Seller FAQ Guide

Your home's value is determined through a Comparative Market Analysis (CMA) that examines:

• Recent sales of similar homes in your neighborhood (typically within the last 3-6 months)
• Active listings competing with your property
• Pending sales that indicate current market momentum
• Your home's unique features, upgrades, and condition
• Current market conditions specific to your Phoenix metro neighborhood

In Phoenix, factors like pool condition, desert landscaping, energy-efficient features (crucial during our summer months), and lot size significantly impact value. I'll provide you with a detailed analysis showing exactly how we arrived at your home's value.

Here's why: In Phoenix's data-driven market, the first two weeks are absolutely critical. Most serious buyers and their agents see your listing within the first 72 hours. If you're overpriced, you'll miss this crucial window of maximum exposure.

Statistics show that homes priced correctly from the start:

• Sell 20-30% faster than overpriced homes
• Generate more showing activity and competitive offers
• Often net MORE money because they avoid the stigma of sitting on the market

Overpriced homes become "stale" inventory. When you eventually reduce the price, buyers wonder what's wrong with the property. In Phoenix's competitive market, pricing right means positioning your home as the best value in its category.

The Phoenix metro market varies significantly by:

• Location: Central Phoenix, Scottsdale, and Tempe have different dynamics than outlying areas like Goodyear or Queen Creek
• Price point: Under $400K, $400K-$700K, and luxury markets each have unique characteristics
• Season: Our market peaks January-March with snowbird buyers, slows June-August during extreme heat

Current inventory levels, days on market, and price appreciation rates all factor into whether we're in a seller's or buyer's market. I'll provide you with specific data for your neighborhood and price range, including absorption rates and competition analysis.

Focus on high-ROI improvements that matter to Phoenix buyers:

Must-Do Repairs:

• HVAC system: Ensure it's functioning perfectly. In Phoenix, a broken AC is a deal-killer
• Pool equipment: Clean, functioning pool/spa with clear water
• Roof condition: Address any visible damage or leaks
• Major plumbing or electrical issues
• Fresh interior and exterior paint (neutral colors)

High-ROI Improvements:

• Deep cleaning and decluttering
• Curb appeal: Desert landscaping refresh, clean pavers
• Updated light fixtures and hardware
• Minor kitchen/bathroom updates (hardware, faucets)

Skip These:

• Major renovations (you won't recoup the cost)
• Personal taste upgrades (buyers want to customize)
• Expensive landscaping overhauls

I'll walk through your home and provide a prioritized list based on your specific property and target market.

Staging costs typically range from $2,000-$6,000 for a full home, but the ROI is substantial. Even partial staging of key rooms (living room, primary bedroom, kitchen) makes a dramatic difference.

For vacant homes, staging is essential—empty rooms photograph poorly and make it difficult for buyers to envision the space. For occupied homes, we can work with your existing furniture, adding key pieces and accessories to enhance the presentation.

I'll help you determine the right level of staging for your property and budget.

When sellers are home, buyers:

• Feel uncomfortable opening closets and cabinets
• Rush through the property
• Can't speak freely with their agent about concerns or what they'd change
• Feel pressure and may avoid scheduling a showing altogether

Buyers need to envision themselves living in your home, which is impossible with you there. Trust your agent to handle showings professionally. Take your pets with you, ensure all lights are on, and give buyers the freedom to fall in love with your property.

Expect 8-10% of the sale price in total costs:

Commission (5-6% of sale price):

• Typically split between listing and buyer's agents
• Negotiable, but competitive commission ensures strong marketing

Title & Escrow Fees (1-2%):

• Title insurance policy for buyer
• Escrow company fees
• Recording fees and notary services

Additional Potential Costs:

• Prorated property taxes
• HOA transfer fees ($200-$500)
• Outstanding HOA dues
• Home warranty for buyer ($400-$600, negotiable)
• Buyer's closing costs (if negotiated)
• Repairs identified during inspection (negotiable)

I'll provide you with a detailed net sheet showing estimated proceeds based on your specific situation, including payoff amounts and all anticipated costs.

