What’s Made 2016 So Special for Us?

To commemorate our 18th year in the real estate industry, we wanted to take the opportunity to thank you for helping make our service possible.

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It’s hard to believe that we’re wrapping up our 18th year in the real estate industry. Time has sure gone fast. Today, we wanted to thank you for the opportunity to be able to help 150 families buy or sell real estate this year. It is a great honor for us to serve you.

It’s a great honor for us to serve you.

Additionally, we also want to wish you happy holidays. We’re already excited for 2017, and we’re looking forward to moving our offices to a new location, the address of which we will be announcing shortly so that you can continue to receive the support and representation that you’ve come to expect from us.

If you have any questions, don’t hesitate to give us a call or shoot us an email. We look forward to talking with you soon!

Which Contract Contingencies Are the Most Important?

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There are some things you should absolutely know about real estate contingencies that are in contracts.

The first type of contingency is the inspection period. Most of us know that the buyer gets 10 days to inspect the property, and they can cancel the deal at any point along the way.

The inspection contingency allows a buyer to walk away.

The second is the financing contingency, which many sellers are not aware of. This means that in the event that the buyer is unable to obtain their financing, they can cancel the contract at any point up to the close of escrow and get their earnest money deposit back.

The third is the appraisal contingency, which is a big trend in our market right now. There is an appraisal contingency written into the contract, meaning the property must appraise for the agreed-upon purchase price, or other agreements may have to be made between the buyer and seller with the sales price.

The fourth one, which is also a big one in today's market, is an offer being contingent upon the sale of the buyer's home. If you get an offer that is contingent on the buyer selling their current home, you want to be sure that they are listing on the MLS with a professional agent to ensure that their home will, in fact, get sold.

If they're under contract, you want to know exactly where they're at in that process. Have they gone through the finance and appraisal processes in their existing transaction? In the event they are unable to close, what will be the plan moving forward from there? Any great agent in your local market should be able to help with this.

If you have any other questions about contracts, give me a call of send me an email. I'd be happy to help you!

Are You Looking for a Career in Real Estate?

I'm excited to say that our organization is growing in leaps and bounds, and this means that we have some great opportunities to offer.

Today I wanted to reach out to you or anyone you know who might want to take advantage of a career opportunity and experience immediate production. Click here to request a meeting with us or send us an email at Info@TheHerfelGroup.com and we can set up a time to speak with you.

We'd love to tell you more about what this opportunity could look like and mean to you.

I hope to hear from you soon!

Is Now the Time to Sell an Investment Property?

I wanted to talk today about real estate investment properties. Many of the questions I've been getting recently are about whether now is the time to sell your real estate portfolio.

My answer is that it is never time to sell - keep your properties forever! That is what your portfolio is meant for.

However, if you're trying to time the market and get the most out of your investment portfolio, now is a great time to do it. We know that real estate runs in about seven-year cycles, and the last peak was in 2007. Right now, we're living in the next peak window; therefore, you're going to be able to get the most money possible since 2007.

If you want to sell, you'll exit the investment at peak pricing.

Looking forward, what you'll get now is probably the most you'll be able to get for a property until about 2022. If maximizing your investment and exiting these investment properties at some point is the most important thing to you, now is the time to do it.

On the flip side, if you're looking to buy, the good news is that we have a perfect storm going on right now. As we know, investment properties are all about positive cash flow, so with interest rates as low as they are, you're still able to purchase at today's prices and get positive cash flow. You're having someone else pay your mortgage for you, which is a great investment strategy.

As always, if you have any questions, feel free to reach out to me by phone or email. I hope to hear from you soon!

Should You Sell Your Home During an Election Year?

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How will the election affect your ability to sell your home?

This election year has had no effect on the market at all. Low interest rates have continued to drive home sales. Essentially, this election has about as much impact on the real estate market as the Kanye West/Taylor Swift feud.

The real estate cycle is what drives home sales. Real estate cycles run about seven years. Our most recent peak was in 2007, after which we went through a valley. Now we are sitting atop another peak.

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The real estate cycle 
drives home sales.

”

After the election, in 2017 or 2018, the market will most likely decline again. Now is the time to sell. Remember, real estate runs in seven-year cycles; our next peak won’t happen again until 2022 or 2023.

