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Where is the Market Going? – Fall 2021

As you can see in the chart below, list prices peaked in June. We’ve also seen price reductions double since February. What does this mean for the value of your property? Call me today to chat! 602-329-7782

AVERAGE LIST PRICE PER SQUARE FOOT (Source: Active Listings ARMLS)

 

fall 2021 real estate market

 

 

Functional Obsolescence Impact on Property Value

Real estate can exhibit functional obsolescence if its design features are outdated, not useful, or not aligned with market tastes and standards, such as when an old house is located within a neighborhood of new homes.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

Featured Home in The Meadows

Stunning Maracay home on a premium lot in the heart of The Meadows in north Peoria. This popular Parker model single level home has many of the beautiful on-trend features you would come to expect in this new community. This community is closed out, take the chance now to own the most coveted model in Meadows. Premium lot with front yard views of a gorgeous park and no neighbors behind! Courtyard entry with beautiful custom iron doors provide additional privacy. Plank tiled floors in all main living areas, Gourmet kitchen with tiled backsplash, Upgraded with Oversized Kitchen Island, Granite Counters, Wall ovens, Gas Stove top, Pot filler and all the amazing storage and cabinet space! Disappearing wall of windows in Kitchen/Great Room brings the outdoors inside for a truly open feeling.

9311 W COUNTRY CLUB Trail, Peoria, AZ 85383

CLICK HERE for additional information and photos.

Call or text me today to schedule your private showing! 602-329-7782

Peoria Home For Sale

Gorgeous Peoria Arizona Remodel!

PRESS PLAY to take a SNEAK PEAK tour of this stunning remodel Coming Soon For Sale in North Peoria! This single level, 2700 sqft home features a pool, Sport Court and sits on an over 1/3 acre cul-de-sac lot. The open concept floor plan has 4 bedrooms, 2 bathrooms, plus a den.

Call or text me at 602-329-7782 to schedule your tour! 

 

peoria home for sale

Inman Connect Conference – June 2021

Hello, Friends!

I would like to share with everyone the good fortune I had to have been chosen to participate on a panel at the Inman Connect Conference this June!

Each year Inman sponsors a national conference where Industry experts from around the world come together to offer insights about the market, technology and the trends that are shaping the real estate market. Jeff Sibbach, my mentor and one of the most respected agents in the valley, was asked to speak about some of the recent changes handed down regarding advertising, and the MLS new rules and how they impact our ability to service our clients.

As one of the top agents on the Sibbach Team, I was honored to have been invited to participate in this panel!

Inman 2021

Joe Rand, Inman contributor and author of How to be a Great Real Estate Agent, was our moderator. Sam DeBord, CEO of RESO, Real Estate Standards Organization was also one of the speakers.

It was truly an honor to have been asked to be a part of this panel and my success is largely due to your support through the years!

Thank you,
Elise

Featured Home in Peoria

Peoria home for sale

Gorgeous corner lot home in Peoria with owned solar panels and an open great room floorplan with 3 bedrooms and 2 bathrooms! The gourmet eat-in kitchen incorporates granite counters, breakfast bar, backsplash, and stainless appliances. Other features include new dual pane windows, new wood-look tile flooring, new LED lighting, home office den, 3 car garage, recently replaced roof (2010), and added insulation for better temperature control. The master suite offers a large closet and a private ensuite bathroom. The private backyard has an extended covered patio, pebble tech pool, shaded gazebo area, storage shed, and RV parking.

7420 W WINDROSE Drive, Peoria, AZ 85381

CLICK HERE for additional information and photos. 

Call or text me today to schedule your private showing! 602-329-7782

Questions to Ask Before Buying a Home

With mortgage interest rates at an all-time low, many first-time homebuyers are ready to buy. But are you really ready?

Why Do I Want to Buy a House?

Before you start house shopping, ask yourself why you want to buy a house. Many first-time homebuyers are pressured into buying because family and friends push them. They convince first-time buyers that mortgage interest rates are so low that now is the right to buy. While it’s true interest rates are at an all-time low, buying a home for the wrong reasons often results in disaster. Instead, buy a house because you want a stable place to live or a place to call “home”.

Can I Really Afford It?

Do you feel safe enough in your job to commit to a 30-year mortgage? Do you have enough stashed away in savings to cover your mortgage for six months? Being able to answer “yes” to these two questions is important for your financial security when buying a house. It’s important that your monthly mortgage payment be affordable. Some lenders may approve you for a loan that is more than you can comfortably afford. Plus don’t forget that your monthly mortgage payment is only the beginning. You still have to pay homeowners insurance, property taxes, as well as pay for maintenance, repairs, and the inevitable home improvement projects.

