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Stunning remodel in McDowell Mountain Ranch!! This 4 bedroom, 3 bath home backs a wash, has mountain views & all the designer touches you could ever want in addition to a new roof, new AC’s, new windows, new light fixtures and so much more. The master bedroom is upstairs with a private balcony with views of the McDowell Mountains in one direction and Camelback & Mummy Mtn in the other. Come see this home before it’s gone. Seller has spent over $160k on everything that has been done to the home.

One of the factors is the market climate.  In a HOT market, where there is limited inventory, meaning there are more buyers than homes to purchase, you can sell your home in a day (although I highly recommend allowing the home to have proper marketing time so that you receive the most amount of offers with the best terms.

Anytime someone tells me they sold their home the first day on MLS, I always shake my head because I know that means they left money on the table.

If there are more homes on the market than buyers, then you can expect a little longer timeframe for the home to sell. We can discuss timing and how quickly we feel your home will sell when we meet with you. It’s really important to look at the absorption rate in determining timing.  Absorption rate is a term most commonly used in the real estate market to evaluate the rate at which available homes are sold in a specific market during a given time period. It is calculated by dividing the average number of sales per month by the total number of available homes.

According to Investopedia a “Sellers Market” would have an absorption rate that equals more than 20% and a buyer’s market would have an absorption rate lower than 15%. I personally feel that those numbers are a bit too vast and right now in today’s market if we are seeing a home take longer than 150 days to sell, then it is overpriced.

We have sold 100’s of homes in the Scottsdale market over the past 21 years & we know about timing when selling a home. Call us at The Shackelton Group and we will let you know based on today’s market climate how many homes are on the market and how many buyers were seeing and give you a really good estimate on how long it’s going to take your home to sell.

NEVER, yes I said NEVER take the first offer when you place your home on MLS.  Whenever a seller tells me that they sold their house the first day or weekend it was in MLS, all I can think is “Wow, they left money on the table, they should have allowed proper marketing time to ensure they got the most amount of money on the sale and the best terms.  If you’ve got multiple offers, always counter more than one. In most cases, buyers will increase their offer or give better terms once they know they are competing with other people.

Always tighten up timeframes and contingencies if possible. Get a higher deposit initially so that the buyer has more skin in the game.  Be sure you are certain of the value of your home if you or your agents aren’t 100% sure about what the home is worth; be sure to address that by countering out the appraisal in relation to the purchase price.  Also, be sure the buyer qualifies and has the funds to cover the difference between the offered amount and what the home is appraised at.

Be sure to always contact the lender prior to accepting an offer and ask qualifying questions of them like have they run credit, verified employment, and seen the buyers taxes.  Is the buyer fully approved and has it gone through either Desktop underwritten approval or To Be Determined approval.

Listen, I can go on for hours about all of the things that you as a seller need to be concerned about when negotiating and countering offers…  You shouldn’t have to worry about this and what all these crazy terms mean. That’s what you hire us for. Rest assured, we are in the small percentage of agents across the nation who are Certified Negotiation Experts and we have all of this covered and sooo much more. Leave the worrying to us so all you’re concerned with is going to the bank and cashing your check.  Call me so I can walk you through successful negotiations and the close of escrow process.

From the time of this recording, the Unemployment rate dropped to 3.6% and wages are up to 3.2%. Due to these factors, the likelihood of a recession being right around the corner as predicted earlier in the year is starting to lessen according to several economists and analysts across the Country.

I know this can be so scary, I’ve been in a recession during my real estate career and I’ve seen how devastating it can be and how it can create panic and chaos as far as what to do when thinking of buying and selling.

Let’s look at what Anthony Chan, Chief Economist of JP Morgan Chase states “I feel really comfortable that the economy is slowing down this year, but not going into a recession….It doesn’t look, to me, like the odds of a recession in 2020 are there.”

Dean Baker, Senior Economist states “However, with wages growing at a respectable pace, and job growth remains healthy, we should see enough consumption demand to keep the economy moving forward.  That means slower growth, but no recession.”

