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Three Tips for Home Flippers to Sell a Home Quicker

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Some house flippers use short-term financing to buy a house in need of renovations, but it can have a higher interest rate than other types of financing. It also costs a flipper money in the form of daily interest charges. Other house flippers use their own cash reserves to buy a property.

In both situations, many flippers are focused on selling a home quickly. A critical aspect that impacts the ability to achieve this goal is to create a desirable home that buyers are interested in. When you’re preparing to transform an investment property, turn your attention to these important points:

Create an Open Floor Plan
One idea that works well when flipping is to create an open floor plan. Older homes that likely need more renovations may have a closed-off floor plan. This can make the home look smaller than it is, and can create a claustrophobic ambiance that may turn off some buyers. Depending on the home that you invest in, creating an open floor plan may be as simple as tearing down the wall dividing the kitchen and dining room.

For added emphasis, you can also tear down any dividing walls between living spaces and the dining room. While you’re not adding square footage through this process, an open floor plan feels bigger to a buyer and may be more appealing. In many cases, this is a cost-effective way to generate incredible results.

Add Natural Light
To transform the space of your investment home, analyze the natural light. Some older homes were built with minimal or small windows, which result in a dark and gloomy interior that is not welcoming or appealing to buyers. Consider enlarging existing windows to bring in more natural light.

You can also add a few windows or a skylight in the bathroom, kitchen or other rooms that are commonly dark. When you incorporate natural sunlight into a room, you transform the space by making it feel more inviting.

Research Competing Listings
Before you finalize your renovation plans for your next house-flipping project, you should spend time online researching competing listings. You could even visit a few homes to get a better feel for market conditions. When transforming a space, you need to at least bring the home up to a level that makes it directly competitive with other listings in the market.

It can also be advantageous to go a step above the current market conditions. This can make the home more appealing for a faster sale; however, avoid making renovations that are considerably above market-level. While the home may be very desirable to buyers when you do this, there is a strong chance that you may price the home above market rates. This can make the home too expensive for some buyers. The condition of your finished project is critical to your ability to sell the property quickly.

Many house flippers focus on cosmetic features when renovating a home. For example, they may pay attention to paint colors, countertop materials and flooring options. These are all important elements to focus on, but other factors are equally important if you want to benefit from a quick sale.

As you look for new homes to flip, and as you plan the renovations, turn your attention to these important transformation tips. By doing so, you can create a finished project that sells more quickly.

How to Know When it is Time to Sell

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Part of being a homeowner is dealing with the intermittent thought, “Hmm, maybe I should put my house on the market…

Obviously, deciding to sell your home is no small decision. In fact, it’s right up there with deciding to buy a home in the first place. Here are four indicators that can help you decide whether now actually may be a good time to list your home:

You’re out of space. While it might be nice to have more room for your shoes, does that warrant a new home? On the other hand, is there a baby on the way? An in-law moving in? If your household is getting ready to grow, it may be time to move on to a house that will accommodate your expanding needs.

You’re in a hot market. If “sold” signs are popping up frequently in your neighborhood and prices are rising quickly, it might be worth talking to your real estate agent. If now is the time you can potentially make a big return on your investment, you might want to consider making a move.

You’re sick of yard work. If raking leaves and restaining the deck are no longer considered fun projects, you may be at a stage where you’re looking to scale down to a more streamlined, less work-intensive living situation.

Your life has changed. If you’ve had a major life event – marriage, divorce, new job, retirement – it may necessitate a new home and/or a new location that makes more sense for your new life. Consider whether your current home is still the right fit.

Is Inventory Relief on the Way in 2018?

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Existing-Home Sales at Pace Not Seen Since Summer

Ask the 60-some percent of brokers in RISMedia’s 2017 Power Broker Survey: Almost every housing market is plagued by short supply. In fact, inventory nationally for pre-owned properties is at 3.9 months, down 10.4 percent from last year, the National Association of REALTORS® (NAR) recently reported.

The challenge, according to realtor.com®, could moderate in the next year. Groundbreaking is projected to ramp up 3 percent, with single-family starts up 7 percent, realtor.com’s 2018 National Housing Forecast reveals.

The catch? Activity won’t kick up until later in the year, and many builds will be higher- and/or mid-priced – not an ideal scenario in the short term. Lower-priced homes, which were hit hardest in the recession, will be the last to recover.

