Buying a Home Vs. Renting a Home

Should you buy a home or rent a home right now? Which option is better for you? There are a few things you should know before you decide. 

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.

Is it better to buy or rent a home right now? There are a couple of important factors for you to consider when making this decision. 

For example, the current rental market is at an all-time high. Rents are sky-high right now, which means that sometimes it’s cheaper to buy a home than to rent one. 

Rental rates are sky-high right now.

The two benefits of buying a home now are interest rates and lending programs. Interest rates are at an all-time low in our area, and there are some great lending programs available. These lending programs include 0% down loans, 3% down loans, and 3.5% down loans. 

There are also grants available to cover your down payment. There are even programs that pay for your down payment and closing costs!

If you want to get into a home for as little as $500 down, we can help you. Give us a call or send us an email and we can help you make an educated decision. 

Why Is Housing Inventory an Important Figure?

Housing inventory is an important figure. It measures the supply of homes on the market as well as the demand for those homes.

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 is housing inventory and why is it important to buyers? We are answering those questions and more today. 

Housing inventory is a measure of our market’s supply.

Housing inventory is a measure of our market’s supply. Basically, if we stopped listing homes right now, inventory levels measure how long it would take for all of the homes on the market to sell based on the absorption rate. 

A balanced inventory is around four months. Anything lower than that is a seller’s market while anything above it is a buyer’s market. 

The number of homes on the market is going to affect your value. The more homes that are on the market, the more stagnant the market becomes, and the more competitive you have to be with your pricing.

Low inventory levels, like those in Avondale, lead to competitive markets with a lot of multiple offer situations. Sellers will want to price high and see where the market goes. 

If you’re in a high inventory market like the one in Scottsdale, things will be more stagnant and you’ll have to be more competitive with your pricing when selling.

If you have any questions for us, don’t hesitate to give us a call or send us an email. We would love to hear 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.