the AZ market

Tag: #theazmarket

  • Phoenix Area Real Estate Update 5/1/2020

    The light at the end of the tunnel got a little brighter this week. Despite the limited data available, new trends are emerging and they are good. Please continue to share this news with your clients because consumer sentiment is everything. The week of April 19th marked a noticeable shift in the market with increased activity in nearly every state. Perhaps it is due to the pent up demand from the would-be March buyers. Nationally, March saw a 20.8% decrease in new pendings month over month. March was rough. But as we moved through April, our human nature kicked in and we got a little more used to this (short-term) new normal. This brought about new activity and some renewed consumer confidence.

    Good News:

    • Zillow’s search traffic is skyrocketing, yes it plummeted in March, but by the 2nd week of April the US traffic on Zillow was up 13% year over year and rising.
    • After the significant drop in new listings hitting the market in March; April brought increases in new listings in all markets, including in NYC.
    • Nationally, since mid-April we have seen a 33% increase in physical showing requests, which helps chip away at the 80% drop in those requests from mid-March to mid-April.
    • In Arizona, since mid-April we have also seen a 33% increase in physical showing requests, which makes up for some of the 59% decrease in requests from mid-March to mid-April.  
    • Still no indication of prices dropping. Earlier this week, Dr. Lawrence Yun, the chief economist at NAR said, “In fact, due to the ongoing housing shortage, home prices are likely to squeeze out a gain in 2020 to a new record high.”

    Arizona Market:

    Despite inventory increases, demand continues to out-pace supply, according to the Cromford Market Index (CMI).  On March 20th the CMI was 241 and yesterday it was a 153. (Balance is 100, above 100 is a seller’s market and below 100 is a buyer’s market. Prices do not drop until the CMI hits 90.) The CMI clearly has dropped drastically and in a short period of time. We did see a tiny little blip of a slowdown the week of April 19, hopefully we see a that as a trend. The 24% decrease in demand we have seen since March 20 is slowing its rate of decline.

    • Newly accepted contracts bottomed out the week of April 5th with only 1,641. As of the week of April 19th we have 1,979 newly accepted contracts. We are working our way back up towards our peak which was the week of February 23rd with 2,696 newly accepted contracts.
    • Average days on market for the week of April 19th is 21, lower than it was in all of March.
    • Average list price per square foot at contract acceptance was $182.81 on April 19th. It was $190.05 the week of March 8th.
      • Between the lending challenges and the lower priced new inventory, I believe the reason for the lower average price per square foot is due to the fact that more lower priced homes are selling, not because prices are dropping.

    Remember, new listings hitting the market is a good indicator of the health of the market. It shows seller confidence. In the southeast valley, the week of 4/19 we saw a 5% increase in new listings hitting the market over the week of 4/12.

    Even more importantly, new pendings shows demand. Right now, all buyers that are out looking are serious buyers. The week of 4/19 we saw a 15% increase in new pendings over the week of 4/12, in the southeast valley.

    Conclusion:

    As much as I would like to tell you that everything is sunshine and rainbows; it isn’t. We have a rocky road ahead, total unemployment filings is up over 30 million, but the new applications continues to drop week over week. Nationally, mortgage forbearance requests are likely spiking this week. Less than 1% of all mortgages were in forbearance on March 2. As of April 19 nearly 7% of mortgages were in forbearance, that is 3.5 million mortgages in forbearance. Opening our economy safely and quickly will be the key. People are ready to get back to work, so much so new lawsuits are being filed regularly. Signature Sotheby’s International, a Michigan brokerage, is the 5th company to sue the Governor of Michigan stating that the lock down orders are overreaching and unconstitutional.  

    My final thought is that good agents are taking market share right now. A lot of your competition is at home and afraid. Buyers and sellers are doing their homework and want to talk to you about what is actually happening in the real estate market.

    copyright 2020 by Sarah Perkins

  • Halloween & Tight Inventory

    Halloween & Tight Inventory

    Tight inventory in the Phoenix metro real estate market continues.

