Phoenix Real Estate Sales

Real Property Management Phoenix Valley Phoenix real estate sales
Real Property Management Phoenix Valley Phoenix real estate sales

Real Property Management Phoenix Valley is a full service real estate brokerage company.  Our services include residential property management, home owner association management and Phoenix real estate sales transactions.  Using a recent Phoenix real estate sale we are going to highlight why the correct purchase price is so important.

A client contacted us in August to list his Phoenix home for sale.  We provided a sales comparable market analysis that indicated the market sales price was between $235K – $245K.  The client decided (outside of our recommendation) to list the property at $275K.  We did explain that absolutely none of the market comparable properties indicated that market price was anywhere near that amount.  Additionally, we did advise that if we couldn’t find comparable properties to support his purchase price than most likely the appraiser wouldn’t be able to either.  The seller’s response was that “he knows that Phoenix real estate prices are skyrocketing”.

From the end of Aug to the end of Sept the client did authorize two price reductions with the last bringing the price to $259,999 on September 23rd.  The client did advise that if he didn’t receive any offers by Oct 1st he was taking the property off the market.  Much to our surprise an offer for $260K came in on 9/30/19.  The buyer wanted 2% seller concessions which the seller agreed to.  Next the buyer completed the inspection and made their formal repair requests.  Their requests were as nit picky as tightening outlets!  Unfortunately, because the buyers were purchasing so above market they were expecting the seller to make an eleven year old house brand new.  Their requests were as unreasonable as the sellers purchase price!  However after a few days of negotiating both sides agreed on repair items and the appraisal was ordered.

When we received the appraisal with a value of $240K we were not surprised.  We sent the seller a copy and he reduced the price to $255K.  As his agent we were obligated to present the offer to the buyer’s agent and they declined.  We would have been surprised if they had proceeded and agreed to pay $15K over market price.

With all of our Phoenix real estate sales we try to educate buyers and sellers to the current market prices so that educated decisions can be made.  We certainly can’t prohibit a seller from listing their home at a sales price they decide but we were very surprised that a buyer represented by an agent put an offer in without having any comparable properties to support the price.

For more tips on purchasing Phoenix real estate listing to our podcast “purchasing phoenix rental property”.  For recent Phoenix real estate sales statics visit the ARMLS statistics.

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Litchfield Park Property Management Success!

Litchfield Park Property Management Success!
Litchfield Park Property Management Success!

Real Property Management Phoenix Valley specializes in property management and real estate sales valley wide.  Recently our Litchfield Park property management success took place in Dreaming Summit a large master planned community.  It consists of 1785 homes and approximately 80 acres of parks, natural wash, and landscaped common areas.  Dreaming summit is east of Litchfield Road, west of Dysart Road, south of Maryland Ave and north of Missouri and is close to Luke Air Force base.  Dreaming Summit residents have a Litchfield Park mailing address, however the community actually lies in the County Island of Maricopa. Property taxes in this area are lower however HOAs fee tend to be higher.  This is because the fire services are paid through the HOA because the services are through Rural Metro.  Additionally, police services are through the Maricopa County Sheriff’s office rather than through a city service.

The Litchfield park property management success story we are referring to is a three bedroom/two and one half bath 1800 sq ft two story home.  We first rented this property  in 2011 for $995.00 and it took twenty eight days.  In 2013 the home rented for $950 in eight days.  Last month the same property rented for $1295 in six days!

