This article piggy-backs on an earlier article regarding how the Arizona (and more specifically the Phoenix greater area) real estate market is changing. It has finally been widely reported in national news that the greater Phoenix real estate market is one of the few markets in a noticeable recovery.

Typically, we as real estate agents see and experience these changes far sooner than it ever hits the news and specifically the national news.

I thought I would share another example of recover in the vacant land area. Vacant land is land that has not been improved. Often located in areas of “meets and bounds”  or unincorporated areas around our valley. In the past, M&I bank was one of the few banks that was still lending against this type of lot. In some areas of the valley, such as the Dynamite Road area East (or Rio Verde Dr.), M&I bank was one of the only banks in the game. After the market crash, M&I would only loan against lots that they already had in their portfolios. They typically utilized government backed loans when offering new loans on these lots.

Today, I spoke with a local M&I bank representative (M&I bank was purchased by Harris Bank, a Canadian bank). I was inquiring about a lot that they, Harris Bank, currently owned. I was told that they no longer lend against vacant land. That they were “out of that business.” The representative went on to say that they had only 50 more lots in their loss mitigation department. And, after they were sold, they would no longer deal with any vacant land.

I was told that they might get back into lending against lots within a subdivision later in the year. However, those loans would only be short-term loans with a high 35% down payment. This was echoed by another representative in another local bank.

These lots would become cash only deals at this point.

In fact, I was told by the Harris bank rep. that once the remaining lots were sold off, they were looking to reduce their loss mitigation dept. by 80%. I suppose the  positive side of this is that things are improving. They did not expect to see many (if any) new lots coming into foreclosure.

Typically, buyers wait to buy until the bottom of the market. The unfortunate thing is we don’t see the bottom of the market before it gets here we only see it in the rear view mirror. I think this is one more sign of a recovery.

You now have a friend in Arizona. Call us. 480-648-9888

Scottsdale, Phoenix real estate sales and purchases email: scott@scottsdalescott.com

Scott & Sandy Farmer, REALTORS®, GRI
Remember, when it comes to real estate: “It’s A Farmer’s Market”

Realty One Group, LLC, Scottsdale, Arizona>

ScottsdaleScott: Scott Farmer, Scottsdale Real Estate Home Sales

As a way to describe our Phoenix metro area real estate market, I thought I would share with you a snapshot of a day-in-the-life of a real estate agent performing a home search.

Client: Investor (investors and first-time home buyers have been the majority of our buyers this past year).

Price range: $30k – $150k

We work with out buyer and they identify 6 homes they feel meet their requirements. They are looking to purchase, repair, and rent a home.

In order to set up a showing tour of homes we perform the following. We call each listing agent regardless of what is placed in the multiple listing. We do this, because we know the market is very fluid. It is important to get the very latest. We ask if there are any contracts on the home. We do this, again, because the market is fluid and many times offers come in and the seller is considering them. No decision  has been made yet, but it is good to know before we go see the property.

We call the owner if the MLS and listing agent requests the showing be set up with them. If we do this a day or so ahead, we will also re-check the MLS and/or call them prior to showing, again, since the situation may change.

On this particular day, we had 6 homes identified as I mentioned prior. Two of the listings had leases in place (renters). This requires a min. of 48 hours notice unless otherwise granted by the renter. One of the homes showing instructions required only a drive by showing. No entry would be provided.

After calling all listings, it turned out that 4 of them, in fact, did have contracts on them. And, as I described earlier, the seller had not yet accepted any, but we were told they would in a few hours and the status in the multiple listing service (MLS) would be changed shortly.

In several cases, there were multiple offers made on a single property. This narrowed our showing list down to two homes and one was the drive by only listing.

2011 had the second highest number of sales in our market dating back 11  years. Surprised? This is not reported widely. Home prices have been gradually rising. December 2011 showed a $6k+ increase in the median home price.

