WestWords June 2020
I am West USA I am West USA Testimonials Broker Blog - Is it an Addendum? West USA Cares Zillow Forecasts Market Stats
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I am Reliable Elizabeth Keller was excellent navigating the process, from beginning to the end on an investment property we bought in Lakeside, AZ. It was a somewhat complicated purchase, in which Elizabeth handled with ease. Highly recommended! Richard and Suzanne Tacey
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Elizabeth Keller is an awesome realtor and property manager! She managed my vacation rental for years very professionally. When I decided to sell it recently she made the sale process very easy. She is also a great person and very nice. I would highly recommend her to anyone. Darren Brown
WestUSA
Elizabeth Keller provided excellent service in the listing and sale of my father-in-law’s home. Despite the difficult comps, she was spot on, and her patience enabled the seller to maximize the final selling price in an appropriate amount of time. Recommendations and advice were provided honestly and with a high level of professionalism that was much appreciated. Communication was excellent. Liz would return emails and phone calls very quickly. Her experience shown in everything she recommended. Suggestions for the sale included the pros and cons, allowing us to make educated decisions. Top Notch! We couldn’t be happier! The Pope Family
Broker Blog Is It An Addendum??? There are many times that a Buyer and a Seller need to execute an addendum to a purchase contract. In our AAR forms library, we can use the blank lines on an Addendum 1 (or 2 or 3…) to write changed terms of the contract. There are also several prewritten and attorney vetted Addendums listed on the bottom of page 1 of the RPC and available for easy use. The one exception is the current COVID Addendum which would be an obvious choice for Line 38. Just as important is knowing what is NOT an addendum to the contract. There are several documents we use in nearly every transaction that are strictly disclosures or communication pieces. These should never be added on Line 38 as “Other” and can cause contract issues if they are. Examples are Agency Disclosure (READE), Buyers’ Inspection Notice (BINSR), Sellers’ Disclosure (SPDS), Wire Fraud Advisory and Market Conditions Advisory. None of these documents change any terms of the contract between the Buyer and the Seller. It would be easy to think that the BINSR would or could change the terms of the contract but all terms regarding the BINSR are addressed on Page 6, Lines 260-289. The BINSR is a tool to communicate the specifics of the issues and the contract terms are not changed unless a separate addendum is executed. For instance, we see conflicts between the contract language of repairs being done in a “workmanlike manner” and the BINSR requests for the Seller to use a licensed contractor. If repairs are to be done by a licensed contractor, an addendum to the contract should be executed stating that term. Advisories and Disclosures (with the exception of the Lead-Based Paint) are solely one party stating something in writing to another party. This could be Seller to Buyer (SPDS) or an Agent to a Client (READE). With so many documents necessary for any given transaction, it is imperative to know the intended purpose of each one.
Susan Herber West USA Realty, Managing Broker 602-942-4200
Zillow Forecasts a Dip in Home Prices, Rebounding By Next Year The continued economic fallout from the spread of COVID-19 has introduced immense uncertainty into the housing market as consumers step back from large purchases and social distancing puts a chill on necessary market services. As a result, Zillow expects home prices will most likely fall 2%-to-3% through the end of the year from pre-coronavirus levels, and home sales to fall as much as 60%, before both begin to slowly recover to baseline levels by the end of 2021. The latest forecasts, based on published and proprietary macroeconomic and housing data, also include more pessimistic or optimistic projections based on the duration of the pandemic and the depth of its impact on the broader economy. The forecasts center around a baseline prediction of a 4.9% decrease in United States GDP in 2020 and a subsequent 5.7% increase in 2021. Under the baseline scenario, we expect: A 2%-3% drop in prices through the end of 2020, followed by a slow recovery throughout 2021. Prices will return to Q4 2019 levels by Q3 2021. A 50% decline in home sales from their pre-coronavirus levels, as measured at the end of 2019. Home sales will bottom out in Q2 before beginning to improve near the end of Q2 2020. Sales volume will recover to about 97% of Q4 2019 levels by the end of 2021. The pace of recovery is what distinguishes our three scenarios from one another.
Each of our scenarios implies very different paths for home prices and sales volumes. Our optimistic scenario features a small dip in house prices in Q2-Q3 followed by a robust recovery. The baseline medium scenario features a U-shaped trough in Q4 followed by a slower recovery and our pessimistic scenario features continued weakness through all of 2021 (more of a “long U” shape). Under our moreoptimistic assumptions, the market could experience a fast, V-shaped “snapback” similar to what happened in the Hong Kong real estate market after the 2003 SARS outbreak. The medium scenario features a “check-mark” shaped recovery and our pessimistic scenario features more of a “wide-U” recovery, with a longer bottom and more gradual pace of improvement.
At time of publication, we believe the medium scenario to be the most likely outcome, followed by the pessimistic scenario and then the optimistic scenario. These scenarios and our assessment of their likelihoods are open to revision and will be revisited periodically as more information regarding the timing, scale and success of relaxed social-distancing measures, among other factors, is released.
Cares Tip A great way to add value to your listing presentation as well as your customer service to your clients is to find a local Charity Organization that accepts furniture donations. When your sellers are ready to move out, many times, they have stuff they do not want to take and are scrabbling to find time to take it to a donation location or they leave it behind for you to figure out. Having this information ready in your listing presentation is an impressive added value that many other agents don’t think about.
Many local Organizations like AZCEND in Chandler will gladly take donations to help families in need of furniture or household items. They will even come pick it up with a couple days’ notice. As a service you could call ahead and schedule the pickup for them, so it is one less thing for them to worry about. You are also giving back to families in the community that count on places like AZCEND. Find a local Organization to you that you can partner up with to benefit your business and give back to your community.
Market Stats With Todd Menard
Employee of the Month! Congratulations to Keith Flynn West USA Realty’s June Employee of the Month. Keith is our Director of Digital Marketing, running all social media, email, marketing and branding at the Brokerage level. Keith also teaches multiple classes a month in all aspects of marketing and branding for REALTORS®. You can find any of Keith’s classes by going to www.westusacalendar.com. Thank you Keith, for being part of our West USA Realty family!