Nick Blog's the World!

OUTSIDE FORCES ARE STILL IMPACTING OUR NEIGHBORHOODS

Location, location, location! The three main factors, we are told, when purchasing real estate. It seems this phrase is attracting others to our neighborhoods. We are constantly being approached by developers to turn the homes on main streets into commercial properties. Buying homes is less expensive than buying an already zoned commercial property. Sometimes, the developers tie up the homes at prices which are higher than the home may be worth as a residential property but certainly less than if it was already zoned.

There are several issues with their proposal. The interior lots will now back up to commercial properties instead of another home. This may lower the value of the home. The other potential problem may result from additional traffic flowing into our neighborhoods, seeking a short cut to a main street or trying to avoid the traffic on a main street. Again, this has the potential to lower residential property values.

Another issue that I am concerned about is the 64th Street off ramp on the 101. I hope that this does not become the route of choice for those trying to avoid congestion on Scottsdale Rd. The traffic on 64th Street, south of Bell Rd is bad enough with the schools located in the area and cross access to roads leading to the Scottsdale Airport employment center. We need to keep an eye as to what the cities of Scottsdale and Phoenix plan with regards to widening streets.

Investors, in some cases, may be more aware than the average homeowner in our area as to the potential value of this location. Homes are being bought by investors, and, unfortunately, not all are being torn down and rebuilt into luxury estates. Some are getting a band aid fix and then rented out until the price appreciation kicks in. Several tenants are not good at maintaining their homes and again, this lessens the value of our neighborhood.

Bank owned properties are another source of outside influences. They don’t usually know the true value of a foreclosed property and rely on others that are in it just for a quick sale and earning a quick commission. I can think of at least one recent sale of an interior acre lot that sold in a matter of hours in the mid $400,000’s. It could have sold for at least another $100,000. Low sales affect our current and future values.

I don’t want to leave you with a totally negative and hopeless feeling. The main solution to these outside influences rests with each homeowner. We must talk up our neighborhoods, we must maintain our neighborhoods, and work with real estate professionals that know our area, have a proven track record and have a vested interest. We must communicate with each other and share our concerns. We must be a community that strives to make this area the very best place to live in the entire Valley and State

ARIZONA: Next five months offer the best opportunity to sell your home….

April through August gives us the best window in which to market and sell your home. As I pointed out in the article “PROVEN RESULTS” we have an awesome location and should be able to achieve a better sales rate than the rest of the Valley.

No, it’s not going to happen by putting out a sign and listing your home in the Multiple listing service. Our best chance of success is to do all the following (we do all of these) and then some….

· Have a floor plan for prospects to pick up in the home

· Put the floor plan on internet homes sites

· Have a virtual tour on a disk in the home for prospects to take with them

· Give internet exposure on multiple national sites and include a virtual tour

· E-mail color brochures on the home at least monthly to area agents so that they can focus on your home (there are currently over 55,000 homes listed on the Multiple Listing Service)

· Stage the home with advice from an accredited home stager

· Provide a picture list of “to do” items to the seller.

· Provide current area and future growth information to prospective buyers and agents that look at the home.

· Provide a home book for prospects to look at.

· Plus, plus, plus…..

Perhaps the single most important thing we can do is to listen to you and understand your needs. Then, together, we can discuss the current market conditions and arrive at a price that will satisfy you as a seller and be attractive to a buyer.

Residential Real Estate In 2008 - Arizona

2007 ended with 55,000 resale homes and condominiums on the market which is a supply in excess of 14 months. Home builders are still offering bargains in the way of price discounts and interest rate by downs. Foreclosures have increased almost every month in 2007.

With this base mark, what can we expect in 2008?

First, we must face the facts and act accordingly. Homes are not going to sell at the same high prices that they sold for at the end of 2005 and 2006. Buyers are still looking in our neighborhoods, but they are being very selective as far as the price and condition of the home. Through November of 2007 there were over 47,000 resale homes sold in the Valley. During the past several months we have noticed an increase of potential buyers coming through our open houses.

Here is what we have to do to prepare a home for sale in 2008.

· A price analysis should be completed. This includes looking at the original purchase price of the home, the improvements made to the home, the equity that is currently in the home, and what the proceeds of the home will be used for. Then a complete, realistic market price must be determined that will attract buyers.

· The second phase is the home preparation. That includes proper home staging, inside and out, (Jen is a certified home stager), plus having the tools in the home for buyers which includes the following: home book, floor plan, virtual tours, home information, neighborhood value analysis and area future growth.

· The final phase is traffic generation; in today's market we use a combination of old fashioned basic methods as well as all the high tech tools we can find. We continuously work hard on this aspect of our service and will provide details to you at the time we visit about the sale of your home.

Jen and I are excited about 2008. We are looking forward to a lot of hard work which we know will result in successful sales of our clients’ homes.

Now, more then ever, our 35 plus years of full time real estate experience in this neighborhood has well equipped us to serve our neighbors.

Nick and Jen can be reached at 480-991-0118

I can only share from my perspective, and real estate seems to be the reason for doom and gloom, the forecast that all the media is talking about.

Most of the media are predicting a major fall in real estate prices, due to sub-prime loans, lack of buyers and too much inventory. In large part, the prediction is that real estate will affect the rest of the economy and we are due for a recession.

From traffic at open houses, I still see a demand for homes. Our traffic in well located homes has not changed much over the past three years. The thing that has changed is the mindset of the prospective buyers, who have been influenced by the media and are looking for much lower prices.

The other major change is the number of homes on the market. Several years ago we had between 5,000 and 7,000 resale home on the market compared to over 40,000 at this time.

Location, location, location, the three most famous words in real estate play an important part in the overall real estate picture. Not all sections of the Metro Phoenix area are the same.

My expertise is in the Northeast Valley, including Scottsdale, Paradise Valley, Northeast Phoenix, Carefree/Cave Creek and Fountain Hills. In these areas the commercial market is very strong and growing. By my estimates, we may have 150,000 new people working in these areas. (please call me for additional information). A lot of these major employment centers are under construction or scheduled to begin in the near future.

For the management teams our area is an excellent place to live. Granted, many others will have to drive for an hour to find “affordable housing” , or they will have to rent a home or an apartment. (another reason to buy rental homes at this time).

With a lot more homes on the market, it may take a little longer to sell your home but patience is the key to success. A price reduction is only necessary when it becomes an affordability issue, either due to a family change, job relocation or unfavorable financing.

The “R” word should not affect most people. If you have a job, and you are positioned to live and enjoy life at your current income level, then a recession is more of a frame of mind than an actual hardship on you.

Buying and selling real estate is part of our way of life. Don’t be afraid to make a move if the time is right for you. We will work closely with you and determine which real estate sales option is best for you; and then, together, we will design and implement a plan.

We are very proud of our new program Homes in Waiting® for those of you that are not in a hurry to sell.

We appreciate your business and confidence in our services. As you know, Jen and I rely upon your referrals to continue growing our business.