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Thank You, Clients for 2017

by Melissa Dierks

Why You Need a Professional on Your Team When Buying a Home

by Melissa Dierks

Many people wonder whether they should hire a real estate professional to assist them in buying their dream homes or if they should first try to go through the buying process on their own. In today’s market: you need an experienced professional!

You Need an Expert Guide If You Are Traveling a Dangerous Path

The field of real estate is loaded with landmines; you need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a home that is priced appropriately and is ready for you to move into can be tricky. An agent listens to your wants and needs, and can sift through the homes that do not fit within the parameters of your “dream home.”

A great agent will also have relationships with mortgage professionals and other experts that you will need in order to secure your dream home. 

You Need a Skilled Negotiator

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands, of dollars. Each step of the way – from the original offer to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

Realize that when an agent is negotiating his or her commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family?

If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal. 

Bottom Line

Famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.

If you're looking to buy, sell, or invest in the Phoenix or surrounding area, Call The Regal Team Today.

 

Melissa Dierks, Owner of The Regal Team of RE/MAX Professionals

Certified Military Residential Specialist

RE/MAX Hall of Fame

Direct: 623-229-0154

Email: melissa@theregalteam.com


Source: Keeping Current Matters

4 Pros, 4 Cons of Open Floor Plans

by Melissa Dierks

Realtor.com® recently highlighted some pros and cons of open floor plans to help owners and buyers decide if it’s right for them:

Pros

  • Takes advantage of square footage: “An open floor plan home will feel bigger because you don’t have all this unused space,” says Jay Kallos, vice president of architecture for Ashton Woods in Atlanta.
  • Brightens a home: More natural light from windows can spread throughout an open home.
  • Fosters social gathering: Open floor plans can make it easier to socialize, putting family and guests all in one space together.
  • Encourages flexibility: “Open floor plans create a usable space that’s flexible, based on your needs,” says Jimmy Branham, a real estate professional with the Keyes Company in Fort Lauderdale, Fla. Homeowners can define the space without having to make architectural changes.

Cons

  • Smells travel: The cooking heat and kitchen aromas will be impossible to contain, so the smells are more present in an open floor home.
  • Offers less privacy and can be noisier: You may have a tough time hiding from noise—the lack of walls makes the space echo and absorb less sound.
  • Can’​t hide messiness: Without separate rooms, any mess will be on display. You can’t conceal anything behind closed doors.
  • Being a fad that fades: The open floor plan is a hot trend right now, but everything eventually goes out of style. The trend doesn’t appear to be slowing yet, but realtor.com® cautions that you could be setting yourself up to look outdated in 10 or 20 years.

If you're looking to buy, sell, or invest in the Phoenix or surrounding area, Call The Regal Team Today.

 

Melissa Dierks, Owner of The Regal Team of RE/MAX Professionals

Certified Military Residential Specialist

RE/MAX Hall of Fame

Direct: 623-229-0154

Email: melissa@theregalteam.com


Source: “Open Floor Plan Homes: You Really Want One? The Pros and Cons,” realtor.com® (Jan. 22, 2018)

712,000 Homes in the US Regained Equity in the Past 12 Months!

by Melissa Dierks

 

712,000 Homes in the US Regained Equity in the Past 12 Months! | MyKCM

CoreLogic’s latest Equity Report revealed that “over the past 12 months, 712,000 borrowers moved into positive equity.” This is great news, as the share of homeowners with negative equity (those who owe more than their home is worth), has dropped more than 20% since the peak in Q4 of 2009 (26%) to 4.9% today.

The report also revealed:

  • The average homeowner gained approximately $14,900 in equity during the past year.
  • Compared to Q3 2016, negative equity decreased 22% from 3.2 million homes, or 6.3% of all mortgaged properties.
  • U.S. homeowners with mortgages (roughly 63% of all homeownershave seen their equity increase by a total of $870.6 billion since Q3 2016, an increase of 11.8%, year-over-year.

The map below shows the percentage of homes by state with a mortgage and positive equity. (The states in gray have insufficient data to report.)

712,000 Homes in the US Regained Equity in the Past 12 Months! | MyKCM

Significant Equity Is on The Rise

Frank Nothaft, Chief Economist at CoreLogic, believes this is great news for the “housing market.” He went on to say:

“Homeowner equity increased by almost $871 billion over the last 12 months, the largest increase in more than three years. This increase is primarily a reflection of rising home prices, which drives up home values, leading to an increase in home equity positions and supporting consumer spending.”

