Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Nov. 30, 2022

What to Expect When Buyers Get an Appraisal Report

If you’re a homeowner, you know that when buyers are interested in purchasing your property, they will get an appraisal report done on the property. This appraisal report is required by lenders and is designed to protect the interests of both the buyer and lender by verifying that the mortgage amount does not exceed the fair market value of the home. So, what exactly happens during an appraisal? Let’s take a look. 


The Appraisal Process 

When buyers are getting an appraisal report done on your property, they will hire a licensed appraiser who is certified to assess properties like yours in your local area. The appraiser will visit your home and inspect it inside and out, taking into account any special features or amenities that would increase its value. During this visit, the appraiser will also consider comparable homes in your neighborhood that have recently sold to help them determine a fair market value for your home. Once their inspection is complete, they will provide a written report with their findings for both you and the buyer. 

  

What Can Affect Your Home's Value? 

There are many factors that can affect your home’s value including its age, condition, location, size and features such as modern appliances or energy-efficient upgrades. The appraiser will also consider any recent renovations or improvements you’ve made to the property and how much those additions increased its overall value. Additionally, they may factor in things like traffic noise or other nearby nuisances which could negatively impact its overall worth.  

  

What Can Happen if Your Home Doesn't Appraise for Enough?

In some cases, the appraised value of your home may be lower than what was offered by the buyer—which means that if you accept their offer without making any adjustments, then they won’t be able to secure financing for it without going over budget. In these cases, either you or the buyer may need to make up the difference in order for them to purchase it successfully—or else look for another buyer who can pay more for it based on its true market value. 

 

Conclusion: 

In conclusion, understanding what happens during an appraisal report can help homeowners prepare their properties accordingly before putting it up for sale. An accurate appraisal ensures that buyers don’t overpay for a home while also protecting lenders from issuing mortgages above fair market value. By taking these steps now and ensuring that all necessary repairs are completed prior to listing your house on the market, you can rest assured knowing that everything has been done properly when buyers start asking questions about getting an appraisal report done on your property.

 

 

Posted in Seller Guide
Nov. 18, 2022

The Best Way To Invest In Real Estate: 3 Different Strategies Revealed!

If you're thinking about investing in real estate, you're not alone. Real estate investing is a popular way to grow your wealth. But it's not a get-rich-quick scheme. You need to do your research and develop a solid plan before you start investing. 

There are many different ways to invest in real estate. This can be confusing for new investors. But don't worry, we're here to help. In this blog post, we'll reveal three different real estate investment strategies. We'll also share some tips on how to get started with each one. 

Check out in this video

1. Rental Properties 

One of the most common ways to invest in real estate is to purchase a rental property. You can then rent out the property to tenants and receive regular rental income. This is a great way to build long-term wealth. And it's a relatively passive form of investing, which means you won't have to put in a lot of work once you find the right tenant. 

To get started with this strategy, you'll need to save up for a down payment on the property. You should also make sure you have enough money set aside to cover any unexpected repairs or maintenance costs. Once you've purchased the property, it's important to screen potential tenants carefully. You want to make sure they're reliable and will take good care of your property. 

3. House Hacking 

If you're looking for a more creative way to invest in real estate, house hacking might be for you. With this strategy, you purchase a multi-unit property (such as a duplex) and live in one unit while renting out the other units. This allows you to live for free (or close to it) while still earning rental income from your tenants. 

To get started with house hacking, you'll need enough money for a down payment on the property as well as some extra cash reserves in case any repairs are needed (as they often are with older properties). It's also important to make sure that the rental income from your tenants covers all of your expenses (mortgage, insurance, etc.). If it doesn't, you may end up losing money each month instead of making a profit. 

