Phoenix Metro Real Estate and Community News

With the sales price being so large, few sellers stop to think of about ways to minimize the costs of selling their home.  Knowing, monitoring and controlling the costs during the escrow process is key to saving thousands of dollars and to receiving larger proceeds from the transaction. Here are costs to understand:  

• One of the largest costs is commissions paid to the real estate agents. Commissions vary from 5-7% of sales price, depending on the type of real estate transaction. While a lower commission may seem like a winner, many times you get what you pay for in an agent. With so much riding on the selling price, a real estate agent should bring great service, a solid marketing plan and sharp negotiating skills to the table. Great agents will usually see sales prices 10% higher than average! If your agent is bringing less to the table, beware that you may see a lower sales price.
• With every home sale, home owners are required to pay the owner’s Title Policy and to share in the escrow fee paid to the local title/escrow company. While the fees are not negotiable, the title/escrow company used to process the transaction is negotiable. All title/escrow companies publish their fees in rate books which are readily available to review and compare, before you commit to the company.
• Do you live where there is a Home Owners Association (HOA)? If so, then your HOA may charge a transfer fee, disclosure fee, and a capital improvement fee. Few homeowners understand what their HOA will charge them for the transaction, but charges may run from $500-$2000. A quick phone call to the HOA should clarify what fees are charged. While these fees are non-negotiable with the HOA, there is the possibility of negotiating and sharing the cost of these fees with the buyer for your home.
• In any real estate transaction, a home warranty is considered a must purchase for the new buyer. The cost ranges from $325-$600 and is a negotiated item payable by the buyer or the seller. Most home sellers are requested to pick up the cost of a home warranty for the buyer. However, the cost is negotiable.  
• Are you in an area where first time home buyers are known to be moving? If so, you may want to prepare yourself for requests to contribute to the buyer’s loan costs. These contributions are generally up to 3% of purchase price or more.  The contribution covers appraisal fees, A.L.T.A. title policy, impound accounts, origination fees and other loan costs.  While the contribution to buyer loan costs can be very important to getting a home sold, stronger buyers rarely need such assistance. 

Do you want to learn more about ways to control your selling costs and get the most money from the sell of your home? Contact us at (602) 753-0177 or www.ThompsonGroupAZ.com 

Thank you to EVERYONE who helped make us a TOP 3.5% Realtor in Arizona!

2021 will be a great year to buy a home. Call us at 602-753-0177 to make sure you're ready for success in today's housing market.

The housing market recovery coming into the new year has been nothing short of remarkable. Many experts agree the turnaround from the nation’s economic pause is playing out extremely well for real estate, and the current market conditions are truly making this winter an ideal time to make a move. Here’s a dive into some of the biggest wins for homebuyers this season.

1. Mortgage Rates Are Historically Low

In 2020, mortgage rates hit all-time lows 16 times. Continued low rates have set buyers up for significant long-term gains. In fact, realtor.com notes:

“Given this means homes could cost potentially tens of thousands less over the lifetime of the loan.”

Essentially, it’s less expensive to borrow money for a home loan today than it has been in years past. Although mortgage rates are expected to remain relatively low in 2021, even the slightest increase can make a big difference in your payments over the lifetime of a home loan. So, this is a huge opportunity to capitalize on right now before mortgage rates start to rise.

2. Equity Is Growing

According to John Burns Consulting, 58.7% of homes in the U.S. have at least 60% equity, and 42.1% of all homes in this country are mortgage-free, meaning they’re owned free and clear.

In addition, CoreLogic notes the average equity homeowners gained since last year is $17,000. That’s a tremendous amount of forced savings for homeowners, and an opportunity to use this increasing equity to make a move into a home that fits your changing needs this season.

3. Home Prices Are Appreciating

According to leading experts, home prices are forecasted to continue appreciating. Today, many experts are projecting more moderate home price growth than last year, but still moving in an upward direction through 2021.

Knowing home values are increasing while mortgage rates are so low should help you feel confident that buying a home before prices rise even higher is a strong long-term investment.

4. There Are Not Enough Homes for Sale

With today’s low inventory of homes on the market, which is contributing to this home price appreciation, sellers are in the driver’s seat. The competition is high among buyers, so homes are selling quickly.

Making a move while so many buyers are looking for homes to purchase may mean your house rises to the top of the buyer pool. Selling your house before more listings come to the market in the traditionally busy spring market might be your best chance to shine.

Bottom Line

If you’re considering making a move, this may be your moment, especially with today’s low mortgage rates and limited inventory. Let’s connect to get you set up for homebuying success in the new year

Happy New Year from The Thompson Group

November 2020 brought 6.69 million in sales, a median sales price of $310,800, and 2.3 months of inventory. The median sales price is up 14.6% year over year, and inventory is down 1.4 months from November 2019.