Will I Want to Live Here in 5 Years?

As you’re searching for neighborhoods and homes, imagine staying there for five years. Do the homes, neighborhoods, and cities have everything you need to be happy? Is the house big enough to accommodate a growing family (if you decide to have one)?

Without a doubt, now is a great time to buy a home. Just make sure you’re buying for the right reasons. When you’re confidently ready, give me a call, I’d love to help you buy your first home! 602-329-7782

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Advantages of Buying a Home

Buying a home is often referred to as the “American Dream.”  While there are many obvious benefits of owning a home, there are also some that are not so obvious.

1-Stable Monthly Payments

If you choose a fixed-rate mortgage, then your monthly payments will remain mostly the same, which is one of the best benefits of owning a home. When renting a property, there is always the unknown if the monthly payments will increase each year when you renew your lease. Consistent monthly payments that come with owning a home can provide some peace of mind when it comes to creating a monthly budget. Of course, monthly payments can change when owning a home if property taxes or homeowners insurance change, but the amount of change in property taxes is typically a very small amount.

2-Opportunity to Build Equity

The longer that you own a home, the more you pay towards the principle balance of your mortgage.  As the balance of the mortgage lowers, and hopefully the value of the property increases, the larger the equity!

3-Cheaper Than Renting Overtime

Undoubtedly, there are many associated when buying a home, such as the down payment, appraisal fee, and homeowners’ insurance.  The upfront cost to buy a home is substantially more than just paying monthly rent to a landlord. Yet, over time, owning a home is cheaper than renting which is a great benefit. In Arizona, if you compare a rental property and the monthly mortgage of a comparable home, the cost of ownership is typically much less.

4-Owning a Home Provides Tax Advantages

Paying taxes is a necessary evil, but a great benefit of owning a home is

the tax advantages that it provides.  Arguably the biggest tax advantage of owning a home is the option to deduct paid monthly interest from your tax returns. If you’re unsure how owning a home will impact your taxes, it’s recommended that you discuss it with your accountant so you fully understand how owning real estate will impact you come tax season.

5-Build Your Credit

There are many factors that impact a person’s credit score, one of the most important being the length of credit history.  Since the length of a mortgage is typically 15 or 30 years, having a mortgage on your credit history is a great way to lengthen the average of your credit accounts.  In addition to improving the average length of credit accounts, each and every month that a mortgage is paid on-time it shows that you’re a responsible borrower which not only can improve a credit score but also improves the chance of approval for future credit accounts.

Owning a home is much more than just having a place to live. Give me a call when you’re ready to become a homeowner! 602-329-7782

buying a home

Homebuying During the Coronavirus

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

Buying a New Construction Home

new construction homeBuilding your dream home from the ground up can be exciting. You get to choose your lot, the floor plan, the interior finishes and any upgrades. There is a common misconception when you’re buying a new construction home that you don’t need to work with a Realtor®. However, that’s not necessarily true. Read on for 5 reasons why you should use a Realtor when buying a new construction home.

1. Your real estate agent is your advocate. When you walk into a model home, the friendly salesperson who greets works for the builder, therefore they may not work in your best interest. Your Realtor works for you and your best interest.

2. Hiring a Realtor comes at no cost to you. When working with builders, there is no additional cost for working with a Realtor. The builder will pay your agent’s sales commission.

3. A Realtor can help with lot, floor plan and upgrade selections. They can help guide you by making recommendations on items that appeal to a larger number of future buyers if you think you may sell your property in the future. For example, the lot you may be thinking about buying may save you some money upfront, but it may not be the best lot selection for resale value.

4. A Realtor can help you make the right choices for your budget. With a seemingly endless list of choices to make, new construction can be overwhelming. A good Realtor can help guide some of your decisions within your budget. Also, when working within your budget, an agent can guide you on what items are better to install now versus items that are easier to improve upon later.

5. A Realtor Can Help with Inspections and Contract Contingencies You know you need an inspection when you buy an existing home, but did you know an inspection is an important part of buying new construction?

When it comes to buying new construction, there are many benefits that come with working with an experienced real estate agent. Are you thinking of buying a new construction home? Give me a call for information on all the new developments in the West Valley and let’s schedule a tour! 602-329-7782