New Build price increases

The MLS just came out with 2020 year in review data. 

Average New Build List Prices 2019        $399,200

Average New Build List Prices 2020        $442,200       up $43,000 or 10.8%

Median New Build List Price 2019            $295,000

Median New Build List Price 2020            $329,900       up $34,900 or 11.8%

Why do I present this to you?  Whether you are interested in a New Build home as a primary residence or you buy New Builds for rental investments both of you are subject to major price increases.

If you intend to buy one or more of these, NOW is the time.  If you wait until next year, oops, they will be up $50,000 grand or so. 

Are New Builds a good investment?  Absolutely, if you look at the last 2 years, if you bought 2 years ago in early 2019, you would be up 22.6%.  Obviously, hindsight is 20/20.  Why should you buy NOW?  Because the Californians are still leaving in droves.  The California elites have proposed more crazy ideas that will force more people to leave it.  Such as

1. Mandating electric cars (they can’t keep the lights on now, imagine when everyone has an electric car)

2. Leaving Cali Tax (new proposal attempts to tax you for 5-10 years after you leave Cali)

3. Raising the Income Tax higher than today’s 13.6% top bracket

4. Stopping the wall (illegal crossings will spike and so will unemployment)

I don’t offer this idea as a political analyst or for a side but simply to demonstrate policies that drive behavior. 

Recommendation: as long as the Californians are being motivated to leave by California, they will.  Arizona is the second most popular State to receive them.  Therefore, you should be investing in Arizona.

If you need help buying or selling, check me out at www.5kflatfeelisting.com.  Looking forward to working with you.

Buyers get:                                    Sellers get:

FREE Home Inspection                 5k Flat Fee Listing

FREE Termite Inspection               FREE Home Inspection

FREE Home Warranty                    FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

Wanna do an Arizona Remodel, better know the rules

I just read a fantastic article by Ben Gottleib, Esq. of MacQween and Gottlieb in the Santan News and wanted to share the highlights discussing Home Remodel Projects in Arizona.

Bank of America polled 1,054 residents and 70% said they are tackling home improvement projects during the covid time.  This makes sense based on what we are seeing with the price of wood at Home Depot and the general lack of labor. 

In Arizona, a GC, or General Contractor is required to have a license with some notable exceptions.  The Licensing includes:

. Post a Bond

. Training from an accredited institution

. Pass a written test

. Finger prints

. Background check

Non-Licensed “Handymen” are acceptable if less than $1,000 total for all labor, material, other.  An Owner can do his/her own work if, not for sale or rent within 1 year of work completion.

Disclosure Issues by the Seller:

. If the Seller fails to disclose a Non-Licensed “Handyman” project, they could face liability.

. Fraud of Disclosure charge could undo the transaction

. Negligent Misrepresentation charge could get the Buyer an award for actual damages and possible punitive damages (means punishment damages designed to teach a painful lesson)

I am always interested in the legal ramifications as a Licensed Realtor and Home Inspector.  I try to keep my Clients out of the Court Room.  In my experience, when one gets sued, both the plaintiff and the defendant lose.  The lawyers win because they suck all the money out of both parties.  So let’s heed Ben’s advice and do our remodel project right. 

If you need to sell your house and save thousands, come see me at www.5kflatfeelisting.com.  I look forward to working with you.

 Buyers get:                                   Sellers get:

FREE Home Inspection                 5k Flat Fee Listing

FREE Termite Inspection               FREE Home Inspection

FREE Home Warranty                    FREE Termite Inspection

 Best,

 Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com 

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

How to get 50k Appreciation + $10,000 when Buying a New Build

 

2021 Facts:

. New Builders can NOT deliver homes in less than 12 months’ time

. Appreciation rates in Phoenix are near double digit

. Days on Market today in Phoenix are 30 days or less

. Phoenix has one of the lowest inventories of homes in a decade

. Phoenix is in a multiple offer situation

Here’s the Idea: You wish to buy a new built home.  Go find the one you want.  Then time the Listing (www.5kflatfeelisting.com) of your existing home at month 11 or 30 days from delivery.

If your home is worth $500,000 today, in a years’ time, in this market, it should be worth roughly 10% more!  List at $550,000, create the bidding war to drive the price up and coordinate your move out with your move in. Save $10,000 from your normal Listing Fees by using www.5kflatfeelisting.com.

Need help executing this strategy and put money in your pocket!  Call anytime.  I look forward to working with you.

Buyers get:                                    Sellers get:

FREE Home Inspection                 5k Flat Fee Listing

FREE Termite Inspection               FREE Home Inspection

FREE Home Warranty                    FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

 

Sell Now, Flip multiple Short Sales

Definition: a short sale is when a Seller wishes to sell below what’s owed and the bank agrees. 

Strategy: Sell your house now to get the equity (assume $200,000).  Use the equity to flip short sales. 

The average profit on a flip is 10%.  Therefore, you want to flip homes at the top of the price range, just before the point where sales slowdown.  As an example, in Phoenix home sales start to slow above $650,000.  Knowing this, we would target homes with after repair value between 500k and 650k. 

But there are no short sales!  That’s what your thinking.  It is true there are fewer short sales just now.  So increase your offers.  I would pick 10 Cities across the Country, hire a Realtor in each, instruct your Realtor to make 1 offer per day on short sales that are stinky and nasty at 65% of after repair value.  

With this strategy, you will be making roughly 300 offers per month.  I gotta think you can get at least 2 per year.  Now let’s do the math.     

