Multiple offers continue for reasonably priced, move-in-ready homes in impeccable condition.
“We thought last summer was wild and the truth is, this summer is quite a journey. I’m starting at about 5:30 in the morning and finishing work at about 7 or 8 o’clock at night. It is at an absolutely rapid speed. It’s exciting – for both buyers and sellers – and a really great time in real estate,” said award-winning realtor Lori Anna Harrison with Zion Realty in Flagstaff.
Not all Arizona markets are behaving the same way, but Harrison says there is definitely a “sweet spot” for real estate in the high country. “It really is that three-bedroom, two-bath, two-car garage home that’s got a little bit of space for a yard, whether that’s used for RVs, motorhomes or pets or gardening, that is the sweet spot. And homes with a price point being anything right around $600,000 and below are receiving multiple offers when they are in excellent condition. People are just snapping them up immediately. There definitely seems to be a bit of a shortage in that sweet spot.”
Harrison says there is more sanity in the home-buying and home-selling market than in the past few years. Fewer homes are being purchased sight unseen and fewer buyers are needing to wave home inspections or make other concessions in order to win the contract. As a result, sellers are working harder and buyers are more discriminating, which she says results in happiness and satisfaction on both sides of the deal.
“Every buyer wants to walk into a turnkey home. Regardless of what they say about their interest in a fixer-upper, when I walk with them into a home that’s completely turnkey, it’s a game-changer.”
Like most realtors, Harrison wants her sellers to be successful and receive the best deal for their home, and she also is keenly aware that it is her brand behind the product. “I want to put the best home out there that we possibly can.”
Homes at Their Best
To coach sellers through the process, she starts with curb appeal and then goes through every room to declutter. “Removing excess furniture opens up the space. And cleaning is so important after decluttering – especially the windows, in order to capture the clearest, cleanest images of the forest that will be used to market the property.”
New paint is an inexpensive investment that can make a difference of thousands of dollars, she says. “It is absolutely transformational, the difference a fresh coat of paint can make on the exterior. In Flagstaff, we have a lot of brown. If you put a light color on the trim, you’ve got a brand-new looking house!”
Harrison recalls taking a client to a home that fit the description of what she was looking for and within budget, but the home was filthy and appeared to be neglected. “When we entered, we were surprised to see that it was very dirty, like grimy, where you don’t want to touch a light switch or doorknob. The wood deck was in decent shape but needed painting because they typically do every year or two. But, because it hadn’t been touched up, it appeared in sad shape like it could fall off the home. Because of the condition, my buyer was not interested at all, even though the size, budget and location fit her needs.”
As a result of buyer feedback, the seller dropped the price by $25,000. “It would have cost around $500 to get that home perfectly cleaned and around $4,500 to paint that deck, saving that seller $20,000. That’s why it is so important to prepare your home for sale. Get that money in your pocket and make the buyers happy.”
Stretching the Home-Buying Budget
“I love working with first-time homebuyers. I think it’s a lot of fun. You get to help them on their journey as life changes drastically when you get into your first new home, and you start feeling those tax benefits and pride of ownership. I coach first-time homebuyers to consider looking a little outside the city limits, where their dollar can go a lot further. For example, I’m starting to see a lot more activity in Williams. We’re also seeing some really nice prices in Bellemont and Parks. I think because of the big winter that we had, some first-time homebuyers are looking in the Verde Valley. You can easily commute from Rim Rock to Flagstaff, where you are looking at less than a 45-minute commute and your dollar stretches a lot further.”
The New York Times recently reported that college graduates and others are leaving the country’s most expensive metropolitan areas like New York, Chicago and Los Angeles and moving to less expensive metro areas like Denver, Houston and Phoenix. The article also stated that more affordable cities are more desirable than they used to be.
“I think it all comes down to lifestyle,” said Harrison. “I had clients in town two weeks ago from Chicago and they were just simply looking for a different lifestyle, a slower pace. They do actually want to relocate to Phoenix and they already know that they want a vacation home here in Flagstaff. After COVID, a lot of people really evaluated what was important to them. And, especially with so many people being able to work virtually now, we’re seeing that influx definitely coming to Arizona from all different parts of the country and then from the Valley up to Flagstaff. We are seeing so many people that may have been dipping their toe in the water thinking about a vacation home who are saying, ‘I can work anywhere I want to now and I could live in Flagstaff, have a little bit of a slower pace of life and be outdoors.’ I really think it’s lifestyle and cost of living that’s attracting so many people to Arizona.”
Feeling the Love
Harrison is a believer in the love letter – the personal letter written to sellers by potential homebuyers describing how much they would appreciate and enjoy specific features about the home. “Buying and selling homes is an emotional process and really telling your story to connect with the seller, I believe it’s very helpful in the sales process.”
Recently, she had a client interested in a home that had 16 offers on it. “It’s a gorgeous home. The sellers remodeled and have enjoyed living there. Knowing how much the new owners will love the home made a difference when deciding what offer to accept.”
A Balancing Act
Harrison says buyers are coming to terms with higher interest rates, about twice what they were at their lowest point in recent years. For some buyers, that means they can afford a little less of a home now if they are taking out a loan. Nevertheless, she says, houses continue to sell in Flagstaff at a very fast pace.
After years in a sellers’ market, Harrison says the Flagstaff real estate market appears to be more balanced. “In that sweet spot, where clean, maintained, attractive, move-in ready homes are priced at $600,000 or below, those homes are still receiving multiple offers, which is absolutely a sellers’ market on that end. When we are talking about homes priced over the $600,000 mark and where the home is not in move-in condition, it’s more of a buyers’ market.” FBN
By Bonnie Stevens, FBN
Lori Anna Harrison can be reached at Lori@azdreamlifestyle.com. Hear more with Lori on Zonie Living, StarWorldwideNetworks.com/shows/bonnie-stevens.