So if you’re fearful of buying due to a recession, you may want to think again.  Rents continue to go up significantly.  If you look at the Rent Index percent in change from 2005 to 2018  according to CoreLogic we see a 36% increase in rents and a negative four percent increase in mortgages. That means rents are going up and mortgages are going down. 

You may be wondering why the difference?  Well, mortgage rates back in 2005 were significantly higher as you see on this graph.  This is a perfect example that over time it makes so much more sense to buy than to wait and rent. 

So seller’s, what should you do?  Remember, it’s all relative if you want to sell but are waiting for prices to go down unless you are downsizing and purchasing a lower-priced home, as your house increases so do the home that you are purchasing. 

And according to Freddie Mac, interest rates are anticipated to continue to go up which will also play a role on your mortgage payments increasing for buyers and for sellers who are looking to subsequently purchase, so it’s time to act now. 

As always feel free to reach out to me with anything community or real estate related. I’m Shawn Shackelton with The Shackelton Group helping client’s one relationship at a time.

OK all my friends in sunny Scottsdale Arizona, or those visiting, let’s talk about sunscreen.

I’m Shawn Shackelton with The Shackelton Group at Platinum Living Realty and as we head into the summer sunscreen is SUPER important!!

It seems there has been more talk than normal about making sure you are buying sunscreen that is reef safe, which is awesome! I personally also make sure it is very low in the toxin department.

To do this I utilize an app on right on my phone called EWG. From this app I can scan products right in the store that will show me the toxicity levels so I can decide if it is something I want to use with my family.

The company EWG has also put out an information sheet that will show you what to look for in sunscreen & what to avoid. I have included this in the link. You don’t have to fill anything out or give any information it’s completely free, just go get it so you will have this information for you and your family.

I’m Shawn Shackelton with The Shackelton Group at Platinum Living Realty, wishing you a happy, healthy and burn free summer

Click here to get the FREE list of what to look for and what to avoid when it comes to sunscreen.

EWG-Sunscreens

1. Your home is the single most expensive investment in your life/portfolio. I know some for some of you thinking of your house in your “portfolio” is strange but that’s exactly what it is. It is an asset that should be growing in value over time. When you think of going to a financial planner would you go to someone that has just begun? Or would you want to go to someone who has years of experience? Now, taking the thought of everyone has to begin somewhere I do believe that it is OK to work with someone who is new that is being mentored by someone that has been in the business for years (I do this with agents and love it!!) As a new agent to be able to stand in your truth & say to a client (new or not) that I am newer in this business but I work with a team/mentor (whatever that set up looks like) that has been in the business for over 20 years & $970 Million in closed transactions (these are my stats, so all will be different) who will work alongside us this whole way. This not only will give the client the peace of mind they should be looking for but the extra level of trust in the newer agent, that they have done the absolute best thing for you as the client and asked for help in learning this business. For you this allows you to ask the deep questions you want to know in making an investment that you want to appreciate over time.
2. As an agent that has been working in this business or over 20 years, I have great relationships with other agents. I know who to call and what to do to find homes for buyers if I can’t find them what they are looking for in MLS. And for sellers, I know how to push your home to those other agents that are likely working with buyers in your neighborhood.
3. Having a respected relationship with other agents, as mentioned above is a much bigger advantage to you as either a buyer or seller than you realize. As a professional who “plays nice with other agents” I know that they would like to do business with me again, they have come right out and said it! What does this mean to the agent and their client, they are not going to get the run around by me & they will always have communication (this is a completely different topic and it’s HUGE!!!). What does this mean for my clients? They will be taken seriously when it comes to their offer.
4. Knowing who to call for what… I have any and every vendor you could ever want or need. When it comes down to the inspections and/or repairs this is a stressful time and not knowing who to call to get things done in a timely manner is hard. When my clients run into this, I send them a list of anyone and everyone to call to get things done. I often hear afterward that they have compared pricing with other vendors too and mine are always lower & do great work J this is never a bad thing.
5. Buying and selling Real Estate is as stressful as a Death or Divorce. I have experienced death, luckily I have not experienced divorce however I have seen other go through both as well as witnessing 100’s of real estate transactions and I can say with absolute certainty that this is the truth, it is REALLY stressful. This is again where I go back to having someone that has been through a thing or 2 and can help alleviate the stress of the real estate transaction. This may seem trivial to you right now but trust me when I tell you that it is NOT! To be able to call someone and get answers about what is going on, or what do you do now, have a strategy that you have discussed prior to and reminds you of what the end goal is, to have a trusted advisor to guide you along to get you where you want to be & gives you the confidence to sleep at night, huge.

