Looking for some tips to get your home sold…. here’s my perspective, along with some great input from a few of my favorite Phoenix area Realtors.
From today’s AZCentral.com: Online marketing key to selling home
From the category archives:
Home Sellers
I sit on the Board of Directors for the Sandpiper Home Owner’s Association here in Scottsdale, and receive up-to-date HOA information from a number of sources. Yesterday, I received the following email from a local law firm (Ekmark & Ekmark), and since it covered the new sign and open house laws so well, I asked if I could share it verbatim.
If you live in a community governed by an Arizona Home Owner’s Association, you will want to know what your rights are as a home seller.
For Sale Signs
An association may not prohibit the indoor or outdoor display of a for sale sign and a sign rider by a unit owner on that owner’s property.
This applies to all properties subject to deed restrictions (A.R.S. § 33-441, created 2009), condominiums (A.R.S. § 33-1261, amended 2007) and planned communities (A.R.S. § 33-1808, amended 2007), including those that are access-restricted. It does not apply to timeshare properties.
These laws protect not only professional realtor signs but signs that indicate that the property is for sale by owner. The laws also state that the size of the sign and sign rider shall be in conformance with industry standards. The laws define industry standards as a sign that does not exceed 18 x 24 inches. Likewise, the sign rider shall not exceed 6 x 24 inches.
Also, planned communities (A.R.S. § 33-1808, amended 2010) and condominiums (A.R.S. § 33-1261, amended 2010) may not regulate for sale signs if they are not larger than industry standard size. Associations may not require the use of particular signs indicating real property for sale and may not further regulate the use of for sale signs that are industry standard size and that are owned or used by the seller or the seller’s agent. In other words, associations may not force owners to use pre-approved for sale signs or signs that are a particular color or design.
Open House Signs and Open House Hours
Arizona law protects open house signs and open house hours in condominiums (A.R.S. § 33-1261, amended 2010) and planned communities (A.R.S. § 33-1808, amended 2010), including those that are access-restricted.
Associations may not prohibit or otherwise regulate temporary open house signs if they are not larger than industry standard size. Associations may not require the use of particular signs indicating an open house and may not further regulate the use of temporary open house signs that are industry standard size and that are owned or used by the seller or the seller’s agent. In other words, associations cannot force owners to use pre-approved open house signs or signs that are a particular color or design. It is important to note, however, that planned community and condominium associations may still prohibit open house signs on common areas or common elements.
Associations may not limit the hours for an open house for real estate that is for sale, except that the association may prohibit open house being held before 8:00 A.M. or after 6:00 P.M.
For Lease Signs and Open Houses for Rental Properties
Arizona law protects for lease signs and open house hours for rental properties in condominiums (A.R.S. § 33-1261, amended 2010) and planned communities (A.R.S. § 33-1808, amended 2010), including those that are access-restricted.
Associations may not prohibit or otherwise regulate an owner’s or an owner’s agent’s for lease sign unless an association’s documents prohibit or restrict leasing of a member’s property. Moreover, Associations may not further regulate a for lease sign or require the use of a particular for lease sign other than the for lease sign shall not be any larger than the industry standard size sign of 18 X 24 inches on or in the member’s property.
If leasing of a member’s property is not prohibited or restricted under the association’s documents, the association may prohibit open house leasing being held before 8:00 A.M. or after 6:00 P.M.
For a link to the actual text of the bill, click here: http://www.azleg.gov/FormatDocument.asp?inDoc=/legtext/49leg/2r/laws/0041.htm
If you have any questions about this new legislation, please contact us at 480-922-9292.
Thanks to Ekmark & Ekmark, L.L.C. for giving me permission to share this timely info!
I have all kinds of great real estate statistics at my fingertips, and I find the Scottsdale real estate market really interesting.
Different from the surrounding cities because of its price range. Highly desirable because of its beauty, features, attractions, schools, and more. People from around the world know Scottsdale, because of its branding. Scottsdale is a destination, that often becomes a first or second or third home for people visiting the city.
