While we have seen an increase in home inventory this last year, “it is still 43.2% lower than it was before the pandemic in 2017 to 2019” (realtor.com). With this housing shortage, we must change our thinking when searching for a home this spring.

When looking for a home to purchase this spring, buyers must balance what they want versus what they need in their next home. While most of us have an idea of our ideal dream home, sometimes that vision can be too large or expensive for our current budget. Deciding which features are must-haves and which can be compromised is essential to get the best value for your money.

The First Step

Pre-approval is the first step you should take. Knowing how much you are approved for will give you an idea of what type of home and location fits within your budget.  

Make a List

Once you have a good grasp on your budget, the best way to prioritize all the features you want and need in a home is to assemble a list. What are your:

• Must-Haves: These are the features you must have in any home you consider buying. These could include a certain number of bedrooms, a backyard, or a specific location.
• Nice-to-Haves: Anything not on your must-haves list can be moved to the nice-to-haves list. This is where you should prioritize essential features and which ones can be compromised if necessary. 
• Dream Features: You would love to have these features but understand they may not be available within your budget.

When shopping for a home, it is necessary to remember this list and stay focused on the items that matter. Once you’ve created your list, discuss it with your real estate agent. They’ll be able to help you refine the list further, coach you through the best ways to stick to it, and find a home in your area that meets your needs. 

Ultimately, it is essential to remember that what you are looking for in a home must be based on your current budget. Shopping with an understanding of how much you can spend and what features you can realistically get for that price will ensure you get the best value when purchasing a home this spring. 

The exceptional customer service that Liz provides will establish the groundwork for a relationship with her clients that will continue into the future when you’re ready for your next home or when friends and family come to join you in your new home town.

Please contact Liz, she will take the time to get to know you and assist you in finding a home that best fits your lifestyle needs.

Are you looking to buy or sell a home? You may have heard about the multiple listing service, also known as the MLS. It’s an invaluable tool for prospective buyers and sellers that can make the real estate market much easier to navigate. But what exactly is this mysterious resource? If you’re wondering how it works, read on. Below will be discussing what MLS is, its benefits, and differentiating it from other methods of buying and selling homes.

The Multiple Listing Service (MLS) is a real estate listing database used by real estate agents to market their listings and help buyers find the home of their dreams. It is a powerful tool that lets agents list and search for properties in an organized way, allowing them to compare prices, amenities, features, and locations quickly and easily. It also serves as a platform for agents to collaborate and coordinate sales while providing buyers access to detailed information about properties. In short, the MLS is an invaluable resource for real estate agents and buyers. 

What is an MLS?

You may have spent time online searching for homes. You may have even used a broker’s website or a site like Realtor.com, Trulia, or Zillow to help you browse listings. These websites pull information from the MLS.   

But where does listing information come from?

Back in the day, before the Information Age revolution, brokers gathered and exchanged information about their properties. The idea was fairly straightforward: I’ll help you sell your properties if you help me sell mine. It’s a “private offer of cooperation and compensation.” Cooperation meant the real estate industry could thrive, and buyers and sellers could enjoy smoother transactions.

This spirit of cooperation gave rise to Multiple Listing Service(s) (MLS). By consolidating information about housing inventory in an MLS, listing brokers and buyers’ brokers can easily share up-to-date information about homes on the market. Though an MLS is typically a private database available to brokers, much of the data is syndicated to outside sites to cast a wider net for buyers and sellers.

Since the MLS is the primary source of information about a property, it is the most accurate. In addition to the information available to the public online, the MLS may also contain private data for brokers only, such as times the home is available for showings and seller contact information. 

As you can imagine, just as technology and the real estate market change, the structure of the MLS is continuously analyzed and revised to make it as user-friendly for the industry as possible. There are upwards of 850 MLS databases in the U.S. Undoubtedly, we are sure to see changes in the future use of Multiple Listing Services, but the core benefits to home sellers and buyers are sure to remain.

MLS Databases in Arizona 

What MLS databases are in Arizona? Better Homes and Gardens Bloomtree Realty uses PAAR and ARMLS for their MLS Database. The great news, we have recently changed our platform to make searching easier for our clients. Even though I am a real estate agent in Prescott, Arizona, you can search the entire state of Arizona from my website. The website directly taps into the PAAR and ARMLS databases to give you more options when searching for homes for sale.

The listing feed you can use on our website is one of the industry’s most user-friendly and accurate feeds—search Homes For Sale Here using our MLS feed.  If you have questions about one of the properties you view, contact me, and I can help answer your questions. 

While higher mortgage rates are creating affordability challenges for homebuyers this year, there is still good news for those looking to buy a home. As the market has cooled this year, some of the intensity buyers faced during the pandemic’s peak frenzy has also cooled. Here are a few trends that may benefit you when you buy a home in today’s market.