Some of this might seem dramatic but trust me when I say that I can only write about what I know and I know all of this is true because I have experienced all of it and heard it from my clients over time.

If you are thinking about buying or selling your home or know someone who is, send them my way. It would be an honor to work with them & I will take great care of them through the whole process.

In any regard, the Realtor tries to remove some of the emotional value and sentimental feelings about the sellers home when getting it ready to place on the market. It’s tough at times to think you’ve raised your family in that house and had so many celebrations, birthdays, holidays, and now maybe the kids may have moved on and have families of their own, and you’re experiencing what’s commonly known as the “empty nest syndrome.”

It’s natural to be emotionally connected to that home more than a buyer will be just walking in the door evaluating it for him or herself. Often times people place monetary value on things that are really only sentimental to themselves. This is where the unique task of separation begins. It’s a fine line for the Realtor to walk you though and can be a tricky situation.

If there is something adverse going on during the selling process, for example, a divorce, the game of keeping things on an even keel becomes even more challenging for everyone involved. Emotions run high, and most often people are hurt so they don’t respond as clearly or as level-headed as they might have under “normal” circumstances.

Whenever you are selling, and for whatever the reasons, you need to view your home as a marketable commodity. The goal is to remind yourself that you are making a change and entering into the next chapter of your life. It’s important to show off your home to the next family to make their memories there as desirable as possible. Stand out from the competition, to some degree, pay it forward. Your warm and loving home was built to provide a shelter and a safe environment for many families during its own life-span. It’s not uncommon to hear comments at the closing table from a seller (who is tearing up) explaining the happiness and good things it brought to their family over all those years that they will never forget, just before they pass the torch onto the new owners.

Homeowners who cling to tightly to the past, or have unrealistic views on how much their home is worth because they allow sentimental views to come into the value, are more susceptible to spending a longer time on the market.

With that in mind, the first step in getting your home ready to show to the public is to “de-personalize” it.

Here’s why it’s done:

The reason you want to take this step is because you want potential buyers to see themselves in the home as “their home” and not visiting for a short time in someone else’s. Typically, when buyer’s see a lot of family photos on the walls, trophies, and other very personal items, it creates a mental block for them and it becomes harder to see beyond that. They want to envision their own furniture in the living room, and see their own method of setting up the kitchen. Things might look and feel “busy” if you don’t de-clutter.

A good idea is to clear out many of those items and put them in a safe place so you can display them in your new home once you get there. This doesn’t mean you have to take every photo of your children down and live in a “cold museum” while your home is on the market. It’s about simplifying things. It’s inspiring to let the potential buyers know and feel for themselves that this home was, and still is a place to be cherished and welcoming to a new family and their friends! That she’s got a whole lot of life left in her!

This “de-personalizing” stage is often the hardest part for a family because it’s at this time they feel the transition they are about to embark upon becomes very real. All of a sudden, personal items that have been on the walls and in the house for as long as you’ve been there seem to carry a lot more weight than they seemed to have previously. Try not to let that get you down. After all, they’re all still coming with you!

In a big way, it’s a spring clean of sorts to lessen the time on the market and keep you moving forward as well. If it’s financially possible for you to rent a temperature controlled storage facility while things are being packed away for now, that’s really the best. You can find many uses for a storage facility as well during this transitional period. They sure come in handy!

But, try not to store everything in the garage, attic or the basement. It closes everything in and the buyers can’t see how much smart, usable space you really have in that garage, or maybe up in the attic. Let them see what you’ve got to offer! Use this time to “air things out” and spring clean everything. Clean up the closets, shine up those windows, wipe down doors, clean under the sinks, wash the cabinet doors – both sides, organize the pantries, overhaul the appliances, and deep clean the carpeting and other flooring. Leave nothing unattended to.

