People who already have a home usually need the funds from the closing to secure their next purchase. If a “move-up” buyer wants to buy a home during a depressed market, that means they usually have one to sell themselves. Timing becomes very important and negotiations become more involved so neither party is forced into short-term housing or find themselves in rent-back situation because closing dates couldn’t match up. It’s important to work closely with your Realtor, your lender and be made aware with frequent updates from the other side of the table that things are headed in the right direction, and for a smooth closing. The ideal here is for all the stars to align, for everyone involved.
Interestingly, if a Seller wants to sell his home to take advantage of a “hot” market (when prices are fairly high) they generally are faced with the reality of securing that purchase within the same “hot” market, and can expect to pay a premium on the other side as well. In a very real way, things even out. Having said that, the way some areas are rebounding quicker than others it is possible for a Seller to sell for a higher price in an area that currently has much more demand than the area they are moving into next. This could be an inter-state move or it could even happen in the same county.
Obviously, economic patterns will change over time. They always have. Since The Great Depression of 1929, we have had quite a few periods of declining markets not only here in the USA, but globally as well. No matter the length of time between depressed markets and/or higher interest rates, you wouldn’t want to wait over a period of years to buy a home, would you? You would still potentially miss out on a substantial amount of equity and appreciation by waiting over long periods of time. Not to mention the losses you would have incurred in paying rent that you’ll never see again.
Among all of these economic shifts, according to the U.S. National Bureau of Economic Research (the official arbiter of U.S. recessions) the sub-prime mortgage crisis was a disaster. In terms of overall impact, it was concluded that it was the worst global recession since World War II. It began in December 2007 and ended in June 2009, and thus extended over 19 months. Of course this is common knowledge today and the country is still rebounding from the tremors felt along the way. According to Wikipedia, there are several “narratives” attempting to place the causes of the recession into context, with overlapping elements. Four such narratives include:
- There was the equivalent of a bank run on the shadow banking system, which includes investment banks and other non-depository financial entities. This system had grown to rival the depository system in scale yet was not subject to the same regulatory safeguards. Its failure disrupted the flow of credit to consumers and corporations.
- The U.S. economy was being driven by a housing bubble. When it burst, private residential investment (i.e., housing construction) fell by nearly 4% GDP and consumption enabled by bubble-generated housing wealth also slowed. This created a gap in annual demand (GDP) of nearly $1 trillion. The U.S. government was unwilling to make up for this private sector shortfall.
- Record levels of household debt accumulated in the decades preceding the crisis resulted in a balance sheet recession (similar to debt deflation) once housing prices began falling in 2006. Consumers began paying down debt, which reduces their consumption, slowing down the economy for an extended period while debt levels are reduced.
- U.S. government policies encouraged home ownership even for those who could not afford it, contributing to lax lending standards, unsustainable housing price increases, and indebtedness.
Fast forward to 2015, where there are many “boomerang” buyers that are starting to come back into the market now due to their time on the sidelines being almost up because of a short sale, or foreclosure they may have had to suffer though because of the circumstances stated above. Many homeowners are forced to rent because they wouldn’t be extended a line of credit – yet. Once they eagerly return to the game though, sources predict a large upswing in home sales and a subsequent decline in the rental market which for several years now has been white hot.
Today’s buyer would be very wise to form an alliance with their lender of choice, run a credit report, find out the reality of their situation and what programs they might qualify for with regards to homeownership and sweep up any mishaps from their past (if they have any) and put a plan of action into place and follow it diligently. For many people, this is easier said than done but if home ownership is still something you strive for – it is entirely possible to go out and get it done!
Buying your first home is one of the biggest decisions you will ever make. There are a lot of considerations to make and the process can prove a stressful one. However, it doesn’t have to be complicated.
As an Arizona real estate agent, I have helped many first-time home buyers achieve their home ownership dreams. Below are three tips to help you get started.
- Talk to a lender. The first step is determining whether you are qualified to buy a home. You don’t want to waste time looking for homes if you are unable to obtain a mortgage. However, be prepared for questions. A lender will require a lot of information, such as:
- Employment history.
