position realty

Position Yourself For Success

The Critical First Two Weeks of Marketing Your Home For Sale

Brokers share their listings with other brokers in the multiple listing service (MLS) under certain rules of cooperation and compensation. One of the rules of cooperation is that each broker and agent make a new listing available to other MLS members within 24 or 48 hours of signing the listing agreement with the seller.

This is to give you, the seller, the greatest chance of selling your home during the first two weeks of marketing. This critical two-week period is your best opportunity to sell your home.

Several key events happen quickly:

1. Your home will be entered into the MLS showing system with your showing instructions, so that other agents can bring their buyers to see your home. While your listing is being prepared for marketing, your agent will contact his or her buyers and inform colleagues of the new listing.

2. Other data such as mapping, satellite image, neighborhood information, tax roll data, school information and other data will be added to your listing so that buyers can get the full picture of what it’s like to live in your home.

3. Your agent will either take photos, or schedule a videographer to help market your home with photos and video. This enables buyers to walk through your home and property virtually, so they can choose or eliminate your home when deciding which home to buy.

4. Your agent may create virtual or printed “feature” sheets that showcase your home’s features to advantage, so buyers can remember it was your home they liked best when it’s time to do side-by-side comparisons.

5. Your agent will schedule your home on the MLS tour for other agents to see, and ask for feedback. The agents who see your home in person are important, as they will be able to report your home’s features and condition to their buyers. Homes in top move-in-ready condition sell faster and for more money.

6. Your agent will distribute your listing data to his or her website or blog, accounts such as Twitter or Instagram, the broker’s website, and third-party sites like Realtor.com, Zillow, or Trulia.

7. Your agent will put a sign in your yard announcing your home is for sale.

8. Your agent may advertise your home in a number of places, including the local newspaper and homes magazines. Your agent may also put your home in their personal marketing tools such as e-magazines, newsletters, or email alerts to prospective buyers.

Anyone who is interested in homes in your price range and area will know your home is available for sale within the first two weeks of marketing.

If you don’t get many showings or offers, chances are good that your home may be facing stiff competition from other homes on the market. They are in a better location, or superior condition or they’re priced more aggressively.

If you don’t have showings within two weeks of listing your home, consult your agent. Perhaps you can do a little more to spruce up your home’s curb appeal, or perhaps stage the interior to better advantage.

Give your home a little more time before you adjust the price. You may be in a buyer’s market with many homes for sale. If so, buyers need more time to sort through the homes on the market.

You don’t want to take chances when marketing your home. Your best chance of selling your home is when it’s new to the market and exciting to buyers. Don’t lose your advantage by overpricing or underpreparing your home for market.

Position Realty
Office: 480-213-5251

Best New Security Tips To Keep Your Home Safe While You’re On Vacation

Nothing kills your vacation buzz like getting a call from the police back home letting you know your home has been burglarized. Basic home security tips are great, but safety measures are continually evolving, with new and more refined ways to keep you and your home safe.

Vary your inside lights

“There are differing opinions on whether or not you should leave your lights on the entire time you’re on vacation,” said A Secure Life. “If you leave your lights on the whole time you’re gone, it wastes a lot of electricity and raises your electric bill. Also, having lights on 24/7 can look just as suspicious as having them off. Electronic timers may be helpful. The danger here is that if someone was really intent on robbing you, they will likely be watching the house for a period of time. If they notice that the lights go on at exactly 7:05pm and off at exactly 10:35pm each night, it would not take a genius to figure out they are on a timer.”

The answer: A project like Caséta. “Scheduling lights to turn on at varying times is a great way to deter burglars, and the Caséta Wireless kit lets you control the lights in your home from anywhere through the Lutron Electronics app,” said USA Today 10 Best. “Its new Smart Away feature randomly turns lights on and off between 6pm and 11pm to make your home look lived in – even when you’re on vacation. Caséta Wireless also ensures you never have to walk into a dark house again – or get out of bed to turn off the lights.”

