By Gary Shapiro | Free Press Point of View
By now, you’ve seen news our local real estate market is changing. Recent interest rate hikes, among other things, are on people’s minds and have triggered conversations and predictions.
Pundits have differing views of our market. Some of them tend to be pessimistic while others, like me, have a more tempered, long-term optimistic and realistic outlook. If you hear inventory is up dramatically, you may logically conclude it will have an impact on supply and demand that could dictate widespread seller price concessions and enhanced choices for buyers.
Unfortunately, that may not be true depending on a wide variety of factors such as the type of property, location, condition, amenities and price point. I saw an industry bulletin the other day that said the “feeding frenzy” was over. That statement could lull buyers and sellers into a false sense of security.
— Gary Shapiro, Scottsdale Realtor
Tell it to a recent buyer who lost out of an opportunity to buy a specific home because there were 14 other buyers still bidding on a chance to own that home. In his case, the “frenzy” is far from over. After five decades as a local Realtor, you learn certain things are axiomatic regardless of real or perceived market conditions. Here’s some reliable information so you can make strategic decisions.
Yes, the Arizona Regional Multiple Listing Service is indeed reporting an increase of new listings on the market.
However, they may not be in your desired price range or preferred location. And the inventory is still loaded with less than desirable listings that back up to busy streets, power lines and commercial property as immediate neighbors.
There are also a ton of homes on the market that lack a modicum of pride of ownership and suffer from lots of deferred maintenance and needed repairs. If you’re a buyer looking for that pristine home at the bottom of a cul-de-sac in one of our choicest neighborhoods in metropolitan Phoenix, those homes are still a needle in a haystack, and you can expect fierce competition from other house hunters.
Far too many sellers are ignoring the old adage that you never get a second chance at a first impression. They’re putting homes on the market that are dirty, don’t show well, and exhibit little or no pride of ownership.
Buyers have always exaggerated the cost of repairs and deferred maintenance. Sellers are always best advised to take whatever steps are necessary to create a good first impression. Sellers who don’t clean up their yards and algae ridden pools, don’t shampoo their carpeting, don’t hire a maid service, or consider new floor coverings and paint, are often selling themselves short.
Normal buyers will invariably pay a higher price for move-in ready homes or homes that require less attention. The return on investment for sellers to create favorable first impressions is both strategic and invaluable.
Agents representing sellers who don’t take the leadership to encourage their sellers to create a favorable first impression are doing everyone a disservice. At the very least, final sales prices will be enhanced and days on market will decrease. It’s a win-win for everyone.
Lastly, remember pendulums shift. Markets tend to overreact when news is new. Over time, things always tend to gravitate back to a more normal and reasonable position.
From day one, you may have fretted about the rise in interest rates. But have you heard since then that lenders are resurrecting and creating programs to help buyers cope with existing conditions?
For example, wannabe homeowners are now able to take on-time rental payments to help them qualify for loans. Have you heard about buy-down programs designed to give buyers relief from higher interest rates?
Here’s my seasoned advice. Stay calm. Associate yourself with trusted advisers who have your best interests in heart and rely on their advice.
Editor’s Note: Mr. Shapiro is a Realtor, Scottsdale resident, Scottsdale Charro and co-founder of Scottsdale Leadership.
