AZ Realty Times - Arizona Real Estate

Transients Take Over Vacant Home

2008-08-16T08:53:00.000-07:00

Last week, I was previewing a few homes for a client in the Downtown Phoenix Area. After trying the key on the front door (to no prevail), I went around to the backyard. I noticed the back door was wide open & there were some clothes in the storage shed. It appears that some transients have taken over the home. I made a decision to not go in the house due to the safety factor. I called the listing agent and advised him to call the police.

Here are a couple pics that I took.

Arizona First Time Buyer Tax Credit

2008-08-15T08:42:00.002-07:00

Here is a basic summary of how the Tax Credit works:

- First-time home buyer tax credit of 10% of the purchase price of the home not to exceed $7,500

- In the case of two or more individuals who are not married, $7,500 is the total credit for all individuals combined

- “Refundable” credit means that if the actual tax liability was, say, $5,000, the purchaser would have the entire $5,000 tax liability wiped out plus they would receive a tax credit refund of $2,500

- Phase out if modified adjusted gross income exceeds $75,000 ($150,000 if married, filing jointly)

- Completely goes away if income reaches $95,000 ($170,000 if married, filing jointly)

- First Time Home Buyer defined as not owning a home within 3 years

- Cannot purchase home from a related person

- Recapture of credit over 15 years (accelerated recapture if the home is sold or ceases to be primary residence

- Applies to purchases made between April 9, 2008 and July 1, 2009

If you would like a detailed breakdown of how this program works, please let me know.

Why do Short Sales take so long?

2008-07-31T10:27:00.002-07:00

I get asked this question very often, and the reason is simple... The lender who is ultimately taking the financial hit is waiting for that big fish to come along. Here is a brief explanation of how a Short Sale works...

(FYI - A Short Sale is when the seller/owner owes more than the home can bring at fair market value)

1) The home owner (seller) is unable to continue making the monthly mortgage payment.
2) Seller hires a Professional Real Estate Consultant to list the home as a possible "Short Sale".
3) Listing Agent (LA) will price the home very low (sometimes too low) in order to draw some buzz to the home and start collecting offers.
4) If the LA is in communication with the seller, the seller will review the offers and pass along the ones that they accept to the lender.
5) LA will continue to send the other multiple offers to the lender for their review and final approval.
6) The lender usually will draw out the process up until the time of the trustee sale (foreclosure). If they have a solid offer, then the lender may accept and save the home owner from foreclosure.
7) Lender are not accepting low offers on Short Sales for the simple reason... They are looking to minimize their loss and are not going to give away the property. As they would say... You can't get a deal on a steal... There are other buyers in this market and the lenders know that.

Well, I hope that gave you a little insight as to why a Short Sale could take 1, 3, or even 6 months to complete.

Now keep in mind, there are also lenders that are very fast to react if they are getting close to the trustee sale. This is a date that you'll want to find out if you are interested in a Short Sale or else you could be in for a long, boring ride.

FHA Down Payment Assistance Program

2008-07-24T14:47:00.002-07:00

The new Federal housing bill is expected to be signed into law very quickly in order to grant the Feds authority and the means to take over Fannie and Freddie. The President has already rescinded his earlier threat to veto and has now promised to sign it.

In the new bill, there is a provision to eliminate the FHA Seller Assisted Down Payment Programs (ADP) through Nehemiah and AmeriDream. The bill gives a stop date for the programs of October 1, 2008, however, lenders will be permitted to discontinue the ADP at their discretion anytime before October 1, 2008.

As a side note, NAR seems to be addressing more so the gifted down payments (which will continue- gifted from a family member) and bond money, which there is none of at the moment.

What this means for you:
If you or anyone you know have been considering making a purchase, and would like to take advantage of the FHA Seller Assisted Down Payment Programs, now would be the time to seriously start looking. Please give me a call or email if you would like to discuss this in further detail and see how this could work out to your benefit.

Most Expensive Home Sale (6-23-08 to 6-29-08)

2008-06-30T10:23:00.002-07:00

DATE OF SALE: 6/26/2008

LIST PRICE: $3,295,000

SALE PRICE: $3,170,000

AREA: Scottsdale - Happy Valley Rd & Alma School

SQ. FT. - 7,391 Sq Ft.

SUBDIVISION - Glenn Moor

Truly incredible Tuscan inspired architectural masterpiece with fabulous city light and mountain views on an acre plus lot. Experience the finest finishes & details including a 750 bottle wine cellar, 24 travertine, canterra stone fireplace & staircase, and a magnificent formal dining room with chandelier and acoustically designed domed ceiling.