The largest number of home sold in 2011 was in the $100k to $120k price range. Buyers are beginning to place contracts on homes without visiting the properties. This is a tactic used during the peak of our market. Keep in mind that there are currently under 18k homes on the market today. This included all homes, condos, mobile  homes, etc. At our peak market, there were over 60k homes available. So, as you can see the pickings can be slim. Prices are low. Competition is high.

With inventory in mind, we keep an eye on what is often called the “shadow inventory.” This refers to homes that have received foreclosure notices. The status of these homes are in a bit of a limbo. No one knows if the homes will be sold, the foreclosure postponed, or the foreclosure otherwise dealt with. So, we do not know if this is inventory that will “hit” the market or not.

However, even if ALL of these homes hit the market all at once (which is very unlikely, right?) it would only amount to two months worth of inventory. Approx. 6k homes are sold  each month. The number of foreclosure notices is approx. 15k.

Add to this that the average number of days a home sits on the market is currently approx. 3 months. This is typically thought of as a sellers market. Between 4 and six months is typically considered a balanced or neutral market. Below is a sellers market and above a buyers market.

I thought I would share this experience with you as a point of interest if you are looking for a home in our market. We suggest you become fully prepared to act prior to your home search. Find a lender you like (if you intent to get a loan), begin the qualification process and complete it as far as possible. The more complete this process is the better you will be.

Do you research online using the right web site. For instance, we spend quite a bit of time and money providing our clients a web site that is directly tied to the Multiple Listing Service. If an agent makes a change to a listing it directly effects what you will see on our site without a lag time. This is not true of most real estate web sites.

Check out: www.homeSales411.com

You will also be able to see the tax status of the property. This will allow you to see if there are any foreclosure items on the property, what the last sales and loans were on the property, and what the county recorder indicates the taxes to be this year and typically two year prior.

Point of this message: Be Prepared.

You now have a friend in Arizona. Call us. 480-648-9888

Scottsdale, Phoenix real estate sales and purchases email: scott@scottsdalescott.com

Scott & Sandy Farmer, REALTORS®, GRI
Remember, when it comes to real estate: “It’s A Farmer’s Market”

Realty One Group, LLC, Scottsdale, Arizona>

ScottsdaleScott: Scott Farmer, Scottsdale Real Estate Home Sales

Be on the lookout for your property tax bill. There has been some changes in Arizona regarding property taxes. Each property is given a Class designation according to whether it is vacant land, owner occupied, or investor owned property. Owner occupied is Class 3, investor owned is Class 4.

Property taxes in Arizona is 10% for these two classes. The difference is in whether the owner can take advantage of the school tax credit, which can be anywhere from $200 to $600. Class 3 (owner occupied) can receive the tax credit, Class 4 cannot.

Here is the thing to watch for. The Arizona legislature passed a bill that automatically sets every property class to Class 4. The bill makes it the responsibility of the homeowner to send in the provided letter to change the status to Class 3. Obviously this was in an effort to capture lost revenue for the state. However, there can be unintended consequences. What if you don’t get your letter? If you do not send in the letter from the State, you do not get the reclassification to Class 3 (if you qualify as owner occupied). Also, owners of multiple Arizona properties could claim class 3 on all their properties. This too has change. Owners must now designate which property is considered their primary property and would receive the Class 3 designation.

Tell you family, tell your friends to be on the lookout (BOLO) for the tax letter from the state. Make sure you get your property Class designation for your property tax.

There is an effort to change this automatic designation back to Class 3, but it has not been in acted as of this writing.

Also, on the tax front. I was recently told in a continuing educational class that the state has also passed a bill that requires all Arizona residents to pay tax (6.6%) on all items purchased over the internet. Wow. You will have a check box on your state tax forms to say whether you purchased and paid tax on items purchased over the internet regardless of state. What a change.

If you did pay tax on the item to another state and it was less than the Arizona 6.6% you would be required to pay the difference. So, if you paid another state 3.3% tax on an item purchased over the internet you would owe the state of Arizona 3.3% also. You are required to keep receipts and track the amounts.

This is in place NOW. Are you doing this?

I will try to follow up on this and report more as I learn more.