If you have any questions, please do not hesitate to give me a call or send me an email. I would be happy to help you!

How to Increase Your Resale Value in Phoenix

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There are a lot of misconceptions about which types of home improvements are necessary to make on a home before you sell it. Contrary to popular belief, it’s not always a good idea to invest in a large kitchen or bathroom remodel right before you list your home for sale.

A good place to start when thinking about improvements is to schedule a home improvement walkthrough of your property. Often you will not need major improvements like replacing cabinets or flooring. A better alternative is to replace your fixtures, door handles, and knobs. A lot of small and inexpensive changes can add up to make a big impact on the overall look of your home.

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Repainting, decluttering, and staging 
your home professionally can 
completely change the look 
and feel of your home.

”

Repainting, decluttering, and staging your home professionally can completely change the look and feel of your home. If you need help securing good vendors for these purposes, we can help. We have pre-negotiated pricing and deals on many common home renovation projects. You’ll get the best price along with the best quality.

To schedule your personal walkthrough, please don’t hesitate to contact us. We look forward to hearing from you!

How to Deal With Appraisal Issues in an Appreciating Phoenix Market

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We’re currently in a strong seller’s market, which means we have an appreciating market happening. The number one challenge we’re experiencing for seller’s clients during this period is receiving appraisals lower than the agreed-upon purchase price. When this happens, we have three tips advising them on how to deal with it:

1. Consider taking less of an offer if the offer is cash. In a seller’s market, it’s not uncommon to receive multiple offers. If any of those offers involve cash, consider taking it even if it’s less. Since appraisals are loan-based, cash negates the need for even having them.
2. Remove the appraisal contingency out of the offer. Although our contract states that the home must appraise for at least the purchase price, you can remove the appraisal contingency. Therefore in the event that the property doesn’t appraise, the buyer makes up the difference between the purchase price and the appraisal price in cash.
3. Know that you do not have to cancel the contract if the home does not appraise. This is very important. If you haven’t done the first two, you can go back and negotiate with the buyer.
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   If your home doesn’t appraise, you
   can always go back and negotiate
   with the buyer.

   ”

As always, if you have any further questions feel free to reach out to us by calling or sending an email.

Now is the Time to Sell Your Phoenix Home

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Should I sell now, or wait a little bit longer?

That’s the most frequently asked question we’re getting from our seller clients in today’s market. It’s a common thing to hear in an appreciating market - a seller naturally wants to get as much as they can when they can for their home.

Before answering this, we tell them first that you have to know if you’re going to be purchasing in the same market. If the answer is yes, then the value of each home will increase or decrease concordantly. The home you’re selling may go up, but so is the one you’re buying. You can sell for more, but you’ll also pay for more. Knowing this, it makes more sense if you’re financing in today’s market to purchase that next home now and lock in that 30-year interest rate at the low rate we see today.

 

The second thing to consider is the inherent unpredictability of the market itself. Nobody knows if we’ve already reached the top and are about to decline, or vice-versa. The only thing we do know is that right now it’s a seller’s market.  

Thus, our advice is twofold: a) don’t try and time the market, and b) if you’re purchasing in the same market, make that move now and lock in that interest rate.

Taking all this into consideration, the time to sell is now. Not only are you going to get more money for your home and have less to do as far as getting it ready to sell, but it will spend less time on the market. 

How Jesse Herfel Helped Ric by Being Knowledgeable and Organized

"I worked with him on buying a few investment houses. He was very professional and he had a very efficient process. He has a knowledgeable and confident team that will officially get you through a transaction. He’s got all of his systems and processes in place and also the personal touch to guide you!"

How Jesse Herfel Helped Michael by Being Informative and Accommodating

"We were able to find a property that met our needs not only from a financial standpoint but also for the project that we were working on. Everybody at the office did a great job of keeping us in the loop and keeping things moving. They did a really good job and we were very happy with the service!"

When Is the Best Time to Sell a Home in Phoenix?

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Today I’m here with Brandon Morgan, one of our lead listing specialists. He’s going to help me talk about why people sell their homes and how they find out if the time is right to sell a home.