    We typically see a slow down in residential real estate this time of year. This is not only true in the Phoenix metro market but across the country. We have seen a slight increase in listings but not enough to balance out the demand. Tina Tamboer with the Cromford Report states that a market frenzy takes place when more listings go pending then go active. On Tuesday 10/30/19, in the southeast valley, there were only 66 new listings and 90 went pending. Only looking at a one day snapshot doesn’t show the whole story. The day of the week matters. Mondays and Tuesdays we see more properties go pending and Thursday and Friday we see more properties hitting the market. As it stands, looking at a full week, though, Friday 10/25/19 through yesterday, Thursday 10/31/19 we had 598 new listings with 638 going pending in the same time period. These numbers are for the southeast valley. We can clearly see that pendings are outpacing new listings. This will continue pushing up prices and making things a bit tougher for buyers, particularly those looking under $350,000.

  • Inman Industry Update

    Inman Industry Update

    Information from the Inman Connect conference in Las Vegas in July 2019.

    iBuyer:

    • https://zavvie.com/ provides iBuyer estimates to homeowners
    • https://exitnest.com/ offers transparency to sellers. Is connected to iBuyers and walks the seller/Realtor through offer submission. Provides real numbers in side by side layout. Often pushes sellers back to the Realtor. Request a snapshot for all your listing presentations.
    • Right now Opendoor is winning the iBuyer game. Their goal is to get to 7% profit, but are currently not profitable
    • All work within a similar buy-box. Offerpad has the most flexible buy-box
    • The following slide does not include BINSR items and seller paid repairs
    • This is for Q2 2019, Phoenix metro area

    Zillow:

    • Zillow is not making a profit on things, they do not need to
    • Zillow is not a disruptor
    • It is said that Zillow has the nicest iBuyer properties
    • Zillow purchases 2% of the homes requesting an offer
    • Starting 10/1/19 iBuyer turn-down seller leads will be available to Premier Agents for a 35% referral fee
    • Customer service scores (CSAT) will define who is able to “buy” these leads
    • Agents must have a 92% or higher to get the iBuyer turn-down seller leads
    • Score keeping started in April, done by Zillow

    “Sustained Unprofitability”

    • Mike Delprete’s 20-minute presentation from Inman Connect: “iBuying Disrupted: Battle of the Behemoths.”
    • He points out the only profitable public real estate companies are RE/MAX and Realogy
    • “Red is the new black.”

    Venture Capital Money in Real Estate:

    • Residential real estate is 13% of the US GDP
    • $66B in commissions are earned each year
    • FINTECH (financial tech) and PROPTECH (property tech)
    • $12,200,000,000 invested in 2018 in real estate tech
    • $2.2B in 2011
    • $12.6B invested in the first half of 2019

    Broker Tech (main place for VC funding)

    • CRMs and productivity systems
    • automating the transaction = a huge market opportunity
    • End to end platform includes?
    • search listings to work with Realtor
    • home viewing to financing to close & title
    • signing
    • recording
    • and more
    • Who is working on this?
    • Realogy (zap end to end platform)
    • RE/MAX (booj end to end platform) booj: be original or jealous
    • KW (command end to end platform)
    • end to end platforms are not one size fits all
    • Newcomers:
    • Homie (FSBO help, cheap)
    • Reali (low fee, uses tech)
    • Reasi (built on blockchain, uses smart contracts, handles transactions electronically without escrow)
    • Compass
    • Claims to be a tech company but operates like a traditional brokerage
    • now valued at $6.4B, more than Zillow
    • Showing massive valuation increase due to “hockey stick” growth
    • Has spent $300M on purchasing brokerages and recruiting agents
    • they are spending on average of $200,000 per agent
    • using newly acquired Realtor’s stats to show growth in market share
    • Compass is valued as a tech company, but is it?
    • Roadblocks for big tech during expansion across the country
    • data access & congruence (biggest hindrance for these companies)
    • state laws and regulations (title vs title/escrow states/dual agency)
    • multiple vendors (security issues)
    • complexity of deals
    • Many MLSs cost more than ARMLS and they aren’t as big so companies love coming here.
    • we are a lot further away from this working because there are so many moving parts
    • Vertical Integration:
    • employees
    • they have to build to make money across platforms
    • W2 employees to incentivize them to use internal companies: mortgage/title
    • tech is integrating with own companies
    • Last 15 years (without vertical integration) big tech had $2-3B in revenue, with a $10B market cap
    • Next 15 years:
    • adding Mortgage origination $17B revenue
    • Title $16B revenue
    • leading to big opportunity $100B in market cap

