You’ve likely heard about this insane seller’s market we’re seeing right now in the Valley of the Sun. If you’re currently a homeowner, you might be wondering if we’re at the top of the market and if it’s a good time to sell a house in Phoenix. Many homeowners are understandably concerned about finding another home of their own if they do sell. The good news is, with some planning, there are many flexible options that may fit within your plans.
Currently, low levels of inventory and a skyrocketing population is fueling demand and driving up home values and rental rates. This means that Arizona real estate is attractive to investors and homebuyers alike. It is an excellent time to sell your home at the height of the market if you’re ready for a change and have a plan for where you’ll live next.
It’s a Good Time to Sell in Phoenix: High Demand
According to the U.S. Census Bureau, Arizona has been one of the fastest-growing states in the country, adding nearly 1 million residents in the past decade. Large corporations continue to expand into our state, attracting new residents from across the country. Additionally, investment companies fuel demand by buying up properties – two trends that won’t change anytime soon. And Arizona is known for gorgeous year-round weather. Our state has become an increasingly popular destination for buyers relocating from California that have experienced rolling blackouts and severe wildfires and folks from the Midwest who can’t take another brutal winter. Altogether, you can see how we’ve arrived at a market with pent-up demand.
There are fewer homes available for sale than there are buyers, or what we refer to as too little “inventory.” Even if we tripled the number of homes currently available for sale in Phoenix, there would still be a shortage. There are fewer homes available for sale than there are buyers, or what we refer to as too little “inventory.” This means it’s a great time to be a seller – you’ll get to choose from multiple offers, your home won’t be listed for long, and you may even be able to avoid costly repairs and ask for a guaranteed sales price regardless of the appraisal. You might even be able to ask your buyers if you can stay in the home a while longer if you need more time to move.
Have a Plan Before You Sell a House in Phoenix
Ok, so we’ve established that it’s a good time to sell a house in Phoenix, but you’re also going to need to find a new home. This means you’ll be facing the same shortage as a buyer that we described above. This makes selling your home a bit more complicated – unless you know your options.
You’ll need to consider where you’re going before you list your home. Many sellers are taking the opportunity to travel or relocate or simply rent until the market cools a bit. In the meantime, they are using the proceeds of their home sale for other investments to pay down debt, or they hang on to it as a down payment on another home in the future.
Keep in mind, buying and renting is challenging but not impossible. Creating a plan in advance with an experienced Realtor before you sell your existing home will mean fewer headaches and taking advantage of this seller’s market.
A Good Time to Sell… or Convert Your Home Into a Rental
Another appealing option many homeowners never consider is converting their existing home into a rental property. There are several benefits in this scenario – you can leverage the equity in your home as a down payment on a new home, and you have more time to find your next home before leasing it to tenants.
This option also enables you to take advantage of the competitive rental market – we’ve seen rents consistently increasing over time. If you’re reluctant to manage a property on your own, consider working with an experienced licensed property manager. They will provide a smooth experience when it comes to screening tenants and managing repairs, and understanding accounting and tenant rights. Oftentimes, costs may be covered by your rental income.
Ask Your Realtor: The CMA
Still unsure if it’s the right time to sell your home? That’s understandable. Just ask your Realtor! They will evaluate similar homes that have sold recently in your area to create a CMA (or Comparative Market Analysis). They will also consider what you owe on the house, potential work that needs to be done, and other costs to approximate your net proceeds after the sale – that’s how much cash you walk away with after the sale.
An experienced agent will also look at your situation holistically to develop a plan that will meet your needs, including making recommendations on if your home would make a good rental and where you’ll go next. Call Desert Dimensions Properties today to speak with an experienced Arizona Realtor, 480-270-5355.
Don’t forget that it’s a great time to sell your home and take advantage of the Arizona sellers’ market but finding a home after may be tricky. You have a variety of different options in regard to what you can do with your property. Take your time and investigate all of the various options and opportunities available to you right now with this Arizona sellers’ market.