be more motivated to sell or more flexible on price. Once the crisis passes, there may be more house hunters back on the market and prices may escalate due to a more competitive market that benefits sellers rather than buyers, so taking a few steps forward now will put you ahead of the game.

Use This Time to Research the Market

Despite the decrease in the number of newly-listed homes, there are still excellent options in property listings. This is a time to research the market and find your preferred property in a community you like. Take this time to expand your search to other surrounding neighborhoods that might have homes with excellent value for money, amenities, and facilities.

As you spend more time at home, it’s an opportunity to assess your current home and determine the level of functionality and comfort it offers you. That helps in knowing your priorities when searching and, consequently buying a home.

Get Preapproved for a Mortgage

When you do find the home of your dreams, being preapproved for a mortgage proves to the seller you are serious. It’s possible to get preapproved online through some banks. Mortgage preapproval is a letter from a lender that indicates how much you are qualified to borrow from the lender, at a specific interest rate.

Virtual Home Viewing

Many real estate agents post virtual tours of properties for sale on their websites. When you take a virtual tour or attend a virtual open house, you can get a realistic view of the property. Then, with a click of the mouse, you can see all the details that are important to you. In addition, by touring homes virtually, you can see many more than would be possible in a single day with your real estate agent.

Prepare Your Home For Sale

While entertainment, sports, and other social events are canceled, take advantage of this while to prep your current home for the market. Preparation may include anything from mowing the lawn, exterior repairs, tidying the gutters, and decluttering the interior.

Start with a DIY approach to reduce expenses before calling the professionals. Do an online home improvement search to note the additional décor that can enhance the visual appeal of the home.

Do you have questions if now is the right time for you to buy? Call me today, I’d love to help answer all your questions and find your new home when the time is right for you! 602-329-7782

Covid-19’s Impact on Arizona Real Estate

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Hey Everyone, Elise Fay here—hope you are all doing well and taking care of one another. Concerns about the global impact Covid-19 will have on the economy are real. And they’re scary, as the health and wellness or our families, friends and loved ones are high on everyone’s emotional radar. That said, we can be confident that, while we don’t know the exact impact the virus will have on the housing market, we do know that housing isn’t the driver.

The reasons we move: marriage, children, job changes, retirement etc—are still part of our lives. As a result we are still open for business!

Let me share with you a few facts from yours truly, based upon what we are seeing, boots on the ground. Since March 15th, 2020:

-4040 homes were put under contract.
-3233 NEW listings were added to the market
-3481 homes successfully closed in Maricopa County—those are buyers and sellers who sold their homes and went thru with the sale despite the Corona Virus effect.

Personally, our team has put 19 deals under contract, 25 deals have closed. So if you think these numbers look promising but you are still scratching your head…Here is the how and why. It still goes back to Supply and Demand.

We still have a lack of sellers. Low supply of homes is the result of several factors—I will share with you a few of them.

-New Builds: we have half the number of new builds to the market than we did in the early 2000’s and this is due to labor shortages, some gov’t regulations and in most cases, not enough available land.
-During the last recovery we saw savvy investors and some of the larger institutional investors buy up a lot of homes that were in short sale or foreclosure. These investors were building up their portfolios and had plans to either sell on the upside or hold them as rentals. Well with rents on the rise, as a result of the short supply of sellers, these landlords are NOT selling and instead holding on tight to their investments. Being a landlord IS profitable right now!
-Empty nesters who weathered the downturn in the market years back, are now keeping their homes on average about 13 years—some are still a bit frozen, unable to unlock all their equity. Let’s not forget the HGTV effect that we are seeing on some of these older and dated properties.

Right now, we are seeing that demand is being dampened by the Corona outbreak and as a result we are seeing that inventory is loosening up, making more homes available and in some price ranges, lessening the competition a bit. We are seeing this in the market space where millennials may be entering for the 1st time. Interest rates are still at an all-time low, making owning a home cheaper than renting. Lending guidelines have tightened up a bit but that is another level of protection that has been put in place.