    What will we be talking about in 2020? Adam Contos, CEO of RE/MAX: “I think in 2020 we will find out what end to end platforms really means.” End to End Platform:

    • Law in AZ is changing on 1/20/20 allowing documents to be notarized via streaming video camera
    • end to end platforms are being forced
    • what is the min viable product? it will come out in the next couple of years
    • we are in a waiting game. we can use tech but get too distracted by it. watching to see what is the best option? we need to see other experiences
    • White Label end to end platforms
    • CINC, https://www.cincpro.com/, (maybe also broker mint to get 90% of the transaction)
    • Property Base, https://www.propertybase.com/, (about $80,000 to set up, through Sales Force)
    • Realvolve, https://www.realvolve.com/, (drag and drop workflows, triggers texts/emails/reminders. includes client follow up)
    • Kvcore, https://insiderealestate.com/kvcore/, (previously Kunversion. great for internet leads, good for some referral based business)
    • Liondesk, www.liondesk.com, & Real Geeks, https://www.realgeeks.com/, (dashboard for clients)
    • Brivity, www.brivity.com (shares updates with clients)
    • Amazon referral partnership with Realogy. Amazon will likely not go into real estate, it’s too complicated

    New brokerage models:

    • Rex: Real Estate Exchange, 2% only to company, does not pay co-broke. they do lots of marketing, they do not put listings on MLS
    • Knock.com: buy/sell same day. Cash offer with no contingency. knock pays for the buyer to move the house. Knock owns the new house, moves the sellers out, clean up the house. Owner old house and new house sell on the same day. includes all of the challenges of pre & post possession. (VC companies do not understand pre & post possession) lease backs and the 6% fee
    • all these companies care about is the consumer feels they want simple.
    • “if you cannot explain it simply then you don’t understand it” Einstein
    • these companies want to be simple and sell it.
    • old school Realtors made the transaction seem complicated to maintain the consumer’s reliance. Realtors have to change the marketing to show the simplicity
    • remember these companies do not need to make money, VC funding is funny money.
    • It took Zillow 12 years to cover their own costs, it took that time to get the eyeballs.
    • they want the mindshare, once they have it, they can sell it. must hit critical mass in order to sell
    • Homie
    • Purplebricks (left the Australian market in May 2019 and the US market in July 2019)
    • Side: brand new, new funding. all goes back to marketing. brokerage paid advertising as a white label technology solution. brokerage behind the scenes. they have a robust tech platform that is great for big teams, teams plugin and go with it. only in NYC
    • Roosted, https://roosted.io/, referral based model, for people who don’t sell houses

    Vacation Homes #2 for all of VC spending

    • 5.5-6M properties sell every year in the year
    • 1.8M are investment properties
    • about 700K are used as short term rentals
    • that is about $7-$8M in commissions, every year
    • Scottsdale is the best place to buy a vacation rental. most expensive is $6,000 a night because of the experience
    • occupancy rate is 81% in our area
    • average daily rate in AZ is $301 a night (info from airDNA)
    • HOA can legally tell you what to do, city and state cannot regulate. there are new rules coming that allow flexibility. Many HOAs require at least 30 day rentals. Allowed to have houseguests, owner can live in one bedroom and rent out the rest of the house
    • about 20% of realtors have sold vacation rentals, it is a niche market
    • in order to thrive in this niche market, agents need:
    • show value in the transfer of business assets
    • valuations on vacation rentals/how income impacts sales price
    • landlords vs host mindset/options for owner-hosts who don’t live here. hospitality industry
    • business opportunity for Realtors. Have a host mindset and manage the AirBNB. Garner good reviews, all about educating owners/buyers
    • Judy Lowe said that if you manage an airbnb you have to have a real estate license

    Emerging Companies:

    • Vacasa (www.vacasa.com): manages 14K rentals across the country. buy a bigger house and rent one bedroom, for 2 years. they keep the income. did well enough to buy their own properties, managing and owning
    • AirDNA (www.airdna.co): provides investor data for vacation rentals from AirBNB
    • Vrolio (https://www.vrolio.com/): vacation rental real estate marketplace. offers investor snapshot of portfolios in 1 minute. provides investor leads, place to buy and sell rental properties
    • Pillow (https://www.pillow.com/): added income for residents. housing more transient. (good for NYC) long term rentals and not actually subletting. building manager can allow unit visitors to stay in an house while renter is out of town
    • Swimply (https://www.swimply.com/), this company allows you to rent your pool out. pool party host, people traveling, people who want to relax by a pool. This is so new, they have no idea if it is legal or not.

    Over the past 6 years people are moving way more often. Evidence shows people would move even more often if it were not such a hassle to do so.
    AI, Chatbots, Automation

    • Nurture your database and have better conversations with your clients, all about relationships
    • 61% of conversations with clients is on the chat on websites (for bots)
    • Automation Tools:
    • Eva Bot, https://www.evabot.ai/, highly recognized at Inman. closing gifts, talks to them finds out what clients like and orders it and takes care of everything
    • Botsify, https://botsify.com/, teach it how to interact with clients. at any point you can come in and have conversation
    • Disclosures, https://disclosures.io/, helps with the disclosures required for each property. air pollution, traffic noise. packages the disclosure package and share the info. homes sell faster when the disclosures are provided up front. disclosing early is good. can email to other agent
    • Call Action, https://callaction.co/, ($200 monthly) great solution if you can’t answer the phone. routes the caller through a workflow, lots of different numbers
    • Homebot, https://homebot.titlepro247.com/: based on wealth building, provides an estimated valuation.
    • Bytegain, https://bytegain.com/: predictive analytics/AI plugin for home searches. watches search behavior. integrates with website, learning consumer behavior. figures out who is most likely to transact in the next 3 months
    • Shyft Moving, https://shyftmoving.com/: app. take a picture of room and creates quotes for moving services. allows you to hire what you need
    • KeyMe, https://www.key.me/: been around for a while but is making a comeback, app on phone to save key info. kiosks in Phoenix available, instant keys
    • Dash CMA, https://dashcma.com/: with a heatmap, lines up comps, very visual to see pricing, $20 monthly

    What will we be talking about in 2020? Glenn Sanford, CEO of eXp Realty: “Blockchain.”
    Blockchain: “a safer place to store real estate transactional data”

    • it is millions and millions of independent computers all getting the same info.
    • cryptocurrency (anyone can verify transaction)
    • tokens (piece of code cannot be changed. cannot be hacked) title insurance, verifying ownership
    • company is creating tokens for every single residential property. currently already has done it for all vacant lots in the US
    • smart contracts (reasi) walk through steps and meets conditions. if this then that. stuff doesn’t happen unless requirements are all met
    • using smart contracts, once all terms are met, money is released. we as consumers are not comfortable with this yet.
    • this will change a lot of things about our culture, community, world, but we are nervous about it.
    • Propy, www.propy.com: handles financial transactions. Good for luxury, helps with marketing, global advertising

    Commission Transparency

    • Bombshell Lawsuit: Realogy, KW, RE/MAX, NAR, ARMLS and others are being sued. alleging anti-trust laws were broken, steering based on co-broke offered
    • asks why seller pays for the buyer agent commission? seller is paying for own representation
    • Corelogic, FBS & other MLS data providers allows searches by co-broke offered.
    • Co-broke effects average days on market
    • home sits longer on the market when offered 2.5% co-broke vs 3%
    • lawsuit is scary because we know the evidence is damning
    • Federal government doesn’t want to destroy 13% of GDP, they may require more data sharing
    • commission amounts disclosures
    • closed properties info
    • who paid what and how much will be shown
    • Northwest MLS are now publishing co-broke and publicly
    • iBuyer is 6% of our market, putting pressure on commissions
    • Consumers are demanding more transparency, agents can show their strengths
    • lawsuits in CA for 1099 vs W2
    • Realogy suing Compass for unethical recruiting practices

