My Real Estate Blog

How to Find Your Dream Home

1.  Get Pre-approved for your mortgage to start.
This way you will
know how much home you qualify for before you even start your search.

2.  Make a "Must-Have" list.
A list of features you must have in your new home.
For example, Do you want 3Bedrooms/2Baths, 2-3car garages, a pool, large kitchen, etc. This will help you stay in tune while searching before emotions take over.

3.  Select the Neighborhood that fits your needs.
Try to select the neighborhood that is in the school district for your kids or close to work, grocery stores, entertainment, etc.

4.  Pick a house style.
Do you want a condo, townhouse or a self-standing house. Keep in mind the HOA fees for each. One one end of the spectrum
a house usually has smaller HOA fees, if any, but less is covered. On the other end of the spectrum, a condo has larger fees, but more is covered.
Usually the exterior, roof, pool, and landscaping, etc. is covered.

5.  Last but not least, take lots and lots of notes and pictures if you have to.
After looking at so many houses and neighborhoods, your head is going to
be spinning in confusion and all your thoughts are going to run together in a blur. Documenting will help you keep your thoughts organized.

6.  It is now time to pull the trigger.
By this time you have now done all your homework and tough decision-making needed to make the most educated
choice.
You have now found your Dream Home!
#mikeblackrealtor

Are Zillow estimates as accurate as you think they are?

The internet is a great tool to help homeowners to communicate the goings-on in the neighborhood. The internet can also let homeowners learn the value of their biggest asset, their home. Zillow has become a household name in the real estate community to let consumers know what is for sale in a particular area of interest or to provide an estimate on a home value. Zillow uses algorithms to come up with their estimates which they appropriately call "Zestimates".

Zillow provides Zestimates for over 100 million homes and their algorithms are based on both public data and user-submitted data. According to Zillow, “the vast majority of Zestimates are within 10 percent of the selling price of the home.” But Zestimates are only as accurate as the data behind them, so if the number of bedrooms or bathrooms in a home, its square footage or its lot size are inaccurate on Zillow, the Zestimate will be off. Users can correct these mistakes. However, Zillow cautions that updating a property’s details won’t result in an immediate change in the home’s Zestimate, and sometimes it won’t result in any change at all.

Along with accepting user-submitted data, Zillow deals with the inaccuracy problem by reporting estimated value ranges for individual properties. The smaller the range, the more reliable the Zestimate is because it means Zillow has more data available on that property. Looking at the high and low end of the range will give you a better sense of a home’s possible worth.

Zillow factors the date and price of the last sale into its estimate, and in some areas, these data make up a big part of the figure. If this information is inaccurate, it can throw off the Zestimate. And since comparable sales also affect a home’s Zestimate, a mistake in one home’s sales price record can affect the Zestimates of other homes in the area.

There are many other factors which are not recognized by Zillow such as home improvements, extra room additions, etc., etc... All of these factors can add tremendous value which are not recognized. For example, Zillow algorithms can't see that your home was completely renovated with a newly remodeled kitchen and bathrooms and your neighbor is still using a "Brady Bunch-era" kitchen, circa 1972.

Unfortunately, Zillow has created a huge hurdle for professional real estate agents to overcome since many consumers take Zillow Zestimates as gospel. It can be quite a hassle talking clients off the ledge while explaining to clients a true calculated value of their home. This is about the time when homeowners pull their phones out and tell the agent, "Oh No! That can't be right, Zillow says it's worth this amount of money....."

Although information is power, the wrong information can be harmful. Most homeowner's are unaware that if a home is listed above it's actual true value, it could sit on the market for a long period of time, where it will eventually become stagnant. When a house becomes stagnant, it will have to have a drastic price drop to get the action it needs to sell, which is the opposite effect than what was desired by the seller.

Although Zillow has pretty good algorithms, the are too many factors which compromise the accuracy of their estimates. The only way to get a true and accurate price to sell a home is to hire a professional real estate agent or an appraiser.

5 Home Upgrades To Attract And Get That First-Time Homebuyer

To attract millennial-aged homebuyers just follow these simple upgrades.

Add USB Chargers
Millennials are glued to their smart-devices (smartphones and tablets), so one way to attract them is to have USB outlets or charging stations installed throughout the house. This is a simple and cheap upgrade.

A Home Office
With the advent of remote work opportunities, young professionals are eager to have a
comfortable workspace within their abode.

Energy-Saving Appliances
Millennial buyers tend to be environmentally conscious and are more concerned about
their carbon footprint on the planet.

Garage Tech
Millennials are already known to adopt whatever the latest technology is, so installing hi-tech
gadgets to the garage is a huge plus. For example, the latest garage door openers are equipped with technology that allows you to open and close the door with an app.

I'm sure that I am not listing all the ways to make your house more attractive, but this is a great starting point with these 5 simple upgrades to make it appealing to millenials. Good Luck!
#mikeblackrealtordes toGood ackrealtor

Phoenix suburb selected as top US destination for retirees

Move over, Florida: A Phoenix suburb was recently selected as one of the top destinations for retirees.

Tempe will be featured in the latest issue of Where To Retire, a nationwide magazine that aims to help people decide where they want to relocate after they retire.

“Retirees often look for locales that provide easy access to dining, shopping and entertainment, and downtown districts often afford these and more within a confined area,” Editor Annette Fuller said in a release. “Downtown Tempe has high-brow amenities like the Arizona Artisans Collective Grotto Gallery and the Marquee Theatre. Arizona State University enlivens the town, and Phoenix, 10 miles west, is easily accessible by light rail. One retiree told our writer, ‘We want to see the world when we walk out the door. That energy revitalizes us.’”

