East Valley Real Estate Podcast with Aaron Dotterer

We’re in an interesting time here in the East Valley market. Not only is it a great time to sell, but it’s also a great time to buy.  There are a couple reasons why it’s a great time to sell. First of all, the number of listings being sold is up compared to this time last year. However, the number of total homes on the market is down. In other words, demand is up and supply is down. Specifically, our months’ supply of homes, or how many months it would take to sell off all remaining inventory if no new homes came on the market, is just 1.06 months. This is incredibly low.  “Rates are projected to dip down for another month or so before climbing back upward, so the time to take advantage of them is now.” To put that into perspective, a balanced market has around four months of inventory—anything above that is considered a buyer’s market (i.e., there’s more supply than demand). Because we have just 1.06 months’ worth of inventory, any home below $500,000 that’s priced right and marketed well will fly off the shelves.  So why is it also a great time to buy? One reason: interest rates. Interest rates are hovering around 4%, which is close to the all-time low of 3.5% we saw a few years ago. So even though prices have been rising, this increases your buying power. Rates are projected to dip down for another month or so before climbing back upward, so the time to take advantage of them is now.  If you have any more questions about our market or you’d like to know what your home is worth, don’t hesitate to reach out to me. I’d love to help you. 

Whenever you buy a resale home, build a new home, or sell a home, there’s one key step you’ll need to take: ordering a home inspection. To give you more information about what the home inspection process looks like, as well as why it’s necessary, I recently met with Derreck Weatherford of 360 Home Inspections.  According to Derreck, getting a home inspection before buying a resale property is essential. After all, the last thing you want as a new homeowner is to discover after moving in that you need a new roof. Understanding the condition of the property before you commit to a purchase can save you a lot of time, money, and energy in the long run.  Information from a home inspection report can also be used in negotiations with the seller. This allows you, the buyer, to ask the seller to make certain repairs or give you a credit to fix them yourself.  “Small issues, if left undiscovered, can become huge problems later on.” But what about when you buy a new home? New properties come with a one-year builder’s warranty designed to protect the homeowner in the event they discover a defect after moving in. Even with this protection in place, however, getting an inspection is still key. After all, a small issue, if left undiscovered, can become a huge problem later on. When you buy new construction, it’s also good to order a second inspection after you’ve moved in about a month or so before your one-year warranty is up. This will give you one last chance to identify and fix any issues that have arisen during your time in the home.  As a final note, Derreck also pointed out the benefits of ordering an inspection before you sell. Pre-listing inspections give sellers the opportunity to identify and resolve issues before buyers ever set foot in their home. Also, being able to provide proof of recent repairs as well as the complete inspection report to a buyer can make them feel much more comfortable about purchasing your home.  To learn more about 360 Home Inspections or to contact Derreck, visit their website: http://www.360inspectionsaz.com/.  If you have any other questions or would like more information from me or my team, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Chioki Wade of Loan Depot is with me today to give you all a market update for May. We’ll be going over the number of homes sold, the median price of those homes, and more. Let’s dive right in. Last month, our active listings were at 17,153. This signifies a 6.1% drop from the month before. This means that our supply is getting lower and demand is getting higher. As of right now, we’re still in a buyer’s market. However, if this trend continues, we’ll be on our way to a seller’s market.  Right now is a great time to buy. Part of that reason is that our average price has increased by 1.5% to $270,000 over just the last month. If you’ve been waiting to buy, now is the time to get in before the trend continues. “Interest rates are almost a full percentage point lower than they were one year ago.” When we break down the average sale price to the average price per square foot, we’ll see that homes cost $171.80 per sq. ft. on average. This number can help you get a better idea of what a home’s price should be in the market. That’s what we’ve got going on in the housing market, but what’s happening with interest rates? According to Chioki, the good news is that while our average home price remains low, there are also great down payment assistance programs available to help buyers get into a home with little to nothing out of pocket.  Interest rates are almost a full percentage point lower than what they were at this time last year and currently are between 4.125% and 4.25%. This is more great news for potential buyers because these lower rates increase their affordability. If you have any questions for us in the meantime about your financing options or what’s going on in the mortgage market, don’t hesitate to reach out to Chioki at CHWADE@loandepot.com or by phone at (480) 684-4031. If you have any other real estate-related questions, don’t hesitate to reach out and give us a call or send us an email anytime. We look forward to hearing from you soon.