Fun Facts about Litchfield Park:

  • The median household Income in Litchfield Park is $97,848 which is the 3rd Highest in State!
  • Litchfield Park Festival of the Arts is expected to have over 100,000 visitors  this year.
  • The population of Litchfield Park is over 6000

For all of your Phoenix Real Estate & Phoenix Property Management Needs Contact:

Real Property Management Phoenix

www.rpmphoenixvalley.com

602-358-8130

info@rpmphoenixvalley.com
Follow us @RPMPhoenixValley
&

Follow @rpmwvphoenix

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Utilities & AZ Landlord-Tenant Act

Utilities & the AZ Landlord-Tenant Act
Utilities & the AZ Landlord-Tenant Act

This week our blog will focus on utilities & the AZ Landlord-Tenant Act.  The Act states that your lease agreement must clearly list what utilities are the responsibility of the tenant.  Additionally, the lease should specify whether the tenant is responsible for putting the utility into their own name.  Often times with multi-family properties the utilities stay in the owner’s name.  When this happens it must be disclosed in the lease if the units are individually sub metered.  Additionally, you can have the tenant pay for their usage as well as any costs associated withe the sub metering.  Be sure to always send the tenant a copy of the invoice.  Also, keep in mind that if your property isn’t sub metered and you decide to sub meter you must give the tenant notice.

If the properties aren’t sub metered then the owner must use one of more of the following billing systems:

  1. Per tenant meaning that each tenant receives their own bill
  2. By square footage taking the entire bill and dividing by total square footage to then get a price per square foot; that number is then multiple be the total size of each unit
  3. Per type of unit so one bedrooms have a set price, two bedrooms higher price etc.  With this option each type must have the same price
  4. Per number of water fixtures; we have never known anyone to use this system because typically all one bedrooms would have the same number of fixtures so option 3 would be much easier

No matter the system that you use you can only charge the tenant for their cost and you can’t add a mark up.

For a full copy of utilities & the Arizona Landlord-Tenant Act click here.

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Arizona Landlord Tenant Act

The Arizona Residential Landlord Tenant Act (“ARLTA“) is the law governing most private, residential, rental agreements. In other words, the Arizona Landlord Tenant Act provides tenants and landlords with rights, obligations and remedies in the rental relationship.  There are six sections in the act.  In this post we will discuss the section on terms and conditions that must be included in a lease agreement.  According to the Act, rent must be payable at the time and place agreed upon by the parties.  Additionally, rent is to be paid at the dwelling unless otherwise specified in the lease.  If the rental agreement doesn’t  have a fixed term than the term is week to week for roommates and month to month for all other cases.  In our lease agreement we always break out the rent AND tax amount.  This way if the rental tax increases the landlord can pass the cost onto the tenant with thirty days notice.

Within the lease the landlord may request a contact person who can enter the unit should the tenant die.  Should that occur be sure to always collect a copy of the death’s certificate.  If the landlord is unable to contact that person within ten days than the landlord may dispose of the tenant’s belongings after death.  If the landlord makes contact with the authorized person they have the authority to enter.  They then have either twenty days or the last day that rent is paid for to remove all belongings.  After that period the landlord can remove any items and has no further liability to the tenant’s estate or heirs.

Real Property Management Phoenix Valley has three podcasts on our recommendations of items to include in a lease agreement.  To listen please visit us here.

 

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Best Property Management Companies

Best Property Management Companies 2019
Best Property Management Companies 2019

Real Property Management Phoenix Valley is excited to announce its’ placement on the “best property management companies” list for 2019.  The list was released by Expertise and can be found here.    Expertise uses proprietary research and a selection process to identify the best property management companies in the Phoenix area.  They use the following criteria in their selection process:

  1. Reputation: a history of satisfied customers giving excellent recommendations about the services they have received from Real Property Management Phoenix Valley
  2. Credibility: including the fact that Real Property Management Phoenix Valley has had their location for over thirteen years.  Additionally, key staff members such as the Designated Broker has been in the Phoenix real estate market for almost twenty years
  3. Experience: Real Property Management Phoenix Valley are truly masters of their craft of Phoenix real estate & Phoenix property management.  This experience comes from managing other peoples properties as well as the fact that the staff own their own rental properties so they truly understand the experience from the property owner’s point of view
  4. Engagement: Real Property Management Phoenix Valley has a customer response protocol which far exceeds others in the area.
  5. Professionalism: Real Property Management Phoenix Valley provides qualify work from leasing properties in fourteen days or less to detailed inspections.