If you find that you have alot of clothes, maybe it’s a good time to have a rummage sale and help subsidize the cost of the storage unit. If you have found that you own an overabundance of clothes and household items in general that you don’t feel comfortable distributing to the neighbors, donate them to a local Goodwill and let a family that has not been as fortunate as you’ve been share in these items. It will make you feel a lot better during this cleaning process. Karma always comes back.

The main objective here of course is to take a step back and try to see your home through the eyes of a buyer looking to live there. Ask your agent for help. Let them show you photos of current trends or color pallets that are helping homes sell faster and maybe even at higher price points. Try not to get defensive. It’s only honest feedback and not demands that they’re offering up to you. Ask friends to come over and give their two cents if you’re more comfortable with that. Go visit some open houses in popular neighborhoods with low average days on market times and see what they have done. Take what you need and apply it to your situation and you’ll find the whole experience more enlightening, and a lot more fun!

A word about kitchen clutter:

The kitchen is a popular place to start getting things organized. First off, remove everything from the counters (yes, even the toaster) and wipe them down good. Find places where you can store the items that you’re still going to use like the coffee maker, and have them easily accessible to you. As stated before, if you find that you’ve collected so many different pots and pans, cookware, glassware, as example, take a true inventory and ask yourself what might be expendable to make room for more important items.

Clean and unencumbered counter space is something that today’s modern buyers are very fixated upon. They love the feeling of clean, organized spaces. Don’t leave a bad impression either. Cleaning under the sinks is a great idea not only cosmetically, but you might just discover a slight leak or some plumbing that could use a little help. Fix it now. Don’t wait for it to be brought to your attention because these buyers won’t tell you. They will just assume that maybe there are other areas of the home that leak too. This is no good.

If you have a junk drawer, organize or get rid of the actual “junk.” If you have large amounts of food stored up, plan some menu’s and use it up before it goes stale and as far as canned goods are concerned, use those often too! They are heavy, and you would ideally like to lessen the load during your up and coming move, right? While were on that topic, DVD’s, CD’s, and books when combined, weigh a ton! Get them over to your favorite Half Price Books location and trade them in for some money instead of moving them around. If there are some you just can’t part with, it’s no big deal but you’ll be surprised at what will appear to be excessive when you really take a hard look at it. Streaming movies these days with your Blu-ray or Smart TV is here to stay and not just a fad for the future. You can keep those old classic, must-have movies and music stored right there in your personal Cloud. You can watch them whenever you want, and on multiple devices for that matter, and yet you’ll never have to max out your shelf-space or dust them ever again. Perfect.

Make certain all of the dishes, and canned goods (among other foods) are organized neatly in the kitchen. This includes the refrigerator and freezer. Eliminate any foul odors (if there are any) and pop a fresh box of baking soda in to the ice box. Make sure it looks good too, with clean racks and drawers. Clean up the dishwasher as well. No foul stenches allowed! Buyers are notorious for peeking into dishwashers, and we have not yet figured out why. Until we do, please make sure your kitchen sparkles and looks beautiful! It will go a long way in the eyes of the modern buyer. They will naturally assume that if you keep the kitchen in this amazing condition, the rest of the home should be keep immaculate too, right?

It keeps them moving in the right direction which is to have them agree with you that your house is the best one out there and they want to submit their strongest offer possible. Having an immaculate home will be the place to set that thought process into motion for them, guaranteed.

A final word about closet clutter.

Closest are an amazing thing. They are masters of collecting clutter, though you don’t think of it as such. We’re talking about extra clothing, shoes, and other things you’ve held onto but rarely wear. Maybe you can’t be without them for sentimental reasons like a tuxedo or a wedding dress. No problem! Just safely store them with your other items that are now in your storage unit so they can be brought out later. All of these items, especially large items like blankets, make your closets look like well-fed eating machine. Try your best to let potential buyers see that you DO have a lot of closet space! Smart organization and placement are usually near the top of their list when searching out a new home to purchase, but closet space is a must have. It’s on the top of all their wants lists every single time. Buyer’s endorphins really kick in when they realize that their potential new home has an abundance of clean, accommodating closet space!