You now have a friend in Arizona. Call us. 480-648-9888

Scottsdale, Phoenix real estate sales and purchases email: scott@scottsdalescott.com

Scott & Sandy Farmer, REALTORS®, GRI
Remember, when it comes to real estate: “It’s A Farmer’s Market”

Realty One Group, LLC, Scottsdale, Arizona>

ScottsdaleScott: Scott Farmer, Scottsdale Real Estate Home Sales

Home prices dropped in November everywhere except Phoenix

By DEREK KRAVITZ – Jan. 31, 2012 07:09 AM
AP Real Estate Writer

Washington. U.S. home prices fell for a third straight month in nearly all cities tracked by a major index. The declines show that most homeowners are not reaping the benefits from some signs of an improving housing market.

Prices dropped in November from October in 19 of the 20 cities tracked, according to the Standard & Poor’s/Case-Shiller home-price index released Tuesday.

The biggest declines were in Atlanta, Chicago and Detroit. Phoenix was the only city to show an increase.

The decline partly reflects the typical fall slowdown after the peak buying season.

Still, prices declined in 18 of the 20 cities in November compared to the same month in 2010. Only Washington and Detroit posted year-over-year increases. And prices have fallen 33 percent nationwide since the housing bust, to 2003 levels.

The Case-Shiller index covers half of all U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The November data are the latest available.

Home values remain depressed despite some hopeful signs at the end of last year.

Sales of previously occupied homes rose in the last three months. Homebuilders are more optimistic after seeing more people express interest in buying this year. And home construction picked up in the final quarter of last year, which helped housing contribute to broader economic growth.

Home prices tend to follow sales, which are still below healthy levels. And a large number of vacant homes are sitting idle on the market, which means prices will likely stay unchanged for several years, said Paul Dales, senior U.S. economist at Capital Economics.

“The most likely scenario in the U.S. is that in 2012 prices will bob around a bit, with one month’s gain being reversed the next month,” Dales said. “But in general, over the next couple of years, house prices will do nothing more than remain broadly stable.” Dales said prices might not rise consistently until 2015.

Prices are especially low in Cleveland, Detroit, Las Vegas, Phoenix and Tampa, which reached their lowest points since the housing bust more than four years ago.

Washington, New York, Los Angeles and San Diego have suffered the smallest declines.

Economists say home prices are likely begin rising first in hard-hit cities in Arizona, California, Florida and Nevada.

Conditions are also improving for those in position to buy a home. Job growth is up, prices are down, mortgage rates are at record lows and rental prices have risen sharply since the housing bust.

Still, many people can’t afford to buy or are unable to qualify for mortgage. Some people in position to buy are holding off, worried that prices could fall even further.

A full housing recovery could take years, economists say.

Many economists say the U.S. could be experiencing what similarly occurred in Britain in the 1990s, when it took four years for home prices to rise again after falling prices left homeowners with little financial equity in their homes.

Prices could also fall further once banks resume millions of foreclosures. They have been delayed because of a government investigation into mortgage lending practices that has dragged on for more than a year. Foreclosures and short sales — when a lender accepts less for a home than what is owed on a mortgage — are selling at an average discount of 20 percent.

A deeper recession in Europe could also cause U.S. banks to tighten their lending standards, causing home sales and prices to drop.

Read more: http://www.azcentral.com/business/realestate/articles/2012/01/31/20120131home-prices-dropped-november.html#ixzz1l4cyXf9w

You now have a friend in Arizona. Call us. 480-648-9888

Scottsdale, Phoenix real estate sales and purchases email: scott@scottsdalescott.com

Scott & Sandy Farmer, REALTORS®, GRI
Remember, when it comes to real estate: “It’s A Farmer’s Market”

Realty One Group, LLC, Scottsdale, Arizona>

ScottsdaleScott: Scott Farmer, Scottsdale Real Estate Home Sales

If you are interested in moving to arizona. We can help.

We can help you find a lender you can work with to become pre-qualified (if you are interested in securing a loan).

We can help you find the home that suites your needs.

We can prepare you with as much information as you need prior to your visit.