Hold your mail – even if you’re only going away for a weekend

Mail theft is up, and consequently, so is identity theft. “According to a US Postal Service official, mail theft is on the rise, with the objective of getting access to financial information to exploit for personal gain,” said ABC 10. Asking your neighbors to get your mail is great, but what if they don’t get to it right away? You don’t want thieves putting a plan of credit card fraud into action while you’re getting a massage.

Hire a dog sitter

You may think you have thought of everything when it comes to protecting your home on vacation. But if your dogs are also taking a little vacation at your fave boarding spot while you’re away, you might be removing one of the top obstacles to home break-ins: a barking dog. Nextdoor and Rover are great places to find a qualified dog sitter who can stay with your pooches and watch your house at the same time, and, often, it will cost you less than boarding, especially if you have more than one dog.

Watch the doggy door

If you do board your dogs, be sure to lock up your doggy door while you’re gone. Depending on the size of your dogs, humans might be able to enter your home while slithering through. If the doggy door is in plain sight and can be viewed from the street, even with the cover on (which may keep your dog from going in and out but may not keep a thief out), you may want to consider placing a chair or large plant in front of it.

Get rid of spare keys

Have a key hidden under the mat or in the planter next to the front door? Security experts will advise you this is dangerous on any given day with thieves looking for an easy way in. But, especially, when you’re out of town, a poorly hidden key is an invitation for unlawful entry. Instead, leave a house key with a trusted neighbor for emergencies.

Lock your gates

If someone can get into your backyard, they have an easier entry into your home since they’re more likely to be out of sight. If you regularly keep the gate unlocked to give access to gardeners or other family members, consider locking it while you’re away. Forgoing landscaping in your back yard for a week won’t hurt, and the extra security measure will help you feel at ease.

Cancel automatic deliveries

You may think about your mail, and even halting your newspaper delivery, while you’re enjoying your relaxing beach getaway, but have you forgotten anything? If you get regular deliveries – coffee, office supplies, diapers – be sure to call and cancel for the the time you’re gone. Packages piling up at your front door can invite theft – of your home, and the stuff you ordered.

Wipe away your fingerprints

Have a front door lock that uses a code instead of a key? They’re great for minimizing the likelihood that someone will be locked out. But, there have been recent cases in which crooks used fingerprint patterns on the touchpad to determine the code and break in. Get into a habit of wiping the keypad down every day to minimize the risk.

Get a security system

Nothing new about this, but a security system continues to be the No. 1 deterrent to break-ins, so it bears mentioning. PC Mag’s featured smart security system is Vivint Smart Home, which costs just $49. “Bottom Line: The Vivint Smart Home system offers 24/7 security monitoring and remote control of your door locks, cameras, heating system, and features the best video doorbell solution we’ve tested,” they said.

Get a security camera

In lieu of, or in addition to, a security system. Security cameras can give you piece of mind. PC Mag recommends two starter models: The iControl Networks Piper nv or the Nest Cam Outdoor. “These cameras have built-in sensors that track motion, and will send push notifications when movement is detected (the Piper nv will also send notifications when humidity and temperature thresholds are exceeded),” they said. “Both are solid, cost-saving alternatives to full-on security systems.”

Increase your protection against disasters

Protection from thieves isn’t all you have to worry about when you’re away. Nest Protect helps ward off potentially catastrophic fires and toxins. “This smoke and carbon monoxide alarm looks for fast-burning fires, smoldering fires and invisible-but-deadly carbon monoxide,” said USA Today 10 Best. “It speaks to you, letting you know what and where the danger is, and will message your phone if you’re not home. It can also be silenced from your smartphone so if you simply overcooked your dinner, you don’t have to go climbing to turn it off. Nest Protect tests its sensors and batteries 400 times a day and will notify you when the battery is running low rather than beep all night until you can get a ladder to replace it.”