Your net proceeds equal:

Example on a $500,000 sale:

• Sale Price: $500,000
• Less Mortgage Payoff: −$250,000
• Less Commission (6%): −$30,000
• Less Title/Escrow: −$7,500
• Less Other Costs: −$2,500
• Net Proceeds: $210,000

I'll prepare a customized net sheet with your actual numbers before we list, updated as we receive offers.

Capital gains tax exemption allows you to exclude:

• $250,000 in gains if filing single
• $500,000 in gains if married filing jointly

Requirements:

• Owned and lived in the home as your primary residence for at least 2 of the last 5 years
• Haven't claimed the exclusion on another home in the past 2 years

Gains above these amounts are taxed at capital gains rates (0%, 15%, or 20% depending on income). Always consult with a CPA for your specific situation, especially if you've done a 1031 exchange, have a rental property, or had significant appreciation.

I can recommend experienced tax professionals who specialize in Arizona real estate.

Timeline varies by market conditions and property:

Average Phoenix Metro (Balanced Market):

• 30-45 days to accept an offer
• 30-45 days from contract to closing
• Total: 60-90 days

Factors that speed sales:

• Competitive pricing
• Excellent condition and presentation
• Desirable Phoenix locations (Scottsdale, Arcadia, Central Phoenix)
• Listing during peak season (January-April)
• Cash buyers or pre-approved financing

Factors that slow sales:

• Overpricing
• Deferred maintenance or dated features
• HOA restrictions or high fees
• Listing during slow season (June-August)

I'll provide comparable sales data showing how long similar homes took to sell in your specific neighborhood.

Peak Season: January through April

This is Phoenix's strongest market:

• Snowbird buyers and investors are actively looking
• Weather is ideal for showings and relocations
• Corporate relocations typically want to close before summer
• Inventory is lower, creating more competition among buyers

Good Season: September through December

• Weather improves after summer heat
• Serious buyers motivated to close before year-end
• Less competition from other sellers

Slower Season: May through August

• Extreme heat (115°F+) deters showings
• Many buyers postpone searches until fall
• However, serious buyers are still active and face less competition

That said, if you need to sell during summer, a well-priced, well-presented home will still sell. We'll adjust our marketing strategy accordingly.

Several options exist for this common Phoenix scenario:

1. Home Sale Contingency:

• Make your purchase offer contingent on selling your current home
• Less attractive to sellers in competitive markets
• May need to offer above asking price to compensate for risk

2. Bridge Loan:

• Short-term loan using equity from your current home
• Allows you to buy without contingency
• Typically 6-12 month terms with higher interest rates

3. Home Equity Line of Credit (HELOC):

• Tap equity for down payment on new home
• Must qualify to carry both mortgages temporarily

4. Buy-Before-You-Sell Programs:

• Companies purchase your new home, you buy it back after selling yours
• Convenience comes with fees (typically 2-3%)

5. Rent-Back Agreement:

• Sell first, negotiate to rent your home from buyer for 30-60 days
• Gives you time to find and close on new home
• Most flexible and cost-effective option

I have strong relationships with local lenders who can evaluate which option works best for your financial situation.

Multiple offers are exciting but require strategic evaluation. We'll assess each offer on:

Price: Highest isn't always best

Terms:

• Cash vs. financed (cash typically closes faster with less risk)
• Down payment amount (20%+ is stronger)
• Pre-approval quality (local lender with full underwriting)

Contingencies:

• Inspection contingency length (shorter is better)
• Appraisal contingency (waived is strongest)
• Financing contingency period
• Home sale contingency (avoid if possible)

Closing Timeline: Does it match your needs?