Most Expensive Home Sale (Week of Sept. 24-30 2007)

2007-09-30T09:54:00.000-07:00

DATE OF SALE: Sept. 26, 2007
LIST PRICE: $4,965,000
SALE PRICE: $ 4,675,000

AREA: Scottsdale - CAVE CREEK RD AND PIMA RD
SQ. FT. - 11,720 FT.
SUBDIVISION - DESERT MOUNTAIN PHASE 2

MISC INFO: ABSOLUTELY BREATHTAKING VISTAS FROM THIS MEDITERRANEAN ESTATE ON ONE OF THE HIGHEST HOME SITES IN DESERT MOUNTAIN. EXPLOSIVE VIEWS FROM THE TONTO NAT'L FOREST TO THE VALLEY FLOOR BELOW. GATED PRIVACY ON THIS 4+ACRE HOME SITE. EUROPEAN FLAIR UTILIZING THE FINEST FINISHES AND ATTENTION TO DETAIL. DRAMATIC STAIRWAY AT ENTRANCE. COZY FAMILY ROOM OPENS TO THE KITCHEN AND WET BAR. ELEVATOR. WINE ROOM. MEDIA ROOM. ATRIUM. MASTER UP WITH SITTING AREA OFFERS AMAZING CITY LIGHT VIEWS AS DOES THE DEN AND GREAT ROOM. 2BR 2BA GUEST HOME WITH KITCHEN AND LIVING ROOM. COURTYARD WITH DRAMATIC WATERFALL. NEGATIVE EDGE POOL, SPA AND MULTIPLE SUNDECKS. INC A DEF EQUITY GOLF MEMBERSHIP.

Economic and Market Watch Report - 2nd Qtr. 2007

2007-09-29T08:00:00.000-07:00

http://www.armls.com/pdfs/ARMLS2Q07.pdf

A must read for everyone in the Real Estate Market and all home owners.

Does the Rate Cut help our Economy?

2007-09-29T07:52:00.000-07:00

Fed Chair Ben Bernanke's rate cut excited the stock market temporarily last week and proved that he would step in and save the day by making money cheaper again. But like a spoiled child that wants his toys, the markets want more. Some economists believe that cutting the Fed rate is not helping the economy but enabling the banks to continue their over exuberance with leveraging. One of the effects of the rate cut is the continuing decline of the dollar globally. Some investors are channeling their assets to foreign markets for a better return. Today, one Canadian dollar is worth one American dollar. Their money is worth almost a third more than two years ago. Enterprising American business owners in the economically challenged upper Midwest are providing free transportation from Canada to the US to help the Canadian men spend their dollars in "gentleman's entertainment" clubs on our side of the border. Bada Bing, anyone? FYI: A bill is out of committee and going to the House of Representatives to modify the 1099 penalty for homeowners that default on their homes. There are several House members that are against the bill. If it does pass the House, it still has to have Senate approval before implementation. 100% Financing is still available for qualified buyers!

Jeff Brock
Mortgage Specialist
The Mortgage Advantage, Inc.
Office: 480-831-1588
Cell: 602-697-1422
Fax: 480-831-5223

Selling your home? You may want to rent it out...

2007-09-17T07:21:00.000-07:00

Is your home currently on the market? Are you not getting the showings that you expected. Right now, there are 57,267 properties on the Arizona MLS.

More and more sellers are putting their houses up for rent and waiting for the market to shift so they can put it back on the market.

This may be the ideal choice for you... Don't loose your new house that you bought and keep the bills paid at your original home.

The Mortgage Outlook

2007-09-13T06:30:00.000-07:00

The markets were stunned today when The all important employment numbers came in 4,000 less than anticipated, the first time in four years. Really, the markets were surprised? The soothsayers finally acknowledging the fall out from the housing slowdown may be hitting other areas of our economy. Anyone else notice that the parade of construction vehicles and trucks with ladders, cement mixers and flooring on Interstate 10 and the 101 are now nonexistent? Even this week one of the Fed chairs stated that the fallout from the mortgage issues has not affected our economy. Really? Then why are the big boy banks stashing their cash instead of lending it? Could it be that all of the big boy banks have mortgages gone bad and are storing their money for the rainy days ahead? When the Feds lowered the bank discount rate a couple of weeks ago, it was to encourage the banks to borrow from the Fed at a reduced rate for a very short term, 1 to 3 months. It helped some of the banks to shore up their liquidity, temporarily. With today's employment numbers, the Feds will have to reduce the Fed rate on or before September 18th. Will the first cut (and there will be more) help us? No. It will help banks borrow at a lower rate for a longer term. But for us every day consumers it will take many more cuts for us to feel the effect with lower rates on car loans, home equity lines of credit and adjustable rate mortgages. And the 30 year fixed rate may not be affected at all. An a.r.m., anyone? Really?