Is a new construction home right for you? There are a few pros and cons you may want to consider. Cons: 1. You have to build it. It takes six to nine months depending on the builder, how busy they are, and the features you’ve chosen. However, this can also help you decide when to sell your old home and make the move. 2. You’re moving into a construction zone. If your home is part of a new community, chances are it isn’t the last one being built. You’ll have to deal with a lot of construction while other homes are being built.  3. It’s a blank canvas. You’ll have to choose every finish, option, room, interior, and exterior. Backyards usually aren’t included, and you’ll have to have somebody come in and redo it all. You’re looking at paying around $8,000 to $10,000 for this. “No matter what you decide to do, you should always have an experienced Realtor at your side.” Pros: 1. It’s brand-new. You get to build it, and you get to pick everything you want and customize it. With a resale home, you’re stuck with whatever the previous owner had done to it. 2. New homes come with amenities. In master-planned communities, you’ll often find community pools, playgrounds, country clubs, golf courses, dog parks, running paths, and so on. 3. You’ll save money. If you’re buying a home at the beginning of a new community, you can find a cheaper home. They sell homes for less at the outset and then ramp up the prices as construction goes on. By buying in the beginning, you’ll already have built-in equity at the end. No matter what you decide to do, you should always have an experienced Realtor at your side. Tell them when you’re looking at model homes so they can help you negotiate. If you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon.

If you plan on listing your home soon, here are a few tips that will have it looking show-ready once it hits the market.  First, painting and cleaning are two cheap, simple things you can do yourself to transform your home. You may not notice dirty baseboards, but buyers will. Also, you may like your home’s teal color, but you’re better off repainting it in a neutral color if you want it to appeal to buyers.  Next, upgrade the home’s curb appeal. When people come look at your house, the first impression they get of it once they step out of their car needs to be amazing.  “If and when the time comes to make some renovations, spend your money wisely.” If and when the time comes to make some renovations, spend your money wisely. In this regard, focus on the heart of your home: your kitchen. Everyone assumes that upgrading their kitchen will be expensive, but that’s not true. Replacing the doorknobs on your cabinetry, for example, can make a world of difference and not cost much at all. I’ve already mentioned painting, but it’s worth repeating here—repainting your cabinets will completely revitalize them.  The next area to focus your upgrades on is the bathroom. As with the kitchen, this is another area where buyers will really notice the upgrades you’ve made, and you’ll want to repaint here as well.  In addition to these tips, make sure you declutter and make your home look like something buyers can visualize living in.  If you’d like to know more about how to prepare your home for the market or you have any other real estate needs I can take care of, don’t hesitate to reach out to me. I’d be happy to help you.

With the current state of our market, those that are looking to downsize are in prime position to do so. Today Chioki Wade from loanDepot and I will discuss this topic in greater depth.  A number of homeowners have spent the last 15 years or so growing their family and, all the while, building equity in their home. Now, they’re looking to downsize.  Our market is becoming less seller-dominated and is beginning to transition over into a buyer’s market, which works in favor of downsizing buyers.  Let’s turn our attention to interest rates, because it’s good to know where they are currently situated when stepping into the market. Rates are still very favorable when measured against those of the recent past—with a good credit score, a buyer can lock in a rate between 4.5% and 4.625%. Compared to late 2018 where rates were in the low-5% range, this is incredible.  Some buyers are using downsizing as a means to purchase an investment property. These buyers sell their larger homes, collect the equity, and move into a smaller property, such as a condo, so that they can travel and have less house to be responsible for.  “Some buyers are using downsizing as a means to purchase an investment property.” They have a fairly large chunk of change left over from their home sale and aren’t sure what to do with it. To further build on that equity and generate cash flow, a lot of these folks opt to buy an investment property.       This is where Chioki comes in; he currently has two clients that are taking steps to downsize in this manner, so he’s no stranger to these sorts of situations. One of those clients is selling their home in order to downsize and invest in a property for their daughter, who’s a current college student, and some roommates to live in. From a cash flow perspective, the home is paying for itself and it allows the buyer to reinvest their equity.  Despite the popular belief that you need to put 20% down or more, you can actually get into an investment property with as little as 15% down.  For any financing questions or for more information on the topics we discussed, you can reach Chioki directly on his cell at 480-684-4031.  If you have any other questions about downsizing, selling your home, or looking for potential investment properties, please reach out to me by phone at 602-680-0734 or by email at Aaron@DottRealEstate.com. I look forward to hearing from you!