Tempe was one of the eight cities profiled for downtown living in the July/August 2018 issue. It is available nationwide on June 12. The other cities included Charlotte, North Carolina; El Paso, Texas; Little Rock, Arkansas; Madison, Wisconsin; Richmond, Virginia; St. Petersburg, Florida and Sarasota, Florida.

Another feature detailed in the profile for the Phoenix suburb was Mirabella at Arizona State University, an “on-site, 20-story housing facility for older adults.” Mary and David Patino, a couple from Los Gatos, California, said they chose Tempe because it offers a lot to do and allows residents to have easy access to the light rail. “Everything is all in one place. We’re on campus. We’re part of the college community,” Mary said. “That’s the exciting part of it.”

According to Where To Retire, 700,000 Americans relocate to new towns to retire each year. These moves bring “significant economic benefits” to their new states and hometowns. Two dozen states and hundreds of towns also seek to attract retirees as a source of economic development.

Popping Bubbles in Phoenix

I don't know about you, but I'm tired of people rumoring that we are in a market bubble that's about to burst in Phoenix. To put it in simple terms, "No. We are not in a bubble." "I repeat. We are not in a bubble." As I've stated in other blogs, Phoenix is it's own economy compared to the rest of the United States because we have droves of people who are tired of paying high taxes and gas prices from the likes of places like California and Washington. Not only that, but in 2021, Arizona went an entire year with less than 1,000 bankruptcy filings per month. That has not happened since 2007. Bankruptcies in the state were down 27.5 percent for the year of 2021.

Welcome to the Land of Milk and Honey, my friends. You have arrived in Paradise. So hurry up and buy a house before there aren't anymore. #mikeblackrealtor

Top 10 places people are leaving to move to Metro Phoenix

More people moved into Greater Phoenix area from L.A. than the entire population of El Mirage, Arizona. Just about 38,200 Los Angelans chose to make Phoenix their new home. Second on the list are the people from Tucson moving north to Phoenix. More than 11,600 people moved from Tucson. Asian countries were the 3rd-largest group, with over 10,500 people moving to Phoenix, almost the same number as the combined total of Central American, Mexican and Canadian immigrants coming to the Valley. Welcome to diversity. Phoenix is the new "melting-pot"
1. Los Angeles, CA
2. Tucson, AZ
3. Asia
4. Chicago, IL
5. Central America
6. Seattle-Tacoma, WA
7. San Diego
8. Riverside-San Bernardino, CA
9. Flagstaff, AZ
10. Canada and Mexico
#mikeblackrealtor

Calm Market Ahead

Housing sales have skyrocketed the last two years. In 2021, home sales reached 6.12 million, which is the highest since 2006. The median home price has reached an all-time high of $347,100, which is a one-year gain of 16.9%. Prices will continue to rise, but will rise at a more stable rate of 3% to 6% per year for 2022 and 2023. #mikeblackrealtor

Housing Inventory Shrinks

Housing inventory has dropped to it's lowest levels in decades. In December 2021, inventory was already at a low mark of 1.7 months of supply and now it has dropped to 1.6 months. Not much to choose from if you are currently searching for a home. Good Luck!   #mikeblackrealtor6 months. Not much to ccurrently searching for a home. Good Luck! #mikeblackrealtor.

Rising Rates Are Scaring Investors

As mortgage rates rise, buyers can afford less and less of a home. Because of this, prices begin to drop and real estate investors can't flip houses as easily as previous years.

Due to the rising rates and lowering prices, investors are turning the homes into rental properties. This all sounds like it will be a better situation for the first-time home buyer, but ironically not. Since these homes are being converted to rentals rather than reselling, this turns an already low inventory level to an even smaller one.

Hopefully, if investors continue to pull back, inventory rises and home prices begin to lower, some buyers could be in a good position to buy.

So good luck with your home search. #mikeblackrealtor 

Form Builder

The latest numbers show permits for new homes fell more than 20 percent in February. Homes that were resold also dipped more than 11 percent. Last year the average base price for new homes was $386,000. This year the median closing price was $267,000. Buyers are now cancelling their contracts because they cannot sell their existing homes in the slowing resale market. To be honest, the market is finally normalizing and leveling out.

There is still lots and lots of activity out there because there is still a shortage of land. #mikeblackrealtor

4 Outdoor Projects That Add Value To Your House

You can add value to your home by doing outdoor enhancements. These are a few things you can do to add value.

1) Lawn Care-200% If you pay $500 per year it should double your money to $1000.

2) Outdoor Kitchen-100% Install a permanent grill and fridge for approx. $15,000 and recoup $15,000.

3) Whole Landscape Upgrade-100% Install a new paver walkway, planters, trees and shrubs for another recoup of 100%.

4) Patio-95% Install a new patio for $10,500 and recoup $10,000.

Not everything with home value involves the interior. #mikeblackrealtor

YIKES! I bought a Haunted House

Since Halloween is this week, I thought I would write a story about homeowners buying haunted houses, unbeknownst to themselves. Most homebuyers who claim to live in a haunted house say they didn’t know their house was haunted until after they moved in. What makes a house haunted? Strange noises and shadows are the spookiest occurrences reported by homeowners. Almost 50 percent of homeowners said items inside the house shifted on their own, certain rooms felt haunted, felt touched by someone or something, and some said their home had hot and cold spots.

Moving into a new home is a really exciting time, but finding out that your new abode has an unwanted guest can definitely put a damper on the celebration. Every once in awhile I run into homebuyers with stories of how they unknowingly moved into a haunted house, and even more so by how many people knew and decided to move in regardless. I've found that some people are okay living next to a haunted house, most people are against the idea of living in one. Boo!

#mikeblackrealtor