Huffington Magazine Issue 58 | Page 53

THE NEW GOLD RUSH HUFFINGTON 07.21.13 To help give the Gilbertsons an edge, their realtor... suggested they write “a sweet little love story” of a letter explaining how this is the home where they hope to raise a family. listed a home in neighboring Mesa, Ariz., for $280,000 — even after looking at comparable sales from the previous three months that showed homes selling in the $200,000 to $225,000 range. Bloomfield opted to list the house at the much higher price after noticing that homes under contract — in the process of being sold — were selling at a remarkable 40 percent or so increase from just a few months before, she said. The decision proved fruitful. The winning bid came in four days later. The sale has not been finalized, but the home is under contract for approximately the listing price, Bloomfield said. Another buyer, Kristena Hansen, said that she lost four homes to other bidders before purchasing an adobe home with her husband in a historic district at the top of their price range. Hansen covers real estate for the Phoenix Business Journal, a local publication, giving her a sense that she knew what to expect. “I thought I had all this knowledge,” she said. “But first-hand, it was a totally different experience.” Continued price inflation is cause for worry, Hansen said, recalling the bubble years. “When people say, ‘We need to get prices back up,’ I find myself thinking, ‘Is everyone’s expectation that we reach 2007, 2008 levels?’” Hansen said. “Do we really want that?” ‘LOVE LETTERS’ TO SELLERS Susan Cervantez works as a counselor at Neighborhood Housing Services of Phoenix, a nonprofit home ownership organization. She advises first-time homebuyers on warning signs that should scare them away from a property. If a realtor suggests bidding above the appraised value — and making up the difference in cash — don’t do