We can help guide you through the purchasing process and help you best understand the Arizona Purchase contract. Including providing you with valuable information on short sale and bank owned sales processes (they are currently dominating our market).

We can help you feel comfortable with the purchasing process by providing you with valuable links to guides and state provided information.

And we can help you research homes and be your eyes here in Arizona as you need us. Call upon us.

Use the search tools on our site. They are a real-time connection to the MLS data in Maricopa county (Phoenix greater metro area). If you have questions on how to search, let us know and we can advise you. Search 24/7/365.

You now have a friend in Arizona. Call us. 480-648-9888

Scottsdale, Phoenix real estate sales and purchases email: scott@scottsdalescott.com

Scott & Sandy Farmer, REALTORS®, GRI
Remember, when it comes to real estate: “It’s A Farmer’s Market”

Realty One Group, LLC, Scottsdale, Arizona>

ScottsdaleScott: Scott Farmer, Scottsdale Real Estate Home Sales

Our winter visitors are here and the activities begin in full swing. The Barrett-Jackson auto auction opened this past Sunday and the first day of car auctions begins today. Each year my sons and I stop in to get our fill of both vintage and futuristic cars. We enjoyed the “hot wheels” style paint job on the Ford mustang as you enter the tent all the way through to the historic hurst that drove President Kennedy after his assassination.

Last year, over 400,000 visited the show. The Barrett-Jackson auto auction gives us the opportunity to see the handy work of may great restorations up close, talk to the proud car owners and get a bit of a history lesson all in one.

The whole event is fun and easy to get to, enjoy and get home. There is plenty of public parking (free) and plenty of food vendors to fit every appetite. This year, I think I saw the biggest corn dog on the planet.

We typically enjoy seeing the “drifting” events where professional drivers take fast cars around an enclosed area and “drift” around sharp turns on turn “donuts” to the crowds delight. However, this year they do not have this event. Something to do with behind the scenes issues with the different car manufacturers all wanting in on the action. In its place is a feature that if you test drive two vehicles a professional driver will take you around the track on your third go around. Of course, they do this in typical speed racer form and at times did several donuts and drifting to the crowds delight.

It appeared that at least two additional tents were added to handle all the cars this year. Make sure you have plenty of time to see them all. My favorite is to take pictures of all the different hood ornaments. They are truly classic.

Once you’ve had a chance to check the cars out in person, don’t forget to check in on your local SPEED channel for all the live auction action. The fun runs through Sunday Jan 22, 2012. You can purchase tickets online at: www.barrett-jackson.com/tickets/

Bring your car questions, camera, and a healthy appetite for shinny things with lots of horsepower! Enjoy our valley.

If you register here at our site, you can receive the latest information on our housing market, see individual areas of interest, such as bank owned, short sales, condos, and much more… Or simply keep informed about the valley’s recovery.

Drop us a note, we would love to hear from you and answer any questions you may have.

Scottsdale, Phoenix real estate sales and purchases email: scott@scottsdalescott.com

Scott & Sandy Farmer, REALTORS®, GRI
Remember, when it comes to real estate: “It’s A Farmer’s Market”

Realty One Group, LLC, Scottsdale, Arizona>

ScottsdaleScott: Scott Farmer, Scottsdale Real Estate Home Sales

2011 rebounded nicely when it comes to number of homes sold. Total home sales topped out at 101,436, which was the second highest total home sales in a decade. Only 2005 was higher with 104,725 sales. You may recall 2005 as being the height of the real estate boom in our valley. Home sales in 2002, 2003, 2004 were 67,950, 80,052, and 98,922 respectively. You can see that 2011 faired quite well considering the struggling economy around the country. Many financial scholars consider Arizona’s housing market to be in recovery. The number of home sales being at this level sure helps.

Other numbers to consider are the average home sale price and days on market. The median home sale price has risen slightly from $124,900 to $129,900 and the current days on market is under 95 days and sits squarely in what many consider a sellers market. Normally, this would cause home prices to begin to rise, right? Consider these factors. Over half of our sales in the valley were either short sales or banked owned. This would have an effect on sales price in several ways. In both cases, banks would want to move their inventory as they are not in the real estate market (so to speak). Their process can be a grindingly slow one at times. Unlike a “typical” sale where a seller can pick and choose the price at any moment.

