What also bothers me is because of this event, the real estate profession may be tainted by this incident.

About twenty years ago when I opened Award Realty in Sun City,  there were only three other significant-sized real estate companies operating in the Northwest valley retirement community area. They were Ken Meade Realty, Prudential Realty and Tri-Star Realty. I developed acquaintances with all of the brokers, including Ken Plein at Tri Star. He was a tall, slender affable gentleman. He drove around in a huge older white Cadillac and was usually dressed in a suit and tie. He would readily recite statistics about the community and his agency. I liked Ken. I never saw him angry. He always seemed cordial and willing to share his knowledge with me as a newcomer to “his” domain. His cordial “good-old-boy” personality was possibly one of the contributing reasons why so many people trusted him.

As the years went by, Tri-Star Realty’s number of agents and sales seemed to slowly diminish. Soon, there were just a few agents remaining in their little Sun City office. It seemed that the focus had changed from a vibrant sales force to one that concentrated more on rentals and the broker’s personal investments. Shortly thereafter, Tri-Star dropped off the radar. I even stopped seeing Doug, Ken’s son (who I also found friendly and outgoing) at agent functions. Something was going on, but I just discounted it as a company that was downsizing like so many other brokerages. that had fallen on hard times.

By 2009-10, the wheels seemed to really be coming off, but the serious problems likely started long before that. From subsequent reports, it appears the REALTOR® Code of Ethics that agents hold so dear may have been breached and the foundation of a catastrophe was well underway. Apparently, senior citizens thought they were investing their money through Tri-Star to purchase properties. These trusting investors told investigators that they were given unrecorded ”equity positions” in properties without being told other investors had received similar interests in the same properties. An unrecorded deed or other instrument has no real legal value to the holder. It appears that the client’s best interest had been set aside to keep the Tri-Star business alive. Had property values continued to rise, or even maintained their value, Ken Plein and Tri-Star may have survived. But the plan soon collapsed like a house of cards . As much as I liked Ken, I despise the pain that resulted to his trusting clients. Another sad biproduct of this terrible event is that good and honest REALTORS® will likely incur doubt and mistrust from those we strive to serve.

The number of brokerages working in the Northwest valley has increased significantly since the “good old days” when there were just a few brokers of size in our area. Companies like Ken Meade, Re/Max, Long, Award and others do our best to adhere to the REALTOR® Code of Ethics. We diligently work to help our senior citizens achieve financial security with real estate investments that will help protect and preserve their life’s savings. This sad story in history should serve as a stark reminder that REALTORS® should ALWAYS put their client’s interests first and our valued senior citizens should ALWAYS be vigilant to seek out only real estate professionals who truly have their client’s best interest at heart.

If you or someone you know has had a similar experience in a real estate transaction, please contact me. Let’s work together to protect our senior citizens.

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1. The Arizona MLS

It’s sad to see these homes languish and sometimes fall into a sate of disrepair, but what can you do to help minimize the negative impact from these properties in your area?

First, if you don’t know the owners of the property, you can find out either by accessing tax records or by asking a good real estate agent to assist you. They can provide the name, address and sometimes phone number of the property owners. Once you have obtained the necessary contact information, consider what if any, problems the property may pose for you and your neighbors. It could fall prey to vandalism, graffiti, a meth-lab or just become rundown and an eyesore to the community.

Once you have determined a potential threat from the property, if you have an HOA, contact them and ask them to reach out to the homeowner to help prevent the problem from occurring or escalating. If you don’t have an HOA, call or mail the owners a letter. They may be in a hardship situation, either from a health or financial crisis. Offer to assist them with suggesting a good landscaper, security company, house painter, etc. If this assistance is offered by you in an empathetic, helpful manner, chances are your contact will be extremely well received.

If the owners are financially unable to secure or repair the problems at the property, reach out again to your Realtor® and ask them for assistance. They will likely have some good suggestions and solutions to offer.

If you don’t have a Realtor® and could use some help protecting the value and appearance of your neighborhood, feel free to call us at Award Realty. We are always happy to help you.

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Management companies will feel the pinch, so be prepared to see them try and add new fees because of this new restriction. If you feel you are being unreasonably charged new fees, speak up. Bring it to the attention of your board and if necessary, vote out the officers that allow or promote this type of “taxation.” You can read the legislative summary HERE. Feel free to contact us if we can be of service on this or other real estate issues.

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1. BUYERS, SELLERS AND HOMEOWNER ASSOCIATIONS BEWARE

One thing for certain, we are seeing fewer “deals” on short sales and foreclosures. There is no doubt that this inventory is drying up considerably. Buyers trying to find a smoking deal are finding it more difficult and the market is seeing an increase in multiple offers and contracts at, or above asking price.

The important thing to remember is, just like buying or selling any major investment, hire a professional to guide you through the process. In our litigious society, it is more important than ever to have a competent real estate agent to assist you with the sale or purchase of your home. You know the old saying, “A man who represents himself has a fool for a client.” Trying to represent yourself in a real estate transaction could be the most costly mistake you’ve ever made.