Math Example: (excludes closing costs)

        Sale Price                  $600,000

        Profit per Flip               $60,000

        Flips per year                         2

        Total Profit/year         $120,000

You leveraged your $200,000 equity to make $120,000 free and clear profit in 1 year.  Outstanding!  This is the kind of out of the box thinking we teach.  If you need more information or just want to chat about equity leverage with buying and selling homes.  Feel free to call.

Buyers get:                                    Sellers get:

FREE Home Inspection                 5k Flat Fee Listing

FREE Termite Inspection               FREE Home Inspection

FREE Home Warranty                   FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

 

Earnest Money Strategy for 2021

What is earnest money?  An Earnest Money Deposit (EMD) is a monetary amount that is used to open escrow in conjunction with a signed contract is what’s needed to open escrow on a real estate purchase. 

Did you know that EMD does not need to be actual money?  It can be anything of value.  I could put down my cell phone to open escrow and its just as legal as $50,000 in cash. If you try that, you will need to ask the Escrow Company if they will take that kind of EMD.  Just because its technically legal, doesn’t mean the Title Company will do it.

Most of my Clients ask me how I do EMD for myself.  I make offers all over the Country.  I may make 30-50 offers per month.  Can you imagine if each offer needed $10,000 or 1% or whatever the societal norm is?  One would run out of money in a hurry.  I don’t want to tie up that much money until I know for sure that I am buying the house

I use a staggered earnest money strategy to give myself or my Clients maximum flexibility.  Here is how it works:

Initial EMD:              $500 due now

Additional EMD:       $24,500 due on Day 11 after the Inspection Period

What if you don’t have $24,500?  This strategy gives you 10 days to find it.  Get a loan from a Gap Funder and split the profit with him/her or assign the contract to a rich person who does have the money.

If you need contract help or have contract questions, feel free to call.  Don’t forget to catch us on www.5kflatfeelisting.com

Buyers get:                                     Sellers get:

FREE Home Inspection                 5k Flat Fee Listing

FREE Termite Inspection               FREE Home Inspection

FREE Home Warranty                    FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

                                                                Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

 

Sell Now, Owner Finance the 1^st, Sell 1^st at Closing

I was asked what to do with my $200,000 in equity in my home?  Today’s idea generates access to your equity and an income stream and keeps you connected to the house for future use.

Here is the idea:

1. Sell Now “Owner Financing Possible”.  Homes that are owner financed sell for 10% - 15% more because of the owner financing.
2. Make the Buyer put down a substantial down payment
3. Sell your “Note” at closing to a Note Buyer at 85% to 95% of face value.  You basically get most of your equity now.  You can get a quote for the Note before you enter into the contract!
4. Keep a 2^nd Note of 20% at 15-year amortization, 6% interest.  People getting owner financing will pay more in interest gladly.  You get monthly payments because you are the BANK!
5. You now have basically most of your equity to do as you wish and you have the Buyer making monthly payments to you on the 2^nd Note. 
6. Should the Buyer default, you have the option to foreclose them out and take the property back.
7. The Title Company creates the Notes, your Realtor finds you the Note Buyers and possibly the Buyer themselves.

 Math Example: (excludes closing costs)

           Market Value of your house:                                  $300,000

Ask Price:                                                               $360,000

Total Amount Owner Financed:                              $342,000

1^st:                                                                          $273,000, 30-year, 6% interest

2^nd:                                                                          $69,000, 15-year, 6% interest, 

                                                                                payment to you: $582.26/month

           1^st Note sold at closing:                                          $273,000

                                                                                                 X .85

                                                                                           $232,050 cash to you at closing

Down Payment at closing:                                         $18,000 cash to you                                                                                                       $250,0050 total              

You now have $250,050 to use as you wish, plus a monthly income of $582.26/month. If you are interested in this technique, call any time.  I would love to help.  You can find me on www.5kflatfeelisting.com

Buyers get:                                    Sellers get:

FREE Home Inspection                 5k Flat Fee Listing

FREE Termite Inspection               FREE Home Inspection

FREE Home Warranty                    FREE Termite Inspection

Best,

Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona

 

Yelling at the Title Company.

Today I have a Client attempting to deposit an earnest money check to the Title Company in compliance with the Arizona Contract.  I wanted to give you all the 411 on how depositing money at a Title Company works.

1. You can give Title a personal check or a business check.  There will be a 10-day hold.  If today is the last day to deposit money with Title, then you would be out of compliance and the Seller would have the right to CURE the Buyer.  A Cure Period Notice gives the Buyer 5 days to deposit the earnest money by 5:00pm of day 5.  After that, the Seller can cancel.

2. You can give Title a cashier check. This is considered cash and will be accepted and credited as deposited to Escrow on the day it is delivered.

3. You can wire Title the earnest money. Beware of wire fraud and be certain to call Title to verbally verify routing # and account #.  If you wire to a routing# or an account# obtained from an email, you are risking loss of said money.  You must must must must verbally obtain the numbers from an actual Escrow Officer that you know.

Geoff Nowlin is a licensed Realtor in Phoenix, AZ specializing in www.5kflatfeelisting.com.  If you need to sell, save thousands and get a FREE Home + Termite Inspection.  Never too busy to serve you.

Buyers get:                                     Sellers get:

FREE Home Inspection                  5k Flat Fee Listing

FREE Termite Inspection               FREE Home Inspection

FREE Home Warranty                    FREE Termite Inspection

 Best,

 Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Check out our unique real estate services and advantages

Geoff & Mia Nowlin

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com

Name:

Email:

We respect your email privacy

Serving Maricopa & Pinal County Arizona