Arizona real estate experts say that the local market is in crisis. It has become less affordable than ever to buy and rent in the Grand Canyon State. The Phoenix housing market is no exception.

Median sale prices rose over 24% from January to October 2021. Meanwhile, the average price to rent in Phoenix is expected to reach $2,475 by 2028. That is a far cry from the average rental property in 2017, which was only $1,034.

What is driving this affordability crisis in Phoenix? There are many reasons. But one of the most significant economic factors driving Arizona’s housing crisis is a shortage in home supply.

During COVID, all-cash investors snatched up homes on the market. Even corporations joined in on the trend. In Arizona, big companies bought an incredible 31% of all single-family homes for sale.

At the same time, sellers are sitting on their homes because they can not find new ones to move into. And the pandemic caused a slowdown in new home construction, which is down over 50% from the previous decade.

There is good news, though. Reports from 12news, Axios, and Livabl have found that the real estate market in Phoenix, Arizona is about to get way more attractive to potential buyers. That may be bad news, though, if you’re a seller.

What can homeowners looking to move out of their homes in Phoenix do to combat the coming buyer’s market? We answer this question and dozens more in this article, so keep reading to learn more.

Months after historic highs, Phoenix housing market enters buyer’s market

In a recent report from 12news, Michael Doudna writes that median Phoenix real estate prices are trending downward. The report comes after over ten years of record high home prices due to short home supply.

In May of 2021, the local median home prices hit $480,000. It was around this time that the Fed started increasing interest rates. As interest rates rose, Phoenix home sale prices plummeted.

The median home price started to depreciate over the next six months, hitting $425,00 at year-end. With lower home values, big real estate investors and cash buyers have started to shy away from the Phoenix market.

Now, a year later, prices remain relatively low, especially compared to earlier this year. In the first two quarters of 2022, home prices started rising again. The price increases were due to a short supply of homes.

In November 2022, the median home value still sat at $425,000. That is a 0% change year-over-year and a negative change from earlier in 2022. We are officially entering a buyer’s market in Phoenix.

What does this report mean for homeowners?

If you are a buyer, you are entering the market at a great time. You may have to pay higher interest rates on your home loan. Yet, at the same time, you will save money on your new home, especially compared to this time last year.

For sellers, the news is less positive. You missed out on a great time to sell your home, with median real estate prices hitting record highs in 2021. Yet, you can still expect to make a profit if you purchased your home prior to last year.

If you purchased your home in 2021, you might want to think again before selling. Most homeowners who bought their homes during the seller’s market will not be able to turn a profit in today’s market.

What’s more, homeowners looking to sell this year will have to make concessions. According to the 12news report, 47% of homes closing feature one or more concessions, which run homeowners a median of $9,000.

Phoenix’s real estate market is finally calmer, but not cheaper

Axios Phoenix’s Sami Sparber sees the market’s cooling prices as a different kind of indicator. Axios’ report claims that supply has returned to pre-pandemic levels. From 2021 to 2022, inventory increased 136.7% year-over-year.

At the same time, Axios refutes 12news’ claim that median home sale prices are back to pre-pandemic levels. They reported the median home sale price at $475,000 in August 2022. However, Axios agrees that prices on trending down.

Yet, despite these signs of a healthier Phoenix real estate market, home sales are still stale. Why? It is more expensive than ever to buy a home, even if that home’s value is closer to pre-pandemic levels.

Phoenix households only needed $41,855 to afford a home in 2020. Fast-forward to now, and lenders are recommending buyers have over twice as much annual income to afford a Phoenix home at $85,618.

The increased cost of taking out a loan has killed the competition in the market. Axios Phoenix reports that pending sales have dropped 61% since this time last year. Homes stay on the market longer, too, averaging 13 days more than in 2021.

What does this report mean for homeowners?

The good news is that these are signs the housing market is correcting from the over-priced real estate we saw in 2020 and 2021. Supply and demand have evened out, making it more affordable and less competitive to buy a home.

Unfortunately, sellers are not so lucky. According to the report, the average seller is getting only 98.1% of the listing price upon closing. Compare that to 2021, when homes sold 1.6% above asking.

Sellers can also expect their homes to stay on the market longer. Because of the higher cost of borrowing, there are simply fewer people looking for homes. Expect buyers to become even more cautious in the coming months.

Home prices may correct even further going forward if interest rates remain high and prices stay relatively flat. However, if home sale profits remain relatively low, fewer people will be looking to sell, which could drive prices up.

Arizona housing market predictions for 2023

The reports discussed above are retrospective. So, you may be wondering what you can expect from the housing market in Phoenix throughout the rest of 2023.

According to a report by Livabl’s Erin Nicks, a looming recession and rising interest rates could make the market cool off even further.

Factors currently keeping prices high include a relative dearth of homes on the market and the housing price bubble still leftover from COVID. Still, the report backs 12news’ claims about a buyer’s market for 2023.

Livabl’s report consolidates findings from Moody’s Analytics, Fortune, and Wells Fargo. According to Moody’s, national home prices could drop 20–25% throughout 2023. Home values in Phoenix could drop as much as 57.47%.

