Just how accurate is a Zestimate?

When it comes time to sell your home who will you turn to for answers? Will it be an experienced real estate professional, or the internet?

I often have clients tell me they already know the value of their home based on information they have seen on Zillow or other home valuation websites. The question is, just how accurate is that information?

According to Zillow, in Maricopa County, AZ, Zillow’s Zestimate is only within 10% of the sales price of homes 49% of the time. That means that more than half the time their Zestimate is off by more than 10%. That can mean a big difference to you not only in the sales price, but also in the amount of time it takes to get your home sold.

Although they pull information from numerous public record sources to compile the data displayed on these websites, and data is updated frequently, it can not give a completely accurate reflection of your home’s true value. They haven’t had the opportunity to come inside your home and see the finishes you have used, upgrades you have made and attention to detail you have put into making your home special. They are also not familiar with the local real estate market, what local buyers are looking for, special features of your property in relationship to the area and sales trends that may affect the sale of your home.

What is comes down to is that real estate local! I’m not just talking about statewide, or citywide, but community wide as well. The only people who can truly give you an accurate estimate of the value of your home, and what you can reasonably expect to sell your home for in today’s market, are a licensed Realtor or a licensed Real Estate Appraisor who are familiar with the area in which you live.

A licensed real estate professional will not only look at your home, but they will also consider other homes that have recently sold, and your competition that is currently on the market. They will take into account special features of your home, your neighborhood, and the surrounding area. They will also be able to share some insight with you about how you can improve the salability of your home.

Here is a great video from Zillow that explains how they get their information and how accurate it is.

Fountain Hills Named “Best Affordable Suburb” in Arizona

The Arizona Republic reported today on something that I have known about and been touting for years. BusinessWeek has recently recognized Fountain Hills as the “Best Affordable Suburb” in Arizona.  The town was recognized for its “natural beauty” and outdoor activities such as hiking, biking and golfing. And, let’s not forget about the “Frolf”. 

According to BusinessWeek, the median home price in Fountain Hills is $380,182. By comparison, Scottsdale’s median price for 2008 was $476,250, making Fountain Hills a much more affordable option.

The Town’s Mayor, Jay Schlum sites the Town’s high-perfoming schools, low crime, small town flavor and award-winning parks as attributes that make Fountain Hills such a great place to live.  Fountain Hills is also, as he says, “good real estate value.

Schlum says “We are a community that is oriented to an outdoor active lifestyle, and that draws out a youthful energy.” I couldn’t agree more! That is one of the wonderful things that originally attracted me to Fountain Hills.

Over the years I have heard many homebuyers tell me they decided to look for a new home in Fountain Hills because friends, family members, and sometimes even strangers told them it is the best place to live in Arizona.  I believe that the residents of a community are the best testiment to its qualities. 

Great news for people looking to move to Fountain Hills, homes in Fountain Hills right now are even more affordable than they have been in many years. This is a great time to make a move to the “Best Affordable Suburb” in Arizona!

Price Reduced on Beautiful Hillside Lot For Sale in Fountain Hills

PRICED REDUCED – PRE-FORECLOSURE – SHORT SALE

15252 N Blackbird Dr, Fountain Hills, AZ 85268

• Property Type: Vacant Land/Lot
• Zoned: Residential Single Family
• Size: 1/4 Acre
• Price: $245,000
• MLS®: 2876055

THE PERFECT SETTING FOR YOUR NEW HOME! Enjoy beautiful views from this easy build lot in fantastic area of Fountain Hills. Walk the property and enjoy for yourself the spectacular mountain, Red Rock & Fountain views! All utilities are on the property and topo is available. Plans are available for 2 homes – a 5883 SF Tuscan or a 4207 SF Contemporary. Looking for something different? No problem…to sweeten the deal even more seller is offering a $12,000 credit for custom plan design. Call for details!

• Vacant Land/Lot – Custom Homesite
• Incredible Mountain Views!
• Stunning views of Red Rock & Four Peaks!
• Great view of the Fountain!
• Easy build hillside lot
• Great Fountain Hills neighborhood
• All utilities on property
• Plans available for 2 homes – a 5883 SF Tuscan or 4207 SF Contemporary
• Or $12,000 credit for custom plan design

Short sale subject to lender approval. Preview this beautiful property and make an offer today!