Position Realty
Office: 480-213-5251

3 Types Of Loans To Go For If You’re Credit Challenged

The latest numbers from mortgage analysts Ellie Mae show that the average FICO score of approved conventional mortgages is 732. If a borrower has low credit scores (650 and under), then that average FICO score could seem like a chasm between them and the home they want to buy. But just because the average credit scores for a conventional mortgage are above 732 doesn’t mean low-credit borrowers are shut out of homes.

There are a good amount of options, and the federal and state level for mortgages can help even low-credit borrowers get the home of their dreams. Here are three types of loans you may want to explore.

1. USDA Loans

USDA loans are a great option for borrowers with low credit scores, because the minimum score for approval is 640. Not only that, but you won’t have to make a down payment for this mortgage. It sounds like an incredible deal and, for the consumer with bad credit, it is a legitimate option.

However, borrowers need to know the very clear limits the USDA places on where homes can be bought. Because the program was initially started to provide economic stimulation in rural areas, only homes outside of urban areas are eligible for the USDA mortgage program.

As far as the hard numbers go, several sources indicate that the borrowers’ mortgage can’t be more than 29 percent of their income, and the overall DTI is 41 percent. Both home prices and borrower income are capped, and that cap depends on the area in which the borrower wants to buy.

To understand exactly where the urban limits are for the city in which you live, the USDA’s website has a straightforward mapping app that shows clear boundaries between urban and rural.

2. State Bond Programs

While the USDA program is available in all states, bond programs tend to be specific to certain states. For example, Florida’s first-time homebuyer bond program offers up to $15,000 toward down payment and closing costs. The product is treated as a second mortgage.

Like the USDA mortgage, the credit scores needed for this loan are pretty low: 660. Also, there are income limits and limits on the purchase price of the home. The down payment assistance is “free” – you don’t have to pay it back as long as the home is your primary residence for five years after closing.

The catch here is that the interest rates are higher because they’re set by the state. So, while the borrower is getting up-front free money, they end up paying for it on the back end over the life of the loan.

3. FHA Loans

Ellie Mae estimates that 689 was the average credit score for borrowers who were accepted for an FHA loan. These loans require a 3.5 percent down payment if the borrower’s credit is 580 or higher, Zillow says, while scores between 500 and 579 require a down payment of 10 percent. The standard for the total mortgage payment is 31 percent of income, and DTI needs to be less than 43 percent. Mortgage insurance applies to the life of the loan.

A cursory view of the numbers makes the FHA loan a good bet for borrowers with average to bad credit scores who have the ability to make a 3.5 percent down payment. However, there can be some problems.

The FHA has their own criteria for the condition of the home the borrower is buying—if certain things need to be fixed, those fixes have to happen before closing and paid for out-of-pocket by the seller. However, if the borrower can find a home in good condition with only minor repairs noted during inspection, closing should proceed with the normal aches and pains.

Some Final Thoughts About Mortgages for Bad Credit Scores

It’s important to remember that borrowers have bad credit scores for a variety of reasons. One of those reasons could be that the borrower has high utilization – their credit card balances are more than 60-70 percent of their credit limits.

While most of us see this as a credit score issue – high utilization leads to lower scores – the more important area of concern is debt-to-income ratio. Having multiple credit cards with high balances leads to high minimum payments, which can cut into a borrower’s DTI and push them past 45 percent.

While a high DTI isn’t a mortgage death sentence, it is, according to the Federal Reserve, the number one reason why borrowers are rejected for a mortgage.

Position Realty
Office: 480-213-5251

Drone Technology Beneficial To The Real Estate Game

Real estate agents and home inspectors are always looking for innovative ways to keep their clients informed. One of the latest tools in the home buying and selling process is drones. Drones are remote-controlled pilotless aircraft that allow aerial shots and different views of the property and can provide an added benefit to real estate transactions.

Here are three key ways drone technology is enhancing the real estate industry:

Additional Images and Video

Before drones became accessible to real estate professionals, aerial photos and videography were limited to grainy satellite images or expensive photography sessions. Drones provide a cost effective and visually stunning alternative — and can be used as a buzz worthy mention to move the sale along. Drones also provide a way for prospective home buyers to experience a video or photo tour in an online home listing before taking the time to physically visit the house. Using this technology can help to diminish the extensive time it takes to tour available homes and can speed along the home transaction.