A quick note about furniture clutter – it’s a real thing.

In so many cases, people have an abundance of furniture in a certain room maximizing its potential. Perhaps not for your own personal family or lifestyle, but if there is too much, it will rob the room of its space and create an illusion to the buyer that there isn’t any real space for them to work with. Granted, it might be a small room or a den but even those spaces can be staged correctly, and featured as real useable space that seemingly offers a lot more than what you originally had given it credit for.

Another way to go about this is to tour a few builders’ model homes to get sense of placement for what todays modern buyers are looking for. Heck, they’ve spent a lot of money researching trends to help sell their line of homes, so why not take advantage? It will definitely give you a sense of what to keep in your home, and what might have to go to the storage facility, or for that matter, up for sale on Craigslist. Again, donations are always good too. It helps warm your heart, giving to others in need. They call it human nature.

Also, you can Google things like “furniture placement for my living room or den.” Try typing in “home staging tips from the masters.” There are plenty of shows on HGTV (as well as their website) that talk specifically about staging. Searching YouTube is another incredible resource! In fact, there is so much information available on this subject, that you’ll never be able to get through it all. Take what you like and be done with it.

A word about storage area clutter:

If you live in the Midwest or other areas of the country where basements are commonplace, you most often will encounter clutter. It almost seems to accumulate items and duplicate its contents all by itself!

The best possible scenario for a buyer is to see a basement with storage shelves built right into the concrete walls where items are stored neatly and in an organized fashion. The floors are swept clean and there is no trace of mildew or other odors.

Also, they don’t like to see water of any kind. Before you list your home with a Realtor, take some time to clean out that basement and find out if any trouble is lucking down there that could bring to light a costly repair. If there is one that needs to be addressed, and you have the means to do it, call in a foundation expert, diagnose the issue and get it fixed right immediately.

As the Earth moves and changes, pressure builds up over time against foundation walls. Sentiment can harden (or soften) over long spans of time, and cause walls to crack, or need some reinforcement here and there. It happens all the time, and it’s almost unstoppable in some areas of the country. When these repairs are completed, they often come with transferable warranties. That becomes another perfect selling point to add to the homes description.

This process will demonstrate that you not only cared for this home, you maintained it from every angle. It will bring a smile to a buyers face faster than a walnut can roll off a hen house roof! If any defects are discovered in the home inspection phase, buyers will typically ask you to fix any structural defects that might get discovered. Also, it’s common that they can have a chance to back out of the contract if any are discovered and then, to add insult to injury, due to disclosure laws, you have to alert everyone else that might be a potential buyer for your home, know ahead of time, that you have knowledge of a foundation problem. That will slow the entire process down for you in a big hurry. You don’t need that.

So, do yourself a favor and try to uncover any potential adverse facts and set them straight, before you get in the ring! You’ll feel like a champ knowing that when the bell rings, you’re ready for a one – two, knock-out!

Interestingly, if a Seller wants to sell his home to take advantage of a “hot” market (when prices are fairly high) they generally are faced with the reality of securing that purchase within the same “hot” market, and can expect to pay a premium on the other side as well. In a very real way, things even out. Having said that, the way some areas are rebounding quicker than others it is possible for a Seller to sell for a higher price in an area that currently has much more demand than the area they are moving into next. This could be an inter-state move or it could even happen in the same county.

Obviously, economic patterns will change over time. They always have. Since The Great Depression of 1929, we have had quite a few periods of declining markets not only here in the USA, but globally as well. No matter the length of time between depressed markets and/or higher interest rates, you wouldn’t want to wait over a period of years to buy a home, would you? You would still potentially miss out on a substantial amount of equity and appreciation by waiting over long periods of time. Not to mention the losses you would have incurred in paying rent that you’ll never see again.