Fortune also reports that the housing bubble in Phoenix and other overvalued markets is about to pop. Work-from-home made the perfect recipe for skyrocketing prices. Now, demand is bottoming out while supply is on the rise.

Wells Fargo’s report also spells doom and gloom for Phoenix’s once-hot home market. Markets that saw massive price hikes in 2020 and 2021 will see the largest corrections. Phoenix is no exception.

What does this report mean for homeowners?

Like the other reports we’ve discussed, Livabl believes that the Phoenix-area real estate market is cooling. A potential recession in 2023 could make problems worse for sellers, especially if consumers pull back on spending.

Real estate markets in Canada, Sweden, and New Zealand can serve as a model for what to expect. The overvalued housing markets in these countries saw negative home value growth after recovering from the pandemic.

In Canada and Sweden, average home values declined by over 1% per month over the course of six months. Meanwhile, New Zealand saw double-digit declines over the course of eight months, dropping a whopping 11%.

Unlike the other reports, however, Livable is optimistic about Phoenix real estate’s future. The local climate, private sector growth, and affordability will continue to draw buyers to Phoenix, keeping demand healthy.

Key takeaways

If you want to sell your Phoenix home in 2023, there is good and bad news. Here are our key takeaways from these Phoenix housing market reports:

• Home values are trending downward, signaling a buyer’s market
• If you bought your home in 2020/21, it will be hard to make a profit on it in 2023
• You may have to make thousands of dollars in concessions to close
• If you do sell your home, there is enough supply on the market to find a new one at a relatively affordable price
• You can not sell your house for above or even on par with the listing price
• If you list your home, it will stay on the market for longer than last year
• A 2023 recession could force home values even lower

Home prices may cool off even further throughout 2023. If you are waiting for home values to go back up, that may not happen. Now is the best time to sell your home in Phoenix.

But how do you ensure you get the best price in this buyer’s market? That is where an iBuyer can come in. iBuyers will give you an instant cash offer on your home, so you can sell your home fast and for what it’s worth.

If you want to sell your home in Phoenix, we can help. Enter your address in our search bar to get a no-obligation home value estimate from iBuyers in Phoenix.

The post The Phoenix Housing Market in 2023 – Here’s What Lies Ahead appeared first on iBuyer Blog.

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Did you know that in 2022, there were 324,237 U.S. properties that had foreclosure filings, such as default notices, scheduled auctions, and bank repossessions? This is a 115 percent increase from 2021!

When a borrower stops making their mortgage payments and goes into default, the lender can legally seize the property through a process known as foreclosure. So if you’re in danger of losing your home and want to stop foreclosure, it’s in your best interest to take measures to prevent this as soon as possible.

A foreclosure may feel like the end of the world to a homeowner, but it is not. Continue reading to find out what you can do to help you stop foreclosure.

What is foreclosure?

When a person buys a house or property with a loan from a bank or other lender, they have to pay back the loan amount within the time frame given. If the homeowner doesn’t pay this amount back, the property is said to be in foreclosure. This means that the bank or lender takes over home ownership or property.

Foreclosure can also occur if the homeowner doesn’t pay the taxes on their home.

After foreclosure, the lender or the bank can sell the property to recover the unpaid mortgage. The buyer cannot object since the property or residence is used as the loan’s collateral and can be repossessed by the bank or lender if the buyer defaults.

7 Ways how to stop foreclosure

There are some options to stop foreclosure. If your home loan payments are behind and you want to keep your home, you might be able to negotiate one of the following:

1. Discuss with your lender

If you are having difficulty keeping up with your mortgage payments, you should first get in touch with your lender. Sometimes, lenders are ready to work with borrowers to develop mutually agreeable solutions, such as loan modifications and forbearance plans.

2. Request forbearance

In a “forbearance agreement,” the lender agrees to let you pay less on your mortgage or nothing for a while. Forbearance usually lasts between three and six months, but it could last longer if the lender’s rules and your situation allow it.

You might get a forbearance agreement if you’re having trouble making your payments right now, but you can show the lender that you’ll be able to resume payments in the future. Keep in mind that at the end of the forbearance window, you’ll have to start making payments again. However, what will happen is that you’ll have to pay more to make up for the payments you missed.

3. Loan modification

A “loan modification” is when you and the lender agree to change the loan terms. Most of the time, the primary objective of a modification is to make the monthly payment less.

Usually, a change means:

• Lowering the interest rate
• Adding any past-due payments to the loan balance
• Making the loan last longer, say from 20 to 30 years

In a modification agreement, the mortgagor may agree to set aside a portion of the unpaid sum as a “principal forbearance,” which doesn’t accrue interest. However, the set-aside amount is usually due at the end of the loan period as a “balloon payment.”

4. Deed in lieu of foreclosure

You might be able to negotiate with your mortgagor to let you deed over the property, so there is no need for foreclosure. A “deed in lieu of foreclosure” is the legal term for this action.