Catch Potential Property Problem Areas

While home inspectors are trained to uncover potential problems of a home, drones can offer another layer of enhancement to the inspections. They may be useful when inspecting steep/high roofs, chimneys and areas that might otherwise be inaccessible. With the recent changes by the FAA allowing commercial use of drones after going through a licensing process, this technology helps a qualified home inspector to reduce the unknown and potentially save homeowners the cost of previously undiscovered issues.

A Clear View of the Land

Drones have the capability to show an entire property, which is especially beneficial when the area is expansive and includes additional features like stables, acreage, farmland or even a second dwelling. This also benefits home inspectors when looking for things that can sometimes be challenging to identify when conducting inspections on foot.

The industry continues to explore ways to leverage drone-collected data to better assist real estate professionals. This includes increased use of infrared scanning, site modeling and property analysis.

While drones are providing a competitive advantage, it is important they are always used properly. Operating a drone takes extensive practice as misuse can lead to unexpected injuries to people and property. It is critical that the drone operator, whether the real estate or home inspection professional, is properly licensed by the FAA, has a commercially registered drone, understands any local or state guidelines and is properly covered by insurance. As drones are new to the insurance world as well, not all polices automatically cover their use in commercial applications. With the use of real estate technology on the rise, the industry will continue to evolve and become more competitive than ever.

Position Realty
Office: 480-213-5251

Phoenix Real Estate Market Report ~ June 2017

The current real time market profile shows there were approximately 10,179 new listings (down 692 listings from last month) on the market in June 2017 and 9,623 sold transactions (down 239 listings from last month). The overall inventory of homes on the market in June 2017 is 21,239 homes (up 9 listing from last month) which is down -22.8% as compared to the number of home on the marker in June 2014. In June 2015 there were 22,475 homes, in June 2014 there were 27,494 homes and in April 2013 there were 19,005 homes for sale on the market. Due to the large spike in the number of sold transactions and the decline in average days on market this shows buyer’s demand is strong where inventories may continue to be low and drive up prices.

Since November 2016 after our new president took office the average sales price has increased from approximately $281,000 to $304,678 or an appreciation rate of 8.2% and the number of sold transactions has increased from approximately 6,898 to 9,623 transactions or an increase of 39.5%. In 2014 real estate prices only appreciated 4.5%, in 2015 5.5% and in 2016 4.2% but in 2017 we may reach a double digit appreciation rate. The number of sold transactions usually starts to decrease in July due to summer vacations but we will have to see next month if buyer demand will continue to follow the usual trend. Since July 2016 (12 months ago), the average sold price has increased +11.7% (up from last month), the average days on market has decreased approximately -6.9% (up from last month) and the number of sold transactions has decreased approximately +23.9% (down from last month).

The volume of foreclosure purchases since July 2017 (12 months ago) has decreased approximately -33.9% and the volume of short sales decreased of approximately -36.1%. The current percentage of foreclosure sales and short sales sold is only 2% of the market which indicates a healthy market. Unfortunately, there are still some homeowners who bought between 2005 and 2007 that are still up-side-down as shown in the yearly average sold price chart above.

Since July 2016 (12 months ago), the number of homes for sale on the market have decreased approximately -5.6% or 22,504 homes for sale on the market to a gradual decrease of 21,239 homes (Down 9 homes from last month). The total number of listings is low as compared to 29,308 listings in August 2014. This decrease in the number of homes for sale indicates we are currently in a seller’s market (low supply and increased demand).

Real estate prices will continue to increase and interest rates are planned to increase in 2017 so if you are thinking about buyer a home this year will be the time to buy before you get priced out of the market. Give us a call to discuss your best buying or selling strategy, TODAY!!

Position Realty
Office: 480-213-5251

Info