PHOENIX — Are you in the market to buy or sell a home?
We’re kicking off this Money Saving Monday with advice on saving in the real estate market.
Let’s start by debunking a common myth: The summer slowdown in Phoenix real estate. Contrary to popular belief, the summer months don’t halt the market; they offer unique opportunities.
“I’ve been helping people buy and sell real estate for 13 years,” said Trevor Halpern of Halpern Residential. “When we look statistically… May, June, July, and August are four of our six busiest months for closings. So, as a seller, if you have your home on the market, it’s likely to sell during the summer, because of the trends of people wanting to potentially purchase while their kids are out of school.”
Halpern says it is possible to find your dream home while you’re breaking a sweat, as long as you pack that water bottle.
“Absolutely,” said Halpern. “Turn the A/C on, pack some water bottles and you can go out and find your dream home during the summer.”
Halpern says there are ways to save some big bucks if you’re looking to buy or sell a home right now.
“If you’re looking to buy a house right now, the best ways to save is to really dig deep on your research,” Halpern said. “What you want to do, is you want to try to find that diamond in the rough.”
Next, Halpern recommends pairing yourself with a lender and an agent who knows how temporary and permanent rate buydowns work.
“In a world where there’s 7% interest rates, if you can capture maybe a 4.5, a 5.5%, a 6% interest rate, whether that’s permanent or temporary, you can really affect some cost savings month over month,” Halpern said.
And that’s real money.
“We got these folks almost $20,000 in concessions from the seller, that then went to buy the rate down on a temporary basis,” said Halpern.
Brittany Hogard, a Phoenix mom and attorney, said her family needed more space to work with.
“As our family has grown, as we’ve gotten older, our needs have changed,” said Hogard.
Hogard and her family are getting settled after purchasing a new home in north Phoenix, complete with a spool, chicken coop and garden.
“We are those people who like to change things up and continue to tweak things,” Hogard said. “This house is big enough for us to do that for a long time.”
In the past when they purchased a home, the interest rate was more manageable.
“This time they learned about buydowns,” said Hogard. “We actually got concessions, so the seller could help us buy down our interest rate, and that was really what made the overall home purchase price more affordable.”
Even though it’s a hot time to move, buying in the summertime has been the trend for Hogard's family, and clearly the savings were worth it.
“Every house I think has closed in May,” said Hogard. “We are always like, why is it so hot… why did we do this, but I agree, I think that the activity picks up, because people’s life and their schedules become more flexible.”
And while the number of closings is the highest in the summer in Phoenix compared to any other time of the year, Halpern says the fact is, that the number of new listings does slow down.
However, that can be a competitive advantage for a seller. Halpern said if you list your home in Phoenix right now, fewer sellers are listing their homes, which means less competition.
That means your home is going to stand out.
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