Home Seller Mistakes

Phoenix home seller mistakesIf you are planning to sell your home, but secretly want to make selling it difficult, please make sure you:

– have such a restrictive schedule that showings can only be Tue mornings
– close all the blinds and keep all the lights off so it’s nice and dark
– don’t pick up after your pets outside so buyers have to dodge land mines
– have your house looking like you just threw a bachelor party last night
– leave your barking dogs caged up at home for all showings
– quietly sit in back yard anxiously waiting for buyer to leave
– stay inside your home sitting on the couch watching TV during each showing
– put a handwritten sign on a random bedroom door saying “Do Not Enter”
– follow buyers and agents all around your home explaining every detail
– confront buyers and agents directly for honest feedback when they try to leave

You may be thinking “I would never be that foolish” but I raise each of these real world scenarios because I have encountered them (numerous times each) over the many years I have been practicing real estate.

It’s mind-boggling to think people believe nothing is wrong with some or all of the above actions. It’s even scarier that their agents may not have stated the obvious to them, when trying to make it easy to sell their home.

Homes don’t sell for at least 1 of 3 reasons (and sometimes it’s all 3): it’s overpriced, it’s poorly marketed, it’s hard to show. The first two are obvious, the third not so much. By hard to show, I mean a combination of any or all of the above, whereby the home does not present well or a buyer cannot be comfortable while viewing the home.

Please keep this in mind to make selling your Phoenix home a pleasant experience!

Arizona Well Water

Arizona Well WaterA home in Arizona not served by municipal city water is likely to have a private well on property or use of a shared well. Under current FHA loan guidelines, a home can share a well with up to 3 other homes (so 4 homes total on shared well for FHA eligibility). What to know about well water in Arizona:

If well performance (flow test) or water quality (content analysis) is important to buyer, they should have well inspected during home inspection period. These water quality tests are a lender requirement on FHA loans.

When the property includes a domestic water well, the Arizona purchase contract requires use of a Domestic Well Water Addendum (DWWA) which must be delivered to buyer, in addition to the Seller Property Disclosure Statement (SPDS), within 3 days of contract acceptance.

Seller must provide information about well registration and ownership, well agreement in the case of shared well ownership, whether the well is on property or off property, whether property is within an Active Management Area (AMA) and name of AMA if any.

The DWWA also requires seller to provide information regarding health hazards relating to well, well flow tests for yield and recovery, whether well has ever failed to produce adequate water for domestic use and any existing problems with water pressure, well pump, pressure tank or other well equipment.

Buyer may disapprove of any items on DWWA within 5 days of receipt, or during the home inspection period, whichever is later. At time of transaction closing, escrow company sends a change of well information/ownership form and transfer fee to the Arizona Department of Water Resources (ADWR).

Instant Offer

Instant Offer to sell your homeWhat is an instant offer? There has been growing interest of late (the earliest programs started in 2014) in getting an instant offer to sell your home, without making any repairs or improvements, and close in a 2-3 weeks. Known as iBuyers, companies like 0pendoor and 0fferpad have taken the original concept started by We Buy Ugly Houses and given it a much-needed improved image. Simply put, these are investors who will purchase your home in any condition at below market value in exchange for the convenience of a guaranteed quick sale.

Why would anyone want to sell their home for less than market value? This could make sense for people relocating, divorcing or selling an estate. In other words, for anyone looking to give up money to save time. It’s the paramount of all trade-offs, where humans trade time for money every day, in a quest for convenience. Think of it like eating: cooking a meal from scratch takes the most time but costs the least money; cooking a prepared meal takes less time but costs more money; eating out takes no time to cook but costs the very most.

Are these instant offer programs here to stay? Things just got very real when Zillow recently announced a test program to act as a buyer of homes in Phoenix. So now they will provide you with an estimated home value for your property and offer to buy it from you. Hmmm… hardly seems independent or objective to me. How do you really know what your home is worth? Without getting an impartial 3rd party opinion, it’s like taking collectibles (think baseball cards) to a store, asking the clerk what they’re worth, then accepting their offer to take them off your hands. Does “in that condition, the most I can give you is $20 for the Babe Ruth rookie card” sound suspicious to you?