3. BRRRR - Buy Renovate Rent Refinance and Repeat

This is the combination between fix and flips method and renting method. With this strategy, you purchase a property that needs some work (hence the "fix" part). You then make the necessary repairs or renovations and rent the property at higher value. After you identified a tenant, you can refinance and get all the capital back. Then of course, you can use the cash to purchase another property (that is repeat)

Conclusion: 

There are many different ways to invest in real estate. The best way for you will depend on your goals, resources, and level of experience. If you're just starting out, we recommend choosing one of the three strategies we've outlined above and doing your research before diving in headfirst. With careful planning and execution, investing in real estate can be a great way to grow your wealth over time!

Posted in Investor Guide
Nov. 16, 2022

REAL ESTATE INVESTING: HOW TO FIND THE BEST DEALS!

Are you looking to get into real estate investing but don’t know where to start? Many people think that you need a lot of money to get started in real estate, but that’s not necessarily true. With some creativity and knowledge of the market, you can find great deals on properties that will turn a profit. Keep reading to learn how to find the best real estate deals for your investment portfolio.

1. Look for motivated sellers. 

The best deals are usually found when working with motivated sellers. These are people who need to sell their property fast and are willing to negotiate on price. You can find motivated sellers by searching online listings or contacting a real estate agent. Once you find a motivated seller, be sure to act fast and make an offer before someone else does.

2. Research the market. 

It’s important to have a good understanding of the local real estate market before making any offers on properties. What are similar properties selling for in the area? Is the area growing or declining? What is the average rent for similar properties? Answering these questions will give you a better idea of what a fair price is for a particular property.

Here are some tips for Research the Market

3. Have realistic expectations. 

Investing in real estate is not a get-rich-quick scheme. It takes time, effort, and patience to see results. Don’t expect to buy a property and flip it immediately for a huge profit. Do your research, be patient, and stay realistic about what you can expect to achieve in the short-term and long-term with your investment property.

4. Be prepared to negotiate. 

Remember that there is always room for negotiation when it comes to real estate deals—especially if you’re working with motivated sellers. Be prepared to counteroffer if the seller’s initial asking price is too high for your budget. It never hurts to ask!

5. Have financing in place beforehand. 

If you plan on taking out a loan to finance your real estate investment, it’s important to have everything in place before making an offer on a property. Applying for loans can take time, so it’s best to have all of your ducks in a row before finding that perfect investment property. You don’t want to lose out on a great deal because you didn’t have financing lined up beforehand! 

 

Conclusion: 

There are great deals to be found if you know where—and how—to look for them! By following these tips, you can start building your real estate portfolio without breaking the bank. Just remember to do your research, be patient, and be prepared to negotiate—and you’ll be well on your way to finding profitable real estate deals in no time!

Nov. 11, 2022

The Best Way to Sell a Property with a Tenant

If you're a real estate investor, chances are you've thought about selling a property with a tenant. After all, it can be a great way to make some quick cash. But before you put your property on the market, there are a few things you need to know. In this blog post, we'll give you some tips on how to sell a property with a tenant.

 

1. Get Your Paperwork in Order 

The first thing you need to do when selling a property with a tenant is to get your paperwork in order. This means making sure that you have all the necessary documentation, such as the lease agreement, the rental agreement, and any other relevant paperwork. Having this documentation in order will make the selling process much smoother and will give buyers confidence that they're getting what they're paying for.

 

2. Find the Right Buyer 

Not all buyers are created equal, and this is especially true when it comes to buying properties with tenants. You need to find a buyer who is specifically interested in properties with tenants. The best way to do this is to list your property on an online platform that specializes in connecting investors with properties that fit their criteria. By doing this, you'll save yourself a lot of time and energy.

Check out Some Tips to Find the Right Buyer here

3. Negotiate the Price 

Once you've found a buyer who is interested in your property, it's time to negotiate the price. When negotiating the price of a property with a tenant, there are two things you need to keep in mind: the current market value of similar properties and the value of your property with the tenant factored in. If you can find comparable properties that have recently sold for less than your asking price, then you have some room to negotiate. However, if comparable properties have sold for more than your asking price, then you should hold firm on your asking price or even increase it slightly. Remember, the value of your property goes up significantly when there's already a tenant in place. 

