3 Additions That Will Not Add Value to Your Home

 Home AdditionsWhen you own a home, there are additions that you can make to the property that will improve the value of your home. For example, a newly renovated kitchen or bathroom is a popular choice that will really make the home more desirable to buyers.

Also, adding storage space or a well-thought-out family room or other practical space can be a very good investment that will bring up the home’s value.

However, there are other projects that are not really worth your time or money and will allow very little opportunity to recover your costs when it is time to sell the property. Here are a few examples of things that you think might add to the value of your home, but really don’t.

An Elaborately Landscaped Garden

A beautifully landscaped garden might make the home more visually attractive to buyers when they are looking at the property, but it will not likely add to the selling price.

This is especially true if the new buyer is not interested in putting in the effort to keep the garden well-maintained and sees it as a burden. If they don’t have time to do the landscaping, they will need to hire a gardener which will add to their expenses.

A Hobby Specific Room

Are you tempted to convert a bedroom into a room that is specific to one of your particular interests, such as an art studio, a library or a wine cellar? This will not add a lot of value to the home, because the next buyer is not likely to share your passions.

It might even make the home less than desirable, because the next owner will not want to spend the time and money renovating the room back into a bedroom.

You can create a hobby room; just make sure that you make non-permanent chances to the room so that you can quickly and easily switch it back to a bedroom.

A Renovated Garage

Redoing your garage and turning it into a family room or a play room might give you a short term benefit, but you might regret it when you go to sell the home. Most people want a garage to serve its original purpose – as a place to protect their cars from the elements and store their shovels, garbage cans, leaf blowers and other outdoor things.

If you’d like to work with a Realtor who oversees EVERY portion of the real estate transaction give Debra Obrock a call: (480) 688-2000 or send her an Email

How To Beat Out Cash Buyers

 Cash BuyersMost of the time Cash Buyers are beating out those buyers who need to finance their home.  Here’s the scenario that happens all to often in this sellers market. You’ve been searching for the perfect home for quite a while, and finally, you’ve found it! You get all of your finances in order and place an offer on the house.

However, you’re not the only one that loves the home, because there are multiple offers — and one of them is cash.

Cash buyers are seen as desirable because they’re almost always a guaranteed quick close. They don’t have to borrow money from a bank therefore won’t have any financing hang-ups, which is where a large portion of offers fall through. Don’t worry; not all hope is lost.

Here are some tips on how to Beat out Cash Buyers

Less Expensive Homes

If you’ve put offers in on homes at the asking price and are continually beat out by buyers that are paying more, then you might want to consider looking in a lower price range. This is an especially smart strategy for those living in fast-selling markets. By looking at less expensive homes, you can be the one that puts in an offer over the asking price.

20 Percent Down Payment

Save up a higher down payment for the price range of homes you’re considering. If you can come up with 20 percent, then you’re in a position to wave the appraisal contingency for financing with the bank. The more you have in cash, the better.

As-Is Home Inspection

This means that based on the home inspection, you’ll take the property with all its issues, or you’ll walk away. What you won’t do is ask the seller to waste more of their time and money fixing every little problem that’s found.

Fees

Waive the seller concessions, such as closing costs and the home warranty, and pay your real estate broker’s fees. These extra costs add up in the mind of the seller and will show that you really want the property.

Going up against cash buyers can be extremely discouraging. But, just because they’re dealing in cash doesn’t mean they’ll get the property. Many investors think they can put in a low offer because they’re dealing in cash.

So show you’re serious about a property, follow the steps above and put in your best offer. You’ll be a homeowner soon enough!

If you’d like to work with a Realtor who oversees EVERY portion of the real estate transaction give Debra Obrock a call: 480 688-2000 or send her an Email

Home Prices Increasing At Highest Rate Since 1977

Home prices increasingHome Prices increasing at highest rate since 1977 according to data released by RealtyTrac Inc.  The U.S. housing markets continue to drive the economic recovery

National home prices rose by 11.90 percent year-over-year for June.

48 states reported rising home prices with only Delaware and Mississippi reporting lower home prices. Nevada led the states with a 26.50 percent gain over June 2012.

Cities also fared well on housing prices; 99 of the 100 largest U.S. cities reported gains in home prices.

Rising Home Prices And Mortgage Rates, Short Supply Of Homes

According to Mark Fleming, chief economist for CoreLogic, home price trends are rising at their fastest pace since 1977. While good news for sellers, homebuyers may find fewer affordable options over time while also contending with rising mortgage rates.

In spite of rapidly rising home prices, national home prices remain about 19 percent below their peak in April 2006.

Why The Shortage Of Available Homes?

Some homeowners are hoping to recoup losses on their homes before listing them for sale. This could be a risky decision, as many economists have previously characterized the last peak of the housing market to be a “bubble,” or an abnormal spike in home values.

In some markets cash buyers are snapping up homes and making it difficult for mortgage-dependent homebuyers to compete.