    Nerdy Stuff

    • Restb, https://restb.ai/: sees home features and creates tags. takes 3 seconds using AI. Realscout is using this system. search very specific options without the fields in the MLS
    • MLS are moving from RETS to web API, rets is a download and send, web API is immediate, means info will be shared faster
    • RESO web API, https://www.reso.org/reso-web-api/: oversees MLS. moving everything faster for MLS, everything is faster, cleaner, easier
    • Streetwire, https://www.streetwire.net/: heavily invested in blockchain. already tokenized vacant land, “real estate data owned by the data creator.” $1300 monthly paid to ARMLS to share the data provided. long way down the road, ownership in the hands of the people
    • Blockchain can subdivide ownership
  • Real Estate Market Update

    Real Estate Market Update

    Tina Tamboer, with the Cromford Report, recently presented on the residential real estate market in the Phoenix metro area.
    To subscribe to the Cromford Report, click here: http://cromfordreport.com/join-armls.html. The complete presentation is available to subscribers.
    Here are my notes:
    Forget everything that Tina said at the beginning of 2019, even forget what she said last quarter. Everything is different. Again.
    Cromford Market Index (CMI):

    • 100 is balanced, above 100 is a seller’s market, under 100 is a buyer’s market
    • Cromford Market Index 184.2 (strong seller’s market)
    • Supply 57.2 and dropping
    • Demand index 105.3
    • Every week the CMI has increased significantly
    • we are higher than we were last year
    • CMI hasn’t been this high since 2004
    • Currently tracking 2004 demand

    From February through June of 2019, we went from the weakest seller’s market in 5 years to the strongest seller’s market in 14 years! This happened in a span of 5 months (long term chart)!!
    2005 PTSD?

    • Despite the numbers tracking close to 2005, our market today is very different than in 2005
    • We have real demand today
    • 2005 was false demand
    • we have today something we didn’t have in 2005, skepticism. We are not there now
    • We are not in bubble range but are watching it closely

    Supply & Demand

    • When supply and demand move together, everything is great
    • When they move together above CMI of 100, there are lots of listings, lots of sales
    • When supply and demand move apart, things go crazy, everything becomes unstable
    • February 2019 supply and demand broke up, despite expectations of a flat, calm, easy market
    • 2004 saw higher transaction volume than today due to our low inventory
    • Prices will continue to rise as long as supply and demand move apart
    • Prices are expected to continue to rise through 2019 and into 2020

    Appreciation

    • We are not in a bubble but we are a bit high for regular appreciation
    • We moved above the regular appreciation level at the beginning of 2019
    • Properties asking $150-225K have the highest appreciation rate
    • Properties asking over $500K, 1-3% appreciation rate (balanced market, equals rate of inflation)
    • Properties asking $225-500K, 3-5% appreciation rate (above rate of inflation, seller’s market but not huge gains)
    • Properties asking $150-225K, 6-10% appreciation rate (lots of fix and flip investors, area with the most appreciation)
    • Properties asking under $150K, 2-5% appreciation rate
    • first half of 2019 was tracking behind 2018 for amount in escrow
    • turned in February, we are now tracking above 2018
    • tracking volume of 2017 but with higher price points
    • seasonally between May and December, we have a 30% drop of quantity of properties in escrow
    • best time to buy is the 2nd half of the year, the very best is the 4th quarter, buyers do not give up on the market, this is true for all price points

    What Effects demand?

