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What to Tell Buyers of Resale Homes? Really - Half of Americans to Buy a Home in the Next Five Years

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Blog by Doug Ingersoll | April 14th, 2016

The graphic above shows the 3 month moving average sale price per square foot of single family homes for 85050/54 which make up Desert Ridge 

From Combs, Gottlieb and Macqueen, PC:
Question: In the Seller's Property Disclosure Statement we disclosed that my mother died of a stroke in the living room of our Wickenburg home.  The buyer is an investor who "flips" homes to other buyers.  The buyer said that I did not have to disclose to him my mother's death in the home, and that he will not have to disclose her death either.  Is the buyer right?
  Answer: Yes. Under the Arizona stigmatized property law a seller, a landlord, and any real estate agent are not required to disclose that a natural death, a suicide, or a homicide occurred in the home.  Therefore, you did not have to disclose to the buyer that your mother died in your home. 
  Note: A seller, landlord, and any real estate agent also do not have to disclose HIV/AIDS, sex offenders, or any crime that occurred in the home.

Over Half of Americans Planning on Buying in the Next 5 Years
According to the BMO Harris Bank Home Buying Report, 52% of Americans say they are likely to buy a home in the next five years. Americans surveyed for the report said that they would be willing to pay an average of $296,000 for a home and would average a 21% down payment. The report also included other interesting revelations.
Those Looking to Buy
74% of those looking to buy a new home will consult with a real estate agent
59% said they will visit online real estate websites
37% will seek recommendations from friends and family
78% plan to get pre-approved before seriously searching for a home
Those Who Already Own
75% of current homeowners set a budget before looking for a home, and 16% ended up spending less while 13% went over their budget.
63% of American homeowners spent under six months looking for a new home before they made a purchase.
8% bought their home without participating in an active real estate search - or even any plan to buy at all - because a specific property caught their attention.
The last point is very interesting: Of those who purchased a home, 8% bought "without any plan to buy at all". A property caught their attention and they acted on it.

Why Are More People Not Planning Their Next Move?
Why are people that are considering a move not putting their home search to a plan, and instead, buying only when a property catches their attention? An article by Fannie Mae reveals evidence that a large number of homeowners are dramatically underestimating the equity they have in their current home. The report explains that:
"Homeowners may be underestimating their home equity. In particular, if homeowners believe that large down payments are now required to purchase a home, then widespread, large underestimates of their home equity could be deterring them from applying for mortgages, selling their homes, and buying different homes."
Bottom Line
Perhaps it is time to sit with a real estate professional to determine the actual equity you have in your house and to take a look at the opportunities that currently exist in the real estate market. This may be the perfect time to move-up, move-down or buy that vacation home your family has always wanted.