Before you take this step, ensure you get a written agreement from your lender that they won’t try to collect the “deficit” (the shortfall between the home’s sale price and your mortgage balance) from you. Again, if the lender writes off a deficiency, you might have to pay taxes.

Also, if you have another bond, say a second or third loan on your home, you won’t be able to use this option.

5. Consider short selling

With your mortgage company’s approval, you may be able to prevent foreclosure by selling your property fast and for less than the amount owed on your loan. This is referred to as a “short sale.”

If you live in a state that lets lenders take legal action for a deficiency judgment following a short sale, you should make every effort to get your mortgagor to commit in writing to clear you from repaying the deficit. This is especially important if you live in a state that permits lenders to sue for a deficiency judgment. However, if the lender agrees to release you from the deficiency, you may be subject to tax implications.

6. Refinancing with a hard money loan

Real estate-backed loans, known as “hard money,” are notoriously tough to secure. In this situation, the property itself serves as collateral.

Because of the higher risk involved, hard money loans are used in property transactions and provided by private individuals or firms rather than traditional financial institutions.

The higher risk associated with hard money loans results in higher interest rates charged on those loans. This is because hard money loans might result in a significant financial burden for the lender if the borrower fails to repay the loan.

7. Selling your house

In the event of a foreclosure, you can choose from a few different avenues for selling your house. First, you can sell your property the old-fashioned way by putting it on the market and maybe even using a real estate agent. While this is the best strategy for realizing your home’s total market worth, it might take months or even years to complete, which isn’t feasible in a pre-foreclosure situation.

The Sheriff typically only gives you a few weeks’ notices of a foreclosure sale. As a result, this would make it harder for a realtor to sell the property on the traditional market within the prescribed period.

But there are ways to sell that are quick, easy, and not too painful. One of these is to sell on auction immediately. Another is to sell for cash to an investing company. These buyers purchase homes fast and for cash that they think have a lot of potential, either because they need work or are in a good area.The Benefits of Selling Your House Before Foreclosure

Selling your house before foreclosure has many advantages. First, you’ll escape a credit report foreclosure. Most foreclosures stay on a credit record for seven years and may affect your ability to borrow or rent.

Second, buying another home is faster. For example, people who want to get an FHA loan have to wait three years after a foreclosure to be able to apply. In addition, many lenders won’t lend to you if you’ve had a foreclosure.

Avoid deficient judgments. You have a deficient balance if a foreclosure sale doesn’t cover your mortgage. A deficit judgment allows the lender to collect this difference in some states.

How you avoid foreclosure

As a homeowner, it’s up to you to do everything you can to keep your home from going into foreclosure. The simplest way is to avoid things that make it happen. You are more likely to lose your home if you:

• Have too much debt
• Have an adjustable-rate mortgage
• Have an excessive or unusual mortgage
• Don’t have enough money set aside for emergencies
• Don’t have insurance
• Buy a home you can’t afford

But sometimes, difficulties with money can make it hard to make regular mortgage payments. If this happens, the only smart thing to do is inform your lender immediately of your situation.

Most of the time, they will be prepared to assist you in catching up and working with you. This is because it will cost them more time and money to foreclose in the long run. In addition, lenders usually don’t want to foreclose on your house unless it’s their last option.

When is it too late to stop foreclosure?

So, we know there are ways to delay or stop a foreclosure. But is there a point when you can no longer do anything? Yes, but you might be surprised at how late in the process you can stop or slow down a foreclosure.

You can still stop the foreclosure until the new buyers sign all of their paperwork and the deed is legally transferred. But it’s best to talk to and work with your lender as soon as possible. If you speak to your lender before you miss a payment, they are usually more willing to work with you.

Stop foreclosure proceedings in their tracks!

If you are in danger of losing your home, you should act as swiftly as possible to stop foreclosure and keep your home.

But it’s essential to keep in mind that every circumstance is different. So it’s important to think carefully about your options before making a choice.

Are you looking for a quick and easy solution to your imminent foreclosure? We have many real estate investors interested in purchasing homes like yours and are willing to pay cash for them. The procedure is straightforward, and the transaction can be finalized in as little as two weeks!

Contact us today, and you may receive a cash offer in as little as a day!

The post How to Stop Foreclosure: 7 Actionable Tips for Homeowners appeared first on iBuyer Blog.

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The City of San Antonio is the seventh most populous city in the United States and the second most populous in Texas, behind Houston. It has an approximate population of 1.46 million residents, known as San Antonians. The metropolitan area, known as the Greater San Antonio area, has a total population of around 2.6 million people, making it the 24th-largest metro area in the United States.

Undoubtedly, San Antonio is one of the best cities in the United States in which to live. It is known for its relaxed way of life, affordability, amazing food scene, high safety rating, and strong housing market.

In this blog post, we will focus on the latter point—the San Antonio Housing Market. Here, we will take a closer look at four reports on the housing market in San Antonio which will give you a clearer understanding of what is happening on the ground currently and moving forward in 2023.