What home sellers need to know is that regardless of the attraction Scottsdale has, home buyers are still looking for value. A deal. Concerns exist that real estate prices haven’t reached the bottom of the market. And when you look at these next charts, you will see why buyers have been taking their time and making fairly aggressive offers when they do make a move.
First off, you’ll see the Listing Success Rate, which is a comparison between the number of listings sold and the total number of listings closed (sold, expired or canceled) in the last month, expressed as a percentage. So basically, about the same number of listing were canceled or expired as closed last month.
In the next chart you’ll see a number of different Average List Price per Square Foot gauges.
Active Listings – the average price per square foot for all homes for sale, listed as Active or Active with Contingencies, as of July 8th, 2010
Pending Listings – the average price per square foot for all homes pending (under contract) as of July 8th 2010
Closed Listing – average price per square foot for all homes that closed in the prior month
And, then in the lower graph on the same chart, you will see that the actual sales prices is less than all three of these figures, except for this most recent month where pending listings have dipped below the sales price. This most likely indicates that future sales prices in the next couple months may be down. The most telling number on this page is the List Price Premium, which shows that Scottsdale homes are selling at 46% less than the list price, when comparing on a price per square foot basis.
Taking a more detailed look at Average Sales Price per Square Foot, you’ll see that the home appreciation I wrote about a few days ago, is a potential trend. When looking at the figures on an annual basis, it clear to see that depreciation has definitely slowed, and maybe, just maybe, we are at the bottom of the market. Comparing this past month with the same time last year, you’ll see a 5% increase in appreciation.
Now to look at Sales, which are up and have been for the past several months. The annual trend has been increasing, but shows signs of tapering off. Comparing the number of sales for this past month with the same time last year, you’ll see a 5% improvement.
So, for Scottsdale home owners who are thinking about selling, the market is gradually improving. At the same time, the home buyer’s mindset is one of holding the upper hand.
The good new is that Scottsdale home sales are up. Prices are somewhat stable and even appreciating slightly. However, prices (average per square foot) are on average 46% higher than the actual sales price, which would definitely explain why so many home listings are expiring or being cancelled.
Bottom line: Buyers know when a home is priced well and they will jump on it, making an offer that much closer to the asking price. Selling a home quickly will make some home sellers feel like they’ve left money on the table, but in reality, the sales prices for a home that sells quickly, in most every case, will be higher than a listing that priced too high that stagnates on the market. If you want to sell your home, you need to price it to the current market. First time, every time.
Related Posts:
- Phoenix Real Estate Update: Pending Sales Give You Inside Info
- What’s up with Scottsdale home prices? How long is it taking to sell a house?
- How to sell a house in Phoenix in 3 easy steps
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Can’t Agree on the Sales Price of a Home? Ten Ideas for Negotiating the Arizona Residential Real Estate Purchase Contract
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Are you pricing your home through your rear view mirror?
One of the most important things that I talk with home sellers about when listing their home is the importance of photographs in marketing their home. With most all buyers search for homes on the Internet, most are making their decisions based on the photographs of the house. I have gotten calls from buyers saying "What’s wrong with this house I’m looking at on-line? It doesn’t have any photos. It must be really bad." Well, sometimes it is, and sometimes isn’t.
The Arizona Regional MLS requires at least one photo of the front of the house, and allows for unlimited photos of the rest of the home and the surrounding neighborhood. Besides the MLS system, home listings are syndicated, and photographs are shared with many services around the Internet, including AZCentral, Google, Zillow, Trulia, Realtor.com, and many others. I also use the photos for flyers and for a home’s personal web site.
While I take photos for most my foreclosure listings, I hire a professional photograph for most typical and short sale listings. I hire a pro for a couple of reasons:
- His camera is much better than mine.
- He takes photos of lots of homes for sale daily. He sees different angles than I do.
- He may make a few suggestions to improve a shot.
- He gives me input into the salability of the house, compared to other homes he’s been to recently.
- He creates the virtual tours (with music that can be muted) for me to add to the MLS and syndicates them to YouTube.