“We are forecasting next year to set the stage for a significant inflection point in the housing shortage,” says Javier Vivas, director of Economic Research for realtor.com. “Inventory increases will be felt in higher-priced segments after home-buying season [in the fall], which limits their impact on total sales of the year.”

Home prices will increase in 2018, but at a lesser pace than in 2017, the forecast shows: 3.2 percent. As with inventory, prices in the starter supply will take longer to lose steam. Existing-home sales are expected to grow 2.5 percent to 5.60 million. Considerable gains in prices and sales will be seen in: Las Vegas-Henderson-Paradise, Nev.; Dallas-Ft. Worth-Arlington, Texas; Deltona-Daytona Beach-Ormond Beach, Fla.; Stockton-Lodi, Calif.; Lakeland-Winter Haven, Calif.; Salt Lake City, Utah; Charlotte-Concord-Gastonia, N.C.; Colorado Springs, Colo.; Nashville-Davidson-Murfreesboro-Franklin, Tenn.; and Tulsa, Okla.

Realtor.com also anticipates 43 percent of buyers in 2018 will be millennials, up from the 40 percent projected for 2017. The biggest group of millennials is turning 30 in 2020, so their share is likely to continue tracking upward.

Expected to grow, as well, are mortgage rates, averaging 4.6 percent and possibly reaching 5 percent by year-end, the forecast states. Action by the Federal Reserve and economic factors, including inflation, will precede the rise. Markedly, more first-time homebuyers were able to get a Federal Housing Administration (FHA) mortgage this year than last year, despite a rate uptick. The 30-year, fixed mortgage rate averages 3.92 percent at present, according to Freddie Mac.

2018’s homeownership rate, meanwhile – which has gone up thus far this year – is forecasted to land at 63.9 percent.

A potential wrench is tax reform. The forecast was made prior to the House bill passing and the Senate bill being voted on; as such, realtor.com cautions that certain cuts – among others, the mortgage interest deduction and the state and local tax (SALT) deduction – could lead to less in the way of prices and sales.

The forecast, however, is optimistic overall.

“As we head into 2019 and beyond, we expect to see these inventory increases take hold and provide relief for first-time homebuyers and drive sales growth,” Vivas says.

For more information, please visit www.realtor.com.

First Time Open House

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First Time Open House
*** OPEN HOUSE *** Sunday Dec. 17th 12 to 3 PM
$445,000 3 beds | 2 baths | 2005 sqft
3337 E LAS ROCAS Drive Phoenix, AZ 85028 MLS# 5698843

Phenomenal location on private mountain view street steps away from hiking and biking in the Phoenix Mountain Preserve. All 2005 square feet of this Hancock/Camelot home has been remodeled in the popular contemporary clean sparkle of 2018. Bathrooms and kitchen have granite counters, travertine floors, new tumbled travertine shower surrounds, new plumbing fixtures and new water saving toilets. Lighting has been updated. Beautiful engineered hardwood floors run from front entry through hallways into formal living room, dining room and family room. Interior paint is two tone with white and grey in all rooms. Kitchen cabinetry is white, stainless appliances, stainless deep sink and high loop, great laundry with cabs over washer/dryer. Newer landscape front and rear.

For information call: 602-418-5467 or visit http://www.lloydazhomes.com/…/3337-E-LAS-ROCAS-Drive-Phoe…/…

2017 HALLOWEEN HAPPENINGS

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Are you looking for something fun, exciting or scary to do for the Halloween season? Below is a list of some event ideas around the valley.

*** Coming Soon in the Phoenix Mountain Preserve! ***

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Coming soon at over 2000 S.F. steps to the Phoenix Mountain Preserve with 3 bedrooms 2 baths updated interior and exterior paint October 2017, hardwood floors, travertine kitchen, bathrooms and landscape. Call to see at 602-418-5467. Will be on MLS Soon!
Ken and Sharon Lloyd

Millennials, Baby Boomers agree on one thing: The Condominium

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Scottsdale Fall Builder Tour September 28

After attending the Scottsdale Fall Builder Tour September 28, thanks to Fidelity Title, CNN Mortgage and all of the builders represented on the tour Ken and I are true believers in the following excerpt from the Rose Law Group article regarding Millennials and Baby Boomers:
Multifamily housing ain’t what it used to be.