1. More Homes To Choose from: The combination of slower sales and an increase in new listings hitting the market has created more choices for buyers. During the pandemic, the housing supply hit a record low while buyer demand skyrocketed. Today, Calculated Risk reported a 39.5% increase in homes on the market compared to last year. The market is still considered a sellers’ market due to a lower supply than normal. However, rising inventory makes finding your dream home a bit easier.
2. Bidding Wars Have Eased: During the peak of the housing frenzy, we saw intense bidding wars. But today, things are different. National Association of Realtors reported that the average number of offers on a home has declined from 3.7 last year to 2.5 this year. Now you can enter the market and enjoy searching for a home with less competition. With more options, you’ll likely see less competition from other buyers looking for homes.
3. More Negotiation Power: Less competition means more negotiating power as a buyer. Many buyers skipped appraisals and inspections in the housing frenzy to win a bidding war. National Association of Realtors reported that buyers waiving those contingencies are decreasing. The appraisal and the inspection are vital to the home-buying process, and you should never skip them. With more negotiating power, you can feel confident that you’re making the right decision for your purchase. And if something turns up in the inspection, you have more power today to renegotiate with the seller.

Bottom Line

While buyers still face challenges today, with more homes on the market and less competition from other buyers, you may have more success finding your dream home. And with more negotiating power, you can be confident that you’re making the right decision for your purchase. Don’t let the current market conditions discourage you from buying a home. There are still plenty of opportunities out there. Let’s connect to start the homebuying process today.

About Liz

Liz lived in the Grand Canyon for nearly 20 years, and during that time, she made the beautiful outdoors of Northern Arizona a part of her daily life. When she and her family moved to Prescott, they bought a house and had a great experience with their Realtor. Liz decided she wanted to become a part of that great team and found they share the same vision of customer care, respect, and service and also understand the importance of supporting the community in which they practice their business.

Liz Norvelle believes that building a relationship based on respect and trust is what truly matters. Liz’s exceptional customer service will establish the groundwork for a relationship with her clients that will continue into the future when you’re ready for your next home or when friends and family come to join you in your new hometown. Contact Liz, she will take the time to get to know you and assist you in finding a home that best fits your lifestyle needs.

When buying a home, you want to secure the lowest interest rate on your home loan. In the last few years, we have seen record-low mortgage rates, but over this last year, rates have significantly risen. How do you combat those higher rates to lock in a lower one? Here are a few factors and tips. Note: Since approval opportunities can vary, connect with a trusted lender for customized advice.

Your Credit Score

Your credit score is one of the most critical factors in securing a low-interest rate. Lenders will use your credit score to determine your creditworthiness and the likelihood that you will repay your loan on time. The higher your credit score, the lower your interest rate will be. If you have a lower credit score, you may still be able to get a home loan, but you may have to pay a higher interest rate. There are a few things you can do to improve your credit score:

• Check your credit report for errors and dispute any that you find
• Pay all of your bills on time, including utility bills and credit card bills
• Keep balances low on your credit cards
• If you have any outstanding debts, pay them off as soon as possible

The Type of Loan You Choose

There are many different types of home loans available, each with its own interest rate. For example, fixed-rate loans have an interest rate that remains the same for the life of the loan, while adjustable-rate loans have an interest rate that can change over time. Some loans, such as VA and FHA loans, are backed by the government and may offer lower interest rates than other types of loans.

When working with your real estate advisor, ensure you find out what’s available in your area and which types of loans you may qualify for.

The Size of Your Down Payment

The size of your down payment can also affect your interest rate. If you make a larger down payment, you may be able to get a lower interest rate. Lenders view borrowers who make larger down payments as being less risky, so they are often willing to offer lower interest rates to these borrowers. The CFPB states:

“In general, a larger down payment means a lower interest rate, because lenders see a lower level of risk when you have more stake in the property. So if you can comfortably put 20 percent or more down, do it—you’ll usually get a lower interest rate.”

The Length of Your Loan Term

The length of your loan term is another factor that can affect your interest rate. Shorter-term loans often have lower interest rates than longer-term loans because they involve less risk for the lender. If you can get a shorter-term loan, you may be able to secure a lower interest rate.

You should also consider how much money you will save in interest over the life of the loan if you choose a shorter term. While the monthly payments on a shorter-term loan may be higher, you will generally pay less interest over the life of the loan than you would on a longer-term loan.

These are just a few factors that can help determine your mortgage rate if you’re buying a home. The best thing you can do is have a team of professionals on your side. Find a real estate agent and loan officer you trust who will help you understand your options and get the best possible rate.

The information provided should not be relied upon as a substitute for financial, home loan, or other professional advice. Please consult your loan professional.