3 Things You Should Know About the Home Flipping Craze

Home flipping is all the rage right now. Here’s what you should know if you are thinking about cashing in on this trend.

There are a variety of opportunities in the Phoenix Real Estate Market for both buyers and sellers. If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.

Home flipping is usually defined as buying a home and then reselling it soon after for a higher price. 10 years ago, it was a mainstay of the real estate boom that led to the financial crash. After some years of lower activity, it's back in full force, thanks in part to popular TV shows such as "Flip or Flop" and "Flipping the Block." If you're curious about home flipping, here are three facts you should know right now: 1. Home flipping is more profitable than ever. A recent Waco home that appeared on HGTV's show "Fixer Upper" was originally bought for $28,000. It was thoroughly renovated and is now being listed for $950,000—over 30 times its original price. In 2016, the median flipped home sold for $189,900, which is $62,624 over the median purchase price of $127,276. That's a 49.2% return, the most profitable return since 2000—the first year for which such data is available. 2. Home flipping is caused by different factors than 10 years ago. Back then, many flipped homes were speculations. In other words, investors would buy a home and then just wait, hoping that the price would go up so they could sell. The current flipping trend appears to be a positive response to current market conditions, such as the overall shortage of homes for sale, a lack of new construction, and a steady rise in home prices.

 Demand still outstrips supply, for now.

3. Home flipping affects all home buyers and sellers. If you're a buyer, you can clearly benefit from the home-flipping craze. Flipped homes are available at all price ranges, from entry-level to luxury homes. If you are a seller, then the boom in home flipping means you might face tougher competition when the time comes to sell your home.The good news is that demand still strongly outstrips supply for now. These conditions won’t last forever. If you have any questions or you're even considering investing in a home you can flip yourself, get in touch with me by giving me a call or sending me a quick email. I’d love to hear from you.

Selling vs. Renting out: Which Is Best for You?

Today I’m discussing the topic of renting out your home versus selling it. There are benefits to both depending on your unique situation.

There are a variety of opportunities in the Phoenix Real Estate Market for both buyers and sellers. If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.

Should you rent your home out or sell it? How can you ensure you make the right choice?

First and foremost, make sure you have a real estate agent you trust. When we have a consultation, we focus on what is best for you and your family and what your specific goals are. In this particular situation, if it’s better for you to rent your house out instead of selling, we won’t tell you to sell in order to make a commission.

Make sure you have a real estate agent you trust when deciding to rent out or sell your house.

The main reason you would want to rent right now is that the Phoenix rental market is at an all-time high. We would love to sit down and show you some comparables during a free consultation.

Also, if you’re buying another home, you can take advantage of these unusually low interest rates. Rates are expected to rise, so if you want to purchase a new home, now is the time.

If you have any questions about whether you should sell your house or rent it out, give me a call or send me an email. I’d be happy to help you.

How Can Professional Photos Benefit Your Home Sale?

When selling a home, getting professional photos taken is key for a few reasons.

There are a variety of opportunities in the Phoenix Real Estate Market for both buyers and sellers. If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.

It’s a pretty well-known fact that if you’re selling your home, you’ll need photos in order to market it. However, taking photos with your phone will lead to a sub-par representation of your home online. Using professional photos, on the other hand, will benefit you in many ways. Whether you have a $15,000 listing or a $1.5 million listing, professional photos are key to your marketing strategy. In fact, 92% of buyers start their home searches online, so their first impression of your house will come from the photos. You’ve probably seen smartphone photos of homes online. They make the property look dark, dirty, and fail to highlight the best features of a home. Professional photos are going to draw the buyer’s eye to your listing. If they are looking at 10 homes online and your home is the only one with professional photos, I guarantee they are going to come look at your home first.

92% of buyers start their home searches online.

Arizona plays host to a lot of snowbirds as well. Those people will look at your home 10 to 20 times before even making it here for the winter. Professional photos will make sure your listing stays at the top of their list, even as others pop onto the market. If you’re on a golf course, drone photos are fantastic for highlighting the area. If you have a specifically unique house, a 3-D interactive tour is a great way to go. I can help you with those things, but I am always going to start with professional photos in order to get your home sold faster and for more money. If you have any questions, please feel free to give me a call or send me an email. I look forward to hearing from you!