FYI: Arizona's economy is so diversified that one segment may not be on your radar Our biosciences, medical research is getting mega global attention, with several biomedical companies relocating to Phoenix.

Submitted by: Jeff Brock / The Mortgage Advantage, Inc.

Pre-Foreclosure Stats - Sept. 4-7, 2007

2007-09-12T07:12:00.000-07:00

Date Range: Sept. 4-7, 2007

Total # of Notice of Truste Sale - 488

Hardest Hit Cities - Phoenix, Glendale, and Mesa

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If you are interested in looking into Pre-Foreclosures/Short Sales and/or Foreclosures, please visit www.QuickSaleForeclosures.com

Home Stats - Sept. 3 - 9, 2007

2007-09-10T10:56:00.000-07:00

Date Range: Sept. 3-9, 2007

Total Properties Listed on the MLS: 56,921

Properties Listed this Week: 2470

Total Properties Sold this Week: 502

Total Properties Sold this Year: 41,452

Countrywide plans to slash up to 12,000 jobs

2007-09-07T18:26:00.001-07:00

http://money.cnn.com/2007/09/07/real_estate/countrywide_cuts/index.htm?cnn=yes

Accredited Home Lenders closes mortgage business

2007-08-22T16:02:00.001-07:00

http://www.azcentral.com/business/homesales/articles/0822biz-accredited22-ON.html

Tips to get top dollar in a buyers market

2007-08-21T08:00:00.000-07:00

We all know that we are currently in a buyer market and the slightest things you could do to your home could bring thousands of dollars more when you receive an offer from a potential buyer.

Here are a few suggestions:

1) Make sure your house is cleaner than you have ever had it. You may want to consider hiring a professional cleaning company that will look at the detailed spots around your house.

2) Once your house is clean, make sure to keep it that way. Make sure you can show the house with only a 10 or 15 minute window. A lot of buyers will drive the neighborhoods they want to live in and may even walk up and knock on the door to view the house. Be prepared to show your home at ANYTIME of the day.

3) Clear out a lot of the clutter you have around the house. If you don't have space to store your items, consider getting a small storage unit for a couple of months while the home is listed.

4) Consider using a professional staging company. They know what a buyer looks for in a home and will make sure your house is prepared in a way that makes a buyer feel at home when they previewing.

5) Make sure the front yard is clean at all times. Spends 15-20 minutes per day in the morning picking any trash and/or weeds that may be present. With the recent storms, weeds can pop up overnight. Also, if you have windows in your garage, keep them clean. When previewing homes, a buyer will scope out the front of the house while their Realtor is opening the lockbox.

6) Ask your friends and family for an "honest" opinion on what you could do to spruce up your home. Make sure they know you will not be offended, it's only business!

Remember, a first impression could mean the difference in receiving an offer from a buyer! Spend some time making sure your house is well prepared, at all times...

Capital One Financial Closing Down GreenPoint Mortgage

2007-08-20T19:38:00.000-07:00

http://www.nytimes.com/2007/08/21/business/21mortgage.html?_r=1&ref=business&oref=slogin

This weeks Home Stats (Homes Listed and Sold)

2007-08-20T06:45:00.000-07:00

Date Range: Aug. 13-19, 2007

Total Properties Listed on the MLS: 56,304

Properties Listed this Week: 2684

Total Properties Sold this Week: 893

Total Properties Sold this Year: 38,652

Data provided by local MLS Data

Most Expensive Home Sale (Week of Aug 13-19)

2007-08-19T08:07:00.000-07:00

Each Sunday I will feature the most expensive home that sold in the past week.

DATE OF SALE: AUG, 15 2007
LIST PRICE: $5,200,000
SALE PRICE: $4,783,000

AREA: Paradise Valley - Doubletree & 56th St.
SQ. FT. - 8,163 FT.
SUBDIVISION - Equestrian Trails

MISC INFO: A real French country sophisticated classic design. True family home with quite courtyards & private patios. Rough chiseled vintage beams, hand made wood windows & doors. Furniture grade cabinetry, hand carved wood fireplace surrounds with inlayed marble slab stone. 100 year old plank flooring throughout the home. Attached guesthouse with living rm & bedroom with private entrance. Entertainers delight, private backyard with brick patios & walkways. Fantastic pool setting, BBQ area & sport court. Lushly landscaped lot with dining courtyard adjoining the entry. All inlayed brick driveways.