These reports include a look at how the San Antonio housing market is expected to rebound after the effects of the COVID-19 pandemic and how the growth rate for rents in the city is beginning to slow down. We will also focus on the competitiveness that exists within the rental market in the city and look at some of the apartment projects currently in the works. Let’s get started.

The Housing Market Is Expected to Rebound

According to a report by Realtor.com, per Ramzi Abou Ghalioum, a reporter for the San Antonio Business Journal, San Antonio’s housing market is expected to show positive growth in 2023. This follows a recent slowdown, brought on by factors such as rapid price appreciation and rising interest rates.

The report looked at home sales and price data across the 100 largest metropolitan areas in the United States. In the case of San Antonio, it is expected that home sales in the city will climb 2.5% this year. In terms of average San Antonio housing prices, it is expected that this will increase by around 4.6%.

It is interesting to note that while the expected price appreciation in San Antonio is lower than the national average of 5.4%, in terms of growth in sales volume, it is anticipated that it will far outpace the national rate of change, which is predicted to drop by more than 14%.

Looking at that predicted growth in pricing, this would mark a significant rebound for San Antonio. In the months between June and December of last year, for example, home prices in the area declined by 5.5%.

It is also interesting to note that the outlook for the San Antonio New Braunfels area is quite contrasting to many other US cities, including those which saw an increase in housing prices and local real estate sales during the COVID-19 pandemic.

For example, home sales in Phoenix, Arizona are expected to fall by more than 18% this year, with Sarasota, Florida expected to experience a drop of more than 28%. Within Texas itself, it is expected that the home sales for Austin will drop by 6.6%, along with an expected 3% increase in the price.

Outside of San Antonio, it is predicted that El Paso will experience the highest increase in price changes and forecasted sales this year in Texas. In terms of sales, an increase of almost 9% is forecast, along with a 5.4% increase in price.

The bottom line here is that the cost of purchasing a house in San Antonio will rise in 2023. That is good news if you are planning to sell your property this year, especially if you are planning to sell it hassle-free for cash through iBuyer.com.

The Growth Rate for Rents Is Slowing Down

After experiencing rent hikes during the COVID-19 pandemic, it is expected that growth rates will slow throughout 2023. According to one market analyst, rent growth in San Antonio will decline toward the area’s historical average of between 2% and 3% annually.

Certainly, this is good news for residential tenants in San Antonio, as reported by Madison Iszle in the San Antonio Express-News, who have faced rapidly rising rents during the pandemic. There were a number of causes for this during the pandemic, including more people seeking apartments of their own, construction slowdowns, limited inventory, and the rise in remote working.

Between the second and third quarters of 2022, rents in San Antonio fell by 0.6%. Again, there is a number of reasons for this retreat in rent prices, including a softening of demand and an increase in the construction of apartments and other residential properties.

In the years of the pandemic, rents in the area soared. Between the first quarter of 2020, when the pandemic began, and the third quarter of 2022, asking rents in San Antonio rose by almost 18%, reaching an average of more than $1,240 per month.

This increase also came at a time when the rising cost of housing as well as rising mortgage rates put homeownership out of reach for many people. The majority of the rent growth the area experienced came back in 2021 when there was a rebound following the first, most difficult year of the pandemic.

It’s interesting to note that there is some variance in rent prices depending on the different parts of the city. For example, between the first quarter of 2020 and the third quarter of 2022, the asking rent increased by 21.9% on the North Side, by 19.7% on the Northwest Side, and by 19.7% on the far West Side.

In these submarkets, we are noticing a greater supply as of late, with many new apartments currently under construction. For example, there is 2,200 units in the works on the far West Side, 1,600 in the works on the Northwest Side, and 720 in the works on the North Side, which will help to ease demand.

The Rental Market Is Also Becoming More Competitive

A new report looking at the San Antonio rental market has highlighted how it is becoming increasingly competitive. Currently, for every vacant rental property in the area, there are as many as 12 potential tenants, per Michael Karlis, writing in the San Antonio Current.

This is interesting, particularly how other reports highlight a slowdown in apartments’ asking prices in San Antonio. In fact, San Antonio was named the seventh most competitive housing market in the state of Texas last year, with El Paso at the very top of the list.

To determine the rankings, the report looked at a number of factors. These included:

• The number of days each rental remained vacant
• The occupancy rate of each city’s apartments
• The percentage of renters who renewed their leases
• The share of new apartments completed

A majority of renters in San Antonio chose to renew their leases in 2022. In total, more than 94% of all rental properties in the area were occupied, thereby creating a huge demand for available units.

San Antonio and Texas as a whole continue to attract many out-of-state renters, including many from California. They are attracted to the state’s affordable lifestyle along with excellent job opportunities in high-income sectors. While this has increased competition within the rental market, the strong pace of apartment construction has helped to reign this in somewhat.

According to this report, San Antonio sits behind El Paso, McAllen, Dallas, Forth Worth, Central Texas, and Austin in terms of the most competitive rental markets in 2022.

Interestingly, the rental market in San Antonio in 2022 was considerably hotter during the peak rental season compared to the first part of the year. In the first part of the year, the average time a rental unit was vacant was 33 days. In the peak rental season, this vacancy period was reduced to 29 days.