For more information or to schedule a showing contact:

Bonny Puckett
Call Realty
480-205-6324
www.InvestInAZHomes.com

Spectacular turnout at Open House

I had a great open house last Thursday evening at my listing at

14431 E White Feather Ln, Scottsdale, AZ 85262

Quite a few Realtors, Affiliates and Neighbors stopped by to preview this beautiful new home. Everyone raved about the incredible quality of craftsmanship and the stunning finishes used throughout. Hot topics of conversation included the gorgeous Aurora Borealis granite counter tops that have intricate variations of color including reds, golds and browns, with intriguing streaks of bluish gray.

The stainless steel SubZero & Wolf Appliances were very well received as were the double Fisher Paykel Dish Drawers which make cleanup a snap when entertaining. This kitchen is truly an entertainer’s dream!

The detached guest casita and outdoor living spaces also drew a lot of attention. The casita features a kitchenette, full bath and walk-in closet. Just off the casita is a full outdoor kitchen that has a stainless steel 4 burner gas BBQ Grill, 2-burner gas cook top, mini refrigerator and a refrigerated beverage and condiment cooler. Guests will enjoy relaxing by the outdoor fireplace and a taking a refreshing dip in the sparkling pool. Or, ease away all your stresses with a relaxing soak in the heated spa.

One of the local neighbors, Seraphim Moreira, is a sales representative for Classic Equine Equipment. They dropped off some great information about custom barns, barn accessories and other equine equipment such as hot walkers that can be easily added to enhance the property for horse lovers.

If you missed this open house, don’t worry. It is not too late to preview this gorgeous new custom home. Email me or give me a call at 480-205-6324 to schedule a private preview for this week.

7 Simple steps make financing a home easy

All the turmoil in the mortgage industry has definitely made the process of financing a home seem a little scarier. But the truth is, it doesn’t have to be. Although lenders are tightening their belts a bit, being more selective about who they lend to, and more closely evaluating the risk factors involved, they are still lending money. With good credit history, the right documentation and a realistic game plan there are still many financing options available.

The key to obtaining financing for your new home is to be organized and prepared to provide your lender with all the information they need.  A few simple steps can help ease the stress and speed up the process and help get you into your new home.

1. Give your credit a check-up.Monitor your credit report to make sure there are no discrepancies or derogatory items that would prevent you from getting a loan. If you do find something that doesn’t belong dispute the item with the appropriate credit bureau.

2. Boost your credit score. Try to keep your credit card balances below 30% of your credit limit. This will reduce your credit risk and increase your FICO score.

3. Save for a down payment. Start stashing away some extra money to help cover closing costs and down payment.

4. Get your paperwork in order. Most lenders are going to want to see proof of income and assets. Make sure you have your last 2 months bank statements, your last two pay stubs and your last 2 years tax returns readily available.

5. Plan a realistic budget. Lenders want to know that you are going to be able to make the payments on your loan. Your mortgage payment ideally should only be about 25% of your monthly household income. Any more than that and you might be putting a financial strain on yourself.

6. Don’t make any major purchases. One of the biggest mistakes people make is going out and making a major purchase right before closing on their home. Wait until after your loan has funded to make any major purchases such as appliances, furniture, new car, etc.

7. Get pre-qualified.Before you even start looking for a home, talk to a lender and get pre-qualified. They will let you know up front just how much home you can afford to finance. They can also help you make sure you have all the necessary documentation ready when it comes time to finance.

Fountain Hills Voters Reject Property Tax

For those of you who don’t know, yesterday was a local election day. Here in Fountain Hills there were only two items on the ballot, two candidates vying for one final Town Council seat and a property tax referendum.

Okay, so it was a short ballot, but the issues were pretty important to the residents of Fountain Hills, especially property owners.

I was very disappointed when I went to the Community Center to cast my vote and the only other people there were the volunteers working at the polling place. I know there were 4 other polling places, but all day long I only saw one other resident wearing a sticker that said they voted, and that was my husband.

I’m surprised that so few residents saw a need to turn out at the polls and cast their vote on such an impactful issue. As a home owner, REALTOR® and real estate investor the issue of a property tax is one that I find very important.

According to AZCentral the results of the poll are in. Good news for home owners, once again Fountain Hills residents have rejected the Property Tax initiative. This is the third time in six years that Fountain Hills voters have said NO to property tax referendums in Fountain Hills. The town has spent a lot of time and money trying to educate the community on the need for a property tax. But, based on the large number of recent letters to the Editor of the Fountain Hills Times in opposition of the proposed property tax, and protesting the Town’s recent spending habits, it’s no surprise that this initiative didn’t pass.