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1. Homes for Sale in Arizona #2 in Nation for Price Drop

It has been reported that several of the associations in Sun City and Sun City West are attempting to obtain FHA condo approval.  It is crucial that all homeowners, association boards and residents of communities such as those in Sun City and Sun City West, Arizona understand that the majority of the units in these communities which are loosely referred to as “condo’s” are NOT legal condominiums.  They are not organized or legally created under the condominium laws and do not have or need several of the documents that would be required as condominiums.  These properties are considered Planned Unit Developments otherwise called PUD’s.  A PUD is a residential dwelling which is part of an association of the homeowners of the project. Therefore, project approval is NOT required for any kind of financing including FHA.

The difference in financing requirements between a condominium and a PUD is huge. Using the term “condo” loosely can create a situation whereby sellers may not be able to sell their units to a buyer who needs financing due to the fact that lenders outside of the subject property’s area may not be familiar with that community and the properties that exist there.  Unfortunately, when these dwellings are referred to as “condominiums,” this term often gets transmitted to lenders through MLS listings, association names, insurance certificates and other documents. Those lenders will then request the “condo” documents which creates major issues in attempting to approve the properties for financing. There are also potential buyer financing difficulties due to FHA investor vs. owner occupancy percentage ratios.

Furthermore, the costs associated with creating a condominium are significant. Legal fees, document maintenance and management company fees can be an enormous and unnecessary expense to homeowners and potential buyers. An association management company just recently charged one buyer over $500 just to provide the CC&R’s and other standard documents! Under the law, management companies are allowed to charge “reasonable” fees for providing this information. This seems to be an exorbitant cost, yet converting associations to true “condominiums” will only increase this cost, as management companies will use this as an opportunity to charge even more to associations and buyers for their services.

The first step in changing this situation is to stop calling these units “condominiums.”  It would probably be in an association’s best interests to legally change the name of their association from “XYZ Condominium Association” to “XYZ Homeowners Association”.  This would require a vote of the members of the association per their bylaws.  Once that is completed, the insurance policies would also be changed.  If everybody stops referring to these units as condominiums and removes that word from all documentation associated with the units, then there will be less confusion on the part of lenders trying to finance these units.

In summation:
1.      Realtors®: need to STOP calling these units condominiums.  Remove the term condominium from all listings.
2.      Association chairpersons and board members: Check out the feasibility of changing your association name to remove the term condominium.
3.      Homeowners in associations: Get used to calling your unit a townhouse, patio home, row house, garden apartment or any other term you wish to use OTHER than condominium.

Let’s change the common usage of the dreaded “C” word in our communities to enhance the ability to obtain FHA approved financing on PUD properties. Questions or comments may be directed to Denny Elmes, Designated Broker of Award Realty at delmes@AwardRealty.com.

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2. Search for cabins and property in the “Cool Country”

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There are many excellent purchase opportunities in these communities, so if you are looking for just a summer retreat or an opulent cabin in the woods, give any of our agents a call for assistance.

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Among the reason’s Sun City Arizona earned this coveted award are things like low crime rate, and comprehensive health care.

It has an estimated population of around 39,000.

Some of Sun City Arizona’s cultural attractions are it’s Music Society has a six-concert series November through April.

Sun City homes for sale are on the rise and the city offers several different communities to chose from including: Sun City West, Sun City Festival, and Sun City Grand.

Around these Sun City homes for sale are its wonderful 8 golf courses with well-organized recreational facilities.

A fun fact for Sun City is As soon as you move in, a city social director will arrange a golfing excursion or arts and crafts lesson with your neighbors!

To view Sun City homes for sale, simply click the link!

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Creative Commons License photo credit: SearchNetMedia

Phoenix No. 2 in U.S. for drop in home prices

Phoenix is not leading the nation in home prices declines, according to the S&P/Case-Shiller home-price index released this morning.

Las Vegas is No. 1 with a 32.4 percent drop in housing values between June 2008 and June 2009. Metropolitan Phoenix came in at No. 2 with a 31.6 percent decline for the period. Detroit was No. 3 with a 25 percent price drop.

According to the well-respected index, metro Phoenix has led the nation for home price drops during most of the past six months. However, the Valley’s median home prices started to tick up in late April as the inventory of foreclosures for sale dipped.

Phoenix was one of the 20 cities tracked by the index that saw its price decline improve from May to June. Las Vegas and Detroit both experienced bigger decreases in home prices during the month.

Because the index lags a few months, metro Phoenix should do even better on next month’s index. The Valley’s median home price has climbed about $10,000 from the low it hit in early June.

Overall, U.S. home prices tracked in the 20-city index dropped in June to 15.4 percent from 17.1 percent.

For the fifteenth straight month, no metro area in the index posted a year-over-year price increase. Nationwide, home prices are at 2003 levels.

Source: AzCentral.com

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