Consider this. You want to sell your home, but you live in a neighborhood where more than 50% of the home for sale are short sales or bank owned. You want to raise your price, but the last 6 months only show the sales of these other depressed homes. This effects your pricing. Even if your agent does a great job of marketing your home and you get a contract at your higher price, if a lender is involved, your home will still have to appraise. The only way to get out of this situation is to find a buyer willing to pay cash and at a price that is above the last sales. So, what about your home will entice them to do this.

My point here is simply to remind you that there are many factors and they are all connected. Be wary of reports that give one or two statistics. I have not even mentioned issues with buyer qualifying for loans and/or lending issues.

I believe our recovery will continue, but at a snails pace. It is great that homes are selling and 2011 ended at such a high rate. Now we need our economy to stabilize and for home owners to not be forced into foreclosure. It is good to hear that the President is working on changing some lending road blocks this Spring to allow for the refinancing of home loans (see earlier article).

If you register here at our site, you can receive the latest information on our housing market, see individual areas of interest, such as bank owned, short sales, condos, and much more… Or simply keep informed about the valley’s recovery.

Drop us a note, we would love to hear from you and answer any questions you may have.

See the complete ARMLS Report Here.

Scottsdale, Phoenix real estate sales and purchases email: scott@scottsdalescott.com

Scott & Sandy Farmer, REALTORS®, GRI
Remember, when it comes to real estate: “It’s A Farmer’s Market”

Realty One Group, LLC, Scottsdale, Arizona>

ScottsdaleScott: Scott Farmer, Scottsdale Real Estate Home Sales

REPOST FROM

by Catherine Reagor - Jan. 12, 2012 11:11 PM
The Republic | azcentral.com

A long-awaited federal program will soon allow more Phoenix-area homeowners to refinance their mortgages and lower their payments in spite of owing far more than their homes are now worth.

The expansion of the Home Affordable Refinancing Plan will allow for new home loans in March, according to new details from the U.S. Department of Housing and Urban Development, and homeowners are already lining up to apply.

President Barack Obama announced the plan in October, and borrowers have awaited the details since.

The program targets homeowners who bought during the housing boom and have been unable to refinance up until now because their homes are no longer worth enough to secure a new mortgage through traditional refinancing.

An earlier version of HARP allowed homeowners with mortgages backed by two federal loan agencies to refinance, but only if their new loans were no more than 125 percent of their home’s current value. In metro Phoenix, where values have plunged by more than half since the market’s peak in 2006, that limit left many borrowers out.

The update to the program, which lenders refer to as HARP 2.0, lifts that loan-to-value restriction completely.

The goal is to help homeowners save money and fend off foreclosures by lowering payments.

For a typical $250,000 mortgage, a switch from a 6 percent rate to current rates of about 4 percent would cut the monthly payment by about $300.

Matt Oliver of Peoria-based Lund Mortgage said despite the delay, some bigger banks have already refinanced borrowers deeply underwater and are now holding the loans, waiting to turn them over to the federal mortgage agencies Fannie Mae and Freddie Mac.

Albert Hasson was able to get his bank, Flagstar, to approve a refinance on his Phoenix-area home in late December even though the refinancing program was stalled at the time.

“The expanded HARP program is only semistalled,” Hasson said.

He said other homeowners should call their servicers now to see if they can be approved early.

To qualify

The expanded refinancing program is available only to those with mortgages backed by Fannie Mae and Freddie Mac, but the two entities back more than half of all mortgages.

Eligible homeowners can have missed only one payment in the past year and must still bring in enough monthly income to afford their lower payment.

Some borrowers will be required to show proof they have the income to pay the lower mortgage payments, but the guidelines aren’t clear on who will be required to do this.