No one wants to sabotage their own home sale. Unfortunately, some sellers unknowingly make mistakes that only hamper their efforts for a successful sale. In today’s message, we’ll consider five common ways this happens: 1. Bad color schemes. You and your family might adore the red, neon green, or purple color you painted the kids’ rooms with, but buyers won’t. Before putting your home on the market, cover up those lurid colors with something more neutral, like a tan or lighter gray. You could even make a fun weekend out of it.  2. Personal taste. Living here in the Southwest, no one could blame you for having that sort of decor. However, buyers coming from other parts of the country, such as Minnesota or Chicago, to name a few, aren’t going to see it the same way. Pack up some of your Southwestern decor along with personal, family photos. The more you depersonalize, the more buyers will be attracted to the home.  “The more you depersonalize, the more buyers will be attracted to the home.” 3. Bad odors. You’ve probably grown used to the odors that your pet emits, the septic leak outside, or even your neighbor’s compost pile. The problem is these smells won’t evade buyers stepping onto your property for the first time. Some easy, quick fixes to this are getting your carpet professionally cleaned, lighting candles before a showing, and plug-in air fresheners.  4. Inflexibility with showings. You, like a lot of other sellers, probably don’t like the idea of having to file out of your home just as you and your family are sitting down to dinner at 6 p.m. because that’s the time that works for the buyer. Think of it this way: That buyer could be the one person that absolutely falls in love with your house. Not knowing what could come of each showing is enough reason to be extremely flexible; plus, flexibility means that more buyers will see your home, which should lead to a quicker sale.  5. Disguising problem areas. Items of this nature might include a leaky toilet, a cracked tile, a patch of paint, etc. Covering up the little things without making meaningful fixes could prove to be costly in the end. Buyers will likely catch this and wonder if there are larger issues you’re covering up as well. I advise my clients to have a handyman come in and tackle the last-minute “honey-do-list.”  If you need any further information or you have questions regarding how you can help your home sale, please reach out to me by phone at 602-680-0734 or email me at Aaron@DottRealEstate.com. I’d be happy to help however I can!

Are you buying a house in 2019? Chioki Wade from loanDepot joined me recently to talk about exactly what you need to know if the answer is “yes.” The first and most important step is to get pre-approved. Knowing your buying power and matching that up with the price point you’re looking at is a crucial step. It will also allow you to shop for homes with confidence because you’ll know what you can afford. Your credit score, your income, and interest rates all determine how much you’re going to be able to afford. One of the things people like to focus on is the purchase price, but we think it should be more about what your monthly payment is. That monthly payment is mainly determined by the interest rate, as well as the home’s price.  Rates have been fluctuating a lot lately, especially with the government shutdown. Chioki has seen a substantial improvement lately with the dip in the stock market. It has lowered rates from where they were before, but they may go up again soon. Right now with a decent credit score, rates are in the 4% to 5% range, which is very low, historically speaking. “You don’t have to be a first-time buyer to get down payment assistance.” In order to get pre-approved, you need at least a 520 credit score. The higher the score, the more buying power you have and the better the rate you can get. Even if you don’t think your credit is up to par, you still have the opportunity to buy a home with certain loan programs.  One of the great things that Chioki and his team offers for free to their clients is credit repair services. They will help you get where you need to be in order to qualify for the loan program you want. As far as a down payment goes, the range can vary. If you’re a veteran and have a VA loan or buy in the country with a USDA loan, you don’t have to have a down payment at all. If you’re looking in a city or here in the valley, you can get a down payment as low as 3% if you haven’t owned a home in the last three years. That can range all the way up to 5%, 10%, or 20%. If you need down payment assistance, you don’t have to be a first-time buyer. You can get a grant to help you pay for your down payment and you won’t have to pay any of it back. From start to finish, the loan process will take about 45 to 90 days, depending on how long your home search takes. Thanks to Chioki for joining me and providing some great insight into this process. If you have any questions for him, don’t hesitate to reach out and give him a call at (480) 684-4031 or send him an email at chwade@loandepot.com If you have any other real estate-related questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Homebuyers always ask me why they need to get pre-qualified. Many of them are eager to start browsing homes—they believe that getting pre-qualified can wait. But, to tell the truth, it can’t. Getting pre-qualified gives buyers a clear understanding of what kind of home they can afford. Not only will this help guide your home search, but it will also prevent you from setting your sights on something outside of your budget. There’s nothing more disappointing than finding the perfect home only to realize that you can’t afford it. This is why it’s so essential to get pre-qualified before you start looking around.  In addition to showing you what you can afford, a pre-qualification will also help you understand what your monthly payments could look like.  Also, first-time buyers aren’t the only ones who must get pre-qualified. Current homeowners looking to make a move will need to go through the pre-qualification process again to account for current interest rates.  “Getting pre-qualified is one of the biggest favors you can do yourself as a buyer.” Pre-qualifications aren’t just for the buyer’s benefit, though. They also benefit the seller. Many sellers won’t even consider an offer from a buyer who isn’t pre-qualified.  So, now that we’ve explained the importance of getting pre-qualified, you’re probably wondering how it’s done. All it takes is a 10- to 15-minute phone call with a lender. This lender will pull your credit and ask qualifying questions about your income and employment status. They will also ask you to provide relevant personal information, like your date of birth and social security number. After this conversation, a quality lender will be able to share the results of your pre-qualification within an hour. All in all, getting pre-qualified is one of the biggest favors you can do yourself as a buyer.  If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

