For those of you still trying to sell a home, there may be an option you haven't considered: going green. Making your home green can make it more marketable, as well as environmentally-friendly. Green homes are in demand - according to Realty Times, the National Association of Home Builders (NAHBR) claims that as much as 90 percent of home buyers think that energy efficiency is a very important factor when shopping for a home. Realty Times goes on to say that NAHBR reports that 72 percent of consumers report energy-efficient features in a home would influence their purchase decision.
As a NATIONAL ASSOCIATION OF REALTORS® Green Designee, I can help you find the products and services that will help you "green" your home and make it more energy efficient. I can help you make decisions about green materials, energy efficient technology, green ratings, green design, green living and green incentives. As your Tempe REALTOR®, I can also help you obtain a LEED certification for your home. LEED is a third-party certification program that sets design, construction and operational standards for high-performance green buildings.
By making your home green, you can lower your utility bills, which can save you money and give real estate agents and those looking to buy a home concrete proof that living in your home will save them money, too. Here are a few changes you can make that will help lower your utility bills and serve as selling point for your home:
ENERGY STAR windows - annual savings: $300
Solar Attic Fan - annual savings: $200
Low-flow Faucets - annual savings: $100
If you are interested in "greening" your home, please contact me and I would be happy to connect you with local green vendors who can help you make that transition. If you do not live in Tempe, Scottsdale or the Phoenix area, I can contact a NATIONAL ASSOCIATION OF REALTORS® Green Designee on your behalf who can help you find the tools you need to create a more sustainable home.
The real estate market is continuing to show signs of improvement after a consistent two-month drop in the absorption rate. The absorption rate is the ratio between active and solds: the time it would take at the current rate of sale for the inventory to be completely sold. For example, if there are 10,000 homes for sale in a region, and 1,000 are sold each month, the absorption rate would be 10.
At the end of April, the absorption rate for the valley was down to 5.5 - a few years ago, it wasn't uncommon for a home in the Phoenix-metropolitan area to sit on the market for 25-30 months. Anything below an absorption rate of 6 is considered a seller's market. At present, the absorption rate is down to an astonishing 4.3.
There are currently 40,034 homes for sale on the real estate market - in the beginning of April, there were 50,000 homes for sale. That is a 20 percent drop in inventory in just two months. The number of homes for sale is expected to drop below 40,000 by the end of the month. There are 13,669 pending sales expected to close in the next 30 days. During the month of May, 9,351 homes were sold - in April, 8,527 homes were sold (April 1-24). In short, there were 824 more homes sold and 2,432 fewer homes for sale in May than there were in April.
May was also a good month for Tempe. In Tempe, the absorption rate is now 6.6 - not even a month ago, the absorption rate was hovering at a 10 or 11 month absorption rate. The number of homes for sale in Tempe is 131, bringing the inventory of available homes down to 876.
Investors are still continuing to snatch up foreclosures - they are buying foreclosures at a faster rate than they are hitting the market. The absorption rate for foreclosures is less than 1.0. In the last month, 5,939 foreclosures were sold, leaving only 5,472 on the market. If you want to buy a home, don't be discouraged - there are still plenty of homes and foreclosures out there. Just know that there is a strong chance that you will be competing against multiple offers.
With the real estate market finally showing signs of life, it may be time for you to think about what you are looking for in a REALTOR® and in a home. A NATIONAL ASSOCIATION OF REALTORS® Green Designee can help you find or create a green home. A green home can be easier on the environment, your health and your wallet.
As your Tempe REALTOR® and a green designee, I am qualified to guide you through the green process, whether you are looking to buy or sell a green home. If you do not live in the area, I would be happy to refer you to another REALTOR® with a green designation that can help you find what you are looking for.
In order to attain the "green designee" designation, a REALTOR® is required to take a class offered through the NATIONAL ASSOCIATION OF REALTORS®. The class teaches REALTORS® how to make educated decisions about green materials, energy-efficient technologies, green ratings, green design, green living and green incentives.