 

Conclusion: 

 

Selling a property with a tenant can be a great way to make some quick cash; however, there are a few things you need to keep in mind before putting your property on the market. First, get your paperwork in order and make sure you have all the necessary documentation (such as the lease agreement and rental agreement). Second, find the right buyer by listing your property on an online platform that specializes in connecting investors with properties that fit their criteria. And finally, negotiate the price by taking into account both the current market value of similar properties and the value of your property with the tenant factored in. By following these tips, you'll be well on your way to successfully selling your property with a tenant!

 

Nov. 9, 2022

The Buyers Inspection Process: What You Need to Know

As a seller, it is important to be prepared for the buyers inspection process. This process can be stressful, but if you know what to expect, you will be able to manage it more effectively. Here is what you need to know about the buyers inspection process.

The buyers inspection process typically takes place after the offer has been accepted and the buyer has had a chance to do their due diligence. The inspection is an opportunity for the buyer to get a closer look at the property and identify any potential problems. The inspection report will be shared with the seller, and the seller will have an opportunity to respond. 

The most common type of inspection is a general home inspection, which covers the condition of the major systems in the home, such as the plumbing, electrical, HVAC, and roof. The buyer may also choose to have additional inspections performed, such as a pest inspection or a radon test. 

Once the inspection is complete, the buyer will share the report with the seller. The seller will then have an opportunity to review the report and decide how they would like to proceed. The options available to the seller include making repairs, offering a credit at closing, or negotiating a lower sales price. 

Conclusion: 

The buyers inspection process can be stressful for sellers, but it is important to be prepared. By knowing what to expect and having a plan in place, you can manage the process more effectively. If you have any questions about the buyers inspection process or would like help preparing your home for sale, please contact me today. I would be happy to assist you.

Nov. 2, 2022

THE 6 KEY STEPS TO COMPLETING A REAL ESTATE TRANSACTION

If you're new to the world of real estate investing, the process of completing a real estate transaction may seem daunting. However, it doesn't have to be. In this blog post, we'll outline the six key steps that are involved in completing a real estate transaction, from start to finish. By following these steps, you can ensure a smooth and successful transaction.

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1. Find a motivated seller. 

The first step to completing a real estate transaction is finding a motivated seller. A motivated seller is someone who is willing to sell their property for less than its market value in order to sell it quickly. There are a number of ways to find motivated sellers, such as through online listings or by contacting a real estate agent who specializes in working with them. 

2. Negotiate the purchase price. 

Once you've found a motivated seller, the next step is to negotiate the purchase price of the property. This is where having a good understanding of the current market value of the property will come in handy. You'll want to offer the seller a fair price that is below the market value, but still high enough that you can make a profit on the sale. 

3. Get financing in place. 

If you're planning on financing the purchase of the property, the next step is to get pre-approved for a loan from a lender. This will give you an idea of how much money you'll be able to borrow and what your monthly payments will be. It's important to get financing in place before making an offer on a property so that you know how much you can afford to spend. 

4. Make an offer on the property. 

Once you've negotiated a purchase price with the seller and have your financing in place, it's time to make an official offer on the property. The offer should be in writing and should include any contingencies that are required for the sale, such as an inspection or appraisal contingency. 

5. Close on the property . 

The final step in completing a real estate transaction is closing on the property . This is when all of the paperwork associated with the sale is signed and finalized and ownership of the property is transferred from the seller to the buyer . 

6 . Manage or rent out the property . 

After you've successfully completed a real estate transaction and become an owner of investment property , it's important to manage or rent out your property responsibly . This includes collecting rent from tenants , maintainingthe property , and handling any repair or maintenance issues that may arise . By following these steps , you can ensure that your investment property is well-maintained and profitable . 

 

Conclusion:

Completing a real estate transaction doesn't have to be complicated or stressful—if you know what steps to follow . By following these six simple steps , you can ensure that your transaction goes smoothly and that you end up with a profitable investment property .