    • interest rates
    • 2011-2014, 45% of purchases were for cash
    • mortgage rates have dropped, again
    • when rates went up slightly in March, buyers got off the fence. People thought rates hit the bottom.
    • appreciation/depreciation (affordability)
    • affordability index tracks affordability with the changes in wages
    • recent wage increases have put Phoenix back to being affordable
    • 2004 we were affordable, 2005 with a 45% increase we were no longer affordable
    • relocation (inbound)
    • employment/income
    • 2.2M people employed, largest it has ever been
    • Phoenix job growth is outpacing the rest of the country, by increasing 2-3%, nationally it is around 1%
    • 3 continuous months of wage increases (April, May, June)
    • click here for the interactive job-center map on the Maricopa County Association of Governments website: https://geo.azmag.gov/maps/azemployment/
    • loose/tight lending practices
    • population growth
    • tons of inbound relocation
    • Largest group is from southern California
    • #1 source of incoming people LA county
    • #2 San Diego county
    • #3 Chicago
    • Here is the map of to see where people are coming from: https://flowsmapper.geo.census.gov/map.html
    • cost to rent vs buy
    • people will rent when it makes more financial sense to do so
    • 2018 prices are up 8.1%, so far in 2019 prices are up 6.5%
    • people are thinking it is easier for them to rent
    • cost of sfr rent has increased 7.1%/ patio homes rent increased 7.8%
    • median rental $1700 monthly for 1802 square feet
    • Tina used the Zillow calculations to estimate equity over 5 years (60 months)
    • Using the median sales price of $288,000 for a 1805 square foot single family residence, here is the calculator: https://www.zillow.com/mortgage-calculator/ (schedule from Zillow, click full report, go to month 60)
    • If purchased for $246,452; after 5 years with no appreciation owners now have $41,500 in equity
    • Based on the current rate of inflation, with 5 years of payments adds $71,500 in equity
    • 2005 purchase prices increased, rent prices did not, sign of false demand
    • Today rents and purchase prices are rising, sign of true demand
    • consumer sentiment (how you feel about the market, which could trump everything else)
    • we are at historically low rates and everyone is getting raises
    • consumer sentiment is going up when people get raises
    • now people have moreconfidence and feel better about buying

    Fix & Flips

    • Biggest gains ($60,000 or 60% margins) in areas with cheap houses with up and coming employment centers
    • See https://geo.azmag.gov/maps/azemployment/
    • Luxury flippers are making up to 60% in Scottsdale on houses over $500,000
    • Headlines define flips as: a property purchased and sold within 2 years
    • 2013 was the biggest year for flippers
    • Flippers love sellers markets and retreat in balanced or buyers markets
    • iBuyers are doing most of their business between $200K-$250K
    • iBuyer purchases are considered a FSBO, which is $127 per square foot for $200K-$250K
    • iBuyer sells, on average, 7% more than the contract price. average on mls sales 9% increase between $200K-$250K

    What Effects Supply?

    • new home construction
    • appreciation/depreciation (equity)
    • foreclosures
    • relocation (outbound)
    • divorce/illness/death/job losses/tragedy
    • cost to renovate vs move up
    • consumer sentiment (feeling)

    Supply

    • 2019 brand new listings June-July 10.7% lower than in 2018. This is the first time this has happened since 2001
    • we had roughly half the number of employed people and half the number of houses in 2001
    • people don’t want to move
    • when we have sellers turning and buying again, then it is a wash on supply
    • 2010 lots of outbound relocation, loss of employment
    • 2014 was the year for Canadian buyers due to beneficial exchange rates
    • supply is plummeting, we are down 10.9% in supply, southeast valley 9.7% down inventory
    • new home construction eases up options but not a lot
    • properties over $2M inventory is up over 13%

    Prices

    • SE valley average sold price is between $100-400K
    • South Tempe is the only place in the SE Valley with an average over $500K
    • seller asking price is up 6.8% from year over year
    • Pendings are up 12% through July year over year
    • SE valley pendings are up 16% year over year
    • decline in offering closing costs
    • Q3 2015 27.9% of closings included seller concessions
    • today it is way lower
    • 30-40% of sales $150-250K have some sort of closing costs
    • 24-28% of those houses are selling over asking (making up the concessions paid)
    • outskirts of town sellers can negotiate more
    • Tina suggests checking out renovation loans
    • 19% sold over list price July 2019
    • correlates with June 2004
    • in May 2005 it was 38%

    Short Term Rentals

    • Are today’s false demand
    • AZ recently adjusted the regulation to not regulate. now you get a tax id.
    • PV & Sedona started the regulation movement
    • #1 risk of airbnb: everything is wonderful all the time
    • #2. we don’t know if this is the beginning of regulation. will taxes go up?