A green designee REALTOR® can also help you obtain a LEED certification for your home. A LEED certification is a third-party that sets design, construction and operational standards for high performance green buildings. A LEED certification can make your home more marketable. In addition to helping you obtain a LEED certification for your home, a green designee can help you find a LEED certified home.
A green home should have the following: a positive impact on human health and comfort; integration into a sound environment; and sustainable design, construction and systems (NATIONAL ASSOCIATION OF REALTORS®). A green designee REALTOR® can help you secure the products and services that will make your home more sustainable.
If you decide that you want to make your home more sustainable, then working with a green vendor can help ensure a more environmentally-friendly home for yourself and your family. As your Tempe real estate agent and a NATIONAL ASSOCIATION OF REALTORS® Green Designee, I can help you make educated decisions about green vendors, green materials, energy-efficient technology, green ratings, green design, green living and green incentives. There may be many green vendors in your city, making it difficult to determine if a vendor is truly green. The NATIONAL ASSOCIATION OF REALTORS® recommends that you consider the following before hiring a green vendor to help you with your home:
What is the vendor's location and proximity to the job site?
Does the vendor have a certification or proven affiliation with a recognized green building organization?
Is there a professional association for the trade? If so, is the vendor a member and active participant?
What is the vendor's knowledge and experience in working with green building issues?
Are client references available?
Has the vendor completed a green building project similar in size and scope? Are site visits or photographs available? Is client contact information available?
Does the vendor recycle or reuse demolition or construction waste?
Does the vendor have an area of green specialization?
Does the vendor use a third-party organization to verify work?
Creating a green home can be an exciting and rewarding process, however is important to understand that you may need to make some compromises. You may come across a green vendor who offers bamboo flooring, but the product must first be shipped from China. Which is more important - the product that helps lessen your impact on the environment, or the fuel it will take to get the product here? Only you can answer that question.
For more information on green vendors, please visit the following Web sites:
I am pleased to announce that I have been awarded the NATIONAL ASSOCIATION OF REALTORS® Green Designation certification. What does this mean for you? As your Tempe REALTOR®, it means I have the tools to help you "green" your home, making it more marketable and environmentally friendly.
Green homes should have the following: a positive impact on human health and comfort; integration into a sound environment; and sustainable design, construction and systems (NATIONAL ASSOCIATION OF REALTORS®). Former Vice-President Al Gore's Nobel Prize winning documentary, "An Inconvenient Truth," helped inspire my decision to work toward a more sustainable existence as both a person and a REALTOR®. As a REALTOR®, I want to help people create environmentally-friendly homes.
As a NATIONAL ASSOCIATION OF REALTORS® Green Designee, I can help you make educated decisions about green materials, energy-efficient technology, green ratings, green design, green living and green incentives. I can also help you obtain a LEED certification for your home. LEED is a third-party certification program that sets design, construction and operational standards for high performance green buildings.
LEED is awarded by the U.S. Green Building Council. Certification is available in the following areas:
New construction and major renovations
Existing buildings
Commercial interiors (fit outs by tenants)
Core and shell (total building without fit outs)
Schools (K-12), retail and healthcare facilities
Homes
Neighborhood Development
Qualified properties are awarded one of the following certifications: Certified, Silver, Gold or Platinum. Properties can qualify for LEED certification by earning points in six areas:
Sustainable sites
Water efficiency
Energy and atmosphere
Materials and resources
Indoor environment quality
Innovation and design process
I can help you by making suggestions to help you "green" your home. I can also connect you with reputable green vendors who can provide the products and services that will help you make your home more sustainable.
Here are a couple of purchases you can make that will save you money and lessen your environmental impact:
ENERGY STAR windows - annual savings: $300
Solar Attic Fan - annual savings: $200
Low-flow Faucets - annual savings: $100
For more information on green building, I encourage you to visit the following Web sites:
If you are one of the many people struggling to save your home, then loan modification may be the life raft you are looking for.
Loan modification can help you reduce your monthly mortgage payment. While not all homeowners qualify, it doesn’t hurt to look into pre-qualification.
To qualify, you must be employed and able to demonstrate that your household income has been reduced. As your Tempe realtor, I would be happy to help you determine if you are pre-qualified for assistance - at no charge to you. No upfront fees, no charge for the results. If there is a way to help you save your home, I want to help.
The pre-qualification process can be cumbersome – having a professional assist you can make the process less overwhelming. If you are pre-qualified, you are in no way obligated to continue the qualification process with me.
Loan modification isn’t always the best solution – in some cases, a short sale is the best course of action. The loan modification process is ideal for those who are unable to make their monthly mortgage payment – but can, with a little tweaking to their budget. Short sales are the better option for those who cannot pay their bills. A short sale can even be beneficial for some, taking away a massive source of financial stress. I will help you determine which avenue you should pursue.
Before you decide to hire someone to help you save your home, be sure to do your research - there are predatory companies taking advantage of those seeking assistance. Arizona Republic Real Estate reporter Catherine Reagor reported in Sunday’s paper that families across the Valley are being victimized by scam artists who are taking advantage of the uncertainty surrounding loan modification. Reagor said if the company you are dealing with guarantees that it can get your lender to reduce your monthly mortgage payment or tells you not to seek outside assistance, you may be the victim of a scam. Some victims have reported that the scammers have offered to fill out the paperwork for them, demanded payment in advance and rushed them through the process.
If you are concerned that you have been the victim of a scam, or suspect a company of wrongdoing, you can report it to one of the following organizations:
Home sales continue to climb as more and more foreclosures are snatched up by investors. Foreclosure inventory in the last month has dropped from 10,200 to 6,700 – pending home sales are at 8,183, and 5,508 homes were sold in the last 30 days. Investors are buying foreclosures at a faster rate than they are hitting the market.
The percentage of foreclosed homes in Tempe is lower than the rest of the valley (8 percent versus 35 percent), which means Tempe’s absorption rate continues to hover at a 10 or 11 month absorption rate. The absorption rate is the ratio between active and solds: the time it would take at the current rate of sale for the inventory to be completely sold. Valley wide, however, the absorption rate is now 5.0 – the last time the Valley real estate market saw the absorption rate this low was in 2006. In the last 30 days, 8,527 homes have been sold, bringing the inventory of available homes down to 42,466.
While foreclosed homes continue to close at a rapid pace, the real estate market is having a more difficult time moving short sales and pre-closure properties. Short sales and preclosed homes only have a 1 in 15 chance of closing. At present, there are 12,054 short sales on the market and last month, only 804 of those closed. It is for this reason that many of my clients are choosing not to pursue short sales – they are waiting until the banks are more responsive to buyers.
This stunning turn around in the market occurred in the time span of a few weeks. Some insiders are claiming that another wave of foreclosures is about to hit the market, but judging by the high demand for foreclosed properties, these homes won’t last long. As we move into the prime buying time for homes, the demand will continue to increase on the retail end of the market.
The real estate market is currently in a state of flux, with many people still struggling to keep their homes. Arizona Republic reporter Chad Graham shared real estate reporter Catherine Reagor’s tips for readers who are dealing with a potential foreclosure. According to Reagor, foreclosures spiked more than tenfold in the past year as homeowners fell behind on their mortgage payments. Here are some of Reagor’s tips that can help you from becoming a statistic:
1. Contact your lender immediately.
2. Organize important papers – locate such items as lender information, annual tax returns paychecks and monthly utility bills (any organization providing assistance will ask for this information).
3. Look into Making Home Affordable, a plan to stabilize our housing market and help up to 7 to 9 millions Americans reduce their monthly mortgage payments to more affordable levels. For more information, visit www.makinghomeaffordable.com or call 888-995-HOPE.
4. Call the Arizona Foreclosure Prevention Hotline at 877-448-1211. It offers bilingual counselors.
5. Check out www.hud.gov. Click on the “foreclosure avoidance counseling” link and then choose Arizona. It is a good way to find a counselor approved by the U.S. Department of Housing and Urban Development (HUD).
6. Consider a short sale – you won’t make any money, but you won’t have a foreclosure on your credit either.
Not everyone is going to be able to avoid foreclosure, but for many of you, it Is not too late. Facing a foreclosure can be daunting, but it is important to face the challenge head on with creativity and honesty - hiding mortgage statements in the junk drawer or changing your phone number will not help you keep your home. So pause, take a deep breath, and start getting in touch with the people who can help you avoid foreclosure.
After a tumultuous two years, the real estate market is beginning to show signs of improvement. During the last three weeks, the Maricopa County absorption rate has steadily declined. The absorption rate is the ratio between active and solds: the time it would take at the current rate of sale for the inventory to be completely sold.
At present, the rate is down to an astonishing 5.5 - a few years ago, it wasn’t uncommon for a house in Arizona to sit on the market for 25-30 months. Anything under an absorption rate of 6 is considered a sellers market.
What does this mean for those of you looking to buy a home?
The time to buy a home is now - investors are snatching up properties, and the number of properties for sale has dropped significantly:
• During the last year, the number of homes for sale in Maricopa County has hovered at 55,000 - as of April 24, only 44,707 homes are available for purchase.
• In the last 30 days, 8,121 properties closed escrow.
This means more people competing for fewer properties. While the number of homes for sale has dropped, banks and lenders are listing properties at unbelievable low prices and waiting for buyers to bid up the price within a matter of days. Realtors are getting calls from buyers who are disappointed to learn that the homes they are interested in making offers on are homes with comparable home values sometimes as much at $20-30k above list price and with multiple offers already on the table that are well above list price. For this reason, we will primarily feature properties that are private sales (or what I call retail).
What does this mean for those of you looking to sell your home?
Some tips for those of you looking to sell a home: the prices may bounce along the bottom for some time before we see a price recovery. But I can assure you that the average person (with a loan) trying to buy a foreclosure in the $100k range is up against sometimes as many as 5 or 6 cash buyers. Only one of the those people got the property they were bidding on, which means 5 other properties will be bought by those cash buyers who are getting hungrier each time they get beat out.
As those of you who have been following my blog know, one of the main statistical areas I have been tracking is the ratio between Active (for sale) and Closed (sold) properties on the MLS. I look at the whole MLS and also target Tempe as a sample of a local market.
At the end of March I noticed that many offers on properties below $150k were going very quickly and these properties frequently had multiple offers. Concerned by this trend I decided to check the MLS and noticed that the inventory was down to 50,200 active listings, 200 away from the 50,000 threshold. The market was last below 50,000 back in January of 2007. One day later it had dropped below 50,000.
I began monitoring the numbers on a daily basis and found the inventory dropping by hundreds each day. My last check, prior to writing this blog, was Wednesday, April 8, the total for active listings was 47,394 in the morning and 47,267 by the evening. A 6% drop in less then 10 days.
Going a bit deeper we see that there are 12,341 pending listings (under contract) which means the total sold for the past 30 days (7,554) could jump substantially in the next month.
The significance of this number is the ratio between Active and Solds, which gives us the absorption rate: the time it would take at the current rate of sale for the inventory to be completely sold. For the past few days that rate has hovered between 6.5 and 6.2 months. That is down from 12 months in October 2008 and 18 months in April 2008. A very significant drop.
What is more significant is the 6 months inventory is the turning point between a buyer’s market (above 6 months) and a seller’s market (below 6 months).
The main factor driving these numbers is the anecdotal evidence: that bank properties are starting to be bought up, that there are frequently multiple offers and that investors are buying bank properties in blocks of 25 or 50 units.
Many buyers have been sitting on the fence in the belief that prices will drop further. As soon as they figure out that the prices are not dropping any more, they will start buying aggressively. The calm will be over and the storm will begin.
By the time these buyers catch on, prices will already be rising and they will either be paying more or will no longer find quality products at the prices they wish to pay…
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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