“It was the best of times….It was the worst of times”
News reports are highlighting how Arizona is leading the recovery of real estate appreciative values of any state in the nation so far in 2012. Arizona, namely the greater metropolitan Phoenix area, has been a “pariah” with real estate values falling up to sixty percent from the highs in 2006 in many areas of the valley. In March 2012, it was reported that the year over year increase had reached 20% in the valley. Year to date valuations are showing nearly a seven percent increase thus far in 2012. Naturally, the law of supply and demand are in place in the Phoenix and Tucson areas with the fewest number of homes on the market right now since the spring of 2005.
So what does this mean to real estate in Munds Park? Is a recovery real for Munds Park as well? Realtors
play a significant role in helping a market recover from a declining market. Assisting sellers in establishing fair prices for selling a home is an essential part of representing the owner’s best interests. Knowing that a market correction is in process, realtors have a responsibility to inform the sellers that property values are either increasing or on the cusp of changing favorably. This is happening now in Munds Park. Provident Partners Realty has had some of the highest dollar per square foot sales in recent memory the past few months. Prices are beginning to rebound for quality properties that are priced competitively….but not necessarily “underpriced.”
There are several good examples of sales that have closed recently that indicate that property prices may be on the rise in Munds Park. A townhome sold this past April for $225,000….CASH; the highest sale of a townhome in more than three years. A beautiful Chalet style home off Stallion went under contract within ten days of being listed and closes next week for ninety five percent plus of asking price. Last year properties were closing at less than ninety-one percent of asking price….adjusted.
An area of satisfaction for professional realtors is when they can sell a client’s property for the highest amount possible based on market statistics and their own efforts in marketing the property for sale. Knowing that an agent’s effort makes the difference in achieving the highest and best sale price for their client is a point of pride for seasoned, quality agents.
Cash is king in a recovering market and plays a vital role in pushing a market upwards when lenders, (BIG BANKS) are still trying to utilize appraisal values that support extremely conservative lending terms. Meaning: the big banks will force conservative valuations through affiliated appraisal management companies and subsidiaries whenever they can because it protects their investment by forcing constrictive loan to values.
Example: Last summer I placed a home under contract with an excited and willing buyer who wanted to purchase a Chalet style home in the animal district and offered $290,000 for a home that was being marketed at $315,000. The buyer’s lender, (Wells Fargo) ordered an appraisal through their appraisal management subsidiary and it came back at $230,000. The appraiser used sale comps from the mixed area versus an all cabin area, gave no value to upgrades that the subject property had and would not reconsider the appraisal when provided with an array of sales comparisons that were valid to support the sale price. The sale failed. Interestingly enough, six weeks later, the seller did a refinance on the subject property and the appraisal came in at $285,000…..for a REFINANCE. This one still irks me and should really disturb you as well! When the buyer’s mortgage guy was called out on the matter there was little to no response.
The long and short of this story is that we have had good times and we have had bad times in real estate…particularly in Arizona during the last thirty or so years. As an agent, the role we play in advising a seller is a fiduciary role to advise clients based on their needs and desires but to “educate” them in order to assist the seller in achieving the best return on their investment. Provident Partners Realty does this for our listing clients and has seen significant benefits for our clients by having some of the highest dollar per square foot sales in Munds Park.
For a buyer, just the opposite is true…the buyer broker agents focus is on finding the right property, at the best value and negotiating the purchase to their best interests. Feel free to ask for recent references from your buyer broker agent for clients transactions closed in the last ninety days. Those references are worth the time and effort to obtain them and often result in a buyer obtaining a “Great Deal” because they hired the right buyer’s agent. Sometimes a new agent is more inclined to be an eager, “go-getter” and can represent their client just as well as a seasoned veteran agent. Most important is the degree of willingness an agent has to work on the clients behalf to represent them to the fullest possible potential. Choosing your realtor is a very important part of getting the highest value for your home or the best deal on your new home! Call Provident Partners Realty at 286-9171!
By Bill Spain
Provident Partners Realty