For a typical home, 15-20 photos will usually be enough to give the flavor of a home. I have seen listings with 60-80 photos, and I’m not convinced that this is the best way to market a house. The purpose of the photographs is to get the house on the "short list", and get a buyer in the door. My goal is to give the potential buyer a taste of all the best features of the house and its setting, so that they are curious to see more.
Sometimes, I will create a second virtual tour that focuses on the surrounding community. This is especially important for buyers who are moving here from other parts of the country or world.
With some homes, like bank foreclosures, I’ve found that having 4-8 photos dramatically increases the number of showings and offers, which increases the sales price, and shortens the amount of time a foreclosure is on the market. Typical sales and shorts sales do not see as dramatic of a result, but photos in all advertising are required in today’s high-tech market. That’s what buyers are looking for. So that’s what I do to give a house maximum exposure and get it sold.
I just got off the phone with one of my clients who decided to list his house for lease also. The sale of his Scottsdale patio home has been complicated by some major community renovations, which for the long-term, add tremendous value, but for the short-term do nothing in terms of curb appeal. Winter visitors have gone home. There are a shortage of unfurnished rentals in the area, so his decision to open up his options is a smart one.
There’s an education process needed for first-time landlords.
The first resource I recommend is the Arizona Landlord Tenant Act. After reading this documents, sellers often will say "Never mind".
The next step for an owner who decides to move ahead is to contact their financial planner and their accountant to see if being a landlord works for their particular situation. Talking to their insurance agent is next.
The house must also be registered with Maricopa County, as a monthly sales tax (TPT) must be paid to the city the rental property is located in.
Under A.R.S. § 33-1902, an owner of a residential rental property in Maricopa County must register certain information relating to the property and its ownership with the Maricopa County Assessor. ALL owners of residential rental properties must register their properties regardless of whether the tenant is a family member. Under the statute, out-of-state owners must designate a statutory agent who lives in Arizona who will accept legal service on behalf of the owner.
To register a rental property, you can use this on-line form: Maricopa County Residential Rental Property Registration
Each city has different rules and rates which must be followed. The Scottsdale rental tax rate is currently 1.65%. If the homeowner will be paying the sales directly, they need to register the property with the City of Scottsdale. If they are working with a property management firm, they might be covered under the company’s master license.
Being a landlord isn’t for the faint-hearted, but with some education and experience, it can definitely be a cash-flow, asset-building option.
By now you may know that the real estate tax credit has been extended to contracts written and accepted by April 30th, 2010, and also expanded to included move-up home buyers.
The National Association of Realtors published this helpful guide for comparing the program that was expiring on November 30th with the one which was just signed by President Obama yesterday.
NAR Issue Brief: Homebuyer Tax Credit
A couple of the highlights include:
- Purchase contracts must be written by April 30, 2010.
- Move-up home buyers are eligible for a $6500 tax credit, providing they meet income limits and occupancy rules.
- First-time home buyers are still eligible for a $8000 tax credit, with income limits.
- Qualifying home prices are capped at $800,000.
I suspect that there are a few home buyers that are breathing a sigh of relief, knowing that they still have time to find a home, make an offer, and close before the extended 2010 deadline.
And there’s the potential to release a whole new wave of homes for sale. Homes that have been lived in, where the owners have taken care of them, and will disclose the history of the home to the buyer. I’ve listed six houses like this in just the past two weeks, and I suspect that I will be hearing from a few more folks who’ve been sitting on the fence, deciding whether the time was right to sell and buy up.
I do have questions:
- Are move-up home buyers immediately eligible?
- What if they have an accepted contract scheduled to closed between today and December 1st?
UPDATE:
Here’s a link to the actual language of H.R. 3548: Worker, Homeownership, and Business Assistance Act of 2009. The bill appears to extend the dates, so that it appears that a seller who has lived in the current home for five consecutive years, out of the past eight, could get the tax credit for a home purchase as early as Monday. You will find the Extension and Modification of First-Time Homebuyer Tax Credit in Section 11.