To read reviews on Real Property Management Phoenix Valley please visit our website here.

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HOAs In Phoenix

Phoenix Condo Community Currently Under Homeowner Association Management
Phoenix Condo Community Currently Under Homeowner Association Management

The Phoenix metro area has many planned community developments.  Most of the developments have Homeowner Associations more commonly referred to as HOA’s in Phoenix.  The HOA’s were created to keep uniformity within the neighborhood and are comprised of a board which consists of home owner’s who volunteer and are then elected.  Unfortunately however HOA’s can be costly and in this post we will look at 6 typical costs.

The first cost is the regular assessment which is collected usually annually or monthly.  The regular assessment typically pays for “routine” services such as management fees, landscaping maintenance if needed, pest control services etc.  Assessments can range from $30 to several hundred dollars depending on the type of community and what is needed.  Typically condominium and town home communities have higher regular assessments because their routine expenses  include insurance, roof maintenance & regular pest control to name a few.

The second cost is a transfer fee.  This fee is paid by the new buyer of a property in an HOA community.  The transfer fee covers the expense of transitioning activities and paperwork from the seller to the buyer.  This is a one time fee and is between $100 – $400 depending on the HOA.

The third cost is a disclosure fee which in Arizona must be paid by the seller.  This fee covers the cost of  the seller providing the buyer with the HOA’s governing documents, so that the buyer has full disclosure.  The document package typically includes the communities CC&R’s, Bylaws and current financials and is the most important part of the transfer process.

The fourth possible cost is a capital improvement fee.  HOAs in Phoenix usually have a capital improvement fee of one quarter of one percent of the sales price.  Repairs or improvements to the common area comes from this fee.

The fifth possible cost is prepaid dues.  These are monthly or quarterly dues that are collected up front at closing for future months of dues.  Usually 1-2 months are collected.

Finally the sixth possible cost is a special assessment.  Special assessments are for unforeseen expenses such as a new roof for a condo community.  Typically special assessments are due in the year they are levied unless the HOA offers payment plans.

There is a long standing debate regarding the positives and negatives of homeowner associations.  Those in favor think that they help to maintain the community in good condition by enforcing uniform standards.  Others find them to be intrusive and unnecessary.  One thing is for sure; if you are purchasing in a community with an HOA be sure to carefully review the CC&R’s to be sure there isn’t a rule that you can’t live by.  Also, double check the financials to make sure the HOA is financially healthy.

For information on our HOA management services (full and financial only) please visit us here.

If you are new to an HOA community the following website offers helpful newsletters.

 

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Phoenix Rental Market

Phoenix property manager
Phoenix property manager

As Phoenix property managers, we are going to provide a realistic overview of the current Phoenix rental market.  Although the media has been claiming that the rental rates are rising sky high in the area this is definitely not true to for all segments of the market.  For example, we spoke to a landlord last week who has a 2600 sq ft 4 bedroom 3 bath home in the Verrado, Arizona area which he has been renting for a few years.  He reached out to us as a potential Phoenix property manager because he is unhappy with his current company.   In this situation we like to determine what services the client is missing with their current management company.  Through out the discussion we realized that his only unhappiness with his current manager is the fact the home was still on the market.

The most recent tenants had been paying $1695.00 and were only in the property for a year.  He had the property now listed for $1895.00.  His logic was that he hears on the media how “hot” the Phoenix rental market is and therefore is sure that the 11% increase in price is justified. Unfortunately it is not!  The good news is that if you own rental property that is renting between $900 – $1200 a month then there has been an increase between 6-10%.  However, the bad news is that if your property rents for over $1500 then the rental amounts are pretty flat.

Here are a few examples of rental increases that we have experienced: Surprise 3 bedroom, 2 bathroom 1681 sq ft home in Bell West Ranch went from $1199 – $1299 which is an 8% increase from 2018-2019.  In Laveen  a 4 bedroom, 3 bathroom 1835 sq ft home in Country Glen went from $1299 $1399 which is a 7.7% increase from 2018-2019.