Of the 95.1% of homeowners with positive equity in the U.S., 82.9% have significant equity (defined as more than 20%). This means that more than three out of four homeowners with a mortgage could use the equity in their current home to purchase a new home now.

The map below shows the percentage of homes by state with a mortgage and significant equity.

712,000 Homes in the US Regained Equity in the Past 12 Months! | MyKCM

Bottom Line

If you are one of the many homeowners who are unsure of how much equity you have in your home and are curious about your ability to move, let’s meet up to evaluate your situation.

 

If you're looking to buy, sell, or invest in the Phoenix or surrounding area, Call The Regal Team Today.

 

Melissa Dierks, Owner of The Regal Team of RE/MAX Professionals

Certified Military Residential Specialist

RE/MAX Hall of Fame

Direct: 623-229-0154

Email: melissa@theregalteam.com

 

Source: Keeping Current Matters and all references above 

Top 4 REAL Reasons We Buy A Home

by Melissa Dierks

We often talk about the financial reasons why buying a home makes sense. But, more often than not, the emotional reasons are the more powerful or compelling reasons.

No matter what shape or size your living space is, the concept and feeling of home can mean different things to different people. Whether it’s a certain scent or a favorite chair, the emotional reasons why we choose to buy our own homes are typically more important to us than the financial ones.

1. Owning your home offers stability to start and raise a family

From the best neighborhoods to the best school districts, even those without children at the time of purchase may have this in the back of their minds as a major reason for choosing the location of the home that they purchase.

2. There’s no place like home

Owning your own home offers you not only safety and security, but also a comfortable place that allows you to relax after a long day!

3. You have more space for you and your family

Whether your family is expanding, an older family member is moving in, or you need to have a large backyard for your pets, you can take this all into consideration when buying your dream home!

4. You have control over renovations, updates, and style

Looking to actually try one of those complicated wall treatments that you saw on Pinterest? Tired of paying an additional pet deposit for your apartment building? Or maybe you want to finally adopt that puppy or kitten you’ve seen online 100 times? Who’s to say that you can’t in your own home?

Bottom Line

Whether you are a first-time homebuyer or a move-up buyer who wants to start a new chapter in your life, now is a great time to reflect on the intangible factors that make a house a home.

If you're looking to buy, sell or invest in the Phoenix and Surrounding areas, CALL The Regal Team today!

Melissa Dierks, Owner of The Regal Team of RE/MAX Professionals

Certified Military Residential Specialist

RE/MAX Hall of Fame

Direct: 623-229-0154

Email: melissa@theregalteam.com

#theregalteam, #buyers, #sellers, #investment, #phoenixrealestate

Source: Keeping Current Matters and all references above 

Housing Bubble Formula: Rising Prices and Speculation

by Melissa Dierks

Image result for housing bubble

 

What truly causes a housing bubble and the inevitable crash? For the best explanation, let’s go to a person who correctly called the last housing bubble – a year before it happened.

“A bubble requires both overvaluation based on fundamentals and speculation. It is natural to focus on an asset’s fundamental value, but the real key for detecting a bubble is speculation…Speculation tends to chase appreciating assets, and then speculation begets more speculation, until finally, for some reason that will become obvious to all in hindsight, the ‘bubble’ bursts.

I have taken to calling the housing market a ‘bubble’.” 

– Bill McBride of Calculated Risk calling the bubble back in April 2005

Where do we stand today regarding speculation?

There are two measurements that are used to determine the speculation in a housing market:

  1. The number of homes purchased by an investor and
  2. The number of homes being flipped (resold within a twelve-month period)

As compared to 2005, investor purchases are down dramatically (from 23% to 13%) and so is flipping (from 8.2% to 5.7%). McBride explains:

“There is currently some flipping activity, but this is more the normal type of flipping (buy, improve and then sell). Back in 2005, people were just buying homes and letting them sit vacant – and then selling without significant improvements. Classic speculation.”

What are the experts saying about speculation in today’s market?

DSNews recently ran an article which asked two economists to compare the speculation in today’s market to that in 2005-2007. Here is what they said:

Dr. Eddie SeilerChief Housing Economist at Summit Consulting:

“The speculative ‘flipping mania’ of 2006 is absent from most metro areas.”

Tian LiuChief Economist of Genworth Mortgage Insurance: 

“The nature of housing demand is different as well, with more potential homeowners and far fewer speculators in the housing market compared to the 2005-2007 period.”

And what does McBride, who called the last housing bubble, think about today’s real estate market?