Do Open Houses Really Work?

An open house can help you sell your home. However, its success depends on a few different variables.

There are a variety of opportunities in the Phoenix Real Estate Market for both buyers and sellers. If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.

We get asked all the time by home sellers whether open houses actually work in drawing buyers to a listing. The answer is that it depends on three specific criteria:

1. The time of year. Do you want to go to an open house in the middle of summer when it’s 120 degrees out? Probably not. Most homebuyers won’t want to either. Open house attendance during the summer months is usually very low.

2. What kind of community are you in? Certain communities are known for their open houses and have them quite frequently. This is especially true in many 55 and old communities.

Whether an open house works or not depends on three criteria.

3. The market. Is it a fast-selling or slow-selling market? If it’s a fast market and you’re getting multiple offers, you probably don’t have time for an open house. You don’t really need one in that case either.

If you have any questions for us or would like to sit down to talk about your listing and what you should do to help it sell more quickly, give us a call or send us an email. We look forward to hearing from you.

The Importance of Appraisals in Phoenix Real Estate

Do you know what appraisals are and why they're so important? Appraisals have a significant impact on any home transaction that involves financing.

There are a variety of opportunities in the Phoenix Real Estate Market for both buyers and sellers. If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.

What are appraisals and why are they important? An appraisal is a third-party opinion of the value of a home. There are two different ways the appraisal process works.

First, if you are listing your home, you can order an independent third-party appraisal before listing to get an idea of the value of your home and to double check with your agent.

If you get an appraisal during the selling process, the appraisal comes after the inspection period to make sure the value of the home meets or exceeds what the bank is going to loan for the home purchase.

Appraisals are ordered by the bank lending the money.

Appraisals are ordered by the bank lending the money, and it will randomly go out to many appraisal companies to ensure that there is no collusion or fraud involved. An appraiser will come out to your home, walk around it, and measure it to give you their opinion of price.

Appraisals are so important to the transaction because if the appraisal comes in below the agreed-upon price in the contract, the buyer might not be able to secure the loan, or they may have to bring extra money to the closing.

For sellers, appraisals are important because they can cause them to lose out on a transaction that's 30 to 45 days in. They may have to start all the way over or lower the purchase price.

These are all reasons why it's critical to have a Realtor you trust guide you through the process.

If you have any questions about appraisals or the Phoenix real estate market, give me a call or send me an email. I'd be happy to help.

Don’t Leave Money on the Table When Selling in Phoenix

There are a variety of opportunities in the Phoenix Real Estate Market for both buyers and sellers. If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.

Today I have advice for all of my home sellers in Phoenix. You don’t need to spend thousands and thousands of dollars trying to completely remodel your kitchen or bathroom before you sell your home. There are many smaller, more manageable projects that you can try your hand at.

For example, repainting and installing new carpet are always good bets. Getting your carpet professionally cleaned is also an option. Both of these fixes have high returns, and they both have minimal costs.

Landscaping and curb appeal also matter. You need to form a good impression with a buyer, so be sure to repaint your front door, trim your hedges, mow your lawn, and perhaps plant some new flowers. You need to make buyers curious enough on the outside of your home to want to wander inside.

When a buyer walks through your front door, you’ll want to stage your home in a way that’s appealing and inviting to them. Do your best to clear off your counters and your closets. You would be amazed at how much bigger your home feels. Staged homes often sell for much more money, and my stager can come inside your property to give you some advice on how to showcase your home.

You should also clear out your schedule for the first 21 days of the sale. This time period is crucial, and if you can’t make time to show your home, then it may sit on the market longer and not sell for as much money. Arrange your schedule so that you can be flexible and allow as many showings as possible during this time frame.

If you want more tips on how you can maximize your sale price, please don’t hesitate to ask me. I look forward to speaking with you!