Among all of these economic shifts, according to the U.S. National Bureau of Economic Research (the official arbiter of U.S. recessions) the sub-prime mortgage crisis was a disaster. In terms of overall impact, it was concluded that it was the worst global recession since World War II. It began in December 2007 and ended in June 2009, and thus extended over 19 months. Of course this is common knowledge today and the country is still rebounding from the tremors felt along the way. According to Wikipedia, there are several “narratives” attempting to place the causes of the recession into context, with overlapping elements. Four such narratives include:

1. There was the equivalent of a bank run on the shadow banking system, which includes investment banks and other non-depository financial entities. This system had grown to rival the depository system in scale yet was not subject to the same regulatory safeguards. Its failure disrupted the flow of credit to consumers and corporations.
2. The U.S. economy was being driven by a housing bubble. When it burst, private residential investment (i.e., housing construction) fell by nearly 4% GDP and consumption enabled by bubble-generated housing wealth also slowed. This created a gap in annual demand (GDP) of nearly $1 trillion. The U.S. government was unwilling to make up for this private sector shortfall.
3. Record levels of household debt accumulated in the decades preceding the crisis resulted in a balance sheet recession (similar to debt deflation) once housing prices began falling in 2006. Consumers began paying down debt, which reduces their consumption, slowing down the economy for an extended period while debt levels are reduced.
4. U.S. government policies encouraged home ownership even for those who could not afford it, contributing to lax lending standards, unsustainable housing price increases, and indebtedness.

Fast forward to 2015, where there are many “boomerang” buyers that are starting to come back into the market now due to their time on the sidelines being almost up because of a short sale, or foreclosure they may have had to suffer though because of the circumstances stated above. Many homeowners are forced to rent because they wouldn’t be extended a line of credit – yet. Once they eagerly return to the game though, sources predict a large upswing in home sales and a subsequent decline in the rental market which for several years now has been white hot.

Today’s buyer would be very wise to form an alliance with their lender of choice, run a credit report, find out the reality of their situation and what programs they might qualify for with regards to homeownership and sweep up any mishaps from their past (if they have any) and put a plan of action into place and follow it diligently. For many people, this is easier said than done but if home ownership is still something you strive for – it is entirely possible to go out and get it done!

Many reports get published, predictions are made and some of them can be very close to spot on but the reality is that no one can tell for certain what will happen or when. Another challenge is that interest rates are most often higher during a recession (or depressed) market and household incomes might not be keeping up with the market. For that reason, fewer people can qualify for a home purchase during down times, than in prosperous times.

When it comes to timing the market, another big factor is affordability. That does seem to overstate the obvious but companies are typically not awarding employees with significant raises and cutting more than they are hiring. There are also heated battles being fought over minimum wage requirements all across the nation.

Did you realize that it’s been 5 years since the last time the federal minimum wage was raised? On October 10, 2015 the Labor Department is participating in a National Day of Action joining workers, government officials and business owners to show their support for increasing the minimum wage. They will be using the hashtag #RaiseTheWage to highlight why it’s time to increase the minimum wage in this country from $7.25 to $10.10 an hour for all hardworking Americans.

Since 2014, 13 states — including California, Connecticut, Delaware, Hawaii, Massachusetts, Maryland, Michigan, Minnesota, New Jersey, New York, Rhode Island, Vermont, West Virginia — as well as Washington, D.C., have already taken action to raise their minimum wage.

As of Jan. 1, 2015, those states plus Alaska, Arizona, Colorado, Florida, Illinois, Maine, Missouri, Montana, New Mexico, Nevada, Ohio, Oregon and Washington will have a minimum wage above $7.25. There are of course, 2 sides to the argument stemming from business owners claiming if the wage is lifted to $10.10 per hour they will have to cut staff because it will be more difficult to make payroll each week. On the other side, stands the employee and states that with all of the costs of living continuing to rise, how are they expected to raise their families with a paycheck that never comes close to matching the rate of inflation? It’s a good debate and it will be very interesting to see how things play out in October. What side will you be on?

Whatever change does take place, we can bet it’s going to impact consumer spending for certain across the board.