Sixty days ago, he explained:

“In 2005, people were just buying homes and letting them sit vacant – and then selling without significant improvements. Classic speculation. And even more dangerous during the bubble was the excessive use of leverage (all those poor-quality loans). Currently lending standards are decent, and loan quality is excellent…

I wouldn’t call house prices a bubble – and I don’t expect house prices to decline nationally like during the bust.”

Bottom Line

Speculation is a major element of the housing bubble formula. Right now, there are not elevated percentages of investors and house flippers. Therefore, there is not an elevated rate of speculation.


If you're looking to buy, sell or invest in the Phoenix and Surrounding areas, CALL The Regal Team today!

Melissa Dierks, Owner of The Regal Team of RE/MAX Professionals

Certified Military Residential Specialist

RE/MAX Hall of Fame

Direct: 623-229-0154

Email: melissa@theregalteam.com

#theregalteam, #buyers, #sellers, #investment, #phoenixrealestate

Source: Keeping Current Matters and all references above 

Top 5 Reasons You Shouldn't FSBO!

by Melissa Dierks

Top 5 Reasons You Shouldn?t FSBO | MyKCM

In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

Here are the top five reasons:

1. Exposure to Prospective Buyers - Recent studies have shown that 95% of buyers search online for a home. That is in comparison to only 17% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet - Where did buyers find the home they actually purchased?

  •  
    • 49% on the internet
    • 31% from a Real Estate Agent
    • 7% from a yard sign
    • 1% from newspapers

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

3. There Are Too Many People to Negotiate With - Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner.

    • The buyer who wants the best deal possible
    • The buyer’s agent who solely represents the best interest of the buyer
    • The buyer’s attorney (in some parts of the country)
    • The home inspection companies, which work for the buyer and will almost always find some problems with the house
    • The appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult - The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years. The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money When Using an Agent - Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases, may be costing themselves more, by not listing with an agent. One of the main reasons for the price difference at the time of sale is: 

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

If more buyers see a home, the greater the chances are that there could be a bidding war for the property. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.

Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?

Bottom Line - Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

If you're looking to buy, sell or invest in the Phoenix and Surrounding areas, CALL The Regal Team today!

Melissa Dierks, Owner of The Regal Team of RE/MAX Professionals

Certified Military Residential Specialist

RE/MAX Hall of Fame

Direct: 623-229-0154

Email: melissa@theregalteam.com

#theregalteam, #buyers, #sellers, #investment, #phoenixrealestate

Source: Keeping Current Matters and all references above 

5 Reasons to Resolve to Hire a Pro!

by Melissa Dierks

Buying or Selling in 2018? 5 Reasons to Resolve to Hire a Pro [INFOGRAPHIC] | MyKCM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

If you're looking to buy, sell or invest in the Phoenix and Surrounding areas, CALL The Regal Team today!

Melissa Dierks, Owner of The Regal Team of RE/MAX Professionals

Certified Military Residential Specialist

RE/MAX Hall of Fame

Direct: 623-229-0154

Email: melissa@theregalteam.com

#theregalteam, #buyers, #sellers, #investment, #phoenixrealestate

Here's to a Wonderful 2018!

by Melissa Dierks

Here?s to a Wonderful 2018! | MyKCM

Family Wealth in 2018

by Melissa Dierks

How Rising Prices Will Help You Build Family Wealth in 2018 | Simplifying The Market

Over the next five years, home prices are expected to appreciate on average by 3.35% per year and to grow by 24.34% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

So, what does this mean for homeowners and their equity position?

As an example, let’s assume a young couple purchases and closes on a $250,000 home this month (January). If we only look at the projected increase in the price of that home, how much equity will they earn over the next 5 years?

How Rising Prices Will Help You Build Family Wealth in 2018 | Simplifying The Market

Since the experts predict that home prices will increase by 4.2% in 2018, the young homeowners will have gained $10,500 in equity in just one year.

Over a five-year period, their equity will increase by nearly $45,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.

Bottom Line

Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!

If you're looking to buy, sell or invest in the Phoenix and Surrounding areas, CALL The Regal Team today!

Melissa Dierks, Owner of The Regal Team of RE/MAX Professionals

Certified Military Residential Specialist

RE/MAX Hall of Fame

Direct: 623-229-0154

Email: melissa@theregalteam.com

#theregalteam, #buyers, #sellers, #investment, #phoenixrealestate

Source: Keeping Current Matters and all references above 

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Melissa Dierks
The Regal Team of RE/MAX Professionals
7111 W Bell Road, Suite 101,
Glendale AZ 85308
Direct: (623)229-0154
Office: (623)643-1092
Fax: (623)201-7562

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