Another common scenario that presents challenges to home buyers in areas where homes are in high demand occurs when there are multiple purchase offers for one home.

Buyers who rely on mortgage loans for financing their home purchase can improve their chances by being pre-approved for a mortgage before shopping for a home.

Fewer Foreclosed Homes Contribute To Rising Home Prices

RealtyTrac estimates that 500,000 home mortgages will be foreclosed this year. This is approximately 25 percent lower than the number of 2012 residential foreclosures.

Bank-owned homes are typically offered at lower prices and with incentives such as direct financing, but most are sold as-is with no warranties or guarantees as to their condition.  Multiple foreclosed homes within a community can drag down home prices, so fewer foreclosed homes is positive for homeowners and communities alike.

Want To Buy A Home? Don’t Give Up

Rising mortgage rates and home prices can present challenges, but working with your local real estate professional can help with finding an affordable home. Programs are available for assisting eligible first-time buyers with their down payment and closing costs.

Adjustable-rate mortgage loans that provide a low fixed rate for a specified introductory period provide an alternative to higher payments required of a fixed-rate mortgage. An adjustable-rate mortgage may be a good option for first-time buyers who plan to “move up” within a few years.

For assistance in finding an affordable home please feel free
to call Debra at:: (480) 688-2000
for a list of homes in your price range.

Buying a Home? Choose the Best Location

Choose Best LocationChoose the Best Location is probably the best advice you will receive when purchasing a home.   The area of the city where your home is located will have an impact on its future value as well as your lifestyle.

Location, Location, Location still holds true no matter where you are buying a home or in what price range.

How to Choose the Best Location

Proximity to Your Daily Needs

If you work downtown, living out in the suburbs means that you will be adding time for a commute onto your day.

While this might be worth the cheaper prices for properties out of the town center, it is something to consider when making your decision.

You will also need to consider whether the house is near shopping centers, schools, doctors, dentists and other services that you will need regularly.

Planned Developments

When you are choosing a neighborhood to buy in, do some research into what developments are planned in the future for that part of town.

For example, you might be able to get a cheap price on a home that is out of the way, but a new proposed highway leading straight into the town center that will be built in the next five years could increase property values considerably.

Overall Atmosphere

Take a walk around the neighborhood where you are considering buying and get a sense of the overall atmosphere. Are there a lot of families living there? Are there green places to relax? Are people friendly and saying hello to you?

You want to live in a place where you feel welcome and comfortable.

Property Values

Different neighborhoods will have a range of house prices and you will want to look for something with the right balance of value.

Some areas of town will be very expensive but very nice; other areas will have cheap house prices but might not be as pleasant to live in. Take the time to find the neighborhood that is in the middle, where you will find the right house, and neighborhood, at a good price.

These are just a few of the factors to consider so that you can choose the right neighborhood to buy in.

With over 25 years of selling homes in Metro Phoenix,
Debra Obrock knows all about the value of location.
Give her a call for the best advice: (480) 688-2000

RE/MAX Reports Double-Digit Yearly Gains in Sales, Prices in May

RE/MAXRE/MAX said in its National Housing Report for May that after staging a turnaround last year, the housing market is continuing on the road to stabilization in 2013.

Both home sales and prices rose at double-digit rates above May 2012, and inventory is showing signs of stability, the company reported.

According to the report, closed transactions increased in May 13.2 percent over April and 11.6 percent over the same month last year. May was the 23rd consecutive month to post higher sales on a year-over-year basis.

Of the 52 metros surveyed last month, 45 reported higher sales than May 2012, with 30 posting double-digit gains.
For all homes sold in May, the median price was $185,000, a 4.2 percent gain over April and a 10.8 percent increase over May 2012.

RE/MAX Reported

Of the markets surveyed, only three experienced a year-over-year price drop: Trenton (0.2 percent); Albuquerque (2.7 percent); and Burlington, Vermont (0.6 percent).Twenty-one metros posted double-digit price gains.

May was the fourth straight month in which both home sales and prices rose on a monthly and yearly basis.“After a few years of disappointing data, we are so pleased that a housing recovery is finally in full swing. The month of May continues the trend we’ve been seeing in 2013, steady and consistent growth,” said RE/MAX CEO Margaret Kelly. “Last year was the year of the housing turn-around and this year represents a start on the road to sustainability.”

Reduced inventory continues to be a concern, however, though recent monthly changes have been promising. The number of homes for sale was down just 0.9 percent from April, showing inventories “may be in the early stages of a return to more balanced levels.” Year-over-year, inventory was down 28.4 percent. The corresponding months supply in May was 3.5, far below the balanced level of 6 months.

The combination of low supply and high demand led to a significant drop in listing times for homes sold in May. According to RE/MAX, the average days on market was 70, a full week lower than the April average and 22 days lower than last year.

Wondering what your home is worth? Let me show you.