    Final Thoughts

    • interest rates dropped and everyone got a raise
    • Our market is still considered affordable
    • there is no end in sight for this seller’s market
    • prices have not come down and they are not projected to come down anytime soon. definitely not this year.
    • Next predicted recession is in 2020, will it effect real estate?
    • first thing to drop is tourism during a recession, will make an impact on Airbnb
    • 10% drop is the new definition of a crash. Always ask how a “market crash” is defined when people talk about a crash. Many of us think of the 50-60% days.
  • How to Avoid Probate in AZ

    How to Avoid Probate in AZ

    Lydia Wietsma, with Revelation Real Estate, and I talk about different ways to avoid probate in Arizona for real property.

    Like any legal guidelines, there many different ways to own real estate. If you want to avoid probate, you have options. First if the owner(s) put the property into a trust, when the executor trustee(s) pass the successor trustee steps in to make decisions for the trust. Second, when you purchase your Arizona real estate, you can also have a beneficiary deed created and recorded. This means the owner of the property maintains ownership until they pass and the person(s) named on the beneficiary deed immediately move into title. Third, if the owners include, “with right of survivorship” is included on their deed.

    Of course there are many cases of, “if this then that.” Which Lydia and I address in greater detail in the video.

  • Chandler Update with Micah Miranda & Councilman Stewart

    Chandler Update with Micah Miranda & Councilman Stewart

    • Priorities
      • Fiscal Responsibility: AAA rating. lowest cost per service.
      • Water preservation & conservation: 100 years of water, they have made lots of arrangements. they do this for each project they do. They get it from the ground water from Gila reservation
      • Transportation
      • Infrastructure
      • Safe neighborhoods
      • Responsible development
    • Chandler Police Chief just won Police Chief of the year for entire USA
      • 2018 lowest crime rate since 1986
    • National awards
    • AAA bond ratings which helps get loans without having to raise taxes.
    • Huge population growth
      • Fewer multifamily projects in 2019 than 2018 Increased single family projects in 2019 Majority of growth is in southeast Chandler
    • Housing
      • 106,688 total housing units
      • 73.5% single family homes
      • 26.5% multi-family homes
      • 141 new houses added a month, on average
    • K-12 Education
      • Chandler Unified School District (CUSD) just won #1 school district in AZ (niche.com) vision 2030 is to be the #1 school district in USA voters approve school spending nearly 100% of the time
    • Currently modernizing Chandler Municipal airport, moving towards jets to accommodate business travelers and making it quieter. The hobby prop planes are louder.
    • Employment
      • economic development is all about bringing in more bodies
      • Existing employers
      • New businesses
      • New Banner hospital coming soon to 202 and Alma School
      • working to build a bigger variety of employment, not just semiconductors
    • Recently won best economic development department in AZ
    • Mica Miranda, head of the department, travels to businesses across the country to recruit to Chandler
    • Chandler is competing with Dallas, Tampa, Austin for businesses
    • By bringing in more businesses and jobs, taxes are subsidized so increases are not needed to support growing population
      • Price Corridor job creation zone Airport job creation zone
    • Commercial building fill rate/vacancy rate (page 17)
      • office 14% flex 7% industrial 5% retail all time low
    • Downtown Updates
    • Park Updates
      • 67 completed parks
      • 3 planned parks
      • 1200 acres of park space
      • talking about youth sports tourism (not a money maker but people want them)
      • adding to tumbleweed, move that towards a more competitive sports complex
      • also working with the schools to use their fields. adding more lights to tumbleweed
    • Lots of events to unify all of the different aspects of Chandler
    • Festivals to connect the old and the new
    • Follow City of Chandler on LinkedIn and Facebook to see updates
    • Sign Up for Chandler’s newsletter at https://www.visitchandler.com/about-chandler/enwsletter/

  • Inman/Industry Update from July 2018

    Inman/Industry Update from July 2018

    Most Talked about at Inman:

    • #1 topic: Compass. A traditional brokerage spending huge amounts of money to advertise that they are a tech company. Goal is to have 20% market share in the top 20 metros nationwide by 2020. They are buying brokerages. Expect to see them in AZ by 2019.
    • #2 topic: Brad Inman’s interview with Gary Keller. Click here to see the full interview: https://www.youtube.com/watch?v=IoHwEgo7CUg
    • #3 topic: Phoenix: all eyes are on us to see how our local industry responds to the marketplace shifts, emerging models, and iBuyers

    Non-Real Estate Emerging Trends:

    • Privacy: voice activation and identity verification
    • Data: Who owns your data? How is it used? How can we protect it?