As we wrap up 2018, we’d like to take a moment and wish you a merry Christmas, happy holidays, and a happy new year. This season is all about sharing time with loved ones, and Chioki Wade of loanDepot and I talked about some of our favorite holiday traditions. One thing I do with my family is bake and decorate sugar cookies together on Christmas Eve. Chioki’s making new traditions each year with his wife and two little boys—making waffles, wearing Christmas pajamas, and decorating together are just a few things they look forward to. We hope you enjoy celebrating your traditions this holiday season and create new memories with friends, family, and loved ones. See you next year!

People give me a lot of reasons as to why they rent a home instead of buying one. These reasons include: Low credit score No money for a down payment Fear of a long-term loan payment Thanks to the opportunities available in today’s market, I’m able to show these renters how they can get around these roadblocks and become homeowners. FHA loans for first-time homebuyers lower the need for a high credit score, allowing applicants to be approved with scores as low as 640. “Wouldn’t you rather be paying your own mortgage instead and build equity as well?” In Maricopa and Pinal Counties, we have many down payment assistance programs available for potential homebuyers. These programs will actually give you the money to cover your down payment; all you’ll need to pay for is the inspection, appraisal, and closing costs (which I can also help you get covered). People are concerned about the burden of the long-term financial obligation that comes with paying off a mortgage. I tell them this: If you’re renting and paying $1,000 each month, you’re just paying your landlord’s mortgage; wouldn’t you rather be paying your own mortgage instead and build equity as well? After doing this month after month, your principal slowly decreases while your home value increases. Historically, home values appreciate by about 3% to 4% each year. You’re looking at a home value increase of 4% to 5% a year while you’re paying down your loan. That’s $8,000 to $10,000 a year on a $200,000 home. If you have any questions or need information, feel free to reach out to us. We’d also love to hear your ideas on video topics we should cover in the future. We look forward to hearing from you.

Right now is a prime time to buy in the East Valley, and there are a couple reasons for that: 1. Interest rates are still historically low. Even though people think rates are high, in the grand scheme of the market, they’re simply not. We’re sitting at around 5% at the moment, and those rates are scheduled to go up a couple more times in 2019, possibly bringing us up to around 6%. It doesn’t sound like a huge jump, but if you’re buying a $200,000 house, the jump from 5% to 6% could raise your monthly payment by almost $200. 2. We have access to tons of down payment assistance programs. If you were waiting to enter the market because you needed to gather up enough for a down payment, you might not need to worry about that since you could qualify for assistance. Through our contacts at the various banks and counties, we can help set up with down payment assistance programs, which are designed to help first-time homebuyers purchase a home with no down payment. They can give you anywhere from 3.5% to 5% of the purchase price to cover your down payment. All you’d have to do is come in and cover the costs of the home inspection, the appraisal, and closing costs. “We can help set up with down payment assistance programs, which are designed to help first-time homebuyers purchase a home with no down payment.” It’s also a great time to sell in our market because: 1. Inventory is at an all-time low. This is a good thing, because with supply and demand, this means that your home is that much more attractive to any buyers in the market, especially when it’s priced right and marketed correctly—both of which are our specialties. We can whip up a bidding war for your home, which not only keeps the market healthy, but it also means you’ll get the most money possible for your home. 2. The holidays are actually a great time to list your home. Despite the fact that many people seem to think the holidays are a bad time to sell, this time of year can work very well in a seller’s favor. Inventory is low, and since people falsely believe they can’t sell right now, you’ll have less competition for other sellers than if you waited until spring. If you’re interested in buying or selling a home, don’t hesitate to reach out to me. I’d be glad to help.