Trulia or True Lies To Ya?

On a regular basis, we see prospective and current owners form an opinion and sometimes take action based on property valuations  they get from Trulia or Zillow. We caution against using the Trulia or Zillow number as a hard value for their property as we see these sites frequently over-value a home.

Sometimes the variance is close, but frequently the number misses significantly. We did a test of Zillow and Trulia’s valuations on a few of the properties we manage. We took 5 properties so the sample size is small but we mixed up the properties as far as location, size and sales price.

The properties we analyzed were located in the following cities: North Scottsdale, Avondale, Peoria, Buckeye and Phoenix. The actual sales prices ranged from $102,000 to $662,829. We took a look at the MLS data and compared that data with Trulia’s valuation and Zillow’s property “Zestimate”.

Here are the details and how the actual sales prices compared with the Trulia and Zillow valuations in the Greater Phoenix Housing Market.

As you can see, there was a collective 22% over-valuation with this group of properties. This is pretty consistent with what we see with the situations we encounter with our client’s properties.
At this point, it is best to look at these Trulia and Zillow property valuations in the Phoenix Housing Market with caution. A 22% variance is certainly relevant in making a long term decision to sell a property or keep renting it out.
It is always best to take a look at recent and relevant market comparables on MLS before making any decision with what to do with your property. This is something we do for our current owners in the Phoenix  and is something we can do for you if you are looking for a property manager. 
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Case Study Tolleson

We just started managing this property in the Farmington Glen subdivision in Tolleson, AZ.

The house is a 3 bedroom, 2 bath and approximately 1,400 sq. feet.

We manage several properties within Farmington Glen, a subdivision in Tolleson, AZ .

This property is located in a section of Tolleson, AZ that is close to  Tolleson Shopping, the I-10 and the 101.

We listed the property on April 14 and a new tenant signed the lease on April 17.

The rental market in Tolleson is general good however pricing the property correctly is critical. Because we have detailed knowledge of the pricing in the Tolleson area, we have been able to lease Tolleson properties quickly and  to qualified tenants.  The new tenants move in on May 15.

Our aggressive advertising for our property rentals in Tolleson helps us rent these homes quickly. If you are an RPM WV Phoenix client, RPM WV Phoenix pays to have your property advertised on many different websites and Craigslist. These advertising mediums are directed towards potential tenants who are searching for rental homes on their own.

RPM West Valley Phoenix manages a large number of properties in Tolleson, AZ and has extensive knowledge of many of the subdivisions in Tolleson.

Country Place, Farmington Park and Sunset Farms are just a few of the subdivisions we manage properties in the City of Tolleson.

There are 50+ subdivisions in Tolleson from Volterra to Tivoli. We manage properties in many of them and have the knowledge and experience in these areas to help.

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Case Study Avondale April 2015

We have managed this property in the Durango Park subdivision in Avondale, AZ for five years.

The house is a 4 bedroom, 2 bath and approximately 1,900 sq. feet.

We manage several properties within Durango Park, a subdivision in Avondale, AZ .

This property is located in a section of Avondale, AZ that is close to  Avondale Shopping, the I-10 and the MC-85.

We listed the property on April 8 and a new tenant signed the lease on April 10.

The rental market in Avondale is good but can be tricky. Because we have detailed knowledge of the pricing in the Avondale area, we have been able to lease Avondale properties quickly and  to qualified tenants.  The new tenants moved in on April 14.

Our aggressive advertising for our property rentals in Avondale helps us rent these homes quickly. If you are an RPM WV Phoenix client, RPM WV Phoenix pays to have your property advertised on many different websites and Craigslist. These advertising mediums are directed towards potential tenants who are searching for rental homes on their own.

RPM West Valley Phoenix manages a large number of properties in Avondale, AZ and has extensive knowledge of many of the subdivisions in Avondale.

Coldwater Springs, Rancho Santa Fe and Corte Sierra are just a few of the subdivisions we manage properties in the City of Avondale.

There are 50+ subdivisions in Avondale from Cambridge Estates to Waterford Square. We manage properties in many of them and have the knowledge and experience in these areas to help.

Follow @rpmwvphoenix

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Interesting 1st Quarter Stats Regarding The Phoenix Rental Market

We compared our days from listed to rented for 2014 to 2015 and discovered some pretty interesting trends. Throughout the first quarter this year, we had a strong conviction that the rental market was much more competitive than last year. Our research not only confirms this but puts an exclamation mark on this fact.

We took a look at all of the properties we listed in both years in the following cities:
  • Phoenix
  • Avondale
  • Glendale
  • Peoria
  • Buckeye
  • Surprise
The total number of homes we listed in both years was 156 so we are taking a look at a decent sample size. Both years listing portfolio are similar with a $953 average listing price in 2014 and a $943 average listing price in 2015.
 In 2014, we listed 96 homes in the first quarter. Our average days to rent was 22.31 days and the median 17 days.
 In 2015, we listed 66 homes in the first quarter and our average days to rent was 11.81 days and median was 9 days. This takes into account the one home we have not leased as of yet with a realistic lease expectation date.
Although our portfolio of the total properties we manage has remained almost unchanged from 2014, we have listed 30 less homes this year’s first quarter. 
We think one of the reasons for this is that tenants are choosing to stay in their homes as the have tested the market and realize how competitive it is as they see the lack of inventory and properties they are interested in being snapped up quickly.
It will be interesting to see if this trend continues and we will have a second quarter update when the time comes.
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