To note, when we speak of the first part of the year, we are referring to January to April. When we speak of the peak rental season, we are referring to May and August, when demand is at its highest.

Apartment Projects Are in Works

As we have highlighted above, a considerable number of apartment projects are in the works in San Antonio. For people interested in moving to San Antonio or those who are struggling with high rent prices, this should come as good news.

As of right now, there are a total of 12 apartment projects in the works in San Antonio, according to Steven Santana from MySA. This includes both renovations under new ownership and projects that are ground-up builds. Combined, these apartment projects will result in more than 3,800 new units in the San Antonio area.

Let’s take a look at these San Antonio-area apartment projects currently in the works. First up is the Tobin Estates Phase 3 project, which will result in 359 additional units. Construction on this project is due to commence imminently.

Construction of a new apartment complex in New Braunfels, known as the Oka Run Village, began in October of last year. It has an expected completion date of January 2025 and will include 330 new units.

The 1800 Apartments project on Center Point Road, close to the Tanger Outlets in San Marcos, will result in 330 new apartments once completed. The Josephine, an ongoing project located at W. Josephine St, will result in 261 units.

A large new community is currently being developed near Texas A&M University’s Southside campus. Known as VIDA San Antonio, this community will have a grand total of 1,400 units.

The Potranco Commons project, located on the far Westside, will result in 360 affordable apartments being built. A similar number of apartments (334 to be exact) are under renovation in Leon Valley. This project is known as Parc 410.

Construction of a new 32-storey luxury apartment tower, known as 300 Main, began in April last year. Located on Soledad St, it will result in the creation of 354 new apartments. On W. Commerce St, a 16-storey apartment high-rise is planned to bring in 255 new apartments. The project is on the site of the old Continental Hotel in downtown San Antonio.

The aptly-named Elmira Street Apartments project will result in 263 new apartments. This is a seven-story, $54 million luxury apartment complex that will include a ground-floor restaurant.

Other smaller projects in the works include the Katherine Courts Apartments (27 units) and Pine @ Carson (21 units).

Key Takeaways on the San Antonio Housing Market

There is a lot of information that we can take from the above reports when it comes to the San Antonio housing market in 2023. Certainly, it is encouraging to note that the housing market in the city is expected to rebound. This is especially true for homeowners who are planning to sell either their primary property or a secondary home.

Both the average price of a property in San Antonio and the number of home sales in the city are expected to rise in 2023, by 4.6% and 2.5%, respectively.

It is also interesting to note that the growth rate for rents is slowing down, at the same time that the rental market is becoming more competitive. With an increase in the asking price for rents during the COVID-19 pandemic, it is expected that this growth rate will slow to historical averages in 2023.

San Antonio, and many other cities in Texas, is quickly becoming an attractive option for people relocating from states such as California. This is increasing competition for available rental apartments, with an average of 12 potential tenants for every available rental unit in the city. Competition is highest during the peak rental season, which is noted as between May and August.

Lastly, it is encouraging to note that several apartment projects are in the works in the San Antonio area. This includes the 1,400 units project underway near Texas A&M University’s Southside campus. More residential properties on the market will help to make it easier for the public to find accommodation in San Antonio.

If you are looking to sell your house for cash without the usual hassle of selling on the private market, sell it through iBuyer.com.

The post The San Antonio Housing Market in 2023: Here’s What 4 Reports Say appeared first on iBuyer Blog.

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Are you considering selling your house for cash? With the real estate market constantly changing (traditional home sales are down 16%) and more people opting to sell their homes quickly, taking a cash offer could present many advantages to homeowners.

But just what are the benefits of selling a house for cash? From having more control over timing and closing costs to avoiding certain inspections and repairs that typically accompany home sales, there are various benefits of getting a cash offer.

Sit tight as we explore these advantages in detail. By the end of this guide, you’ll be able to make an informed decision about whether or not a cash sale is right for you.

What is a cash offer?

Selling a house can be stressful, but cash offers can make the process quick and simple. Buying with cash usually offers the seller some competitive advantages, such as fewer conditions for sale, faster closing times, and fewer costs associated with the transfer of ownership. It also eliminates the cash flow risk for the seller, as cash buyers are typically more reliable than those using financing.

How does it work? It varies a bit depending on who you’re working with. For example, at iBuyer, all you have to do is enter the property’s address and upload photos of the house. The more photos you upload, the better; this allows us to accurately estimate the home’s value based on the local real estate market.

By uploading your house information, you open yourself up to receive multiple offers from cash buyers, which saves you the hassle of dealing with banks or waiting for approval. Moreover, our buyers are cash-ready, and closing can take as little as two weeks, so you can get the money you need fast.

So, if you want to make a house sale quickly and hassle-free, why not consider selling your house for cash? If you’re still confused about how it works, then look at the three main ways a cash offer differs from a traditional home sale for sellers.

Contingencies

Rather than dealing with contingencies, cash sales offer fewer strings attached. There’s no mortgage contingency, so it doesn’t matter if the buyer needs to take out a loan.