Motivation is always a big factor for people. That’s why Brandon always asks a seller why they want to sell their home. Is the home too big? Is the home too small? There are thousands of reasons why people want to move. When an agent understands why you want to move, they can be much more effective during the sale of your home.

A lot of people will sell their homes because they have enough equity built up. This is a great reason to sell your home from a financial standpoint. If you’re able to sell now and get out with some equity, then I would recommend talking with us because it may be an excellent time to try selling your home. Our market has appreciated, so now may be the time to make your move.

Give us a call if you’d like to work through some of the numbers when you’re attempting to sell your home. We would be happy to arrange a time to speak with you!

How the Jesse Herfel Group Helped Carolyn by Being Resourceful and Going Above and Beyond Their Duties

"He helped me rehab my entire house. I live in California and my property is in Arizona but we were able to rehab the entire house from California! Every single day he went over there to help and even Facetimed me to help me see what was going on. I could have never done anything without Brandon. Every day he went above and beyond!"

What Phoenix Sellers Should Look for in an Offer

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Today, I’ll go over a few questions that a seller should ask themselves while considering a buyer’s offer.

First of all, does the price meet or exceed your needs as a seller? You probably have a certain amount of money that you want to net after the closing costs and commissions have been taken care of. Will you get that money with this offer?

You should also consider the terms and conditions. Does the buyer have to sell a home before they can buy yours? Do you have time to wait for them to do that? What are the inspection contingencies? Basically, look for anything that may affect your net income and the ability to close the transaction.

Which brings me to my next point, does the buyer have the ability to close the transaction? Verify proof of funds. Make sure they can obtain financing. Make sure they have gotten the necessary documents to their lender.

Next, does the close of escrow date meet your needs? Sometimes a buyer may want an extended closing, which may not benefit you. If you are still looking for your next home, an extended closing may work in your favor. It all depends on your unique situation.

How big is the down payment? Although the down payment doesn’t tell the buyer’s whole financial story, it can affect their ability to close the transaction. The down payment amount is important.

Finally, how will the potential buyer react to inspection issues? Practically every home inspection yields surprises to the buyer and the seller. How will the buyer react to those issues? If the buyer is an investor, they will probably just walk away. If a buyer wants to live in the home and they’ve fallen in love with the property, the buyer will usually negotiate those issues with you in order to close the transaction.

If you have any questions about today’s video or about real estate in general, give me a call or send me an email. I would be happy to help you!

The Best Methods to Find a Home’s Value

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Today we’re going to be discussing how you can find out what your home is worth for the 2016 spring selling season. We’ve got four great tips for you today, here they are:

1. Find out what your X-factors are.

These include finding out what nearby homes have sold for, as well as taking improvements you’ve made to your home into consideration when coming up with a sale price.

2. Use an agent who’s a local expert.

It’s a good idea to request a CMA from a few different local agents to see exactly what homes like yours are selling for so you’ll know what to expect.

3. Hire an appraiser.

If you can’t establish a good value from people you’re speaking with, this is another option you have. Although it costs a few hundred dollars, it’s one of the more accurate valuations you can get.

4. Competition, consumption, condition.

These three items are collectively referred to as “The 3 C’s”. It’s important to know what other homes buyers are looking at, how homes are selling in the current market, and what improvements (or lack thereof) will affect your home’s value.

There you have it, our top 4 tips for finding your home’s value. If you have any questions for us, give us a call or send us an email. We would love to hear from you!

The Scoop About Phoenix Real Estate

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Often, clients ask me about what’s going on in the Phoenix market. Today, I’ve compiled the top five questions to answer for you all.

1. Is it a buyer’s or seller’s market? We’re experiencing a strong seller’s market in homes priced up to $350,000. It evens out for any properties priced above $350,000.
2. What does housing inventory look like on the MLS? Currently, there’s about four months of inventory, which is quite low.
3. How does inventory affect prices? As you know from econ 101, high demand and low supply results in rising price. Right now, prices are appreciating at a 5% rate.
   
4. What about interest rates? Interest rates are still historically low at 5%. This is an opportune time for buyers to take advantage of this.
5. What does this mean for you? As a buyer, you should find a home ASAP! Sellers should list today while inventory is still low.

If you’re thinking about buying or selling in Phoenix, give me a call or send me an email! I’d be happy to answer any real estate questions you have.