By Holly Henbest, Realtor
Real estate is a hot topic, and it seems like everyone is interested in real estate data, which means there is a lot of gossip and “talk” about real estate. A lot of that talk can become exaggerated or modified to make the stories sound better at cocktail parties or when you bump into friends and neighbors on a walk or at the mailbox. Through the old game of ‘telephone,’ these stories get more and more ‘modified’ as time passes.
I can’t tell you how many times I’ve been at the grocery store or a restaurant and I see a client or neighbor who tells me about the “house down the street that sold for xyz price in xyz hours and had xyz offers” and I happen to know the details of the real estate transaction and much of the rumor is simply wrong. Everything from the days on market, to the price, to how much over list price, to all the repairs needed can often be wrong. I’ve heard countless stories that just don’t have the facts straight at all. So, we implore you: don’t let gossip influence what you believe your home is worth and impact your real estate decisions. Instead, rely on the data and a trusted real estate professional to guide you through the process.
Another popular topic of conversation relates to financed versus cash buyers. Have you been thinking about selling your home and buying a new home but you’re worried you won’t be able to buy one? I keep hearing from potential buyers that they are worried they won’t be able to purchase a home because they can’t compete with cash buyers. We want to shout it from the rooftops: cash isn’t always “king,” and most buyers are not cash buyers!
The data shows that 71.4% of real estate transactions closed with buyers who obtained a loan and 28.3% were closed with buyers paying cash in July 2021. The data doesn’t lie! More buyers are buying homes with loans than with cash. So, don’t let the real estate rumors scare you.
Along with competing with cash buyers, a lot of buyers are worried about competing with investors in general because they think investors are gobbling up all our inventory and waiving all the contractual contingencies. While investor purchases are increasing, most homes continue to be purchased by people who are going to live in the home. Over 75% of homes are owned by full-time or part-time residents.
Here is the most recent buyer profile breakdown:
• 64.7% – Owner Occupied
• 12.9% – 2nd Home
• 16.4% – Investor
• 5.7% – Institutional Investor
If you’re considering buying or selling, we recommend you partner with a professional who can provide you with accurate data, guide you through the process, and ensure you’re educated along the way.
Do you have questions about buying or selling a home? Give The Henbest Team a call at 480-266-8785 or e-mail [email protected].
Holly has been a Desert Ridge resident since 2000 and has been a Realtor since 2006. She is the leader of The Henbest Team with Realty One Group. Holly is ranked in the top ½ of 1 percent of Realtors in Arizona and is a certified luxury marketing expert. She was also ranked #24 in 2019 by the Phoenix Business Journal and recognized by So Scottsdale! magazine as a Real Estate Superstar for 2019.