John Schloz, Associate Broker
It's Time to take Advantage of this Market
Home Smart| Direct: 602-570-5905 | Office: 602-386-1384 | Email: john@azhometrends.com
Summer Heats Up Home Buyers
Posted on July 1, 2009
Welcome to the heat of an Arizona Summer. Many times I get the question, "Is the summer a good time to sell a home?" The answer is "Yes." Traditionally showing activity on homes for sales does decrease during the summer months. Sellers may feel that a decrease in showings is evidence that homes do not sell as well during the hot months.
The heat does deter some showings. But it does not decrease the showing of quality buyers who want to be in their next home. I spent my first few years in the business selling new homes. From watching the perspective buyers walking through the door decline but home sales hold steady and even increase gave me a great insight. Those red faced buyers that were out looking were serious buyers. They had a need for a home and were braving the heat to find a home. Fewer lookers but just as many real buyers.
So how do does the summer effect what home buyers are willing to look at? From working with buyers during a decade of summers, buyers are very particular about what they want to see. The attitude of "I want to see it all" gives way to careful planning and homework before viewing.
The best way to optimize a home's marketing is to give a buyer as much incentive to view your home. Buyers want lots of pictures, information about the area and what is unique about the home. There must be a reason why this home will be viewed.
Price is also imperative. On a nice day it is easy for a buyer to take a quick look at an over priced home that is in the route of showings. When it hits 112 and everybody is hot, forget it. Buyers will wait until it is worth their time.
Sellers, this summer get your marketing and pricing dialed in so you do not miss any of the "hot" buyers on a mission to buy.
Buyers, make sure you do your homework up front to make the most of house hunting in the Arizona heat.
Post a Comment : Author: John Schloz
Foreclosures In Phoenix Down!
Posted on June 11, 2009
Good news in the housing market of Phoenix and the surrounding areas continues to trickle in. Foreclosures in the valley are slowing. This is another sign the market for homes in Phoenix is improving. We may think we want a "quick" recovery but returning to normal will be healthier long term if we continue to make steady progress.
To read the article Click Here
With improving support in the housing market home owners who are considering letting their homes go into foreclosure may reevaluate the situation if we continue to see improvements. I am seeing multiple offers and the bidding up of prices in the $200,000 market and below. Buyers and investors are out in force. The unemployment number are better than expected. Homeowners are slowly gaining confidence.
All is good...unless inflation kicks in. (Oh Brother!) More on that later.
Post a Comment : Author: John Schloz
Homes under $200,000
Posted on May 29, 2009
Yesterday Channel 3 asked me to comment on the home sales and demand for homes under $200,000. We are seeing more competing offers and homes selling quicker in this price range. The news story mentions the difference between the average and the median sales price of homes.
This difference is note worthy. The median sales price is $45,000 less than the average sales price. This tells us that the majority of all the home sales in the Phoenix area are in the lower end. The correction to a more stable housing market is starting to occur. It is a small start but at least it is a start.
You can watch the video here. Let me know how I did.
Post a Comment : Author: John Schloz
Home Sales Flop or Fire Up?
Posted on May 26, 2009
In the last 3 days there has been much press about Phoenix real estate (Shocking). Articles that give 2 different views on Phoenix home sales are Sunday's New York Times Article and today's Arizona Republic Article.
The NY Times Article gives a great inside look to the starter home housing market. I am
impressed that the article lays out how investors looking to buy foreclosed homes are having a tougher and tougher time finding those great deals. The great deals do still exist but the competition is getting rougher by the day. Too many times the late night get rich quick mentality sneaks in and makes it seem like "Easy Money."
My neighbor has had some very good luck with flipping homes recently. However that "Luck" on closer inspection looks a lot like diligent work and determination. My neighbor and his brother built a small plan and have been consistently working it. As my wife's Grandfather says, "There is no harder money earned than easy money."
The Arizona Republic Article also paints a picture. The picture they paint is how prices are down in Phoenix by over 30% in the first quarter. Their numbers are true and old. From April to May the average sales price actually rose. It rose less than a percent but it did rise. We are in unique times. Trying to see when we are in a bottom in this market by comparing year over year data is just crazy. The momentum in the market is starting to kick in. More home buyers and investors are jumping off the sideline and taking advantage.
We are not going to set any appreciation records in the near future but the down hill slide is coming to an end. If you combine these 2 articles it actually gives a good account of where we have come from and where this market is going.
Post a Comment : Author: John Schloz
$8000 Down Payment Assistance
Posted on May 12, 2009
There has been much talk about the government laying bricks under the housing market. Those came in the form of lower interest rates and tax incentives for first time home buyers. The last three months has proven that the foundation has been set. The Phoenix market is correcting. it was my opinion that the market would start recovering over the next couple quarters. I didn’t consider if the government might continue to provide bricks for improvment. I just found out that HUD has approved a program that will allow first time home buyers to use the $8,000 tax credit for their down payment. This may be a small change, but in my opinion, it is profound! Welcome back 100% financing!!!
There is no better time for first time home buyers. Which is defined as a person who has not owned a home in the past 3 years. This $8000 incentive is only valid until December 2009.
See the link below
There is no better time for first time home buyers. Which is defined as a person who has not owned a home in the past 3 years. This $8000 incentive is only valid until December 2009.
See the link below
Post a Comment : Author: John Schloz
Lease Purchase or Rent?
Posted on May 12, 2009
Recently many of my clients have been asking me about lease options versus renting. Lease options have back into this market recently for many reasons. One of the biggest is the homeowner who has been foreclosed on and cannot get financing to own a home. These instruments have a place in this market.
There are many reasons a buyer may or may not want to take advantage of a lease option. The pros and cons are so many that I will cover them separately at a later date. If you want the skinny "Right Now" give me a call and I can untangle the confusion.
For the Investors or seller, here are the basics.
Lease options run at a slightly higher rents. However the premium is not always yours to keep. For example: you buy a $120,000 home and put $10,000 into carpet, paint etc. Rents are $1000 per month. A lease purchase may be $1200 per month with the option to buy at the end of 2 years. For every month the payment is made on time the buyer will get a $100 credit for a down payment. The purchase price would be set at $150,000 or appraised value, which ever is higher. In 2 years the buyer can get qualified to buy the home. Most likely FHA financing. You will give them $2400 to assist with their down, and they can buy the home. If they cannot qualify they can move or redo the terms of the lease. The fee to write and execute a Lease purchase is about $1500 for many property management fees. The extra $200 then becomes a wash.
Benefits: You have a tenant who has pride of ownership from day one and is responsible for the up keep of the home. You have locked in a profit and a buyer.
Downside: A great tenant will own the home and you will start over.
Statistically speaking only 15% of lease purchase contracts actually close. Many people who sign up never take the actions needed to be able to qualify 2 years from today.
Post a Comment : Author: John Schloz
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