LaPlante Appraisals' Blog

 

As we wrap up 2024, we thought it would be insightful to review and analyze the last 12 months of rental data in Maricopa County. Fluctuations in the number of available rentals and the volume of rented units offer insight into pricing power, competition, and investment opportunities. In the past 12 months, we see significant changes in Arizona's rental market, especially when analyzed by square footage. This analysis provides a comprehensive view of market shifts, offering valuable insights for stakeholders across the real estate industry. 
 

Between November 2023 and November 2024, Arizona’s rental market experienced notable shifts in both supply (active listings) and demand (sold listings). 

• Supply Growth: Overall, the number of active rental listings increased significantly from 15,780 in November 2023 to 21,427 in November 2024—a 35.8% increase. This surge suggests more rental properties entered the market, increasing choices for renters but also raising competition for landlords.
• Demand Increase: On the demand side, sold listings also rose, but at a much slower rate. The total number of rented units increased from 4,505 in November 2023 to 5,045 in November 2024, reflecting an 12% increase.
• Months of Supply (MOS): The Months of Supply (MOS) index rose from 3.50 to 4.25, indicating that supply is growing faster than demand. This shift suggests the market may be tilting toward a renter’s market, where renters have more negotiating power.

As we see there is an oversupply in smaller rentals, while good competition in the mid-size market and a larger saturation in the luxury market. The rise in MOS across all size categories indicates that renters are gaining more leverage in lease negotiations. Investors may see longer listing periods and should prepare for potential rent adjustments.

Arizona’s rental market is entering a period of flux. If supply continues to grow at a faster pace than demand, landlords may face longer listing times and downward pressure on rental prices. New construction activity and economic conditions will play a significant role in shaping future supply and demand. For renters, this shift signals an opportunity to find better deals and incentives. Investors may want to be cautious about acquiring small or large properties until the market stabilizes.

Stay tuned for 2025 updates on Arizona's rental housing trends to stay informed and ready to make strategic decisions.

As the year winds down, it's the perfect time to pause, reflect, and express gratitude for all that has been accomplished at LaPlante Appraisals. Serving Maricopa County as a trusted residential appraisal service has always been our passion, and this past year has been one of significant milestones and meaningful growth.  

This journey wouldn’t be possible without the support of our clients, colleagues, and community. As we look back, we’re humbled by the opportunities we’ve had to grow as a business and to contribute to the appraisal industry. Here are some of the achievements we’re celebrating:  

1. Diversified Revenue Streams

This year, one of our key focuses was diversifying the types of appraisal assignments we handle, and we’re proud to say we made great strides in this area. Traditionally, much of our work has come from lending-related assignments, but in 2024, we successfully expanded into private appraisal services. This shift allowed us to serve a wider range of clients, including real estate agents, attorneys, and families navigating significant life transitions.  

By providing private appraisals for divorce cases, estate settlements, probate proceedings, and pre-listing evaluations for real estate agents, we’ve been able to meet a broader spectrum of needs in our community. Each of these assignments brought unique challenges, requiring a careful, customized approach—and we embraced the opportunity to deliver results tailored to each client's specific situation.  

2. Joining the Veterans Affairs Panel

One of our proudest moments was being accepted as a Veterans Affairs (VA) Panel Appraiser. This achievement reflects our dedication to providing exceptional service and, more importantly, gives us the chance to serve those who have served our country. We look forward to helping veterans navigate the homebuying process and we’re honored to play a small role in their journey.  

3. Collaboration with Industry Peers

This year, we focused on fostering connections with fellow appraisers and industry professionals. By sharing knowledge and collaborating with peers, we’ve contributed to a stronger, more supportive appraisal community. These partnerships have not only enriched our own practices but also reinforced the value of teamwork and mutual respect in our industry.  

4. Preparing for Growth

Thanks to the trust and loyalty of our clients, LaPlante Appraisals has grown to the point where we’re preparing to expand our team. This milestone is a testament to the hard work, dedication, and values that have guided us from the start. We’re excited about the future and eager to bring on new team members who share our commitment to excellence.  

Image by Ylanite Koppens from Pixabay

Looking ahead, we’re committed to continuing to provide high-quality, reliable appraisal services while embracing new opportunities for growth and collaboration. To all who have been part of our journey—thank you. Your trust and encouragement inspire us every day.  

Here’s to another year of serving Arizona with integrity and dedication! 

If you ask a realtor, appraiser and homeowner, what constitutes a townhouse versus a condominium you will likely get various answers. The difference between a townhouse and condominium goes beyond the style or design of the home. 

   

As appraisers, we look at the ownership rights and legal descriptions of the subject to determine what the real property includes. For a condominium, you own the structure, for a townhouse or single family home, you own the structure and the LAND. This is the key difference between a townhouse and condominium. Take a look at the difference in assessor cards between these two types of properties. Can you see the differences and tell which one is a condominium and which one is a townhouse ? 

      
Condominiums have an undivided interest in the surrounding common elements and land. This means they all share a part of the surrounding areas together with the other units within the complex. While a townhouse owns the structure and the land it sits on with no other shared interests with neighbors. So in these two examples, Rough Rider's structure outline is the same as the structure, while 24th Pl shows a lot line and some land rights beyond the subject's structure. Another key is to see what the legal description states.

Does it say "LOT" in the legal description? Does it mention an undivided interest in common areas in the legal description? 

When ordering an appraisal, it is important for the lender and title to know the ownership type. This is because they have different lending requirements for different type of properties. Condominium loans can be more expensive due to restrictions related to shared and/or jointly owned building spaces, making the loans potentially more risky. As an appraiser, we are typically asked to verify if there is any pending litigation for the HOA in the condominium. If so, this can make the loan riskier and sometimes lenders will not loan on it. 

