Gilbert Sun News Real Estate - 4.18.2021

REAL ESTATE

GILBERT SUN NEWS | APRIL 18, 2021

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Buyers making more concessions to land a home

BY MINDY JONES NEVAREZ GSN Guest Writer

S

pring in Arizona is the official start of our journey towards summer while many other parts of the country are just starting to thaw out.

This is the weather that captures the hearts and minds of our vacationers – cool at night, pool-worthy during the day (unless you are a native and then it’s still way too cold to get in) and perfect for all sorts of outdoor annual events.

Melanie Nemetz

While the calendar is starting to fill back up after its hibernation and quite literal quarantine from normal life, our real estate market has been keeping the bench warm as the most talked about news item in town after graduation caps and vaccine appointments.

Move over weatherman, we’re not ready to count our number of 100-degree days quite yet but we are happy to talk about the records our housing market is setting.

The real estate market has been nothing shy of booming although I know people are afraid to use words like “boom” because they are sure that words like “bust” are to follow.

But with more than a decade of under-

The sign you want, the Realtor you need. See Page 4

building and failing to keep up with our population growth – followed by a year of massive interest in our relatively affordable land and previously mentioned good weather – we’ve already seen annual appreciation rates exceed 24 percent.

Unlike the bust of the early 2000s, we’ve got many more people on guard for the worst-case scenario, tempering demand and keeping a healthy level of skepticism about where we’re headed.

We are currently trying to work our-

selves out of a problem that took many years to manifest and will take many more to completely unravel. Meanwhile, prices will continue to reflect the scarcity of housing, the demand for resale properties amid the decreasing opportunities for move-in-ready new construction and the rise in rental rates for those that can’t or won’t compete in today’s purchase market.

GIlbert market ranks in the top three

see MINDY page RE3

SPO OTLIGHT home

Amy Jones Group

Welcome to the highly sought after community of Brighton!

See Page 4 Listed at $860,000

Our extensive, high quality marketing of your home combined with our thorough preparation of listing the home for sale, will help your home sell faster and for more money. Here is a sample of the marketing for our listings: ◆ Home Staging Report by Interior Designer & Stager ◆ Professional video of home ◆ Professional photos of home ◆ Twilight photos ◆ Community photos ◆ Aerial drone video/photos ◆ 3D Interactive floor plan - Matterport www.fosteringre.com Each office is independently owned and operated ◆ Open house first weekend on the market

480.221.3034

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REAL ESTATE

GILBERT SUN NEWS | APRIL 18, 2021

How real estate agents determine home value

BY AARON CARTER GSN Guest Writer

“B

ut Zillow says my house is worth this much.”

Real estate agents often hear this when talking to homeowners.

Thanks to Zillow and a handful of organizations, homeowners have access to automated valuation models (AVMs), yet none of the AVMs are 100 percent accurate and have clear limitations and disadvantages.

Here are a few ways real estate agents define a home’s worth compared to AVMs. Comparative market analysis. The standard technique for a real estate agent to define a home’s value is to complete a comparative market analysis where market value is derived by comparing past closed sales of similar homes, then comparing the homes to add or deduct value based on important criteria: age, size, location, condition,

features and amenities.

AVMs include listings from comparable on-market (for sale) and closed properties.

Home improvements. AVMs are not able to take into consideration the improvements and repairs you made since the purchase of your home and the home’s unique features.

First, keep a list of all your improvements, the year completed and costs.

Second, make a list of the features you love. Then, provide these lists to your real estate agent or an appraiser. This will help to benchmark your home against comparable properties and assist to competitively market the value of your home.

Accurate home data. AVMs may use inaccurate or incomplete data from public records sources. Agents can research and then review the public records to make sure everything is accurate.

One common issue is the square footage of a home does not match what is

noted at the county Recorder’s Office. A second issue is when a den or office is converted into a bedroom, which also will add or subtract value.

Location. What if a house is on a busy street, or adjacent to an auto repair shop or a noisy club or restaurant? This can affect a home’s salability, and AVMs don’t take this into account. There are adjustments made to value based on a home’s location.

A property on a hillside with mountain and city views has a higher value than a similar property on a flat piece of land with no mountain or city views.

Perception of value. Through research and analysis, and the experiential knowledge of real estate agents and appraisers, difference in value is discerned.

Perhaps your home has the largest lot size in the subdivision. Is there demand for this, and if yes, how much more value does that create for a seller and potential buyer?

A buyer and seller may have differing

@AmyJonesGroup Each office is independently owned and operated

views of how much a feature or an entire home is worth, and that’s why a transaction falls apart. You may have to wait until a buyer comes along that has your same opinion of value.

Zillow does not claim to be accurate and their ‘Zestimate’ page even says so.

AVMs may overvalue your home, but they can also undervalue it, especially when market conditions of low supply and high demand tip the odds in a seller’s favor.

Real estate agents are here to help you understand the value of your home, and more importantly, the whys and why nots.

Healthy discussion of these matters can help a homeowner decide which improvements and repairs to make prior to selling and create a competitive marketing strategy when the time comes to sell.

Aaron Carter is an associate broker and co-founder of CarterMosier Group with HomeSmart. Information: cartermosiergroup.com/subscribe.