Oct. 26, 2022

Deal Analyzer for 1961 N HARTFORD ST 1157

Here is another good potential investment property. Click here for more info

Here is a little info of the property:
- # of bedrooms: 3
- # of bathrooms: 2.5
- Asking price: $285,000

Potential rent in this area is about $2,000 to $2,200 a month* 

The current asking price is $285,000 which will be tough to make it cash flow at lowest monthly rent estimate. However, if the seller accepted offer at $250,000 or less there is a positive cash flow about $200/month or more.

Since the house will need a lot of work, including flooring replacement, dry wall damage, leak damage and cabinet replacement, the house is less likely to be sold to a regular buyer. This is a great deal for investor.

Here is a quick analyze of the Monthly Cash Flow and Annual CoCROI for the property

1961 N HARTFORD ST 1157, Chandler AZ Input Output  
Purchase Price $250,000.00 $250,000.00  
Closing cost 1.50% $3,750.00  
Renovation $30,000.00 $30,000.00  
Holding Pre-rent Cost (number of Months vacant) 2 $4,000.00  
Total Project Cost   $287,750.00  
Loan Amount 80% $200,000.00  
Other Loan (etc. for down payment) 0% $0.00  
Total Loan   $200,000.00  
Total Cash   $87,750.00  
Interest Rate 8.50%    
Loan Period (month) 360    
Monthly Mortgage Expense   $1,527.01  
Monthly HOA (monthly input) $164.00 $164.00  
Monthly Tax (Yearly input) $703.00 $58.58  
Insurance (Yearly input) $500.00 $41.67  
Total Must Have Expense   $1,791.26  
Property Manager 150 $150.00  
Vacancy (recommended 5%) 5% $100.00  
Repair (recommended 5%) 5% $100.00  
Capital Expenditure (recommended 10%) 10% $200.00  
Total Expense with Saving   $2,341.26  
Monthly Income $2,000.00    
Other Income $0.00    
Total Monthly Income   $2,000.00  
Cash flow with Must Have Expense Only   $208.74  
Annual CoCROI with Must Have Expense Only   2.85%  
Cash flow with Saving   -$341.26  
Annual CoCROI with Saving   -4.67%  
 

 

Let me know if you want further information on this property

 

*Rent estimate is calculated by Rentometer.com

Oct. 21, 2022

3 proven ways to obtain a down payment on your dream home

A down payment is a portion of the home's purchase price that the buyer pays upfront, typically representing 10% to 20% of the total purchase price, but it could be as low as 3% or in some cases even $0 (contact me for more information). For many homebuyers, coming up with a down payment is the biggest obstacle standing between them and homeownership. Fortunately, there are a number of ways to come up with the cash you need for a down payment. Keep reading to learn about three proven methods.


Check Out the Video Here

 

1. Save, save, save 

Of course, you could always try the old-fashioned method of saving up for your down payment over time. If you're disciplined about setting aside money each month, you'd be surprised how quickly your savings can grow. Another option is to get creative and look for ways to earn some extra cash that you can put towards your down payment. Do some research and see what options are available to you. 

 

2. Get a Gift from Family or Friends

Another option is to ask family or friends for help with your down payment. This can be a great option because it doesn't put you in debt and there's no risk of having to repay the money if your plans change. However, it's important to remember that gifts can come with strings attached, so make sure you're clear about expectations before accepting any money.

 

3. Take advantage of government programs

There are a number of government programs that can help you come up with the cash you need for a down payment. Search for “Down Payment Assistance” program in your state to get more information about the available programs. In Arizona, you can check out  this website  There are also provincial and territorial programs that offer financial assistance, so be sure to check what's available in your area. 

 

Conclusion:

Saving up for a down payment on your dream home can seem like an insurmountable task, but it is possible if you get creative and take advantage of all the resources that are available to you. By following the tips above, you'll be well on your way to becoming a homeowner in no time!

