Whenever I meet someone and mention what I do, or run into someone I haven’t seen for a while…the most common question they ask first is “How’s the Market?” and like when most people ask “How are you doing?” they expect you to say “Good.” with smiles and nods…maybe a little statement like “I’m SO busy.” So that usually is how I respond. But when you are thinking of entering the market…as a buyer, or a seller…’how the market is’ will change your experience, possibly significantly.
Here in Arizona, we have the opposite of a stable market. Crazy high highs and ridiculous horrible lows that we are finally putting in our past. Those of us that were around for that roller coaster know that ‘how the market is’ can be everything. I am seeing all over social media today that Brexit (England voting to leave the EU) is going to to HELP our market…interest rates haven’t been this low in over three years. Lower interest rates gives the buyer more buying power…payments are lower so they can afford more. This actually helps to push prices of real estate up. So things are looking good for both buyers AND sellers.
The market being “good”…what does that mean? People usually think of a “seller’s market” as a good market. A seller’s market is defined very simply by low inventory. If there are more buyers looking for homes than sellers selling their home, prices go up, and homes sell quickly.
Articles that you might read online or in the newspaper are often about the nation, or if local, about the the entire valley. And yes, those large scale pictures usually reflect what is happening locally for us, here in Chandler, Gilbert, and Ahwatukee…but every area has its very own market as well. These markets aren’t the ones that will be discussed in the Arizona Republic, but for real estate agents that work in a specific area, we know these markets. We know what areas are hot, and which will sell immediately. We also know on the very same day, in the very same town, the market might not be nearly as hot for a different seller. How is this possible? Well, first of all , we are talking a LOT of square miles, as Chandler, Gilbert, and Ahwatukee encompass a total of 140 square miles. Those homes that are close to the 60, the 202, the 101, or the 10 are going to be in higher demand than those properties that are further away. Commutes matter.
Neighborhoods also matter. Communities that are popular sell well. Those are communities that are especially beautiful, like Fulton Ranch. Or communities that offer lots of amenities, like Val Vista Lakes. Upscale neighborhoods like Circle G with their huge lots and custom homes will always be special. If the schools within that neighborhood’s boundaries are good, that increases a home’s value and it is sell-ability as well.
What matters the MOST? Price range usually. There are more buyers in the lower price ranges than higher price ranges. Just because home prices are increasing, that doesn’t mean that people’s income is increasing as quickly. There will always be a lot more people that can afford a house for $250,000 than can afford a house for $500,000. Always. As the price goes up, the number of people that can shop in that price range goes down.
Does this mean the lower priced homes always sell quickly and for full asking price? Of course not. What will always keep a house from selling? A house that is too personalized. What does that mean? It means your specific taste, which is not common, is everywhere, and can not be changed inexpensively. For instance, let’s say you loved the artist formally known as Prince. In honor of his death, you decide to make your home a purple palace. Purple carpet, purple countertops, you even found a purple bathtub online. No matter how gorgeous your purple palace is…it will be difficult to sell. Homes with adverse conditions, or not well maintained, or over priced will also not sell as quickly. What does not interest most buyers? Fixer uppers. People don’t have the time, or the available cash to fix a home they just bought.
Today, the market is hot in Chandler and Gilbert. It is especially hot under $300,000. It is hot up to $500,000. Luxury homes have a lot more competition, and a lot fewer buyers, even after Brexit. Does this mean you are in trouble if you want to sell a home in that price range? No, it just means it might take longer, and it might not sell for as much as you would like. If it is awesome, it will sell. If it is priced right, it will sell.
What should YOU do if you would like to buy or sell, or both, in the near future? You should call me now. Even if you aren’t ready to do something, it is best to know what you should be prepared for when you are ready. If you are a buyer, maybe a first time buyer, we can talk about setting your expectations, what will make you the type of buyer a seller would want to choose if they have multiple offers. We can talk about location, and loan types, and down payment assistance programs that may expire at some point. We can talk about getting you pre qualified for a loan so your payment expectations are based on facts. If you have a home you need to sell, we can talk about how to get your home ready to sell for the most money as quickly as possible. I can share with you secrets that make a big difference for very little money, or options if you are cash poor. We can talk about YOUR market…not the market in general.
Real estate is my passion…and I could bore you to death with stats and figures. But bottom line is I passionately believe in real estate as a wonderful investment, and buying right will set you up for selling right. Home ownership has been proven to be a great way to build family wealth. When I see people feel overwhelmed by the process so they sell their home to an investor, like Opendoor, at significantly less than they could get on the open market, it makes me sad. My guess is most of us could use an extra $10,000, or $20,000 in our pockets. So call me, I can help you to get the most from your house, and advise you to buy well so can profit the most when it is time to sell.
CLICK HERE FOR YOUR FREE COPY OF THE 7 INSIDER SECRETS FOR STAGING YOUR HOME FOR A SUCCESSFUL SALE
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