Where have the buyers gone?

2007-08-18T18:26:00.001-07:00

Today I was having a conversation with a friend and he asked me "Where have all the buyers gone?"

I had 1 answer for him... They are tied up as sellers with a home currently on the market..

If you have a home listed on the market & you are not getting any prospective buyers, try lowering the price until you start getting some action. We are not expecting the market to swing for another 9mo to a year, maybe longer.

Why Lenders Are Going Under

2007-08-18T07:20:00.000-07:00

Once a week I will feature a spot from our in-house lender, The Mortgage Advantage. This week they will discuss the latest shakeup in the Mortgage Industry.

Home Buyers that had loans with First Magnus, Great Southwest and all of their affiliates were left at the closing tables unable to get their keys because of lack of funds. And Countrywide accessed their entire credit line of 11.8 billion dollars. What is going on? All banks/lenders use credit lines to fund loans and wait for their investors to replenish the lines. If the loans are "agency”, Fannie Mae, Freddie Mac (conforming loan limits under $417,000), VA, FHA, as long as the loans meet their guidelines the credit lines get replenished quickly. Here's the rub... all loans over $417,000, home equity or purchase money seconds, non agency stated, option arms, quirky loans are now homeless. The investors of these programs have limped off into the sunset and have left these loans sitting on Countrywide’s, First Magnus, Great Southwest, and all of the other lenders that did non-agency loans, credit lines. First Magnus just ran out of money. Many lenders utilize Countrywide's programs and if Countrywide cannot fund their credit lines then they will not be able to replenish the other lenders that use their programs. Ouch! Will the Feds step in and save Countrywide if necessary?

FYI: After Thursday's global market turmoil, Uncle Ben and his crew dropped the primary discount rate, not the all important Fed funds rate, which affects all banks’ cost of funds. A discount rate cut only lowers the cost of emergency borrowing by institutions in distress. This was more a psychological move to tell the markets that the Feds are paying attention.

The Mortgage Advantage, Inc. is going strong! We have been in business for 12+ years and we are so grateful to our great leader/owner and all of our team and clients that have helped build our company. Thank you!

Ask us about our "911 Rescue" for your loan transactions!

Submitted by: Harold Perkins / The Mortgage Advantage, Inc.

How Important is a Home Warranty?

2007-08-17T07:50:00.000-07:00

This topic will cover the importance of having a home warranty from a reputable company when you buy a new or resale home. The standard home warranty is a one-year service contract that protects a resale home buyer or current homeowner against the cost of unexpected repairs or replacement of major systems and appliances that break down due to normal usage. Coverage is also available to home sellers during the listing and escrow period to help them keep unforeseen breakdowns from potentially delaying the close of sale.

Basic Plans usually include:

Heating system, plumbing system, electrical system, water heater, oven/range/cook top, dishwasher, built-in microwave oven, garbage disposal, built-in whirlpool motor and pump, exhaust fan, garage door opener, and sump pump.

You will want to make sure to add coverage to your cooling system, pool and/or spa, refrigerator, and the washer and dryer.

Make sure make note of when your coverage expires and make sure to renew your plan before it overlaps. Most companies will not cover anything for the first 15-30 days.

I have personally used the following companies:

Old Republic - Plans start at $395 with a $55 service fee.

American Home Shield (AHS) - Prices vary by location, but should be between $300-$500 and a $55 service fee.

Make sure to do some research before choosing a home warranty company, visit the Better Business Bureau website and do a search on the company. Also ask your local Real Estate Professional who they recommend, they will know who to use and who not to use.

What you must know about your credit BEFORE buying a home

2007-08-16T09:00:00.000-07:00

Sometimes being approved for home buying can be difficult however, there are things you can do to be approved.

One of the greatest obstacles with home buying is having less than perfect credit. Credit is a huge advantage when buying a home so if you do have bad credit, before you start into the home-buying phase, take time to get copies of your credit report from the three main reporting agencies and cleanup discrepancies. Keep in mind that this effort can take years so be prepared to spend some time getting it in order.

There are things you should know before you venture out to buy your home:

· Payment history - No matter what type of loan you apply for, one of the first things any lender will look at is your payment history. If you have made payments on time and even paid off loans early, that's a bonus.

· Create a budget - This is highly recommended and will help you prepare for a home loan as well as keep you on track once you've purchased your home. If at any time you run into a problem and start to fall behind in payments, it's very important to contact your lender to let them know. In almost every case, the lender will gladly work with you to keep you from losing your home.