A sale contingency, when you have to wait for the sale of your home to buy another one, can also be skipped entirely with cash sales. Of course, buyers may choose to include an inspection contingency still. After all, they want to ensure that what they invest their money in is worth it. However, in most cases, when working with iBuyers, this isn’t the case.

Appraisal

When selling your house for cash, there’s usually no home appraisal necessary. That’s because appraisals are typically lender-mandated. With no lender, no problem!

However, keep in mind that’s not always the case. If an investor is buying the place and looking for some assurance of return on their investment, they may still want to get an appraisal done. This can be beneficial in helping them make sure they’re getting what they paid for. At the end of the day, though, they’re usually unnecessary. Whew.

Closing

Instead of submitting paperwork, getting approvals from lenders, and jumping through complicated hoops, closing on a cash offer requires signing only the settlement statement, title, and deed.

A cashier’s check or wire transfer replaces loan documents for payment. While this saves time and stress, it also means fewer closing costs because no lender fees are involved. Once the paperwork is done and the money sent, all you have to do is hand over the keys to the house. It’s (usually) that simple.

Benefits of selling a house for cash

We get it. Selling a house is a complex process. It’s also a big decision. So, if you’re unsure whether a cash offer is best for you, here are a few of the biggest benefits of selling a house for cash. Keep in mind that these benefits are valid regardless of what state the real estate market is in.

1. Faster closing process

On average, it takes six to nine months to sell a house if you put it on the market and go the traditional route. Simply put, selling your home is a long, complicated process with lots of paperwork and decisions. Deciding to accept a cash offer expedites the closing process significantly, helping to ensure a quicker sale overall.

What makes the biggest difference here? Cash offers remove the need for mortgage applications and inspections, promising a more direct route between signing the contracts and transferring the title to the buyer. Plus, there’s no risk of getting caught up in lenders’ lengthy processing times or denials; it’s one less worry for you as you prepare for your next chapter.

2. Less risk

If you’re looking to sell a house, accepting a cash offer can be less risky than putting your home on the market for the traditional route. For one thing, it alleviates having to wait for a buyer since cash offers are typically faster to close (as mentioned above). This gives you more peace of mind.

Also, with cash offers in place, you don’t need to worry about meeting certain qualifications or profit management schemes required by loan programs. That’s a strong bonus if you want to avoid any issues as a seller. Ultimately, accepting a cash offer guarantees less risk and less headache. It’s a win-win all around.

3. Hassle-free

Again, putting your home on the market is a massive hassle. Not only do you have to prepare your home properly for viewings, but you also have to take real estate photos, find a realtor, and deal with the hassle of waiting for offers to come in. To get rid of the hassle that comes with all of that, accepting a cash offer is often the easiest route for most sellers.

With cash offers, you don’t have to worry about mortgages, financing approvals, or contingencies like in traditional sales scenarios. This saves both time and stress in what is already an overwhelming process. Plus, you can be sure payment isn’t dependent on external sources like banks or lenders.

The bottom line? If you don’t have the time or mental capacity to put your house on the market, selling your house for cash is the easiest, least stressful way to go.

4. No marketing

By now, you know that putting your home on the market can be lengthy and time-consuming. But did you know it can also be somewhat expensive? Especially if you need to hire a realtor, pay extra for photos, or even stage the house, it can start to add up quickly.

However, accepting a cash offer from a seller can save you from this hassle. You don’t have to spend time or money marketing the home, making it a less expensive option.

It may not be the only option (we’ll explore different cash offers below). Because sure there are certainly advantages to taking offers from non-cash buyers. However, depending on the real estate market, inventory, and mortgage rates, you might pay much more to sell your home in marketing and realtor fees than it’s worth if you put it on the market.

5. No inspections or repairs

Does your home need repairs that could affect the traditional selling process? Perhaps you put your home on the market, and a seller needs an appraisal before closing the deal. This costs time and money, making the traditional home-selling process complex and confusing.

When you sell a house for cash, none of that is necessary!

With no waiting period, no escrow inspections, and no termite clearance needed, buyers can purchase the home exactly how it is. From a buyer’s perspective, this means that no one from a bank is competing with them for the highest offer.

For you as the seller, it means no one will come in after their accepted bid to report on any uncovered issues or costly repairs that need to be completed before closing. While this doesn’t mean you should hide damage or structural issues from potential cash buyers, it saves you the time, money, and hassle of waiting for appraisers and other inspectors.

6. Convenience

Selling a home can be hard in any market, but it can seem almost impossible in a tough one. Thankfully, if convenience is what you’re after, accepting a cash offer is the best way to go. Going this route will eliminate most of the hassle of screening potential buyers and the lengthy closing process.

Plus, not having to worry about long-term mortgages or appraisals can take the stress off your shoulders. Overall, accepting a cash offer brings convenience and peace of mind that your house will get sold, and that’s what every home seller needs.

Who are cash offers best for?

Even though you might understand the benefits of selling a house for cash, how do you know if it’s right for you? Typically, you’ll find cash offers to be the ideal solution if you’re looking for either speed or convenience.