Rent-Back Requests: Flexibility for your move

Repair Requests: Some buyers waive inspection repairs

Offer A: $525,000

• Conventional financing, 5% down
• 10-day inspection, requesting repairs
• Asking for $8,000 in closing costs
• 45-day close

Offer B: $515,000

• Cash
• As-is with inspection for informational purposes only
• No closing cost assistance
• 14-day close

True Net Comparison:

• Offer A: $525,000 − $8,000 (closing costs) − $3,000 (likely repairs) = $514,000 net
• Offer B: $515,000 net (no concessions)

Plus Offer B has:

• No appraisal risk
• No financing fall-through risk
• Much faster closing

I'll create a detailed analysis showing the true net and probability of closing for each offer, helping you make an informed decision.

Understanding contingencies protects you from deals falling apart:

Inspection Contingency (10 days typical):

• Buyer can request repairs or cancel
• In Phoenix, focus on HVAC, roof, and pool issues
• Most inspection issues are negotiable

Appraisal Contingency:

• Buyer can cancel if home doesn't appraise for contract price
• Risk increases if you accept over-asking offers
• Buyers who waive this provide strong protection for sellers

Financing Contingency (30 days typical):

• Buyer must secure loan approval
• Strong pre-approval reduces risk
• Job loss, credit issues, or property problems can cause loan denial

Home Sale Contingency (HIGH RISK):

• Buyer must sell their current home first
• Include a "kick-out clause" allowing you to accept backup offers
• Avoid unless market is slow or price is exceptional

I'll guide you through responding to contingency requests, helping you understand what's reasonable and what's not.

Phoenix has the most seasonal real estate market in the U.S.:

Winter (January-March): Peak Season

• Snowbirds and Canadian buyers are active
• Perfect weather showcases outdoor spaces
• Corporate relocations want to settle before summer
• Highest prices and fastest sales
• Most competitive market for sellers

Spring (April-May):

• Market remains strong before heat
• Families want to move before school ends
• List early April to maximize exposure

Summer (June-August): Slowest Period

• 115°F+ temperatures deter showings
• Fewer buyers, longer days on market
• Price reductions more common
• However, motivated buyers face less competition
• Emphasize energy efficiency and working AC in marketing

Fall (September-December):

• Market rebounds as weather improves
• Buyers motivated to close before holidays
• Second-best time to sell after spring

Arizona requires specific disclosures. Non-disclosure can result in lawsuits:

Seller's Property Disclosure Statement (SPDS):

• Comprehensive form covering all aspects of the property
• Must disclose known material defects
• Due within 5 days of contract acceptance

Lead-Based Paint Disclosure:

• Required for homes built before 1978
• Must provide 10 days for lead inspection

HOA Documents:

• CC&Rs, bylaws, rules, budget, meeting minutes
• Current fees and any special assessments
• Pending litigation or reserve studies

Arizona Specific Issues:

• Mining operations or hazardous materials nearby
• Airport noise (especially near Sky Harbor, Deer Valley, Scottsdale airports)
• Flood zone designation
• Radon issues (rare in Phoenix)

Always disclose:

• Past or current water damage or leaks
• Roof repairs or replacements
• HVAC issues or replacements
• Pool or spa equipment problems
• Foundation issues or repairs
• Pest problems (termites, scorpions, rodents)
• Property line disputes or easements
• Unpermitted additions or modifications

HOAs are common in Phoenix and significantly affect sales:

Disclosure Requirements:

• Must provide complete HOA package to buyer within 5 days
• Buyer has 5-10 days to review and cancel (per contract)
• Order documents early—some HOAs take 2+ weeks to provide

Pre-Sale Requirements:

• Architectural compliance: Paint colors, landscaping, exterior modifications
• Outstanding violations must be corrected
• Some HOAs require architectural review before listing

Buyer Concerns:

• High fees ($200-$500+ monthly) can affect buyer pool
• Special assessments scare buyers (be upfront about them)
• Restrictive rules (pet limits, rental restrictions, RV parking) may limit appeal
• Pending litigation can be a deal-breaker

Transfer Fees & Closing:

• HOA transfer fees: $200-$500 (seller pays)
• Must be current on all dues at closing
• HOA must approve sale (pro forma in most cases)

I'll contact your HOA immediately when you decide to sell, obtaining all documents and addressing any compliance issues before listing.