Does it make sense to sell your home below market value in a hot and rising market (ie. a seller’s market)? Probably not. The majority of homes are selling within 30 days (time on market) then buyers typically need another 30 days to close the deal with their lender. The homes of my clients are selling much faster, often getting multiple offers in the first week. Which brings up another point: exposure to the open market is good for sellers since it allows them to experience price discovery (the process of determining the price of an asset in the marketplace through the interactions of buyers and sellers). So if you don’t expose your home to the market and choose to make a private deal with one party to buy it, how can you be sure you got a fair price? You can’t.

What to do? As with most things in life, price shopping will be rewarded. That is, get several opinions of value. Perhaps you get an instant offer, then get a realtor’s opinion of value, and finally order an appraisal on your home. Review all three numbers carefully and be sure to look at your expected net proceeds under the instant offer versus selling with a real estate agent. With the instant offer companies charging 7-13% in fees to take your home off your hands for below market value, the typical 6% commission model suddenly looks pretty good. And with a realtor, you have someone working for you instead of against you like with the instant offer. The more you make, the more the agent makes. The less you make in the instant offer, the more profit the buyer company makes.

Aloravita

NOW PRE-SELLING AT ALORAVITA! Pulte have 5 models available to place on about 90 lots in this phase:

A) $368,990 (base price) 2294sqft = $161/sqft single level, 2 car garage, 3-4 bedrooms, 2-3 bathrooms

B) $375,990 (base price) 2450sqft = $153/sqft single level, 3 car garage, 3-5 bedrooms, 2.5-3.5 bathrooms

C) $395,990 (base price) 2956sqft = $134/sqft two storey, 3 car garage, 4 bedrooms, 2.5-4.5 bathrooms

D) $420,990 (base price) 3556sqft = $118/sqft two storey, 2-3 car garage, 4 bedrooms, 2.5-4.5 bathrooms

E) $432,990 (base price) 3823sqft = $113/sqft two storey, 2-3 car garage, 5-6 bedrooms, 3.5-5.5 bathrooms

Please let me know if you would like me to send you any floor plans.

If you are interested in me representing you with the builder (at absolutely no cost or any obligation to buy) please let me know so we can go to the sales office (which is not on-site) together on your first visit to register with Pulte. They suggest making an appointment as they expect to be very busy in the coming weeks.

Aloravita is a planned community in north Peoria that will have up to 3,939 homesites and portions of the open space will be dedicated to the city of Peoria (city park) and certain portions will be owned by Aloravita homeowners associations (HOA parks). Aloravita will have walking and biking trails throughout. The southern section of Aloravita is bound by Happy Valley Rd to the south, Terramar to the east, Westwing to the west, and Jomax Rd to the north. The northern section of Aloravita is bound by 67TH Ave to the east, Jomax Rd to the south, 71ST Ave to the west and Sonoran Mountain Ranch to the north. Click here for the Aloravita community map.

A K-8 school is planned to be constructed on the southern parcel and a high school in the northern parcel will accommodate children living in Aloravita and surrounding areas. The southern parcel unit count is fixed at 2,000 homes. The northern parcel unit count is variable based on whether the Deer Valley School District builds a high school on a dedicated site within the this parcel. The northern parcel unit count is 1,675 homes with a high school or 1,939 homes without a high school. At no time can the total number of homes within Aloravita exceed 3,939. Click here for the Aloravita land use map.

For more information about the Aloravita community or buying a home in Peoria, AZ please contact Andrew Robb.

Looking to find out about the current value of your Phoenix area home? Visit Phoenix Property Value for your free 20+ page color report delivered to your email within 24 hours with no obligation!

August 2018 Phoenix Real Estate Report

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

1. How fast are homes selling? Average number of days on market for homes sold is 59 (down 6 from last year)
2. How many homes are for sale? We currently have 18,489 properties for sale (down 7.7% from last year)
3. What is the average sales price? Homes across the valley are selling for $323,093 (up 9% from last year)

For all the latest MLS sales data and charts, click here.

The Phoenix real estate market has been an owner’s best friend for the past few years and we are still in an upward trajectory that started many years ago. July’s supply (measured by homes listed for sale last month) was up 0.5% from July 2017 and July’s demand (measured by homes sold last month) was up 6.5% from July 2017. When demand exceeds supply, we expect value to rise, which it did with home prices up 9% in the last year. Our current market absorption rate remains at an extremely low historical level of 2.29 months (keep in mind, lower is better if you are selling). Absorption rate means that if no additional homes were listed for sale, it would take less than 69 days for every home listed in the valley to sell, based on current level of demand. Last year it would have taken over 76 days to absorb every home offered for sale in Phoenix. 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.



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