For example, cash offers can be a godsend for home sellers who need cash quickly. Whether you’re dealing with a family emergency, lack time to handle tricky paperwork, or have so much on your plate at work that you don’t have time to market and advertise your house properly, cash offers make it easy to sell.

The process only takes weeks rather than months compared to traditional methods. The bottom line? Cash offers are definitely the way to go if you need cash fast. Additionally, if you don’t have the emotional capacity to add selling a home to your to-do list, selling your house for cash is a great way to get rid of the property while still making good money from the sale.

How common are cash offers?

They’re probably a lot more common than you think. For example, in April 2021, cash offers accounted for 25% of all home sales. That’s compared to 15% of home sales the year before.

In general, cash offers are a lot more common in wild, unpredictable markets. They become even more popular in markets where sellers receive many competitive offers. So, as the real estate market continues to slow down and inventory decreases, you might notice cash offers decrease too.

However, regardless of the market, they will always be a great way to sell your house quickly and easily.

Types of cash offers

Cash offers for homes can vary greatly depending on the source. For example, there are cash offers from people who flip houses. You also have cash offers from iBuyer companies that connect cash buyers with sellers via online platforms.

Home flippers

Flippers typically buy homes at low prices, make certain improvements and upgrades, then flip them at a much higher price to turn a profit. In exchange, sellers like yourself get their money immediately with minimal effort and no waiting around.

When flip buyers search for potential purchases, they often look for homes that need renovation but have no major structural problems or issues. They also consider the ease of accessibility to the property and local amenities nearby.

iBuyer companies

On the other hand, you have investors in the iBuying market. These are large companies such as iBuyer and Offerpad that offer an all-cash purchase of a home and close the sale in as little as a week. Many sellers who use iBuyers find it attractive since they can skip out on commission fees, potentially speed up the selling process, and get closure quickly.

Get a cash offer

Are you sold on the benefits of selling a house for cash? Great! Now, it’s time to see how much your house is worth.

Our free home value estimator is here to help you estimate what your property is worth. In just a few easy steps, you’ll find out how much your home is worth so you can decide whether to proceed with getting a cash offer or not.

What are you waiting for? Check the value of your home now.

The post 6 Benefits of Selling a House For Cash appeared first on iBuyer Blog.

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The Denver housing market ended 2022 far closer to normal levels than it’s been in the last two years. The excessive highs of the pandemic-induced low-interest rate buying have subsided, inventory is slowly creeping up, and Denver housing prices remain steady.

In 2019, we saw a similar trend as pricing continued upward, albeit at a slow rate, and sales remained high. Then, the pandemic brought a range of unusual factors into play that disrupted what may have been an interesting situation in its own right.

Denver was already booming for years before 2020. That’s thanks to an affordable cost of living, rapid growth, and promising prospects in the fields of health sciences, aerospace, and technology.

The city was attracting professionals from more expensive metropolises long before remote work became the norm.

What does this recent turn of events mean for the Denver real estate market in 2023, though? Will things continue to normalize, pick up where they left off in 2019, or decline way beyond the equilibrium of past years?

Keep reading to discover some expert opinions and predictions surrounding the future of real estate in Denver.

1. This Year Will Bring More Balance to the Denver Housing Market

The most pressing question on the minds of realtors and homeowners alike is how long the slowdown in prices will last. Alayna Alvarez of Axios explores how prices are changing in the Denver area, based on an analysis of Zillow data.

This is what she reveals:

• Average home prices across most of the Mile High area in late 2022
• The biggest price drops occurred in ZIP codes 80457 and 80216
• Boulder County experienced the biggest decrease overall
• Home prices are still increasing in areas west of Denver
• Prices increased by 8.5% in ZIP code 81143 near Moffat, southern Colorado

We are bound to see many changes in Denver real estate during 2023. Yet, the market remains stable and strong, says Libby Levinson-Katz of the Denver Metro Association of Realtors.

In this light, forecasters predict Denver Metro sales prices may rise by up to 4.2% this year, thanks to the following:

A Stable Market

The Zillow report predicts relatively flat prices for the year, and Nicole Rueth, senior vice president at The Rueth Team, agrees. She predicts fewer listings, slow demand, and low inventory will dominate the first quarter of the year

Her predictions for quarter two include more new listings, greater demand, and lower rates. The rest of the year should see normal fall trends come into play.

Increased Leverage for Homebuyers

Realtor, Jeremy Kane, at eXp Realty explains that sellers might feel short-changed as home price increases slow down. That’s only because they’ve enjoyed record-breaking home appreciation in recent times.

He emphasizes that the slower appreciation seen lately doesn’t represent a loss in value. Rather, it is simply a sign of the market settling as it returns to normal.

The fierce bidding wars and offers way above asking are becoming a thing of the past as prices normalize, giving buyers more say in real estate transactions.

Lower Mortgage Rates and Pent-Up Demand

Redfin and other experienced forecasters predict that interest rates will decline slowly throughout 2023. Lori Abbey of milehimodern expects this may create greater excitement among sellers and buyers alike.