    *Let me know if you would like the steps to download the data Facebook has on you.

    • Uber & AirBNB are not just platforms anymore. Uber is buying taxis and AirBNB is buying houses and small hotels

    Where We Were:

    • Buyers agents emerged in the late 80s
    • 2005/2006 Zillow asks NAR to share data
    • Realtors moved from sales to customer service=Realtors help buyers buy homes not find homes

    *Let me know if you would like the charts Amanda showed in class

    Emerging Models:

    • Model #1: Tech or templated. Online discount brokerage, call center, selling through an app, limited support, W2 employees. Example: Homie
    • Model #2: Hybrid: great technology and traditional agents, specific services provided, lower costs, either 1099 or W2. Example: Redfin and Purplebricks
    • Model #3: Traditional: high volume, high value, high cost, must include clear value

    New Tools:

    • Glide, http://www.glide.com/, online SPDS. Integrates with Zip Forms. $25 monthly
    • Homesnap, https://www.homesnap.com/pro direct ARMLS & Showingtime integration. Client search and messaging capabilities. Free.
    • Unison, https://www.unison.com/, provides 1/2 of down payment, never paid back, owners share ½ of the equity when property sells within 30 years. no limits.
    • Loftium, https://www.loftium.com/, provides funds for down payment, requires for first 2 years one room is rented on Airbnb. They run their own data to figure out how much they will put down.
    • Propy, https://propy.com/, Sell properties through Blockchain (step by step logical process that executes a contract) Propy handles the exchange and provide the seller in USD. Good for global buyers. Agents does sales call with Propy to post listing. Charge for currency conversion incurred by buyer.
    • Kleard, https://www.kleard.com/, open house sign-in that requires dual verification for everyone

    Database:

    • Liondesk, http://liondesk.com/, CRM, automated messaging, reminders, sign riders, background info research, $25 monthly

    *Let me know if you are interested in our Lawyers Title discount to make it $20 monthly

    *Let me know if you are interested in our Lawyers Title discount to save 10%.

    All-In-One Systems:

    • Evabot, https://www.evabot.ai/, conversational artificial intelligence that chats with consumer and figures out gifts for closing. very conversational, all through text
    • Brivity, https://www.brivity.com/, all in one platform, integrates with ARMLS, Zipforms, Skyslope, CRM. starts at $199 monthly
    • Realsynch, https://www.realsynch.com/, integrates as much as possible but not everything. it is useful while we wait for a lower cost option
    • Chime, https://chime.me/, integrates marketing & client info

    Smart Home Technology:

    Photography:

    • Boxbrownie, https://www.boxbrownie.com/, virtual staging ($32) and photo editing, item removal ($4), best virtual staging. turn daytime photos to dusk photos $28. also do floorplans and 3D plans
    • Proxypics, https://proxypics.com/, stock photo specific to location. photographers compete
    • Restb, https://restb.ai/, looks at photos and is able to decipher what is in the photos. Zillow is using this info for their Zestimate to make the info more accurate. Allows people to search based on what is in the photos. available to build integration through website.

    Robots:

    Voice Automation:

    • VoiceterPro, https://www.voiceterpro.com/, shares your skill on Alexa, downloadable through Amazon apps. Partnering with restb.ai to use for searches, $349 monthly
    • Boomerang, https://www.boomerangapp.com/, use to email from phone. selects emails to respond to first. speed of voice automation

    Augmented Reality:

    • Hutch, https://www.hutch.com/, when showing vacant homes select the type of room and style, place furniture to see how they would look in the room. completely free. they make money by selling products. Zillow has invested in this system.

    Virtual Reality:

    Websites:

    Lead Conversion:

    Lead Generation: