🏡📊 Bella Vista Market Update - August 2023 📈🏡

🔔 Attention Buyers and Sellers in Bella Vista, Arkansas! Here's your comprehensive market update brought to you by Matthew Krause, REALTOR® at Real Estate of Florida. Stay informed and make informed decisions! 🔔

📅 Date: August 2023

🏢 Company: Burnett Real Estate

📍 City: Bella Vista, Arkansas

📈 Months Supply of Inventory: Currently, Bella Vista has a 1.97 Months Supply of Inventory. Over the last 12 months, Months Supply of Inventory has increased by an impressive +34.01%. This means that there are more options available for buyers, offering a favorable market for sellers. 🏘️💼

💲 List to Sold Price: With a List to Sold Price percentage of 98.5%, sellers in Bella Vista are getting excellent returns on their investments. Buyers, this showcases the competitiveness of the market, so be prepared to act swiftly to secure your dream home. 💰🔑

⏰ Median Days on Market: Homes in Bella Vista are selling fast, with a median of just 15 days on the market. This indicates high demand and a dynamic real estate market. Sellers, take advantage of this trend to sell your property quickly. Buyers, be ready to act decisively! ⚡️🏠

💰 Median Sold Price: The median sold price in Bella Vista is currently $329,950. This figure represents the middle price point of all properties sold in the area. Whether you're a buyer or a seller, understanding this price point is crucial for making informed decisions in the local market. 💸💼

📊 These insightful market trends data will empower you to navigate the Bella Vista real estate market with confidence. If you have any questions or need assistance with buying, selling, or investing in Bella Vista, reach out to Burnett Real Estate Team. We are here to help you every step of the way! 🤝🗝️

It’s easy to get swept up in the excitement of buying a home. Once you’ve had an offer accepted on your dream house, you’ll probably be anxious to move in. However, before you make a significant financial commitment, it’s best to know exactly what you’re buying.

When you hire a home inspector, you get a professional, in-depth examination of the property’s structures and systems. It’s a worthwhile investment that can save you money in the long run, either by warning you away from a bad purchase or by providing a list of deficiencies you can use to negotiate with the sellers. 

The inspector’s report will also list minor repairs that, if made, will help to maintain your home over the long term. Additionally, a good inspector can often predict the standard life expectancy of your roof, HVAC, and other big-ticket items so you can start planning for their eventual replacement.

However, many buyers make mistakes during the inspection process that cost them time and money and lead to unnecessary stress. Avoid these eight common buyer blunders to minimize your risk, protect your investment, and give yourself peace of mind and confidence in your new home purchase.

MISTAKE 1: Skip Your Own Inspection

Many buyers rely on their home inspector to point out issues with the property. However, by conducting your own visual assessment before you submit an offer, you can factor expected expenses into the offer price. Or, if you suspect major problems, you may choose to move on to a different property altogether.

Examine the walls and ceilings. Are there suspicious cracks, which could point to a foundation issue? Any discoloration? Yellow spots can indicate water damage, while black spots are typically mold. If there’s a basement, look for powdery white deposits along the walls and slab, which can result from water seepage.1 

To assess the plumbing, start by turning on a bathroom sink or tub, then flushing the toilet. Check for a drop in water pressure or a gurgling sound coming from the pipes. You can also try running the water in sinks and tubs for several minutes to test for drainage issues. Peak underneath sinks to spot signs of leaks or drain pipes that go into the floor instead of the wall.1 

Look for fogged or drafty windows, which may need replacing. Examine the roof for signs of cupped, curled, or cracked shingles. Check siding, decks, and other wooden structures for evidence of rot.

Overall, does the home appear to be well maintained? Unless it’s a highly-competitive seller’s market, consider the overall condition of the property BEFORE you submit an offer. Work with your real estate agent to factor in repairs and updates you know you’ll need to make when you determine your offer price.

MISTAKE 2: Hire the Cheapest Inspector

We all love to save money, but not all inspectors are created equal. Before you hire one, do a little research.2 You may even want to start shopping for an inspector before you complete your home search. Inspection periods are typically short, so it never hurts to be prepared. 

You can start by asking around for recommendations. Check with friends and family members, as well as your real estate agent. Then contact at least two or three inspectors so you can compare not only price but also levels of experience and service. 

Ask about their background, years of experience, and the number of inspections they have completed. Verify their certifications and credentials, and make sure they carry the proper insurance.

Find out what is (and what isn’t) covered in the inspection and if they utilize the latest technology. Ask to see a sample report so you can compare the style and level of detail provided. Finally, make sure you feel confident in the inspector’s abilities and comfortable asking him/her questions.

MISTAKE 3: Miss Attending the Inspection

Make every effort to be on-site during the inspection. Buyers who aren’t present during their inspection miss out on a great opportunity to gather valuable information about their new home.

If can attend the inspection, don’t spend all your time picking out paint colors or chatting with your new neighbors. Instead, use your time there to shadow the inspector. It’s the perfect chance to find out where everything is located, ask questions, and see first-hand what repairs and updates may be needed.3

Of course, if you do choose to tag along with your inspector, exercise good judgment. Don’t get in the way, become a distraction, or do anything to jeopardize your (or the inspector’s) safety.

If you can’t make it to the inspection, ask if you can schedule a time to meet in person or speak by phone to go over the report in detail. It will give you an opportunity to ask questions or request clarification about issues in the report you don’t fully understand.

MISTAKE 4: Skim Over the Report

Inspection reports can be long and tedious, and it can be tempting to skim over them. However, buyers who do this risk missing crucial information.

Instead, you should read over the report carefully, so you don’t miss anything significant. Now is the time to address any areas of concern. You have a limited window of time to request repairs or negotiate the selling price, so don’t squander it.

Your inspector may also flag some minor items that you wouldn’t typically expect a seller to fix. However, ignoring these small issues can sometimes lead to bigger problems down the road. Make sure you read everything in the report so you can take future action if needed.

MISTAKE 5: Avoid Asking Questions

Some buyers are too embarrassed to ask questions when there’s something in the inspection report they don’t understand. Afraid they might look foolish, they avoid asking questions and end up uninformed about important issues that could impact their home purchase.

The reality is, questions are expected. You hired your inspector for their professional expertise, so don’t be shy about tapping into it. For example, you might ask:

● Would you get this issue fixed in your own home?

● How urgent is it?

● What could happen if I don’t fix it?

● Is this a simple issue I could fix myself?

● What type of professional should I call?

● Can you estimate how much it would cost to make this repair?

● How much longer would you expect this system/structure/appliance to last?

● What maintenance steps would you recommend?

Don’t bother asking your inspector if you should buy the property, because he/she won’t be able to answer that question for you. Instead, use the information provided to make an informed decision. A skilled real estate agent can help you determine the best path.

MISTAKE 6: Expect a Perfect Report

Some buyers get scared off by a lengthy inspection report. But with around 1600 items on an inspector’s checklist, you shouldn’t be surprised if yours uncover a large number of deficiencies.4 The key is to understand which problems require simple fixes, and which ones will require extensive (and costly) repairs. 

Your real estate agent can help you decide if and how to approach the sellers about making repairs or reducing the price. Whatever you do, try to focus on the major issues identified in the inspector’s report, and don’t expect the sellers to address every minor item on the list. They will be more receptive if they perceive your requests to be reasonable.

MISTAKE 7: Forgo Additional Testing

There are times when an agent or inspector will recommend bringing in a specialist to evaluate a potential issue.5 For example, they may suggest testing for mold or consulting with a roofing expert. 

Some buyers get spooked by the possibility of a “red flag” and decide to jump ship. Or, in their haste to close or desire to save money, they choose to ignore the recommendation for additional testing altogether. 

Don’t make these potentially costly mistakes. In some cases, the specialist will offer a free evaluation that takes minimal time to schedule. And if not, the small investment you make could provide you with peace of mind or save you a fortune in future repairs.

MISTAKE 8: Skip Re-inspection of Repairs

Most buyers request receipts to prove that repairs have been correctly completed. However, it’s always prudent to go a step further and have negotiated repairs re-evaluated by your inspector or another qualified professional, even if there’s an additional charge.6 

While the majority of sellers are forthcoming, some will try to save money by cutting corners, hiring unlicensed technicians, or doing the work themselves. A re-inspection will help ensure the repairs are completed properly now, so you aren’t paying to redo them later.

To avoid having to go back to the sellers, be specific when requesting repairs. Identify the problem, how repairs should be completed, who should complete the work, and how the repairs will be verified.7

Some buyers prefer to avoid this step altogether by completing the work themselves. They either request that the seller fund the repairs or reduce the selling price accordingly. Whichever path you choose, protect yourself and your investment by ensuring the work is done properly.

WE CAN HELP

A home inspection can reduce your risk and save you money over the long-term. But to maximize its effectiveness, it must be done properly. Avoid these eight common home inspection mistakes to safeguard your investment.

While these are some of the most common missteps, there are countless others that can trip up home buyers, cost them time and money, and cause undue stress. Fortunately, we have the skills and experience to help you avoid the potential pitfalls.

If you’re in the market to buy a home, we can help you navigate the inspection and all the other steps in the buying process … typically at no cost to you! Tap into our expertise to make the right decisions for your real estate purchase. Contact us today to schedule a free consultation!

If you're considering building a new home or developing a property, you'll likely come across the term "perc test" at some point during the planning process. The Perc test, short for percolation test, is a crucial assessment that evaluates the soil's ability to absorb water. This test is essential for determining the feasibility of installing a septic system and ensuring its proper functioning. In this blog post, we will delve into the significance of the perc test, its procedure, and its impact on property development.

What is a Perc Test?

The percolation test, commonly known as a perc test, is a soil analysis performed to evaluate how quickly water drains through the soil on a property. This assessment is necessary to determine the suitability of the soil for installing a septic system. A septic system is a self-contained wastewater treatment system that is often used in areas where public sewer systems are not available.

The Significance of a Perc Test

The perc test plays a vital role in property development for several reasons:

Determining Septic System Feasibility: The primary purpose of a perc test is to assess the soil's ability to absorb water. This information is critical in determining whether a property is suitable for a septic system installation. If the soil fails to percolate water at an adequate rate, it may indicate that the property is not suitable for a traditional septic system. In such cases, alternative wastewater treatment options may need to be explored.

Protecting Environmental and Public Health: A properly functioning septic system is crucial for maintaining environmental and public health. If a septic system fails due to poor soil conditions or inadequate drainage, it can lead to contamination of groundwater, surface water, and nearby wells. The perc test helps ensure that septic systems are installed in areas where the soil can effectively treat and filter wastewater before it reenters the environment.

Planning Property Layout: The results of a perc test also influence the layout and design of the property. The location of the septic system, well, and other infrastructure depends on the soil's percolation rate. By understanding the soil's drainage capabilities, property owners can make informed decisions about building placement, landscaping, and future expansion plans.

Procedure of a Perc Test

The perc test is typically conducted by a qualified professional, such as a soil engineer or a licensed septic system installer. Here's a general overview of the perc test procedure:

Site Evaluation: The professional assesses the property, taking into account factors such as soil type, topography, and proximity to water sources.

Test Hole Digging: One or more test holes are excavated in the area where the septic system is planned. The holes are typically 6-12 inches in diameter and 18-36 inches deep, depending on local regulations.

Percolation Testing: Water is poured into the test hole, and the rate at which it percolates through the soil is measured. This is usually done by timing how long it takes for the water to drop a certain level in the hole.

Analysis and Reporting: The results are recorded and analyzed to determine the percolation rate, which is measured in minutes per inch or minutes per centimeter. This rate is then compared to local regulations to determine if the soil is suitable for a septic system.

Conclusion

The perc test is a crucial step in property development, particularly for areas without access to public sewer systems. By evaluating the soil's ability to absorb water, the perc test ensures that septic systems are installed in areas where they can function effectively and without causing harm to the environment or public health. If you're considering property development, make sure to include a perc test

Over the past few years, a real estate buying frenzy bid up home prices to eye-popping amounts. However, as mortgage rates have risen, buyer demand has cooled. 1 Consequently, home sellers who enter the market today may need to reset their expectations.

The reality is, it’s no longer enough to stick a “for sale” sign in the yard and wait for buyers to bang down the door. If you want to net the most money possible for your property in today’s market, you’ll need an effective game plan and a skilled team of professionals to implement it. 

Fortunately, we’ve developed a listing strategy that combines our proven approach to preparation, pricing, and promotion—all designed to help you get top dollar for your home. But you will play an important role in the selling process, as well. 

Here are some crucial steps you can take to set yourself up for success as a home seller in this market:

1. Make Strategic Repairs and Improvements

When you sell something, it’s important to consider what your customer wants to buy. And according to the National Association of Realtors, only 6% of today’s buyers report that they are looking for a DIY fixer-upper.2 The vast majority want a move-in-ready home, which means that any outstanding repairs or dated features can be a major turn-off.

Before your home goes on the market, we’ll conduct a thorough walk-through to identify any problems that could prevent it from selling. In some cases, we may recommend a professional pre-listing inspection. Finding and addressing issues like leaks, rot, and foundation problems up front can pay off in the final sale price. Plus, it prevents sales from falling through because of a red flag on the home inspection, a scenario no seller wants to face.

Beyond repairs, we’ll also help you identify the simple upgrades that offer the highest return on your investment. For example, new paint can give your home a fresh look at a reasonable cost. However, it’s important to choose the right colors. One study found that painting your bathroom light blue could lead to a 1.6% increase in the offer price!3 Similarly, minor landscaping improvements can pay off in a major way. A healthy lawn offers an estimated 256% return on investment.4 

2. Declutter and Depersonalize

When buyers look at a home for sale, they’re trying to envision themselves living there. That’s hard to do if it’s chock-full of the current owner’s family photos, children’s artwork, and souvenir collections. Plus, cluttered homes look smaller, and older items can make them feel dated. 

Decluttering before you put your home up for sale will help you in the long run—after all, you’ll need to move all your things to your new home eventually. Now is the time to shred, digitize, or organize old documents, donate old clothes, or move bulky furniture into storage. At a minimum, you’ll want to pack away excess items neatly before potential buyers view the home. Remove personal photos and other trinkets to create a blank slate that viewers can imagine decorating with their own prized possessions.

If you feel overwhelmed by this process, we’d be happy to make recommendations or refer you to a local service provider who can help.

3. Stage Your Home for Success

Just as you take care to dress professionally for a job interview, you should always ensure your home looks its best for potential buyers. Home shoppers today are used to scrolling through Instagram and Pinterest, and they want to see the same wow factor when touring a home.

The process of making your home look its best and appeal to potential buyers is called staging, and it can be a game changer. According to the International Association of Home Staging Professionals, an average priced staged home sells 5 to 11 times faster than its unstaged counterpart. Even better, the majority of staged homes sell for 4% to 20% over list price!

Some sellers hire a professional stager, who may bring in furniture and decor to increase the home’s appeal. Others choose to stage their homes themselves. We can help advise you on which route to choose and how much to invest in the process. 

It’s also important to consider what buyers in your neighborhood are likely to be looking for in a home. We can help guide your staging choices with our local market insights. For example, in neighborhoods where a large share of residents work from home, it may be effective to stage one room as an office space so potential buyers can envision their day-to-day routine.

4. Prep for Each Showing

Most of us don’t live picture-perfect lives, and our homes reflect that (sometimes messy) reality. But when your home is on the market, it’s important to ensure that it is always ready for viewers, even on short notice. A missed showing is a missed opportunity to sell your home!

Before your home hits the market, it may be worth hiring professional cleaners to get in all the nooks and crannies. After, try your best to keep things spic and span. Just a few minutes a day wiping down counters, sweeping the floors, and vacuuming can make a big difference. 

It’s also worth noting that most buyers will open cabinets, drawers, and closets—so try to make sure everything is as neat and organized as possible. Keep toiletries and small appliances off countertops, and secure valuables and sensitive documents in a safe or off-site.

Want help finding a cleaning service to make your home shine for buyers? Reach out for a referral!

5. Price Your Home Correctly From the Start

In the past few years, you may have seen homes in your neighborhood sell for shocking amounts and wondered if you could get a similar price for your property. The temptation to list your home on the high side can be strong, but it’s best to be realistic from the start. Even in a hot market, some homes will sit for months. And the longer a property is listed, the more buyers worry that something is wrong with it.6

Of course, you also don’t want to set your price too low and lose out on potential profit. That’s why it’s essential to work with real estate agents (like us!) who know the ins and outs of our local market and what buyers are willing to pay today. In a quickly-evolving market, comparable sales from a few months ago can lag the current market reality. 

Fortunately, if you’ve owned your home for several years, chances are good that it’s worth much more today than you paid for it. That means you stand to walk away with a handsome profit. In fact, recent reports show that homeowner equity is at an all-time high.7

6. Avoid Acting on Emotion

The past few years of over-asking-price offers with few contingencies have set certain expectations for many sellers. It’s only natural to feel hurt or even offended if an offer comes in lower than what you think your home is worth. 

However, it’s important to keep in mind that those market conditions were unprecedented, and we are now returning to a more typical market. Home sellers who act rationally, rather than emotionally, are going to get the best results. 

Remember: You can always counter a low offer. The same goes for repair requests and contingencies—everything is negotiable. However, it’s important to accept that the market is adjusting and flexibility is key. Keep your expectations reasonable, and remain open-minded. And you can rest assured knowing that we’ll be by your side every step of the way to help you navigate the process and negotiate a great deal.

7. Work With a Local Market Expert

The economics impacting mortgage rates may be national, but real estate markets are hyperlocal. That’s why working with a professional agent who understands your neighborhood’s dynamics is essential. Through our experience, we’ve gathered insights that can help us position your home for success in this market. Plus, we have the resources to connect with qualified buyers searching for a home like yours. 

Working with a knowledgeable agent is also the secret to getting as much money as possible for your home. We have access to extensive data on recent sales in your neighborhood, which we will use to price and promote your property. That’s one reason why homes sold by agents draw much higher prices than those sold by their owners alone. While for-sale-by-owner homes went for a median price of $260,000 in 2020, the median for homes sold by agents was $318,000.8 That’s a difference of $58,000—and money you don’t want to leave on the table.

YOUR AGENT AND ADVOCATE

Selling a home in a fast-changing market can be stressful. You’re likely to hear conflicting advice and opinions from people in your life, and decisions like what color to paint your front door or how much to list your home for can be overwhelming. 

That’s where we come in. The market may be adjusting, but it’s still highly advantageous for sellers—and we’re here to help you make the most of it. We’re listing experts in our area, and we know what steps you need to take for a smooth, profitable transaction.

If you’re considering buying or selling a home, we invite you to reach out to schedule a free consultation. We’re happy to talk through your specific situation and goals and help you identify your next steps.

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources: 

1. Yahoo! Finance - 

https://finance.yahoo.com/news/bidding-war-rate-drops-lowest-120000537.html

2. National Association of Realtors - 

https://cdn.nar.realtor/sites/default/files/documents/2022-home-buyers-and-sellers-generational-trends-03-23-2022.pdf 

3. Zillow - 

https://www.zillowgroup.com/news/paint-colors-that-could-lead-to-higher-offers/ 

4. Angi - 

https://www.angi.com/articles/smart-landscaping-tips-can-increase-home-value.htm 

5. International Association of Home Staging Professionals - 

https://pages.iahsp.com/home-staging-statistics/ 

6. Washington Post - 

https://www.washingtonpost.com/business/2019/07/22/just-because-its-sellers-market-doesnt-mean-you-should-overprice-your-home/ 

7. Realtor.com - 

https://www.realtor.com/research/changes-in-value-of-household-real-estate-q2-2022/

8. National Association of Realtors - https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#purchased 

Nestled in the scenic Ozark Mountains of northwest Arkansas, Bella Vista offers a haven for outdoor enthusiasts, particularly mountain bikers. With its diverse terrain, stunning natural beauty, and an extensive network of trails, this charming city has become a sought-after destination for mountain biking adventures. Join us as we embark on a thrilling journey through the mountain bike trails of Bella Vista, discovering the excitement that awaits on every twist and turn.

Back 40 Trail System:

The crown jewel of Bella Vista's mountain biking scene is the Back 40 Trail System. Spanning over 40 miles of interconnected trails, this extensive network offers something for riders of all skill levels. Beginners can enjoy smooth and flowing singletrack, while more experienced riders can challenge themselves on technical climbs and exhilarating descents. The Back 40 Trail System immerses you in the beauty of the Ozarks, treating you to breathtaking views and encounters with abundant wildlife.

Blowing Springs Park:

Located on the western edge of Bella Vista, Blowing Springs Park is home to an impressive mountain bike trail system. The trails wind through dense forests, over rocky terrain, and alongside picturesque creeks. The park features a mix of flowy sections and technical challenges, ensuring a rewarding experience for riders of varying abilities. Be sure to take a break at the stunning Blowing Springs waterfall, a serene spot that provides a refreshing oasis amidst the excitement of the ride.

Lake Ann Trail:

Offering a unique blend of technical features and scenic beauty, the Lake Ann Trail is a must-ride for any mountain biking enthusiast visiting Bella Vista. This trail meanders along the shores of Lake Ann, treating riders to stunning views of the tranquil water and surrounding woodlands. The trail system is well-maintained, featuring rock gardens, challenging climbs, and thrilling descents that will put your skills to the test. Prepare to be captivated by the beauty of nature as you explore this gem of Bella Vista.

Huntley Gravity Park:

For riders seeking an adrenaline-pumping experience, the Huntley Gravity Park is a haven for downhill mountain biking in Bella Vista. This park offers a variety of purpose-built trails designed to cater to the thrill-seekers. From steep descents and jumps to berms and drops, the Huntley Gravity Park provides a playground for advanced riders looking to push their limits. The park's progressive trail features ensure that riders can progress at their own pace, building skills and confidence as they tackle more challenging terrain.

Wonderland Trails - Mad Hatter:

Adding a touch of whimsy to Bella Vista's mountain biking scene, the Wonderland Trails, specifically the Mad Hatter trail, offer a unique and playful experience. Inspired by Lewis Carroll's Alice's Adventures in Wonderland, the Mad Hatter trail takes riders on a thrilling and imaginative journey. With its creative features, including tabletop jumps, berms, and technical sections, riders can immerse themselves in a fantastical world while enjoying an exhilarating ride.

The Razorback Regional Greenway:

While not exclusively a mountain biking trail, the Razorback Regional Greenway is an important addition to Bella Vista's biking scene. This 36-mile paved trail connects Bella Vista to neighboring communities like Bentonville and Fayetteville, offering riders an opportunity to embark on longer rides and explore the vibrant cycling culture of the region. The Greenway provides a scenic route with numerous parks, trailheads, and amenities along the way, making it a versatile option for both mountain bikers and leisure cyclists.

Conclusion:

Bella Vista, Arkansas, is a mountain biking paradise that beckons riders with its diverse and thrilling trail offerings. From the challenging Back 40 Trail System to the scenic Lake Ann Trail, this city offers an array of options for riders of all skill levels. For those seeking an adrenaline rush, the Huntley Gravity Park delivers an exhilarating downhill experience. The Wonderland Trails, with the whimsical Mad Hatter trail, provide a playful twist to the mountain biking adventures. And with the Razorback Regional Greenway connecting Bella Vista to neighboring communities, the cycling opportunities are endless. So, grab your bike, pack your gear, and get ready to explore the mountain bike trails of Bella Vista—an adventure awaits at every turn!

Thinking about buying near these trails see all homes for sale now - Click Here to view and search 

Nestled within the picturesque landscapes of Northwest Arkansas, the city of Bella Vista is renowned for its abundant natural beauty and tranquil surroundings. One of the most captivating aspects of this charming community is its collection of stunning lakes, which offer residents an idyllic setting for lakeside living. In this blog, we will explore the allure of living on the lakes in Bella Vista, delving into the myriad of activities, the breathtaking scenery, and the sense of community that make this destination a dream come true for nature enthusiasts and water lovers alike.

Lakeside Living:

Bella Vista boasts an impressive array of lakes, including Lake Avalon, Lake Windsor, Lake Ann, and Loch Lomond. Whether you prefer the peaceful stillness of a morning fishing excursion or the thrill of watersports, living on the lakes provides an unparalleled opportunity to immerse yourself in the great outdoors. Picture waking up to the gentle sound of lapping waves, enjoying breakfast on your lakeside deck, and then stepping right into your boat for a day of exploration and adventure.

Water Activities:

The lakes in Bella Vista offer a wide range of water activities for residents to enjoy. From swimming and kayaking to paddleboarding and sailing, there's something for everyone. Fishing enthusiasts will be delighted with the abundance of bass, crappie, catfish, and other fish species found in these pristine waters. With boat ramps and marinas conveniently located throughout the area, residents can easily launch their watercraft and spend the day cruising, skiing, or simply basking in the sun.

Natural Beauty:

Living on the lakes in Bella Vista means being surrounded by breathtaking natural beauty at every turn. The verdant foliage that lines the shores bursts with vibrant colors during the changing seasons, creating a postcard-worthy backdrop for everyday life. Sunsets over the water paint the sky with hues of orange, pink, and gold, casting a mesmerizing glow across the lakes. The sights and sounds of wildlife, such as graceful herons and playful otters, further enhance the enchanting experience of lakeside living.

Sense of Community:

Bella Vista is renowned for its close-knit community and friendly atmosphere. Living on the lakes provides ample opportunities to connect with neighbors who share a passion for the outdoors. From community events and organized boating excursions to impromptu gatherings at the waterfront parks, residents of Bella Vista lakeside communities can build lasting friendships and enjoy a sense of belonging. The shared love for the lakes fosters a strong community spirit, where neighbors come together to celebrate, support one another, and create lifelong memories.

Recreation and Amenities:

Beyond the lakes themselves, Bella Vista offers an abundance of recreational opportunities and amenities. Golf enthusiasts can take advantage of the city's numerous golf courses, which provide challenging gameplay against a backdrop of stunning scenery. The extensive network of walking and biking trails weaves through the lakeside communities, allowing residents to explore the natural surroundings at their own pace. In addition, the city features a variety of parks, picnic areas, and community centers, ensuring there's always something to do for individuals and families alike.

Conclusion:

Living on the lakes in Bella Vista, Arkansas, is like residing in a tranquil oasis that combines the beauty of nature with an active and engaging lifestyle. Whether you seek moments of serenity on the water or yearn for exciting adventures, this idyllic community offers the best of both worlds. With its breathtaking scenery, abundant recreational opportunities, and a welcoming sense of community, Bella Vista stands as a testament to the remarkable joys of lakeside living.

What’s Your Home Actually Worth? 

Discover What Buyers Will Pay in Today’s Market

It’s easy to look up how much money you have in your savings account or the real-time value of your stock investments. But determining the dollar value of a home is trickier.

As a seller, knowing your home’s worth helps you price it correctly when you put it up for sale. If you price it too high, it may sit on the market. But price it too low and you may be losing out on a good chunk of money (nobody wants that!). For buyers, it’s important to know a home’s worth before you make an offer. You want your offer to be competitive, but you don’t want to overpay for the property. 

Even if you’re not a buyer or seller right now, as a current homeowner you might just be curious about the value of your home. Keeping track of your home’s worth year over year helps you understand the trends in your market. So when you are ready to sell, you can take advantage of a good window of opportunity. 

The good news is, a trained real estate agent—who understands the nuances of your particular neighborhood—can determine the true market value of your property … and at no cost to you!

THE THREE TYPES OF HOME VALUES 

When you start the process of buying or selling a home, you’ll frequently hear the words appraised value, assessed value, and true market value. It’s important to know the difference between each one so you can make better, informed decisions. 

Appraised Value

A professional appraiser is in charge of determining the appraised value of a home. These appraisals are typically required by a lender when a buyer is financing the property. And while the lender is the one requiring this information, the appraiser does not work for the lender.1 Your appraiser should be an objective, licensed professional who doesn’t have allegiance to the buyer, seller, or lender—no matter who is paying their fee.

The number the appraiser comes up with (the appraised value) assures the lender that the buyer is not overpaying for the property. For example, imagine a seller lists a home for $400,000. They reach a deal with the buyer to sell the home for $375,000. However, if an appraiser evaluates the property and determines that the appraised value is actually $325,000, then the lender will not lend for an amount higher than that appraised value of $325,000.2

When figuring out this number, an appraiser will compare the property to similar homes in your neighborhood, and they’ll evaluate factors such as location, square footage, appliances, upgrades, improvements, and the interior and exterior of the home.  

Assessed Value

The assessed value of a home is determined by your local municipal property assessor. This value matters when your county calculates property taxes each year. The lower your assessed value, the less property tax you’ll pay.3 

To come up with this value, your assessor will evaluate what comparable homes in the neighborhood have sold for, the size of your home, age, overall condition, and any improvements or upgrades that have been made. However, most assessors don’t have full access to your home, so their information is limited. 

Assessments are done annually to determine how much property tax you owe. Many counties use a multiplier (typically between 60%-80%) to calculate the final assessed value. So, if the assessor determines that the value of the home is $300,000, but the county uses a 70% multiplier, the assessed value of the home would be $210,000 for tax purposes.4

If your assessed value isn’t as high as you envisioned, don’t sweat it. Many homeowners appeal their assessment in favor of a lower valuation so that they can save money on property taxes. If you’re interested in appealing your property tax assessment, let us know. We offer complimentary assistance and would be happy to help you build your case.

True Market Value

True market value is established by your real estate agent. It basically refers to the value that a buyer is willing to pay for the property. A good real estate agent is an expert in determining true market value because they have hands-on experience buying and selling properties. They understand the mindsets of buyers in your market and know what they’ll pay for a desirable house, townhouse, or condo.

As a seller, knowing your true market value is important because it helps you choose how much to list your property for. It can also help you decide if you want to make any improvements to your home before putting it on the market. Your agent can help you figure out which updates and upgrades will have the biggest impact on your true market value.

WHAT’S THE DEAL WITH ONLINE CALCULATORS? 

When figuring out your home’s value, you might be tempted to see what popular real estate sites like Zillow, Redfin, and Trulia have to say. When you use an online calculator to determine your home’s value on these sites, it is just an estimate. It’s not an actual appraisal or the “true market value.” These sites all have their own algorithms for coming up with their estimates. For example, Zillow comes up with their “Zestimates” by calculating “public and user-submitted data, taking into account special features, location, and market conditions.” 5 

These online estimates can be a great starting point for opening up the conversation with your real estate agent about your home’s worth. But even Zillow recommends that you use a real estate agent for coming up with the actual market value of your home. The site says that once you get your “Zestimate,” you should still get “a comparative market analysis from a real estate agent.”

Having an agent involved in this process is essential because they understand the market better than a computer ever could. They’re showing property in your city every single day, and they know the particular preferences of buyers and sellers in the area. Young professionals, large families, empty nesters, and other groups are all looking for different things in a home. A local agent has most likely worked with all of them, so they understand what every segment in your market is specifically looking for. 

HOW AN AGENT FINDS YOUR HOME’S TRUE MARKET VALUE

So, how does an actual real estate agent determine true market value? They’ll start by doing a comparative market analysis (CMA). This means they’ll compare your home’s features to similar properties in your area. For the CMA, the agent looks at the below factors to influence their assessment of your home’s worth:6 

● Neighborhood sales - Your agent will look at similar, recently sold homes in your neighborhood to see what they sold for and what they have in common with your house. 

● The exterior - What does your home look like from the outside? Your agent will factor in curb appeal, the style of the house, the front and backyard, and anything else that impacts how the house looks to everyone walking and driving by.

● The interior - This is everything inside the walls of the house. Square footage, number of bedrooms and bathrooms, appliances, and more all influence the overall market value.

● Age of the home - Whether you have a newer or older home affects the number your agent comes up with as part of their assessment. 

● Style of the home - The style of your home is important because buyers in different markets have different tastes. If buyers prefer ranch-style homes and you have one, then your home may sell for a premium (aka more money!). 

● Market trends - Because a local agent has so much experience in your market, they have their finger on the pulse of your area’s trends and know what buyers are willing to pay for a property like yours. 

● Location, location, location - This one’s probably the most obvious. Your agent will think about how popular the area is, how safe it is, and what schools are like. 

A computer algorithm simply can’t take all of these factors into account when calculating the value of your home. The reality is, nothing beats the accuracy of a real estate agent or professional appraiser when it comes to determining a home’s true market value.

YOUR AGENT IS THERE EVERY STEP OF THE WAY

Determining a home’s true market value is a real estate agent’s forte. If you’re a seller, your agent will help you find your home’s market value so you can list it at the right price. 

For buyers, your agent will help you determine the value so you can come up with a fair offer. Your agent can also set up a personalized home search on the Multiple Listing Service (MLS) for you so you’ll receive emails of listings that meet your criteria. This will help you see what’s out there in your city and how properties are being priced. 

Get a Complimentary Report With Your Home’s True Market Value

Curious about your home’s true market value? Call us to request a free, no-obligation Comparative Market Analysis to find out exactly how much your home is worth!

Sources:

1. Chicago Tribune -

https://www.chicagotribune.com/suburbs/chi-ugc-article-what-is-the-difference-between-market-value-a-2013-09-30-story.html

2. SFGATE - 

https://homeguides.sfgate.com/market-value-vs-appraised-value-1206.html

3. ValuePenguin - 

https://www.valuepenguin.com/mortgages/what-is-the-assessed-value-of-a-house

4. Movoto - 

https://www.movoto.com/blog/homeownership/assessed-value-vs-market-value/

5. Zillow - 

https://www.zillow.com/how-much-is-my-home-worth/

6. Realtor.com - 

https://www.realtor.com/advice/sell/assessed-value-vs-market-value-difference/

National Real Estate Market Update for 2023

There’s an old adage in real estate: location, location, location. But ever since the Federal Reserve began its series of inflation-fighting interest rate hikes last year, a new mantra has emerged: mortgage rates, mortgage rates, mortgage rates.

Higher rates had the immediate impact of dampening homebuyer affordability and demand. But this year, we’re seeing further repercussions. While analysts expected listing inventory to swell as sales declined, instead, homeowners have been pushing off plans to sell because they feel beholden to their existing, lower mortgage rates.

So what impact is this reduced demand and low supply environment having on home values? And what can we expect from the real estate market in the coming months and years? Here are several key indicators that help to paint a picture of the current market and where it’s likely headed.

HOME SALES ARE EXPECTED TO PICK UP BY EARLY NEXT YEAR

The weather isn’t the only thing that heats up in the spring and summer. Nationally, it tends to be the busiest time in real estate. But this year, the peak season got off to a slow start, with sales declines in both March and April.1,2 Existing home sales in April were down 3.4% from the previous month—and 23.2% from a year earlier.2

What’s causing this market slowdown? Industry experts attribute it to several factors, including near-record home prices, high mortgage rates, and low inventory.

According to National Association of Realtors (NAR) Chief Economist Lawrence Yun, “Home sales are trying to recover and are highly sensitive to changes in mortgage rates. Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It's a unique housing market.”1

However, some industry experts believe the market is poised for a comeback. Forecasters at the Mortgage Bankers Association (MBA) predict that home sales will continue to fall through Q3 before rising in Q4 and throughout next year.3  Analysts at Fannie Mae expect the recovery to take a bit longer, picking up in early 2024.

Meanwhile, home builder confidence is already up, as purchases of new single-family homes surged in March and April to a 13-month high.5 Builder incentives are helping to boost sales: According to the National Association of Home Builders, in May, 54% reported using them to win over budget-conscious buyers.6

What does it mean for you?  A slower pace of sales has given buyers some breathing room. If you hated the frenzy of the pandemic-era real estate market, now might be a better time for you to shop for a home. We can help you evaluate your options and make an informed purchase.

If you plan to sell your home, prepare yourself for less foot traffic and a longer sales timeline than you may have found a year ago. It will also be crucial to enlist the help of a skilled agent who knows how to draw in buyers. Reach out for a copy of our multi-step Property Marketing Plan.

PROPERTY VALUES REMAIN RELATIVELY STABLE

Some good news for buyers: While home builder sales climbed in April, the median new-house price fell to $420,800, an 8.2% decrease from a year ago.5 Meanwhile, the median existing-home price dropped to $388,800, down 1.7% year-over-year. Notably, existing-home prices rose in parts of the country but fell in the South and West.2 

“Roughly half of the country is experiencing price gains,” explains Yun. “Multiple-offer situations have returned in the spring buying season following the calmer winter market. Distressed and forced property sales are virtually nonexistent.”2

The average national home price remains about 40% higher than it was in early 2020, according to the S&P CoreLogic Case-Shiller index.7 A tight housing supply has helped to buoy prices amidst a slowdown in sales.

“While it varies from region to region, home prices at the national level may fall 1% or 1.5% by the end of the year, so not much,” Doug Duncan, senior vice president and chief economist at Fannie Mae, told Yahoo Finance in April.8

Record levels of home equity will help to stabilize the sector and prevent a wave of foreclosures, even as prices moderate, according to Mark Zandi, chief economist at Moody’s Analytics.9

“But for those who have owned a home for more than a year or two, their home will remain a rock-solid investment. And once affordability is restored, the next generation of households can become homeowners. Getting there is critical to the financial well-being of those households, their communities, and the broader economy,” writes Zandi in The Washington Post.9

What does it mean for you?  Prices have softened in certain market segments—and motivated sellers are out there and willing to make deals. We can help you find your next home and negotiate a great price.

If you’re a homeowner, the surge in home values has slowed, but you’re likely still sitting on a nice pile of equity. Reach out for a free assessment to find out how much your home is currently worth.

LISTING INVENTORY IS LOW, BUT NEW CONSTRUCTION IS ON THE RISE

Unsold existing home inventory rose 7.2% from March to April, according to NAR. At the current level of demand, this equates to 2.9 months of supply, which is still well below the 5 to 6 months of inventory required for a “balanced” market.2

Inventory remains tight despite the market slowdown because many would-be sellers are reluctant to give up their lower mortgage rates. “Affordability is not only an issue for first-time homebuyers, but also for many repeat buyers who still need to take on a mortgage,” explains Danielle Hale, chief economist for Realtor.com.10

In a recent survey by the home listing site, 82% of respondents who are planning to both buy and sell a home said they feel “locked in” by their low rate.11

In some areas, new home construction is helping to fill the supply gap. “Currently, one-third of housing inventory is new construction, compared to historical norms of a little more than 10%,” according to National Association of Home Builders Chief Economist Robert Dietz.12

And more new homes are in the pipeline, after a builder slowdown last year. Single-family housing starts rose 1.6% from March to April (seasonally adjusted) and new construction permits hit a seven-month high.13

What does it mean for you?  Inventory remains tight, but less competition means more choice and negotiating power for buyers. If you’ve had trouble finding a home in the past, it may be time to take another look. We can help you explore both new and existing homes in our area.

Sellers are enjoying reduced competition right now, as well. However, the longer you wait to list, the more competition you’re likely to face. And if you feel locked in by your current, lower mortgage rate, consider this: If you roll your equity gains into a down payment on your next home, you could possibly lower your monthly payment. Reach out to discuss your options.

MORTGAGE RATES MAY FINALLY COME DOWN

According to Freddie Mac, the average 30-year fixed-rate mortgage hit a peak of 7.08% in the fourth quarter of 2022, and since then it’s primarily floated between 6 and 7%.14 However, there are signs that rates could trend lower later this year.

“Calmer inflation means lower mortgage rates, eventually,” Yun predicted in a recent statement. “Mortgage rates slipping down to under 6% looks very likely toward the year’s end.”15

Other leading economists agree. In its May forecast, Fannie Mae speculates that 30-year fixed mortgage rates will continue to decline, averaging 6.0% in Q4 2023 and 5.4% by Q4 2024.4 Meanwhile, the MBA predicts rates will fall even faster, averaging 5.6% by Q4 2023 and 4.8% by Q4 2024.3

On May 3, the Federal Reserve raised its benchmark borrowing rate by another quarter point—its 10th consecutive increase since March 2022. However, in its corresponding statement, the Fed omitted language from its previous release about “additional policy firming,” leaving some analysts to speculate that the rate hikes may be over.16 

Although mortgage rates aren’t directly tied to the federal funds rate, a decision by the Fed to pause rate increases could have a positive effect. In the meantime, buyers should shop around multiple lenders to find the best rate—and buckle up for what could be an exciting ride.

What does it mean for you?  Mortgage rates may finally trend down, which would be great news for buyers. But, a decrease in rates could correspond with an increase in competition and prices. If you start searching now, you’ll be prepared to make an offer when the time is right. We can help you negotiate a great deal and potential seller incentives.

If you’re planning to sell, this is good news for you, too. But, there are several factors to consider when determining the right time to list your home. Reach out for a consultation so we can help you chart the best course.

WE’RE HERE TO GUIDE YOU

While national real estate forecasts can provide a “big picture” outlook, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and drive home values in your particular neighborhood. 

If you’re considering buying or selling a home, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals.

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. National Association of Realtors -
   https://www.nar.realtor/newsroom/existing-home-sales-slid-2-4-in-march

2. National Association of Realtors -
   https://www.nar.realtor/newsroom/existing-home-sales-faded-3-4-in-april

3. Mortgage Bankers Association -
   https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/2023/mortgage-finance-forecast-may-2023.pdf?sfvrsn=4bf1d1a7_1

4. Fannie Mae -
   https://www.fanniemae.com/media/47006/display

5. U.S. Census Bureau -
   https://www.census.gov/construction/nrs/current/index.html

6. National Association of Home Builders -
   https://www.nahb.org/news-and-economics/press-releases/2023/05/lack-of-existing-inventory--boosts-builder-confidence-to-key-marker

7. New York Times -
   https://www.nytimes.com/2023/04/29/business/spring-housing-market.html?

8. Yahoo Finance -
   https://finance.yahoo.com/news/mortgage-rates-increase-after-weeks-of-declines-160015631.html

9. The Washington Post -
   https://www.washingtonpost.com/business/2023/04/22/housing-prices-put-some-out-of-the-market/

10. CNBC -
    https://www.cnbc.com/2023/04/20/home-sales-fell-in-march-amid-volatility-in-mortgage-rates.html

11. Realtor.com -
    https://www.realtor.com/research/2023-q1-sellers-survey-btts/

12. National Association of Home Builders -
    https://www.nahb.org/news-and-economics/press-releases/2023/04/lack-of-existing-inventory-continues-to-support-builder-sentiment

13. United State Census Bureau -
    https://www.census.gov/construction/nrc/pdf/newresconst.pdf

14. Freddie Mac -
    https://www.freddiemac.com/pmms

15. National Association of Realtors -
    https://www.nar.realtor/blogs/economists-outlook/instant-reaction-inflation-april-12-2023

16. CNBC -
    https://www.cnbc.com/2023/05/03/fed-rate-decision-may-2023-.html
    
    

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