HUD Secretary Shaun Donovan told The Arizona Republic in October that part of the goal of expanding the refinancing program is to reward homeowners who have continued to pay their mortgages despite huge drops in their home’s values and potentially prevent more homeowners from walking away. Estimates show nearly half of Arizona’s mortgage holders are underwater.

The previous HARP plan, which allowed homeowners to refinance if their loan-to-value ratio was 125 percent or lower, had the same intent. But it helped few metro Phoenix homeowners because home values in the region have plummeted 60 percent during the crash.

While the program will be expanded, some borrowers aren’t eligible.

Kim Baker has been in her Phoenix home for more than five years and owes at least 40 percent more on her mortgage than what her house is worth. She can’t refinance to reduce her 6.5 percent interest rate because her loan isn’t backed by Fannie or Freddie. She wants the federal government to give lenders an incentive to help homeowners like her, too.

“Otherwise, we’re stuck,” she said. “Can’t sell, can’t re-fi, can’t lower our payment, can’t move to a cheaper house down the street. We didn’t want to walk away or foreclose. So we keep paying every month hoping the economy turns around and maybe in several years we’ll break even.”

New guidelines

Much of the delay introducing the expanded refinancing program has been because of slow negotiations with lenders, and it is still not clear if the nation’s biggest banks will participate, market watchers say.

The government struggled to get big lenders to cooperate with another program, a loan-modification plan that would reduce payments for struggling homeowners.

It’s likely to take lenders a few months to implement the expanded refinancing program, so it may not be clear until summer whether the program will be more successful.

Government officials say it has taken longer than expected to work out details with lenders on the expanded refinancing plan. The federal government has several hurdles to overcome with lenders and the mortgage market to make the new program work.

Currently, most loans are bundled together as securities and resold to investors, who make money off homeowner interest payments.

But the market doesn’t currently deal with loans that are intentionally issued on homes that are worth less than the amount of the loan. It’s not clear yet whether the federal government will create new securities to sell to investors or add a portfolio to hold the loans in.

The federal government also has to negotiate with lenders holding second mortgages on a home so they won’t stall or stop the new refinancing program. Under the program, those lenders can get a small settlement when the loan is refinanced.

The expanded HARP program also now is open to investor-owned properties.

Homeowners can check to see if their loan is backed by Fannie or Freddie atmakinghomeaffordable.gov.

Jay Luber, president of Galaxy Lending, said it appears the new HARP will reduce rates, fees and the terms of a loan, ultimately providing a more affordable and less risky mortgage.

Read more: http://www.azcentral.com/business/realestate/articles/2012/01/06/20120106phoenix-area-underwater-homeowners-help-coming-march.html#ixzz1jMYbZHmi

Scottsdale, Phoenix real estate sales and purchases email: scott@scottsdalescott.com

Scott & Sandy Farmer, REALTORS®, GRI
Remember, when it comes to real estate: “It’s A Farmer’s Market”

Realty One Group, LLC, Scottsdale, Arizona>

ScottsdaleScott: Scott Farmer, Scottsdale Real Estate Home Sales

Here are the latest Phoenix real estate market sales statistics for the last 30 days.

Current number of homes on the market in the entire Phoenix multiple listing service: 18,508. This number continues to fall. As a point of reference, we were over 60,000 homes at one point. We hovered around 20,000 for a while. Now that we broke the 20,000 barrier, we seem to continue to fall. There are 18,504 opportunities to find your dream home in the valley of the sun.

A Sellers Market. A neutral market is considered a 4 to 6 month sales cycle for a home. Anything longer can be considered a buyers market. Anything shorter tends to be a sellers market. Today, the average sales cycle for a home is under 4 months.

A number to keep in mind is how many homes will come to the market from bank owned inventory due to foreclosure. The moratorium on foreclosures is coming to an end. Many speculate there will be a rise in the number of homes to come on the market soon. My feeling is that the inventory will be welcome.

Buyers are looking for a better choice. I read little about the quality of home that is on the market today. Buyers are put off by homes that need quite a bit of repair. Banks are beginning to understand this and are starting to make some repairs. I recently helped a client with a purchase where the bank had made repairs and installed new carpet. We made an offer in the afternoon and received an approval the same day. I hope to see more of this in the future.