...a Tradition of Trust

REAL ESTATE

GILBERT SUN NEWS | APRIL 18, 2021

MINDY from page re1

hottest cities in the Valley for extreme disparity between available housing and demand with just eight days of inventory, homes selling on average at 102.88 percent of list price, and the monthly median appreciation topping 25.8 percent.

We are seeing re-sale properties continue to appreciate faster than their new-build counterparts as buyers scramble to compete, often digging into their pockets to pay over asking price, waive appraisal contingencies and of-

fer sellers the opportunity to lease back their property until they themselves can find a place to live.

Fulton Homes became the first builder to offer an “out” for buyers who want to cancel their contracts in April in light of potential delays in closing timelines due to extreme demand coupled with material and labor shortages.

April’s preliminary results show an increase in the percentage of sales for use as rental and vacation properties.

We continue to watch demand soar in

the luxury space, where an appetite for larger more amenity-rich houses amid a greater lack of travel options for buyers.

Yet, the overall demand for housing in the Valley is up a meager 10 percent – pointing again to the driver of our insanity being a lack of supply, which we simply can’t correct overnight. Any changes to buyer demand are expected to be gradual and likely go unnoticed by you or your neighbor.

But they are important to watch as they may impact the selling conditions

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for those trying to wait and time the market.

With the majority of sales closing over asking price in April and the ability to recoup an over-asking contract price on a home within a couple months, we’re still expecting an annual appreciation rate to reach 25 percent or higher.

And we can expect the luxury market to beat this number with its rapidly decreasing average days on market.

see MINDY page RE5

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• Average Days on Market: 28 days Down from 29 Days Last Month

• Active Listings: 78 Down from 108 Listings Last Month

• Monthly Sales: 303 Down from 414 Sales Last Month

• Listings Under Contract: 392 Up from 367 Listings Under Contract Last Month

• Average Sales Price: $474,177 Down from $488,971 Last Month

• Monthly Supply of Inventory: 0.3 Same as 0.3 Monthly Supply Last Month

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REAL ESTATE

GILBERT SUN NEWS | APRIL 18, 2021

SOLD

3 Things Every Seller Must Do To Sell Their Home — Even In This Market: 1. Hire an experienced Realtor who will guide you through this extreme market we are experiencing.

2. Price your home correctly. This means pricing your home at current market value.

3. Prepare your home for showings as though we are in a normal market.

Did you know that most homes are selling over list price and are also receiving multiple offers? These are the homes that have taken the necessary steps to prepare for the listing as mentioned above. When you list with us, our team will prepare a list of comparable sales that will show you the current market value of your home. When the home is listed at current market value & when the home is properly prepared for showings, the sheer competition will likely drive up the final sales price of your home. We are seeing the better prepared and accurately priced homes sell for 5-10%+ over list price, with the buyer often waiving the appraisal contingency.

Curious how we can help you capture that additional equity? Contact us today and learn how our team of experts, which includes a home stager preparing a complimentary home staging report, along with our pricing strategy, will maximize the proceeds from the sale of your home.

SEL

Sold above asking price, multiple offers, sold above appraisal and the seller saved over $18,000. Call me TODAY and let me show you how I save you THOUSANDS, and sell your home fast. You won’t be disappointed!

Need to lease back? No problem. Sell on your terms!

VOTE FOR US!

Melanie Nemetz

480.221.3034 • www.fosteringre.com Each office is independently owned and operated

SPO OTLIGHT home

Janet Rogers

602-565-0192

Welcome to the highly sought after community of Brighton known for its newer construction and proximity to the heart of thriving Gilbert, Arizona. This two story 5 bedroom, 5.5 bathroom home was build in 2017 and feels brand new! With wood look tile and plush carpeting throughout, modern color palette and upgrades including plantation shutters, chef kitchen, Presidential Pools diving pool and spa, built-in Pergola with outdoor kitchen and extended pavered seating area and no neighbors behind on this corner greenbelt lot - you are not going to want to miss this one. One of the rare opportunities to own in this neighborhood, this 4635sf home features a greatroom floorplan, downstairs guest suite with private bedroom, bath, living room, and kitchen and an upstairs master suite surrounded by an oversized loft and three additional bedrooms including two with ensuite baths and a third being used as a theater room with adjacent full guest bath. No expenses were spared in the gourmet kitchen with stainless steel appliances, oversized feature island, and gas cooktop - the perfect place to entertain before heading out to the extended covered patio with custom shades and views of the entertainer’s backyard.

Listed at $860,000 1470 E Cullumber St, Gilbert, AZ 85234

(480) 250-3857 www.AmyJonesGroup.com

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REAL ESTATE

GILBERT SUN NEWS | APRIL 18, 2021

MINDY from page re3

Mindy Jones Nevarez, a Gilbert Realtor and owner of the Amy Jones Group at Keller Williams Integrity First, can be reached at 480-250-3857, Mindy@AmyJonesGroup.com or AmyJonesGroup.com

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MAKE THE MOST OF HOME ©2021 Ferguson Enterprises LLC 0321 2367404

While it is difficult emotionally to pay over asking or to waive appraisal contingencies, buyers who have closed on their homes in the last six months have seen their home values rise exponentially.

Not everyone can play in a market as hot and fast as this one. But many have chosen to once they saw the bottom line.

With more than 10,000 new listings put on the market in March alone, we end the second week with just 4,403 available listings as compared to 14,473 this time last year.

And things are just starting to heat up.

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