More affordable prices than last spring mean some buyers might eventually get off the fence and commit to finding their dream home.

Relatively Low Inventory

New construction is vital to offset Denver’s constrained housing supply, according to another milehimodern broker, Rachel Gallegos.

Amid the interest rate hikes of 2022, more homeowners opted to stay where they are to avoid losing their current low-interest-rate mortgages.

This has curtailed the availability of inventory in Denver, paving the way for new construction to fill current home buyer needs.

Increased Competition

Abbey expects competition for properties to hot up around the middle of the year. This could lead to interesting times for both buyers and sellers.

2. Inventory Will See Big Growth

A second article, featured on the PR Newswire website, focuses on the Knock Buyer-Seller Market Index and shows that sellers will maintain their advantage in the eastern states, while buyers out west may enjoy more leverage.

• This index analyses 6 key housing market metrics to determine which markets favor buyers vs sellers, as follows:
• The ratio of average sale to asking price
• Number of homes sold
• Number of active listings
• Median days on market
• Median sale price
• The rolling supply of homes in a given month

As the U.S. housing market continues to evolve in favor of buyers. This report ranks Denver as one of the top five buyers’ markets for 2023, along with Dallas-Fort Worth, Colorado Springs, Las Vegas, and Phoenix.

Sellers will fare best in the Harrisburg, Hartford, York, and Fayetteville real estate markets.

As 2022 wound up, inventory rose in 80% of the largest housing markets, and all but two of these evolved at least slightly in favor of buyers.

As the situation progresses, forecasts predict that there will be at least 36 buyer’s markets across the nation, 23 neutral territories, and 41 seller’s markets.

Other predictions revealed by the Knock index, are:

2022’s Hottest Markets Will Favor buyers in 2023

Overall, pandemic relocation hotspots where prices grew rapidly at the time, will favor buyers more this year. Mid-sized markets could become the new top-performing areas provided they offer affordable prices and good employment opportunities.

These markets should see more temperate home price growth, although prices should still end up 38% higher than pre-pandemic levels.

Experts predict inventory in Denver should grow by almost 100%, while Charlotte, NC could see up to 148% more homes for sale.

Denver as a Top Buyer’s Market for 2023

Median home prices in the Denver-Aurora-Lakewood areas of Colorado spiked at $555,000 in 2022. They’re expected to rise by another 0.7% during 2023, with around 3.8 months’ supply of housing available by the end of the year.

Last year, homes for sale in Denver spent just 6 days on the market, this will escalate to 36 days by November this year.

3. More Affordable Housing Might Be On Its Way

Our final find, by the reporter Russel Haythorn, focuses on good news for home buyers searching for more affordable homes in the hot Denver housing market. The city is working hard to alleviate the current affordable housing issues, and there’s finally light on the horizon.

Denver’s Department of Housing and Stability (HOST) has plans afoot for a multi-million dollar, 253-unit apartment and townhouse complex at the corner of Holly Street and 38th Avenue.

The homes will offer the following configurations:

• 84 one-bedroom units
• 104 two-bedroom units
• 36 three-bedroom units
• 29 four-bedroom two-story townhomes with a garage

The city will limit occupancy to people earning between 30% and 80% of the median income for the area.

Patty Raynolds took a stroll around the proposed site and highlights that the development is an excellent opportunity to add diversity to this neighborhood.

She feels the development will help people get back on their feet after recent trying times by helping them to live in an affordable, yet respectable home in a good area.

Vernon Austin, who grew up in Park Hill in the 90s, sees abundant potential in the site, too. He mentions that what was once considered the bad side of this area will quickly become elevated by a development of this nature.

Denver’s Safety, Housing, Education, and Homelessness Committee has already approved a proposed loan agreement between HOST and the Delwest Development Corporation for about $8 million in gap financing.

The final step is the Denver City Council vote. If they approve this finance, it will be the largest affordable housing gap financing amount ever passed by the city council.

Key Takeaways

Our research shows that while prices might not reach the high escalations seen in the last two years any time soon, there’s little reason for concern. Overall, Denver housing prices are 30% higher than in March 2020 and show an increase of 151% since 2015.

A slowdown in the Denver real estate market is a sign that things are returning to normal. This makes things a lot easier for buyers, especially amid concerns over a recession and increased mortgage interest rates.

Increasing inventory, a slower market, and more gradual price increases may lure hesitant buyers out of the woodwork after the frenzied price wars of 2020 to 2022.

Newly constructed homes are vital to make up for the shortfall caused by hesitant sellers. The city is also making big moves in this direction to assist those who find themselves priced out of the Denver housing market.

While homeowners might not realize the huge returns and fast sales of recent times, they’ll still sell their homes if they’re offering good value for these cautious home buyers.

The Denver housing market remains an excellent choice for home buyers seeking to enjoy the excellent job opportunities, diversity, and wealth of entertainment on offer in this popular Colorado city.

The post The Denver Housing Market in 2023 – 3 Expert Opinions appeared first on iBuyer Blog.

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