But I am not an expert on the lending side of things, so I asked another friend to come and share his perspective from the lender's view. Here is what he had to share: 

Determining whether a property is deemed a townhome or a condo by the county can be make-or-break for financing. From the lending perspective, “Townhome” is a style, and this home can either be a PUD or a Condo in official classification. If it’s determined that it is officially a PUD, just in the style of a townhome – it’s business as usual. No overlays. You’re financing just another Single Family Home that happens to have an HOA.

If it is determined that it is officially a condo: that opens a whole new set of obstacles as Kari discussed earlier. Now we have to look at what loan type we’re using as they all treat condos a little differently. We need to get a copy of the CC&R’s, Master Insurance Policy, a condo questionnaire needs to be filled out and HOA’s , tragically, have “varying” levels of diligence and efficiency. If you’re utilizing programs such as Grants or Down payment Assistance, you need to double-check their guidelines & overlays with Condos and how they’re treated if they’re on HUD’s approved condo list or not.

I’ve seen many a loan be rejected due to failure to identify the loan type, and can’t stress enough the importance of being able to spot it. --Ryan Zamudio

If you are planning to purchase a condominium or townhouse and want more information or have questions please reach out. Ryan is very personable with great energy, he is passionate about what he does. Ryan can be reached at: ryan.zamudio@edgehomefinance.com or find him on Facebook or Instagram @lender.ryanzd

After over a month and I'm blogging again. The month of August was a whirlwind of travel, including vacationing in France. The vacation was a well needed refresh and restart after the last 10 months of starting my own company. There has been a lot of grinding, networking and educating. 

So for this month, I wanted to share some of my photos from my vacation. I went on a Cruise with Ama Waterways, which I HIGHLY recommend by the way, and we cruised along the Seine River through the Normandy Region. The highlight was eating my way through France, which included dining at two separate Micheline Star restaurants. My second favorite had to be visiting Claude Monet's Lily Garden in Giverny.  

   

Although I enjoyed the vacation, I found myself using my "appraiser mind" and wondering about zoning, building, construction and renting rules in each city I visited. Driving through one town, our tour guide pointed out thatcher roofs in a village, explaining that they last up to 50 years and require more maintenance while the slate roofs can last up to 100 years. That amazed me! Their roofs in France double or triple the life span of ours! Would you spend extra money in order to have a longer lasting roof? 

In the town Honfleur, a small port city, our tour guide pointed out the apartment style homes and the number of floors. On one side, there were 4 floors and on the backside there were 5 floors. She explained that due to the topography, one side of the street was higher than the other. Typically the ground floor was a business or shop with a second story for storage. Then the backside of the street you accessed apartments and living quarters that started on the third-fifth floors. I found that fascinating and it reminded me mixed-use zoning allowances in Maricopa County.

You can always learn something new when traveling into a new country. Overall it was a refreshing and enlightening vacation. 

I just want to put it out there, no one is perfect. 

As a homeowner, agent or borrower, sometimes you may disagree with sales used  and/or opinion of value in an appraisal report. Each individual party is looking at different aspects of the transaction and represents different interests. Most agents have tried at least once, to send in a Reconsideration of Value (ROV). Agents have a variety of experiences with these, some good, some bad. We'd like focus on what makes a good ROV. 

Fist off, the point of an ROV is to provide ADDITIONAL information that was not included in the original report--most commonly: improvements and/or sales/listings. 

When submitting a ROV, please considered reviewing the report beforehand. Many times we received a ROV with sales that are already included in the report. Most lenders will review the submitted ROV to make sure this is not the case. However, we do understand as the seller, you do not get a copy of the appraisal report unless the buyer provides you with it. Sometimes an agent or seller will complain the appraiser "rejected" the ROV. As appraisers we are required to review ONE ROV per assignment if asked. If your ROV was not addressed, it was likely turned down by the underwriter or lender--not the appraiser. 

Most of the time the appraiser and the agent/borrowers are looking at the same information sources. However there are times, that due to how things are labeled or listed in the MLS listing site, they did not get pulled in the appraiser's initial research. Therefore there are times that additional sales do make it into the report and values can change. But sometimes the additional sale(s) do solidify the original opinion of market value. 

One of the most common challenges we find in the Maricopa County is real estate agents listing the GLA including the guest house square footage. For example, let's say an appraiser is pulling sales with a square footage between 3,600sf and 4,200sf. Take a look at the MLS listing below: 



One would assume the GLA doesn't include the guest house, however upon further research (calling the agent, assessor records, sketch, etc.) it is determined the comparable is actually only 4,072sf and the guest house is 409sf. Therefore this could potentially be a comparable, however was missed in the appraiser's research of 3,600sf and 4,200sf due to the agent including the guest house in the GLA. See Monsoon/Assessor image below. 



Another thing to remember: although you think a sale is comparable, doesn't mean it is. Appraisers go through a lot of training and classes, analyzing data differently than some real estate agents. Just because you think it's comparable doesn't mean it is in the appraiser's mind. If you happen to have any further questions about how we analyze data and determine market trends, we would be happy to sit down and talk to you about it. Reach out to us here. We are passionate about appraisals and analyzing data to create the most credible and supported report. 

Just know, even if the appraiser does not make changes to the value, you have a right to ask and pay for another appraisal. Yes it will cost you, and could potentially delay closing, but there is a chance another appraiser determines a different opinion of market value.  You have choices. 

Just remember...no one is perfect.