We have a crazy new normal. We are out showing homes, taking greater precautions; we wear gloves, carry hand sanitizer and retain a safe distance. We also have protocols in place to protect our sellers. In Arizona, housing is a huge economic driver for our economy—I am not here to sugar coat anything but just want to let you know that we are not seeing doom and gloom at this point.

If you have questions about what it means for your family’s homebuying or selling plans, reach out to me. I will be happy to answer any questions or address any concerns you may have. 602-329-7782

Covid-19

1st Quarter Real Estate Updates

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As we finish the first quarter of 2020, I have some surprising facts to share:

-As we move into 2020 there are currently 12,742 active listings or homes for sale in our marketplace.

-As we entered into 2019, we had 16,428 homes ofr sale. No one predicted those numbers for 2019, as that was the lowest inventory we had seen in over 8 years, until now.

-Did you know that we sold an average of 8300 homes per month in 2019? On average 4% more homes per month were sold in 2019 with far fewer inventory than ever before!

-2019 brought us, depending on your area, 5-8% price appreciation. Averaging out to about 6.3% appreciation.

BUYERS: We have amassed a list of homes from sellers who reached out and said if we had a buyer they would sell or they just were not ready to list buy wanted to sell. IF you are a buyer, call us! WE can help you find the right home amidst all the low supply.

SELLERS: Selling your home to an owner occupant will typically yield you 3-7% more money! If you want to sell your home to an owner occupant with minimal hassle and inconvenience-call me. No obligation, no commitments or contracts. My extensive reach can find you a buyer, one who will be an owner occupant and get you top dollar!

Real Estate 2020 brings you lots of options and opportunities while still providing the highest level of customer service!

Selling During the Holidays

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christmas decorationsDon’t let selling your home during the Holiday season dampen your spirit. Create a buyer-friendly home with my Top 5 seasonal home staging tips:

-Go easy on the outdoor lights and leave the inflatable snowman in the storage room. Instead, use simple string lights to play up your home’s architecture or draw attention to your landscaping.
-Don’t go overboard with decorating. It’s tempting, we know, and nobody wants to be a Scrooge during Christmas. But buyers need to be able to visualize the home as their own, so your family’s decorations on every shelf and table will only be a distraction. A few holiday touches here and there will add a nice staging effect, but try to keep your home as open and uncluttered as possible.
-Make sure your holiday decorations match your current decor. If your family room has a clean blue and white color scheme, then skip the clashing red garland. If you have an earthy color scheme, then accent with rich tones like cranberries, forest greens and gold.
-Too much can distract buyers, but the right amount of accessories can draw attention to your home’s best features. Try hanging a few tasteful ornaments from your mantel to highlight an elegant fireplace.
-If your living space is small, then save space with a skinny Christmas tree. Although it can be fun to dedicate large areas to the holidays, make sure to leave enough room for buyers to move around and appreciate your home for its actual size.

Selling during the holidays doesn’t have to be difficult. Call me today for more home staging tips. 602-329-7782

Easy Offer on Your Home

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home offersWould you like an offer on your home while skipping the headaches and hassles of selling traditionally? There’s a record amount of capital looking for a place to rest. Companies are ready to make a very competitive offer on your home. They buy it, turn it around, and sell 30-90 days to the public for a tiny profit. You get convenience and speed in return!

Close quickly, get equity from your home in as little as 7 days
Multiple competitive offers – fast
You pick your closing date
No showings or open houses
No negotiating with buyers
Skip the cost, time and (in some cases) embarrassment of getting your home market ready
Freedom to move on your timeline
No strangers and REALTORS® walking through your home
No risk of two mortgage payments

I know companies who will buy your home directly at a fair competitive price. I will negotiate all offers for you so you get the best price and terms.  These buyers not “sharks” who buy your home for 50% of it’s value. You will get a real listing valuation and solid offers within 24 hours of me viewing your home. I’ll help you break down your options in a side by side comparison to see which works best for you.

Contact me to price your home, get photos taken, and submit it to the companies who will buy it from you! 602-329-7782