Liz's Havasu Lifestyle Blog: July 2009

Realtor® Liz Miller ~ Lake Havasu City Real Estate

For the ninth consecutive month, residential home sales in Lake Havasu City have increased over the same time period for the year before. In fact, Lake Havasu homes experienced a 54% increase in June 2009 over home sales in June 2009 (150 vs 97). Vacant land sales in Lake Havasu also experienced a 33% increase in June 2009 from the previous year (12 vs 9) and sales of multi-family homes were up 150%. The average sell price of a Lake Havasu City home was $173,603, while the average sell price of a vacant lot was $80,679. Prices for single-family homes seem to be staying pretty steady now as well. If you are looking to purchase a home in Lake Havasu City, now is definitely the time to buy. The inventory is full of great bargains and prices will not stay this low forever. Besides, you have until the end of November 2009 to use the $8000 First Time Home Buyers Tax Credit to help finance your home. And, with the Your Way Home AZ program firmly in place for all Arizona residents, it would be silly of you not to purchase that Lake Havasu dream home today.

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Realtor® Liz Miller  ~  Lake Havasu City Real Estate

As home prices decline in many areas of the country, we are seeing one of the most affordable housing markets in years.  This housing market combined with low interest rates is motivating millions of home buyers to hit the market and find their dream home for a bargain.

Realtor.com recently did a Homeownership Survey that showed home buying affordability is what is driving more than two-thirds of potential buyers back into today's real estate market.  That's means about 65.2% people are looking to buy a home nowadays.  One in five of prospective buyers said foreclosures have motivated them to purchase a home.  They look at foreclosures as bargains.  Just over 15% of prospective buyers said they are motivated to buy now or very soon because they think this is where prices will be bottoming out and they want to get in on the low interest rates before they begin to rise.  The $8,000 Federal tax credit was the motivation for just over 14% of first-time home buyers.   

The Homeownership Survey also found that many Americans are still not aware of how affordable homes are today.  Approximately 76% think that a median income family cannot afford much these days when, in actuality, a family earning the median income of $53,000 can afford almost 75% of the homes on the market.

The only downside to the survey was that it found one in ten current home owners have been delaying selling their home because of the low home prices.  Many fear they will not get what they purchased their home for.

This survey has clearly shown that potential buyers are motivated by value and affordability.  Now, with such a wide variety of quality homes currently within the average American families reach, the motivation is greater than ever and many buyers are taking advantage of this wonderful opportunity.  And why not?  Low prices seem to work for everyone.

Many first-time home buyers are taking advantage of the first-time home buyer tax credit.  You know, the one everyone has been talking about so much lately?  Any first-time home buyer can purchase a home and deduct $8,000 or 10%, whichever is lesser, off the total value of the home.  Since many of these first-time buyers have ever owned a home before, I thought I would take the opportunity to get the word out about the importance of a home inspection and how it can minimize unpleasant surprises.

A home inspection will help home buyers learn as much as they possibly can about the home's faults or any major needed repairs that can be very unpleasant and most of the time unexpected difficulties.  For those home buyers who are seeking to purchase short sales or foreclosures because it may look like the better deal, it is more important for you to have a home inspection done.  It is a true risk not to have a home inspection done under any circumstances.

In a home inspector's report, you can expect to find the following covered:

* The condition of the home's central air conditioning system

* The home's heating system

* Interior plumbing

* Electrical systems

* The roof

* The attic and its insulation

* The foundation

* The basement

* Structural components

* Walls, ceilings, floors, windows and doors

The inspector will give you a report of any components in the home that are not functioning correctly at the end of their service life and anything that may be unsafe.  A home inspector is also a neutral party in the buying/selling process.  They will only give you professional advice that you should listen to.

If you have already made an offer on a home but haven't closed yet, you can still hire a home inspector.  You can then have your offer be contingent on the findings of the inspection.  Depending on what the inspector finds, you may be able to renegotiate your offer.

I can't emphasize the importance of a home inspection enough.  It can save you so much heartache and financial hardship if you just know what to expect.

Realtor® Liz Miller   ~  Lake Havasu City Real Estate

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Many sellers know that their home will need some type of repair when it comes time to put their home on the market.  However, not all repairs make it to the homeowner's to-do-list.  Therefore, it is a good idea to make a list of all the repairs needed so nothing gets left off.  And there are four main areas to focus on when selling your home that homeowners should pay careful attention to: landscape, staging, lighting and cleaning.

Every homeowner should always consider their return on investment when doing any repairs.  In some areas of the country, some repairs don't seem to matter to buyers as much as in other parts of the country.  Here are some homeowner repairs and a breakdown of their return on investment (ROI) to help you choose what home repairs to check off your list first:

Cleaning - Cleaning and decluttering your home can create an average of 573% ROI, depending on what part of the country you live in.  It ranked highest in the West.

Staging - Staging your home can create an average of 340% ROI, ranking highest in the Mid-West and the South.

Landscaping - Landscaping the front and backyards can create a high ROI of 415% in the East.

Other important repairs to consider include painting exterior, painting interior, update kitchen, update bathroom, update lighting, repair plumbing or electrical problems, replace carpeting or update flooring with hardwood, etc.  Get more advice on ROI repairs on homegain.com.

Also, give the entire house a good cleaning.  Don't forget the windows!  This is one of the most overlooked areas of the home, but a big mistake when forgotten.  Bright sunshine coming through the windows makes all the difference in the world.

Each repair will range from a few dollars to several hundred dollars.  My advice is to shop around to find the best possible deal on the repairs you want done.  Repairs such as these on a three bedroom, two bathroom home can result in a price increase as much as $10,000 to $20,000.  Therefore, think carefully about your repairs.  They could be well worth the money.

Realtor® Liz Miller ~ Lake Havasu City Real Estate

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There's great news for Arizona homebuyers.  A new incentive has now been added for helping buyers buy foreclosed properties.  This awesome news has come at a great time, too.  Now, through the help of Your Way Home AZ program, many buyers are eligible for a forgivable 0% interest loan of up to 22% of the property's purchase price. 

The new program offers eligible borrowers the best possible assistance for getting these foreclosures off the market.  And, the only requirements are that the buyer must live in the home for 15 years, the home must be a single family unit, condo or townhome, it must be vacant and the home must be the buyer's primary residence.

The Your Way Home AZ program is available in 13 Arizona counties, with Mohave County and several others being on the list.  Buyers could qualify with as much as 120% of the average county median income.

Anyone looking for assistance with buying a foreclosure can find that on the Your Way Home AZ website at: www.yourwayhomeaz.com.   They have a list of all the requirements and approved lenders.  They will even work with lenders that are not on their approved list.

Once the buyer meets the requirements, it will be easy from there.  The lender will help them through the funding aspects of the program.  The Your Way Home AZ program is already funded for more than $121 million, which was created under the Bush administration.  Just over $38 million of that has been designated to the state's non-metropolitan counties and $20 million is funding Your Way Home AZ.

I would personally recommend for all buyers to start with an approved lender before setting your sights on a foreclosed property.  But, this is always an alternative.  So, whatever your choice is, happy house-hunting.

Realtor® Liz Miller ~ Lake Havasu City Real Estate

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