- Monthly income.
- Debts owed.
- Credit scores.
- Last 2 years of tax returns.
- Work with an Arizona real estate agent. There are many things in life to do alone. However, buying a home should not be one of them. You want to avoid any and all costly pitfalls and ensure you find the right home within your means. As a licensed West USA real estate agent, I will:
- Make sure you are working with the right lender.
- Allow you access to homes online.
- Help you determine the right home in the right price range.
- Give you physical access to any home you want to see.
- Negotiate aggressively on your behalf.
- Make sure all contracts and paperwork are completed properly.
- Answer any questions you might have during the entire process.
- Help you close on your first home.
- Have realistic expectations. Once you determine the area in which you want to live and the price range you can afford, you should have realistic expectations regarding your home options. No home will have absolutely everything you want. I will help you understand what you should expect in a home and the important things you should look for.
Obviously, there is a lot more that goes into buying a home. As your agent, I will help you navigate through the entire process of buying your first home. I want to help you realize your AZ real estate dreams.
There are a great deal of considerations to make when selling your home. In the end, your goal is to sell it fast and get the maximum price possible.
As an Arizona real estate agent, I have seen sellers make huge mistakes, leaving thousands of dollars on the table. Here are three tips to selling your home quickly.
- Price it right. If you price your home too low, you lose out on potential profits. If you price it too high, your home might sit on the market too long, perhaps never selling. Finding the right price starts by understanding what homes in your neighborhood have been selling for.
- As an experienced AZ real estate agent, I can help you determine the right price for your home. I have access to technology the average seller does not have. I will give you “real” comps in your area in ensure you know exactly what your home is worth.
- Curb Appeal. You’ve heard the expression, “First impressions are everything!” The same holds true when it comes to selling your home. Your front yard will be the first thing a buyer sees when they pull up. Make sure:
- There are no weeds in your yard.
- All trees and shrubs are trimmed.
- Dead trees or shrubs are removed.
- The rocks have been raked.
- All oil stains are removed from your driveway.
- Any “eye sores” from your yard are removed.
- Remember, the person who comes through your door is imagining living in your home. No one imagines living in a cluttered home. Anything that can be packed in boxes ahead of time should be. Make sure the floors are clean and the furniture is dusted. Also, make sure all the beds are made.
There are many things in life to do alone. Selling your home is not one of them. As a West USA agent, my goal is to help you sell your Arizona home fast and for the maximum price possible.
Arizona, especially the Phoenix metropolitan area, continues to be one of the hottest real estate markets in the nation. Whether it’s the diversity of its people, the phenomenal climate or job opportunities, people come here from all over the world to raise their families.
In addition, the AZ real estate market offers affordable housing, giving families the opportunity to start building their “nest egg.” Here are three other great reasons to consider Arizona:
- Professional Sports. Arizona has become one of the leading states when it comes to professional sports. There was a day when the Phoenix Suns (NBA) was the only game in town. Arizona residents have a variety to choose from when it comes to professional sports, including:
- Arizona Diamondbacks (MLB).
- Phoenix Coyotes (NHL).
- Phoenix Mercury (WNBA).
- Arizona Rattlers (Arena Football).
- The Waste Management Open (PGA).
- Spring training, including the Diamondbacks, Dodgers, Giants, Reds, Indians, Royals, Cubs and many more.
- Recreational Opportunities. One of the first things new residents learn about Arizona is that there is so much to do. Arizona is comprised of:
- Lakes for skiing and jet skiing.
- Mountains for snow skiing and camping.
- Hundreds of golf courses.
- Hiking trails.
- Parks for sports, playing, volleyball and much more.
- Major International Airport. Sky Harbor Airport has become one of the easiest airports to navigate. With daily international and national flights, getting to where you need to go is a simple click away. You are never too far from where you need to go.
No matter where you are coming from, Arizona has something for everyone. At West USA Realty, we can help you make your Arizona real estate dreams come true.