 

Posted in Buyer Guide
Oct. 20, 2022

Deal Analyzer for 1914 W Plata AVE, Mesa, AZ 85202

Here is another good potential investment property. Click here for more info

Here is a little info of the property:
- # of bedrooms: 3
- # of bathrooms: 2
- Asking price: $400,000

Potential rent in this area is about $2,300 to $2,500 a month* 

The current asking price is $400,000 which will be tough to make it cash flow at lowest monthly rent estimate. However, if the seller accepted offer at $350,000 there is a positive cash flow. This will be less likely to be possible, however, some tired seller may take the chance.

Here is a quick analyze of the Monthly Cash Flow and Annual CoCROI for the property

 

1914 W Plata AVE, Mesa, AZ 85202 Input Output  
Purchase Price $350,000.00 $350,000.00  
Closing cost 1.50% $5,250.00  
Renovation $8,000.00 $8,000.00  
Holding Pre-rent Cost (number of Months vacant) 1 $2,300.00  
Total Project Cost   $365,550.00  
Loan Amount 80% $280,000.00  
Other Loan (etc. for down payment) 0% $0.00  
Total Loan   $280,000.00  
Total Cash   $85,550.00  
Interest Rate 8.50%    
Loan Period (month) 360    
Monthly Mortgage Expense   $2,137.81  
Monthly HOA $0.00 $0.00  
Monthly Tax (Yearly input) $1,371.00 $114.25  
Insurance (Yearly input) $500.00 $41.67  
Total Must Have Expense   $2,293.73  
Property Manager 150 $150.00  
Vacancy (recommended 5%) 5% $115.00  
Repair (recommended 5%) 5% $115.00  
Capital Expenditure (recommended 10%) 10% $230.00  
Total Expense with Saving   $2,903.73  
Monthly Income $2,300.00    
Other Income $0.00    
Total Monthly Income   $2,300.00  
Cash flow with Must Have Expense Only   $6.27  
Annual CoCROI with Must Have Expense Only   0.09%  
Cash flow with Saving   -$603.73  
Annual CoCROI with Saving   -8.47%  
 


Let me know if you want further information on this property

 

*Rent estimate is calculated by Rentometer.com

Oct. 19, 2022

The Step-By-Step Guide to Preparing Your Home For Sale

If you're thinking of selling your home, there's a lot to do to get it ready for sale. From decluttering and deep cleaning to making small repairs and staging, it can be overwhelming to know where to start. But don't worry, we're here to help. In this blog post, we'll walk you through the step-by-step process of preparing your home for sale so that you can get top dollar for your house.


Check Out the Video Here!!!

1. Declutter and Deep Clean

The first step in preparing your home for sale is to declutter and deep clean every room in the house. This includes taking down personal photos, removing excess furniture, and cleaning all surfaces from top to bottom. Don't forget those hard-to-reach places like ceiling fans and baseboards! potential buyers will be looking at your home with a critical eye, so you want to make sure it's in tip-top shape.

 

2. Stage Your Home 

Staging is one of the most important steps in preparing your home for sale because it allows potential buyers to see themselves living in your space. To stage your home effectively, start by decluttering (yes, this step is worth repeating!) and then arranging furniture in a way that is both aesthetically pleasing and functional. You should also add some personal touches such as fresh flowers or scented candles to make the space feel warm and inviting. Remember, you only have one chance to make a good first impression—so make it count!

 

3. Make Small Repairs (Bonus Tip)

Once you've decluttered and cleaned, it's time to make any small repairs that are needed. This may include patching holes in walls, fixing broken fixtures, or painting chipped cabinets. Again, you want your home to be in the best possible condition before putting it on the market. Buyers will be looking for any excuse to lowball you, so it's important to take care of any repair items ahead of time.

 

Conclusion: 

Preparing your home for sale can seem like a daunting task, but we promise it's doable! By following these simple steps—decluttering and deep cleaning, making small repairs, and staging your home—you'll be on your way to getting top dollar for your house in no time. Good luck!

 

 

Posted in Seller Guide