· Credit Counseling - Sometimes people set up budgets with the best intentions but then slip off their schedule. There are credit counseling services that can help by setting up payment plans to help you stay on budget or get you out of debt. Lenders don't want you to lose your house no more than you want to lose it. Not all lenders will work with credit counseling services, but it's always an option to ask for.

· Bankruptcies, tax liens, and foreclosures can haunt you for years. Most stay on your credit report for up to ten years and can have a negative impact on purchasing a home. However, if you stay up to date on payments for two to three years after running into one of these situations, with a strong letter of explanation and the proof that you've been working to stay on target, lenders will work with you. It may take a little more work, but it is possible.

· Debt Consolidation - This is another option for reducing your debt to buy a house. In this case, the balance of your debt remains the same but companies are willing to lower interest rates, which do two things - they help lower your outgoing monthly payment and, they lower the overall balance you will be paying. If you have a lot of debt and need to bring your debt to income ratio down in order to qualify for a house, this might be a consideration. The normal ratio is what's called "28/36",meaning lenders believe you cannot spend more than 28% of your gross income for housing expenses and that the total amount of debt payments cannot exceed 36% of your income for a normal 10% down payment loan.

· Flexible Guidelines - Lenders are becoming more and more flexible as a way of getting people approved for home loans. The way they do that is by allowing a greater percentage of monthly income to be used toward the mortgage payment.

· Pay-off Options - If you plan to pay off some of your debt prior to applying for a home loan, consider going after the ones with the highest balances first. Although it's nice to pay off credit cards, available credit puts a person in risk of recharging after the home loan goes through and may actually hurt you in the approval process.

· Near Pay-off or Minimum Payment- If you are close to having a loan paid off, often times a lender will overlook this debt when looking at the ratios. In addition, lenders don't look favorably at loans where only the minimum payments are made.

· FHA Changes - Recently the Federal Housing Administration, FHS, has created new mortgage programs for potential homebuyers. This means that single-family closing costs can be 100% financed where the borrower doesn't have to come up with so much money to close the deal.

· First-time Homebuyers - There are new programs with the Federal National Mortgage Association, Fannie Mae, to help first-time homebuyers, which allow for slightly more debt when qualifying for a loan, and raise the percentage of gross monthly income that borrowers can spend on housing payments.

· Affordable Interest Rates - This helps more people qualify when buying a new home or larger home, as well as lenders providing more attractive mortgage offers.

· Computer Programs Rate Borrowers- A computerized system called "credit scoring". This new way of assessing one's ability to qualify for a loan still relies on the same information but this new systems helps determine who will default on a loan. To do this, a numerical score is assigned to each factor and then calculated.

The bottom line is getting your credit in order and asking your lender for options.

If you would like help with your credit, please let me know.

Open Houses - Good or Bad Idea...

2007-08-15T09:00:00.000-07:00

Lately, I have found myself in many conversations about if hosting an Open House is a good idea and a waste of time.

Here is my opinion... I feel that an Open House can be effective if you market it to those that may be in the market to buy homes. There are a lot of agents that will just put out a few signs and wonder why they are not getting very much traffic. Well, it takes more than that, there are other ways that you can get your Open House out there, here are a few...

1) Post an ad on Craigslist under Housing, you will be surprised on how many people use Craigslist to search for homes.

2) If your property is close to an apartment complex, make sure your signs cover the exits. You will catch tenants leaving for the day and will stop by to see what is out there.

3) Make sure you let the neighbors know that you are hosting an Open House. Try going to the neighborhood 1 day earlier and handout flyers on the door advertising the Open House and for them to invite their friends and family.

These are just a few of the many marketing techniques you could use, just be creative and you will notice more traffic then you are use to.

Make sure to get the following information from each visitor and add them to your database and keep in touch with them, they will eventully be ready to buy a home. Name, Address, Phone Number, Email Address, and how they heard about the Open House.

Chandler Among the Hardest Hit with Forclosures

2007-08-14T14:25:00.001-07:00

Foreclosure notices increased an average 183 percent in Chandler and Sun Lakes in the first six months of this year compared to the same period a year earlier. Areas of Chandler in ZIP codes 85225 and 85249 were hardest hit.

Notices also jumped 240 percent in Gilbert and Ahwatukee Foothills, 116 percent for Mesa and 97 percent for Tempe, according to The Information Market.

With a lot of ARM Mortgage set to renew, we are sure to see these numbers increase over the next year.

For a FREE list of Foreclosures in your area, please visit http://www.quicksaleforeclosures.com/