How To Buy Your First Home & 9 Buyer Traps To Avoid

 

How To Buy Your First Home

&

9 Buyer Traps to Avoid

 Houses For Sale

    When first time home buyers area looking for houses for sale, sometimes it is difficult to know where to start.  Finding houses for sale, is the easy part.  There are a few things that one can do first to help make the home buying process very simple and fun.  Our buyer education program “The RWA Buyer” and free library of resources and tools help make the home buying process simple and rewarding.  As a “RWA Buyer” or Ready Willing & Able home buyer, you will receive a few free gifts from our team.  Home warranties, closing costs and Advanced Online Home Search Tools are just a few of the benefits provided by our team.  We are excited for you as you take the next towards home ownership.

 

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What the Housing Market is doing…. Looking at the Numbers

Preparing your home to sellWhat is the housing market doing?

The quick video is great for a fast look at what is going on but lets take a more in depth look at what the Arizona residential real estate market is doing.  (see KEY A) The chart below gives us some very valuable data about the phoenix housing market.  It shows us in detail what the absorption rates for the housing market are by specific price range.  We also can look at the Pending ratios to show us the expected market growth and movement.  In this discussion we will focus on the 3 most popular price ranges.  $200k – $249k / $250k – $300k / and $300k – $400k.  These 3 price ranges are where the most homes are sold and the most homes are listed.  If you are a home buyer it is very likely you will be in this price range.  This information should help educate you on what to expect when making an offer.  Most home buyers like to get deals on their home purchase.  Now you will know what kind of discount to expect.

“Key A”

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Price Range Number 1 ($200k – $249k)

your homes value   There are currently 2,613 homes that are listed for sale between the price range of $200k – $249k.  There are currently 867 homes that have accepted an offer and are now pending.   If we take 867 pending homes and divide it by 2,613 active listings we get a 33.2% Pending ratio.  Meaning of the homes listed right now, only 33.2% of those homes are likely to get an offer.  For every 3 homes that are listed 1 home has a chance of getting an offer on it.

The average list price for this price range of homes for sale is $225,714 and the average sales price is only $220,723.  That means on average, home sellers are  getting 97.8% of their list price.  This translates to seller’s losing $5,000 on the sale price and  very likely they lose another $5,000 with assisting a buyer with closing costs.  Meaning home sellers are losing on average about $10,000 from where they list their home with the suggestions of real estate agent, to when they sell their home to a new buyer.  Part of this may be due to the supply vs demand for the price range of homes (see key #2 below)  There currently is a 3.4 month supply of homes and the average days on market is 64.  Hiring the wrong agent can cost you Thou$and$.

Ill get the job done

Price Range Number 2 ($250k – $300k)

As we climb in price we see a the numbers drop slightly more.  A reason for this is usually as we get in the higher price range home buyers are more educated as they have been through the process, their families are growing and they are more fiscally responsible and more selective in the home they want.  There are currently 2,212expired 2 active single family homes for sale in this price range in Maricopa County and 633  pending single family homes. This gives us a 28.6% pending ratio.  This means out of every 3 to 4 homes listed 1 will get an offer each month. The average list price is $275,381 and the average sales price is $268,970. That is 97.7% sales price : list price.

What I also want you to look at on “Key A” is the number of Expired homes for the last 12 months since today August 20th 2014.  This price range had 1,045 single family homes never got an offer and expired.  This is a top 3 price range for selling a home and 87 homes each month on average expire from active status.  Of the current active homes in this price range 2,212, 4% are going to expire without an offer based on the averages.

Price Range Number 3 ($300k – $400k)

This is the price range that is key for move up home buyer’s.  Home owner’s usually have purchased a home when they were younger and over time have either gotten married, had children or New Picture (6)advanced it career.  They are now ready for a larger home .  If you have another home to sell or rent out and keep as a long term investment, it is important to talk with a professional real estate agent and get the facts and details for what is best for your situation, lifestyle and goals.  As a professional, I have a vast knowledge of both residential resale and rental markets.  I can help guide you down the path you feel is best for you.

It’s time to look at the numbers.  In this price range we have a larger gap of $100,000.  There are currently 3,209 homes listed for sale and 672 pending properties.  That is a 20.9% pending ratio or 1 out of 5 homes listed is likely to get an offer.  There is a 5.4 month supply (see key B) , meaning the supply and demand is more in the favor of the buyer.  That is why we see  a $9,000 difference in average sales price to average list price.  The average list price is $348,025 and the average sales price is $339,004 and homes sit on the market on average 76 days.

(Key B) How to Price Your Home

0-2 Months Inventory-Price with the Market to 10% above Market

3-4 Months Inventory-Price Aggressively with the Market

5-6 Months Inventory-Price with the Market to 5% below Market

7-12 Months Inventory-Price 10% below Market

12+ Months Inventory-Price 10% + Below Market

prepared to work for youFor more information about your home and its value please contact me for a Free Market analysis on your home today.

 

 

Thank you for reading about Low Down Payments For Homes For Sale in Gilbert AZ 85044. 

 Provided courtesy of the Bradley Potter, PLLC Home Selling Team
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Monthly Housing Market Updates for Phoenix Arizona & Surrounding Area

This Month’s Market Updates

August 12, 2014

In an ongoing effort to post consistent and timely Phoenix housing market updates.  I have provided the educational  video above.  It provides a concise market snapshot from statistics provided by the Arizona Regional Multiple Listing Service.  It is my goal to continue to provide current information on the phoenix housing market and keep both home buyer’s and home seller’s educated on the current trends.

Gilbert

May2013-37   Lets Take a look at specific cities and what the numbers are doing to be more focused on a specific area.  The city we are going to focus on is Gilbert.  We can see the absorption rate is 3.8 months which supports slow growth in the residential market in Gilbert Arizona. The average List price is up 7% from last year and the average sales price is up 4.5% from last year with a current price of $256,110 for the beautiful city of Gilbert Arizona.  To view current Gilbert homes for sale see the links below.

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Gilbert Homes Listings Search

Finally let’s talk about the 3rd largest city in Arizona.  The city of Mesa is amazing and it’s leading the charge in growth and development thanks to the Mayor Alex Finter . The Mesa housing market is in even higher  demand with a monthly supply of 3.41% which supports slow continued growth in the residential market in Mesa Arizona. The average List price is up 13.18% from last year and the average sales price is also up at 5.92% from last year with a current price of $206,275 for the beautiful city of Mesa Arizona.  To view current Mesa homes for sale see the links below.

mesa-page-002Mesa homes Listings Search

Why the Bank Would Say YES!

ready-to-sell (2)With the foreclosure boom in the United State, lenders were looking for any way they could to minimize their foreclosure losses. Basically, it is much more cost effective for a lender to agree to a short sale instead of a foreclose on a home.

Lenders aren’t in the business of owning real estate and collecting monthly mortgage payments, so a bank will take a minor loss on a short sale to start that payment cycle again.

In addition, if the home is in foreclosure, a bank must pay for upkeep, insurance, landscape, repairs, Legal Fees and other costs.  Plus, through the foreclosure process, the bank would incur legal and court fees that are in the thousands.  But most importantly is the lost time to do a foreclosure.

*Banks Can minimize their loss by up to 30% of completing a short sale instead of a foreclosure*

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