November 2018 Phoenix Real Estate Report

phoenix real estate market updateHighlights of my November 2018 Phoenix Real Estate Market Report:

1. How fast are homes selling? Average number of days on market for homes sold is 60 (down 5 from last year)
2. How many homes are for sale? We currently have 19,654 properties for sale (down 4.5% from last year)
3. What is the average sales price? Homes across the valley are selling for $326,100 (up 9.8% from last year)

The Phoenix real estate market has been very good to homeowners for many years and we are still on an upward trajectory that started a long while back. October’s supply (measured by homes listed for sale last month) was down 1.4% from October 2017 and October’s demand (measured by homes sold last month) was down 1.2% from October 2017. Since the rate of drop in demand was essentially the same as the drop in supply, we would expect home values to be flat of late – which they have been and will likely remain so through the holiday season that is upon us. There is good news however: home values have still risen almost 10% on average in the past 12 months but our current market absorption rate has spiked to 2.43 months (keep in mind, lower is better if you are selling) from under 2.2 months not long ago. Absorption rate means that if no additional homes were listed for sale, it would take 73 days for every home listed in the valley to sell, based on current level of demand. Last year it would have taken over 78 days to absorb every home offered for sale in Phoenix, so we are still better off in theory than a year ago. A seller’s market is said to occur when absorption is below 3 months and a buyer’s market is when it is over 5 months. When absorption is between 3 and 5 months, it is deemed to be a balanced market favoring no side in particular.

Curious about your current Phoenix home value? Ask me for your Phoenix Property Value report created especially for your home and emailed to you within 24 hours. It is filled with local market data, demographics, pricing trends, your home’s estimated value and my confidence rating.

Realistic pricing and professional photography to showcase a property are essential in maximizing value and minimizing time on market. Ask about my written guarantee to sell a home within 67 days at a price acceptable to the owner or they get $1,000 from me at closing.

Real Estate Negotiating

Real estate negotiating
If you prefer buying real estate without an agent (who will watch your back every step of the way at no cost to you), you may wish to consider these real estate negotiation strategies to help you land the best deal:

– offer higher earnest money over and above the typical 1% of sales price; as long as you don’t plan to breach the purchase contract rules, the earnest money is just going toward your total down payment anyway.

– let seller choose the title/escrow company; it could create the illusion of seller controlling the deal but in reality most people couldn’t name a title/escrow company off the top of their head.

– be flexible on the closing date, if possible; let them know you can move closing forward (check with your lender to be sure they can make good on the desire to close sooner) or backward to suit their schedule.

– offer to allow seller to rent home back from you for a few days to help them move to their next home; moving is very stressful but this will give seller so much peace of mind and you will even make a few dollars.

– ask seller to buy you a home warranty – or to leave some item in home with the sale – that you are comfortable negotiating away later; meaning you didn’t really want this anyway but seller thinks they scored a win.

– ask for slightly more closing assistance to be paid by seller than you actually need or can use (if you are asking for any financial help from seller); if you only need 2% help, ask for 2.5% and negotiate it away.

– give seller ample time to respond; it is customary to give 48 hours for review of your offer but I can’t tell you how many times I get an offer at 7pm and buyer expects a response from seller by noon the following day.

Notice property price is not mentioned here. Remember, when buying and selling real estate, it is an often emotional process that can cause otherwise rational people to behave irrationally and out of character.

13434 W CROCUS DR, Surprise

Located on a cul-de-sac, this upgraded home has so much to offer: new AC and heating system (2014), new granite kitchen counters (2016), new laminate wood floor all downstairs (2016), new carpet upstairs (2016), new interior paint (2016), new water softener (2016), new reverse osmosis filtration system (2016) & all newer kitchen appliances (including gas range). Flexible floorplan with 4 bedrooms (plus bonus room ideal for office, den, gym or ?) and 2.5 bathrooms, POOL with waterfall, artificial grass at back & side, newer light fixtures, ceiling fans in all bedrooms plus garage storage cabinets.

Surprise AZ home for sale marketed by Surprise AZ Realtor Andrew Robb.

Listing Price: $255,000
MLS #: 5842373
Address: 13434 W CROCUS DR
City: Surprise
State: AZ
ZIP: 85379
Home Size: 2,102
Lot Size: 6,600
Bedrooms: 4
Bathrooms: 2.5
Garages: 2
Pool: Y
Get Directions

10557 W LOMA BLANCA DR, Sun City

* UNDER CONTRACT IN 5 DAYS * Extensively remodeled and well cared for, this wildly popular floorplan features no popcorn ceilings & all new 26″ diagonal tile throughout (no carpet anywhere). Upgraded kitchen with newer cabinets, granite counters, recessed can lighting & newer appliances all included. The benefits continue at every turn: plantation shutters, newer light fixtures & ceiling fans, new baseboards, new raised toilets, huge garage with workshop area, separate storage area & newer hot water heater. Big master bedroom with sliding doors to amazing private backyard with extensive artificial turf, large covered patio, roller sun shades & front/back watering system.

Sun City home for sale marketed by Sun City AZ Realtor Andrew Robb.

Listing Price: $195,000
MLS #: 5837820
Address: 10557 W LOMA BLANCA DR
City: Sun City
State: AZ
ZIP: 85351
Home Size: 1,530
Lot Size: 390
Bedrooms: 2
Bathrooms: 2
Garages: 2.5
Pool: N
Get Directions

Solar Panels

Solar Panels in Phoenix
Want to make your home easier to sell? Don’t install a solar system in Phoenix. As an real estate agent, I am often asked by homeowners who are considering adding a solar system whether or not it will have any impact on their home value. Most are surprised to hear me say, in the absolute best case scenario it will not hurt your home’s value and in most cases it will be a negative to future buyers considering your home for purchase.

With all the full sun we get (over 300 days a year), why not install solar in Phoenix?

1. It’s leased so any buyer of your home will need to qualify for assuming the balance of your lease. Solar leases work just like car leases – except car lease payments don’t rise every year on you.
2. It often can damage roof at time of install. I have seen several instances of damage to tiles and flashings, not to mention the need for installing a pigeon/bird net under the panels to stop them nesting.
3. It voids your manufacturer warranty on roof tiles (usually lifetime). Plain and simple, if you install solar you lose your tile warranty against manufacturer defects.
4. It’s hot! Most people don’t realize solar panels feed an inverter in the garage to produce energy and this generates heat. Stand in a closed garage in summer with solar and you’ll see.
5. It doesn’t generate enough power to be off the grid. Most systems on a typical home max out at 9kwh production, which may be just enough to cover power use in winter but leave you a big summer electric bill.
6. You will never own it, even after you make 20 years of lease payments. So after making 240 payments what is your reward? They show up to take the entire system off your roof and promise to fix any damage.
7. The lease payments rise every single year, on average 2.9% compounded annually. To put that in perspective, this increase has been 41% higher than the annual rate of inflation the past 20 years.
8. It’s unproven long-term. What about the company’s chances of being around for the next 20 years? If they disappear, who’s going to repair it when a panel fails? And wow are these things unsightly!
9. What happens when you need to re-tile (and change the weatherproof underlayment) or re-shingle your roof? You must pay the company (assuming they still exist) to remove the panels, store them and then re-install them so you can fix your roof.
10. All else equal, when two homes have identical features, I’ve never met a buyer who prefers the one with solar. The reasons are probably all of the above.

What are the tangible, measurable and direct benefits to a homeowner installing solar in Phoenix?

RE/MAX Renaissance Realty
9059 W Lake Pleasant Pkwy #B200
Peoria, AZ 85382