Get ready. Buyers need to be pre-qualified and ready to act if they are going to take advantage of this type of sale. The competition is building. Investors and down-sizers are very active in the market right now. We are even seeing offers on listings where the buyer has never seen the property. This is usually investor type buyers and in the under $150k range.

I recently attended an auction where several homes were sold from one auction location. One of the additional homes was located across the valley from where the auction was being held. The buyer purchased the home for at least $10k over what you would pay for a home in the same neighborhood. Was it a better value or did the atmosphere of the auction have an effect?

Our market is developing to say the least. We are in a recovery. We are one of the few areas in the Southwest that is recovering (vs. Nevada for instance). I currently represent several buyers waiting for additional inventory of better quality (homes that are not in need of such repair) to enter the market. There ARE qualified buyers out there waiting. This pent up demand is having an effect. First you see it in the fact that quality new listings are sold in days. Next you see it in multiple offers. Then you see it in increased offer prices. These are all signs of a changing market.

There is room for new buyers. Homes remain a bargain as many are less expensive than replacement cost. Why pay the higher cost of a new build per square foot when you have homes at these values?

Some Numbers
Average List price: $310,954
Average List price of newly listed: $199,215
Average Sold price: $162,483
Average Days On Market of Sold Listings: 70
Number of Homes Sold 2011: 96,501

Scottsdale, Phoenix real estate sales and purchases email: scott@scottsdalescott.com

Scott & Sandy Farmer, REALTORS®, GRI
Remember, when it comes to real estate: “It’s A Farmer’s Market”

Realty One Group, LLC, Scottsdale, Arizona>

ScottsdaleScott: Scott Farmer, Scottsdale Real Estate Home Sales

That’s right, your social score. I’m sure you’ve heard of having a credit score. Most everyone is aware how important it is to have as high a credit score as possible if you are planing on borrowing money. Usually, a credit score of 720 or better will get you loan rates that are better (or lower) than most.

Most everyone is also aware that we live in a digital age now and all kinds of information is now on “the Web.” Well, guess what? All that information does not go away once it is sent out. New social sites are springing up all the time. Sites like Facebook are becoming more popular every day. To match this explosion, there are now more and more data mining companies. Companies that do nothing but gather the information and categorize it.

You will begin to see more information coming out about this in the coming year. I just wanted you to be aware of this. Companies are now being hired by lenders and insurance companies to gather everything ever put out in the public domain about you. They then create a “Social Score.” This social score can be used to rate you. For instance, if a lender is trying to identify what type of risk you might be finds out that you have been talking about doing things that don’t typically show up on credit scores, they may reject you or raise the rate they offer you. Health companies may do the same.

The point about this blog article is to make you aware that everything you post or put on the Web is being gathered and used. Think about this. If you go on and on about loving junk food, know that your potential healthcare provider may be listening and scoring you. If you go on and on about how you don’t keep up with your home maintenance, because it is too expensive, know that a lender may pick up on this.

In light of this, should we all use the knowledge that they are watching to our advantage? Is this what they are driving social media too? Will everything we post now be directed to the Social Score folks. I love eating an apple a day. I would not miss it. My favorite foods are vegetables. I just updated my whole heating system in my home and my utility bills went down by 1/3. I also replaced the roof!

I can see it now. Friends will be commenting on your posts that are not true… You are simply building your Social Score. What is this all turning into? The old saying about not writing anything you do not want to see on the front page of the Washington Post… Holds true here. Don’t post what you don’t want to see on your Social Score.

Be Aware. It is now as important as building your credit score.

Scottsdale, Phoenix real estate sales and purchases email: scott@scottsdalescott.com
Scott & Sandy Farmer, REALTORS®, GRI, and remember, when it comes to real estate: “It’s A Farmer’s Market”

Realty One Group, LLC

ScottsdaleScott: Scott Farmer, Scottsdale Real Estate Home Sales