The Valley of the Sun — the city of Scottsdale in particular — has become a hotbed for luxury multifamily housing construction with hundreds of new units expected to come to market over the next 12 to 24 months.
Housing data experts at the Cromford Report, which is the premier data trove for local real estate professionals, say portions of northern Tempe, downtown Phoenix and Scottsdale are the heart of the luxury multifamily construction boom.
Sales of condominiums, or townhomes depending on who you ask, are up 77 percent year-to-date in both Maricopa and Pinal counties, numbers show.

Please take a look at some of the photos taken of new condos on our Trolley Tour. What a great way to inform our real estate group about availability in our area. Thanks everyone who sponsored the tour.
Ken and Sharon Lloyd

Equifax Security Breach Update

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Equifax Security Breach Update
Last week, we discussed Equifax’s major security breach. Here’s an update:

The company claims the breach earlier this year is different than the one just reported. However, sources claim the breach is from the same attackers.

Here we go 2017!

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This report is our national and Arizona 2017 Market Report for Mid December

1. Some of the responses to president elect Trump’s surprise victory have been positive.

2. Stock prices rebounded higher with the expectations that tax cuts increased infrastructure spending and reduced regulation will boost long term economic growth.

3. Interest rates have risen, however, as investors are now expecting slightly higher inflation, but with stronger than expected economic outlook, higher opportunity costs. From Wells Fargo Economics and Bloomberg WFRE.

4. Housing affordability is still falling as home prices continue to rise much faster than individual income. This is a risk as the conventional mortgage rates will reduce affordability further.

5. Builders remain optimistic especially in the west and south.. A slightly more upbeat housing forecast mostly reflects shift towards lower priced homebuilding.

6. Recent spike in mortgage rates has already caused refinancing activity to fall sharply. In the past few weeks since Trump was elected investors have raised their expectations for economic growth and inflation. Some prospective buyers may rush to lock in rates. Those buyers in higher priced markets may be forced to delay as larger monthly payments outreach their budgets.

7. While national home prices reached a new high in September, home prices in a 13 of a 20 city index remain below prerecession levels. This index has risen 5.5 percent in the last year. From the 2017 U.S. housing Market Outlook in December 03, 2016

PHOENIX has been chosen as #1 housing market 2017 by Realtor.com

Realtor.com expects housing to see a gain of 5.9 per cent and sales growth of 7.2 per cent.

Arizona should add 81,000 new jobs in 2017 dropping unemployment to 4.8 in that time period. Population growth is expected to stay at about 1.6 %. That is half of our average of 3.2 percent but double the national average.

Arizona’s average wage moved from 85% of the national average wage in 2008 to 96% of the national wage in 2016. More importantly, 2016 is the year that Arizona finally righted its economy to grow jobs first and rooftops second in an article from Phoenix News in 2016.

Please tune in to our January Real Estate Newsletter on Tuesday January 3 for more news on Arizona Real estate.

Nearly half buying for the first time

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Per Zillow, the median age of home buyers is now 36, and fully half of home buyers is a Millennial. What is more, almost half of Zillow’s sample wants a new home vs. a resale. The latest Existing Home Sales data from the NAR as much as confirms that first-time buyers have already opened the sluice gates, accounting for 34% of home resales in the month of September, vs. 31% in August, and 30% for all of 2015. The learning for residential developers and home builders to take out of this is not about the broad waves of behavior around homeownership or not. It’s about an entirely new set of decision-support tools and analysis dashboards younger households are working with today to enlighten their pathways vis a vis housing preference, value, and behavior.

 

Nearly half buying for the first time

First-time buyers, a group that makes up almost half (47 percent) of the buying market, have a median age of 33 and nearly six in 10 are Millennials (56 pe
rce
nt). They spend a median of $200,000 on a home. They are more likely than repeat buyers to be torn between buying and renting, with almost four in 10 seriously considering renting (37 percent, compared to just 12 percent of repeat buyers).

Repeat buyers are older, with a median age of 42. They have a preference for single-family homes over other home types, and pay an average of 18 percent more than first-timers for their home ($235,000 median price). Repeat buyers are slightly less decisive about location, with almost one in five (18 percent) purchasing a home in an area that is outside their initial search criteria, compared to just 14 percent of first-time buyers.