Merry Christmas from all of us at The Thompson Group

You’re thinking about selling your home. Maybe you’re retiring, downsizing, or a major life event has made you consider a move. A Seniors Real Estate Specialist® (SRES®) has unique training and experience in helping home buyers and sellers in your situation.

Why ask a Seniors Real Estate Specialist® to assist you?

An SRES® understands that the decision to sell can be difficult.

Selling a home can be an emotional time, potentially involving other life decisions. An SRES® understands the issues facing older adults. By taking a no-pressure approach, they can help you navigate your choices and may be able to suggest alternatives that help you stay in your home.

An SRES® can patiently support you through each step.

Your SRES® will take the time needed to make you feel comfortable with the complex selling process. Your specialist understands the demands a sale can make on you and works hard to minimize them. They will tailor the marketing process to your specific needs, and be there when you need them.

An SRES® will stick with you throughout the entire process.

Your SRES® is interested in looking out for your best interests through all aspects of your transition, not just the sale of your home. They’ve invested time in becoming an SRES® because they enjoy working with clients in your situation and helping others.

An SRES® can draw upon a network of other professionals focused on clients age 50+.

They've already identified other helpful experts, including tax counselors, financial advisers, and estate planners who can help you understand the financial consequences of selling your home; interior staging specialists and trade contractors to get your home prepared for showings; estate sale organizers, senior moving specialists and transitional coaches to deal with post-sale issues.

An SRES® also has ties throughout the 50+ community.

They’re familiar with active adult and community service organizations in your area. Your SRES® can provide referrals to a variety of resources at the local, state, and national level, and online. They’re knowledgeable about local senior housing options and can refer you to another SRES® if you’re planning to move outside the area.

You can count on an SRES® to guide you through the process of selling your home, making the transaction less stressful and more successful.

The Seniors Real Estate Specialist® (SRES®) designation is awarded by the SRES® Council, a subsidiary of the National Association of REALTORS® (NAR).

Source: https://sres.realtor/blog/blog-home/why-turn-sres

A prospective buyer’s willingness to buy more quickly – and at a higher price – is often driven by emotion. A home that shows exceptionally well helps arouse the prospective buyer’s emotional desires for that home. First impressions count! That is why you’ll see neat, clean homes getting snatched up, while others just sit there on the market. Builders of homes spend hundreds of thousands of dollars to stage a model home properly, and they do this for good reason. Buyers will buy the perceived value of the property. Buyers buy the image and feeling that they receive from experiencing the property. 

The emotions that you, the seller, are trying to stimulate are triggered by sensory experiences. Aim for the senses - especially touch, smell, and sight. Uncluttered, clean, fresh-smelling homes sell faster and for higher prices. Try to clear your mind of any preconceived notions, then walk into your house, close the door, look around… and truly feel your house. Then consider these steps:

• Organize and de-clutter! Remove clutter from countertops, desks, and the garage. Remove excess furniture. Organize closets, drawers, storage areas. Throw away, sell or store excess! Rent a storage unit, if necessary. Clutter makes the home appear smaller and masks the home’s good points.
• Freshen up interior paint as needed. Fresh paint is the best bang for the buck. Light, neutral colors such as beige, white, or off-white have a broader appeal and can make small rooms seem larger and airier. Remove ‘tired’ or busy wallpaper. Brighten drab garage interiors, storage areas with fresh paint. Paint or stain woodwork as necessary.
• Make kitchen and bathrooms sparkle. Clean or oil cabinets, clean appliances and fixtures. Add fragrances. New color-coordinated towels are an excellent investment. Fresh looking kitchen and bathrooms will often make or break a sale.
• Clean floors and carpeting. Add carpet freshener to carpeting which is ‘tired’ or to eliminate smoking or pet odors. If you have a smoker in the house, ask that person to smoke outside and to dispose of the ’spent’ smokes in the trash.
• Make minor repairs. Tighten loose knobs, fix leaky faucets, lubricate squeaky hinges, replace filters, tighten loose banisters, repair doors and doorknobs, remove stains, and make sure your doorbell works.
• Make sure all lighting fixtures work. Add new bulbs with the highest wattage allowed to make your rooms seem brighter. Light, airy homes seem bigger and more inviting. It’s well worth the extra cost.
• Is the fireplace in good working order? Remove ashes from the fireplace and add fresh logs.
• Buy fresh, colorful indoor flowers or plants. They get a lot of mileage, and they will enhance your new home as well.
• Exterminate. One bug, dead or alive, will make a bad impression on prospective buyers. Hire a professional.

Selling your home is a process, not a single event. Getting your home ready to sell is part of that process. As you prepare to put your home on the market, make sure to pay close attention to how your home is prepared to show – it can make all the difference in the world.  

Do you need help? Contact us at www.ThompsonGroupAZ.com or 602-753-0177 to get started.