In conclusion the media of course is wrong and all rents aren’t skyrocketing in the Phoenix market.  Additionally, no matter how good a property manager is they can’t rent a property that is priced outside of the market rent.

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Buckeye Property Manager Success!

 

Our Buckeye Property Managers rented a home in Buckeye’s Sundance community in just 7 days!!!  Sundance is a premium subdivision in Buckeye just off the I-10. The community has a small town feeling but close to Phoenix.   As a result, Buckeye is a desirable area for phoenix property managers.  Sundance is south of the I-10 extending from just west Verrado Parkway to Watson Road off Yuma Road. The community’s started development around 2003 and first round of construction was completed by 2006 but construction has resumed in the Sundance.  The homes have between three to five bedrooms on average and two to four bathrooms as a result this neighborhood is perfect for those seeking single-family investment homes.

The Buckeye Property Managers first listed  the single level single family home which is 1635 square foot home in 2012 where it rented for $875, it then rented again in late 2014 for $900 and was rented until a new tenant was placed in July 2019.  In 2019 the home rented for $1195 and took just seven days to rent.  The 2019 rental price represents a 33% increase from 2014.

Buckeye is located approximately 30 miles west of downtown Phoenix. For more information please visit here.

 

For all of your Buckeye Property Management & Phoenix Real Estate & Phoenix Property Management Needs Contact:

Real Property Management Phoenix

www.rpmphoenixvalley.com

602-358-8130

info@rpmphoenixvalley.com
Follow us @RPMPhoenixValley
&

Follow @rpmwvphoenix

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Mesa AZ Property Manager

Our Mesa AZ Property Manager completed a rental study comparing the 85205 Mesa zip code to Mesa in its’ entirety.  All rental market figures for the 85205 zip code as well as all for Mesa were taken from closed rental data from the Arizona MLS from 2016-2019 (Year to Date).  The chart below outlines the number of rented properties, average rent and average days on market.  What our Mesa AZ Property Manager found is that overall the 85205 zip code brings in a lower monthly rental rate than Mesa as a whole. However the increase for 85205  from 2016 to year to date was 28%. Additionally, the average increase for the same time period for Mesa was 14%. Interestingly, the average days on market is pretty similar for both.

Mesa, AZ Property Manager rental study of 85205 zip code versus Mesa overall

The 85205 zip code has a population of approximately 39,858. It is located north of main street, west of Val Vista, east of Power and south of McKellips.  Additionally it has a median home value is $124,800 and median household income is $44,469 this zip code is an attractive city for rental property ownership.
Further information about the city of Mesa, Arizona… 
  • Median household income is $48,259 a year.
  • Mesa is the 3rd largest city in Arizona
  • The overall median age is 35.9 years
  • For every 100 females there are 97.5 males.

For more information on Mesa, AZ visit our informational page or visit the world wide population review.

 
 
For all of your Phoenix Real Estate & Phoenix Property Management Needs Contact:
Real Property Management Phoenix Valley
www.rpmphoenixvalley.com
602-358-8130
info@rpmphoenixvalley.com 
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Homeowner Association Property Management

Our July podcast is  now available and is part one of our series about homeowner association property management.  HOA Property Management is divided into financial services only and full services.  Full service includes financial services plus additional services.  Some of the additional services are attending meetings, resale disclosures, site visits, issuing/monitoring violations, emergency services and much more.  This first segment discusses financial services specifically monthly reports, association accounts, receipt of funds and collection of assessments.  We do include recommendations within each category in an effort to maximize your community’s management services.  Our free tip at the end provides suggestions for one of the largest problems for HOAs which is community involvement. Our next podcast segment will finish financial services and begin discussing some of the other services provided.  All three segments can assist a board in interviewing potential property management companies.

 

If your community is located within the Phoenix metro area please visit here for information on our HOA management services.

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