Dennis Contino, who opposed the property tax and is in favor of re-examining and trimming the town’s current budget, won the final Town Council seat and will take office on June 5.

Pros & Cons of allowing pets in rental properties

Making the decision to allow pets in residential rental properties should be not be taken lightly. As a landlord you may be taking on additional costs, responsibility and liability by allowing pets. However, you may also benefit from decreased turnover and a larger rental pool.

Here are few things that investors and/or landlords should consider before determining if they are going to accept pets in their rental units.

Pros

Decreased Turnover: Allowing pets has been shown to actually decrease turnover in tenants. Tenants with pets often have a hard time finding pet friendly rental units. This may discourage them from moving frequently. Because long term tenants can be very desirable, it may make sense to allow pets in your rental unit, providing you are adequately protected from liability and damage.

Larger Rental Pool: Many renters own pets and are therefore looking for rental units that will accommodate their furry (or sometimes not so furry) friends. By not allowing pets in your rental unit, you may be significantly decreasing your potential prospects. Having a larger rental pool, which includes pet owners, may mean lower vacancy rates.

Cons

Property Damage: Even small pets can cause large amounts of unwanted property damage. This may make it more difficult to re-rent or re-sell your property after your tenant has vacated.  Because of this you should require a pet fee or pet deposit that can be applied towards correcting any property damage when the tenant vacates the property.

Insurability: Before determining if you will allow pets, it is a good idea to check with your insurance agent to see what your coverage is regarding pets. You will not want to be held liable if your tenant’s pet attacks someone.  To avoid this, ensure that you have adequate insurance coverage for pets, and check to see if certain types of pets or specific breeds are not covered under your policy. You should also consider requiring the tenant to have separate renter’s insurance coverage for their pet and having you named as additional insured on the policy.   

Crafting your Pet Policies

If you do decide that you are going to accept pets in your rental property, make sure that your pet policies are clearly outlined in the rental agreement or an addendum to the rental agreement. You should define the types of pets that are and are not allowed. Make sure to include as much detail as possible including breed, age, size, temperament, etc. You should also consider requiring proof of current vaccinations, neutering and licensing. Also, make sure to include stipulations for: tenants providing false information regarding their pets; excessive noise; and aggressive behavior.  

Also, make sure to familiarize yourself with local and federal laws regarding rental properties. In Arizona you can find more information in the Arizona Residential Landlord and Tenant Act.  

Home values continue to rise in parts of Scottsdale

I was recently showing some properties to a client from out of state and he made a comment that took me by surprise. He said that he had read an article in the New York Times stating that property values in the Metro Phoenix area were down by more than 30%. This statement really punctuated the misconception that most buyers have regarding the state of the real estate market in Arizona.

It really shouldn’t come as a surprise, because news media across the nation (both print & broadcast) have been having a field day discussing declining home values, sales slumps and rising foreclosure rates. Many of the news reports I have heard and read have scary headlines, but when you read the article there is no solid data to back them up. Often times, the data provided is even contradictory to the headline.

The truth is, there are parts of the Metro Phoenix area that are struggling to maintain property values and the number of sales have decreased to more reasonable levels from the highs seen over the past few years. This type of market adjustment is to be expected after many areas saw record increases in sales and property values in 2004, 2005, and even in 2006. But, real estate is local and property values and sales can vary dramatically not only from city to city, but also from one neighborhood to the next.

While some of the outlying areas of the valley are suffering from a glut of new construction, resale properties and foreclosures, there are parts of the valley that are maintaing property values, and even seeing increases. For instance, the neighborhood in Scottsdale in which my client was interested had not experienced a decrease at all. The median sales price for homes in the area had remained the same in 2007 as it was in 2006.

Another example is demonstrated in the table below. This table shows sales data from the Northeast Scottsdale/Rio Verde Foothills area (85262 Zip Code) which continued to see growth in 2007 with an increase of 6.7% in median sales price. This clearly demonstrates that property values in the area are continuing to remain strong. 

85262 – Overall Home Sales by Zip Code Data only available for years in which 50 or more homes were sold.
Year	Median Price	% Change from Prior Year	Number of Homes Sold
2007	$1,063,998	6.7%	442
2006	$997,000	30.7%	543
2005	$763,000	52.9%	813
2004	$499,000	12.9%	839
2003	$442,000	8.8%	545
2002	$406,250	–	416

Source: Analysis by Ryan Konig of The Arizona Republic, using data from Information Market

If you would like more information on property values in your area, or if you are interested in purchasing property in Arizona and would like to know which areas continue to have the strongest growth rates, please feel free to contact me.

