{"id":891,"date":"2019-05-01T21:57:09","date_gmt":"2019-05-01T21:57:09","guid":{"rendered":"https:\/\/nohasslelistingblog.com\/?p=891"},"modified":"2019-08-15T22:45:46","modified_gmt":"2019-08-15T22:45:46","slug":"april-showers-bring-may-flowers","status":"publish","type":"post","link":"https:\/\/nohasslelistingblog.com\/?p=891","title":{"rendered":"April Showers Bring May Flowers"},"content":{"rendered":"
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The strongest time of year for the valley\u2019s real estate market is typically our \u201cspring buying season\u201d – March through May. This year is no exception \u2013 but it could\"\" have been. We ended 2018 with a rather lackluster market due to anemic demand. Entering 2019 it looked like the market was heading towards a balanced market \u2013 something we haven\u2019t seen in the valley for years. But buyers suddenly reversed course and began to enter the market place in strong numbers. What turned things around? Two financial factors: interest rates & raised loan limits.<\/div>\n<\/div>\n
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By April 4th the average 30 year mortgage rate had dropped to a 15 month low. Combine that with loan limits rising (conforming conventional loan limits went from 417K to 484K, and FHA saw a similar bump up) and the buyers responded by buying. As Tina Tamboer from the Cromford Report shares:<\/span><\/div>\n<\/div>\n
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\u201cThe drop in mortgage rates could not have come at a better time for sellers. Up until 6 weeks ago the negotiating advantage sellers have been enjoying for years in Greater Phoenix had weakened to the point where the market was on track to enter balance within a matter of months and price appreciation would have begun to slow even more.\u201d<\/span><\/div>\n<\/div>\n
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But before we break out the party hats, she reminds us:<\/span><\/div>\n<\/div>\n
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\u201cDon\u2019t get too excited though, the seller market is still much weaker than last year. Affordability and demand were helped by this interest rate drop but could quickly be negated as prices continue to rise. Sellers still need to be mindful of their asking price to get under contract before buyer activity seasonally begins to decline between May and the end of the year.\u201d<\/span><\/div>\n<\/div>\n
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Michael Orr of Cromford Report echoes those sentiments with this:<\/span><\/div>\n<\/div>\n
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\u201cWe have witnessed a very favorable change in interest rates over the past 4 months and that effect will gradually dissipate unless rates continue to fall even further. Meanwhile prices continue to rise which will re-introduce affordability concerns during the second half of the year.\u201d<\/span><\/div>\n<\/div>\n
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The message here seems pretty clear \u2013 we are in a sellers\u2019 market, again, and for now. But as the marketplace is a moving target with lots of moving pieces, sellers with a choice may want to pick selling now thereby avoiding the uncertainties of the back half of the year. <\/span><\/div>\n<\/div>\n
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Cash offers and seller guarantees<\/span><\/div>\n<\/div>\n
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So if the market still remains in the seller\u2019s favor, why would any seller give up their hard-earned equity by taking a \u201cwe buy houses\u201d offer? Shouldn\u2019t selling below market occur only in a buyers\u2019 market – where desperate-to-sell sellers are forced to open up their pocketbook to investors? Well, yes, but it would be simplistic to write this off as just illogical human behavior.<\/span><\/div>\n<\/div>\n
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Given that we are Realtors with the job of advocating for buyers and sellers, we naturally have a bias against companies that appear to be \u201chelping\u201d in the name of corporate profit. With that said, here are our thoughts \u2013 both the good and the bad.<\/span><\/div>\n<\/div>\n
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What we like about the \u201cinstant offers\u201d or I-buyers:<\/span><\/div>\n<\/div>\n
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1. Removes uncertainty. Avoids appraisal and concerns on buyers ability to qualify. Typically will close when the seller wants.<\/span><\/div>\n<\/div>\n
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2. No showings, no need to prep the home for sale.<\/span><\/div>\n<\/div>\n
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3. The largest one of them allows the seller to cancel the contract with no cancellation fees. Please note: others charge a cancellation fee. Make sure you know what the offer says before you sign.<\/span><\/div>\n<\/div>\n
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What we don\u2019t like about the \u201cinstant offers\u201d or I-buyers:<\/span><\/div>\n<\/div>\n
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1. Below market offers. Home sellers are giving away $20,000 – $30,000 or more of their equity. Most home sellers have no idea that they are taking a below market offer because they don\u2019t know what their home\u2019s true market value is.<\/span><\/div>\n<\/div>\n
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2. The home owner is not being represented. The average seller sells every 11 years vs. corporate experts who buy daily. Knowledge is power.<\/span><\/div>\n<\/div>\n
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3. Misleading advertising. They claim \u201cNo commissions\u201d but charge 6-12% \u201ccustomer experience fee\u201d. They advertise an \u201cas-is\u201d sale and then typically charge 10k for repairs. They advertise their offers are \u201cfair\u201d when it is below market (\u201cclick here for a 15-20% below market offer\u201d doesn\u2019t make for a compelling marketing slogan)<\/span><\/div>\n<\/div>\n
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4. Not all homes qualify.<\/span><\/div>\n<\/div>\n
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The solution<\/span><\/div>\n<\/div>\n
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Change is inevitable in market places. Amazon has changed forever how people buy (ask mall owners). We are not opposed to progress, we embrace it. For our customers (and you need only call or email us to become a customer) we offer a hybrid solution. If you wish to take an I-buyer or investor offer, we will represent you at no cost to you. We have established alliances with the largest investors in town so that we may do that for you. We will explain the costs and your options so you make the choice that is right for you. You don\u2019t have to go it alone. <\/span><\/div>\n<\/div>\n
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Russell & Wendy Shaw<\/span><\/div>\n<\/div>\n
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(Mostly Wendy)<\/span><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The strongest time of year for the valley\u2019s real estate market is typically our \u201cspring buying season\u201d – March through May. This year is no exception \u2013 but it could have been. We ended 2018 with a rather lackluster market due to anemic demand. Entering 2019 it looked like the market was heading towards a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,3,4],"tags":[],"class_list":["post-891","post","type-post","status-publish","format-standard","hentry","category-real-estate-market","category-home-values","category-market-stats"],"_links":{"self":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=891"}],"version-history":[{"count":1,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/891\/revisions"}],"predecessor-version":[{"id":893,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/891\/revisions\/893"}],"wp:attachment":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}