Bonny Puckett | Call Realty | 480-205-6324 | Bonny@BonnyPuckett.com

Support the No New Home Tax Ballot Measure

I am supporting a critical initiative in Arizona to bring a new measure to the November 2008 ballot, and I am asking for your support as well. The initiative is the No New Home Tax Ballot Measure.

This ballot measure would prevent State and/or local goverment from imposing real estate transfer taxes. Real estate transfer taxes would make property ownership in Arizona out of reach for many people. Arizona’s ability to provide affordable housing, create small business ownership opportunities and help seniors and low-income residents keep their homes must be protected.

Real estate transfer taxes create double taxation, weakening the economy by making it harder for owners to sell their property and reducing the equity property owners have worked hard to build.

What is a Real Estate Transfer Tax?

A real estate transfer tax is a state and/or local tax or fee imposed on real property that is typically assessed according to the sales price of real estate property when transferred. Typically, once the tax is initiated, the rate can be increased by the state, county or city to meet future legislative enactments. Transfer taxes in other states range from .001% to 2.2%.

Problems with a Transfer Tax: 

• Creates Double Taxation. Governments already collect taxes on your property based on the property’s value. This new tax would unfairly impose a second tax to impact your home or property.
• Damages Equity. Since the tax is assessed against the total value including the amount you owe on your mortgage(s), the overall equity earned by the seller is decreased.
• Burdens the Real Estate Market Further. In an already burdened housing market where people are struggling to sell their homes, the overall higher costs will only make it more difficult to initiate a successful sale, not to mention making it less attractive for commercial real estate to recruit business to the area.
• Punishes Home Owners. People who move from one house to another should not be punished while others choose not to move; in fact, this is considered discriminatory and harms access to the “American Dream” of home ownership.
• Impacts Lower Incomes Most. A real estate transfer tax would impose a higher tax burden on lower income households that typically spend a larger percentage of their income on their home.

Don’t let the government strip you of your hard earned home equity. Support the No New Home Tax Initiative and prohibit the the double taxation of real estate in the State of Arizona.

Visit www.nonewtaxonourhomes.com for more information. 

REALTORS® learn more at www.rallinow.com.

March 2008 Metro Phoenix Area Luxury Home Sales Market Report

March 2008 Metro Phoenix Area Luxury Home Sales Market Report (sale prices equal to or greater than $1 million)

March 1, 2008 through March 31, 2008                    Change
     #of homes sold                                110           (-43%)
     Avg. sale price                       $1,863,449       (+10.7%)
     Avg. days on market                         200      (+ 27.4%)

Compared to March 1, 2007 through March 31, 2007
     # of homes sold                               193
     Avg. sale price                       $1,683,947
     Avg. days on market                         157

Although luxury homes in the Metro Phoenix area are taking on average approximately 27 percent longer to sell than they were in March 2007, and the number of luxury homes sold for the month is down from 193 in March 2007 to 110 in March 2008, the average sale price has continued to increase by more than 10 percent over the same period last year. This demonstrates that the luxury home market in the Metro Phoenix area remains strong.   

Number of luxury homes sold in March 2008 by city:

• Scottsdale – 62            
• Phoenix – 16
• Paradise Valley – 14 
• Fountain Hills - 6  
• Mesa - 4  
• Chandler - 2  
• Tempe - 2  
• Buckeye - 1  
• Gold canyon - 1  
• Payson - 1  
• Peoria - 1  

The most expensive home sold in the Metro Phoenix area in March 2008 was a custom estate located in the Silverleaf development in Northeast Scottsdale.  The 12,950 sq. ft. home sold for $8,200,000 to a couple from Irvine, California. The dramatic Mediterranean style estate, built by Argue Custom Homes features 6 bedrooms & 7 bathrooms on just over 2 acres.

The prestigious Silverleaf subdivision is a private enclave of luxury custom homes and homesites, nestled up against the McDowell Mountains in Northeast Scottsdale adjacent to DC Ranch.

There are currently approximately 3999 homes for sale throughout the Metro Phoenix area with list prices of $1 million or greater. Are you looking for a luxury home in the Metro Phoenix Area? Feel free to contact me for a free list.

Interested in a market report for your specific neighborhood? How about a FREE Home Evaluation to see how much your home is worth? Contact me, I am happy to help!