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Check out our AZ Real Estate Blog, read Real Estate articles
AZ Real Estate Blog
We have a blog dedicated to buying and selling Real Estate in Arizona, where we discuss current market conditions, trends in homes, and you can ask a real estate question. We also contribute real estate articles to a number of web based magazines. You can check out past articles in the archives below. Please visit our blog using the link below and ask questions or add a comment on a current topic.
AZ Real Estate Blog
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Recently, I was working on a search for a client when I came across a Fannie Mae owned property, the lister of which encouraged me to click on the "documents" tab in the MLS. For those of you not in the know, this is a folder that contains any extra disclosures or forms that are required to close the transaction. Lo and behold, what did I find on that day?
The latest folly to be foisted upon a weary industry trying desperately to recover. This form required a potential buyer to agree to pay Fannie-Mae $5,000 if they should have the temerity to re-sell their own home within a year. Note, not only if they sell it at a profit; just if they sell it at all! Where to begin. I understand that these people are trying to punish "investors". This is not the way to achieve that. What of some poor schmo who loses his job, or has to re-locate? Why should he be punished? If a so-called investor is able to make a sufficient profit, then the re-capture amount will best be another cost of doing business.
We do not need any new laws. We need to enforce the ones we already have. The last property boom and bust was fueled, in part, by an "investor's" ability to claim he was going to "owner occupy" each property he bought. Over and over again. To claim such on the purchase contract erroneously is a felony. How many prosecutions have you heard of? Exactly!
Mind you, this is the same Fannie Mae that was formerly run by Franklin Raines. Mr. Raines is famous for massively and fraudulently over-stating Fannie Mae profits in order to inflate share prices. That little boondoggle enriched him to the tune of some $90M. After investigation, he and his two co-conspirators reached a settlement. He surrendered his stock option, which is hilarious because his shenanigans had rendered them worthless, and was fined just under $3M. That, in itself, was particularly odious because the fine was paid by an insurance policy paid for by Fannie Mae. Which means you paid it.
To re-cap then: The same Fannie Mae that was largely responsible for the current melt-down, and that aided and abetted Mr. Raines in his criminal enterprise is now trying to pick our pockets one final time in the unlikely event our home should increase in value.
We are in the best of hands.
For those of us selling homes in the greater Phoenix metropolitan area, short sales are a simple fact of life. In some newer communities, homes built in 2006 for example, almost every single one has entered the re-sale market a distress sale of one kind or another.
We all know how frustrating it can be when banks take up to 7 months to respond to an offer, by which time the buyer has likely already purchased something else. Frustrating for seller, buyer and agent alike. Hopefully, that is about to change.
On April 5th 2010, the above mentioned program, known as HAFA, came into effect. On its face, it seems to be a step in the right direction. Participating banks, and that is almost all of them, agree to abide by established time frames for responding to offers and for determining the net proceeds they desire from a short sale. If they do not comply, they will be ousted from the program.
It is quite involved so I suggest you Google it, but here are some highlights. For the Realtor, it prohibits the bank from reducing the commission. For the seller, they will be absolved of the debt without any judgements or promissory notes allowed. The seller may also receive $1500 for re-location. (Quick translation; relocation= not trashing the joint.) The bank also receives a financial incentive for following the guide-lines.
All in all, it seems to be a win-win situation. So why am I concerned? I search the MLS every day for various clients, often in areas that are chock full of short sales. Since this program was announced, of all the short sales I have reviewed, only ONE has mentioned HAFA. This is tragic. This means that there are hundreds of agents out there who have the listings, but do not have the faintest idea of how to process them within the new frame work. It is tragic because what is, or was, an extremely difficult process no loner needs to be. If the agents don't know about it, do the banks? If a great idea fell in the forest, and no one was there to hear it...
I am curious to hear opinions on the from professionals across the country. Maybe it's just my area. What say you?
THE ARCHIVES
In this short post, I am re-visiting a topic upon which I have ranted before. Realtors who negotiate commission rates in the "remarks" section.
There is an old adage regarding the "Golden Rule". Them with the gold, get to make the rule.
Recently, in the middle of April, we were working with a buyer looking to purchase a home in the $150-$160K range.
Many folks reading this article today are probably fellow Realtors who are well aware of the further eduction requirements that must be undertaken in order to remain licensed by the state.
Recently, I railed about agents charging potential buyers for the costs of a "special" negotiation team in securing the debt forgiveness.
As a Realtor, I am still astounded at how some neighborhoods remain awash in distressed properties, be they short sales or foreclosed homes.
Here is another installment in an occasional series extolling the virtues of our little town Cave Creek.
Cave Creek, which I am proud to call home, is a great little western town with an eclectic mix of art stores, restaurants and bars, plus antiques and collectibles sprinkled throughout the town core.
The town of Cave Creek was recently involved in a minor kerfuffle regarding the re-zoning of a parcel of land on which Walmart were proposing to build a new store.
This is a story that despite being fraught with difficulties, has a happy ending. It is partially about the difficulties we sometimes experience with short sales; it is partially about the hoops one must go through to obtain a loan, but mostly it is a sorry tale of complete, absolute and total lack of customer service that a client of Bank of America can expect today.
We recently closed escrow on a home in the city of Buckeye that we helped a first-time buyer secure.
Real estate owned (REOs) form a large part of the inventory in the Valley of the Sun, for reasons that have been written of many times.
Jump Starting the Greater Phoenix Metropolitan Area Housing Market
Recently, I have been working with a young couple looking to buy their first home in the Buckeye area. I believe I have mentioned this before, but it is possible to purchase a good-sized four bedroom home, less than 4 years old, for around $100,000.
My regular readers will know that I am not a fan of government intervention. Rarely, if ever, does it result in a better product, good or service. Typically, it adds cost and bureaucracy.
A recent ethics investigation demonstrated a Phoenix area Realtor did not act in the best interests of his/her client.
Strippers Arrested in Phoenix Area Real Estate Scam
Well, there's a headline I never thought I would write. But it's not what you think. As a Realtor, some of the worst homes we sometimes see, are bank-owned. In other words-Foreclosures.
Why No-One Likes A Short Sale
Short sales, along with foreclosures are a large part of the Phoenix area real estate market. Here are some tips to guide you through the minefield.
Pending Sales Are Up In Phoenix
A rise in pending transactions bodes well for the future of real estate in the Phoenix metropolitan area.
Pricing your home to sell is always a main factor in marketing your home. The sagging Phoenix real estate market makes it vital.
Are Short Sales A Good Deal
A quick look at short sales vs. foreclosed properties, in the Phoenix metropolitan area real estate market.
Cancelling A Listing
A few key points you should know if you need to cancel a real estate listing.
Making Phoenix Home Buying Easier
Freddie and Fannie try to make it easier for you to buy a home, not like it's been that hard in the last few years.
Free market principles at work as sales jump to meet drop in prices.
A home or any commodity, is only worth what the market will bear. A troubled Phoenix real estate market doesn't change that
Today, Bloomberg.com published an informative article by Bob Willis, on November existing home sales.
In response to various inquiries, I delved into the statistics of an anonymous Phoenix area neighborhood to check the pulse of the market.
My annual attempt at the impossible. Trying to guess where real estate markets will trend in the greater Phoenix metropolitan area in the coming year.
Phoenix Real Estate, How Far have Prices Fallen
The final chapter on the fate of two Valley of the Sun homes, that we have written of previously.
Phoenix Real Estate, No more Mr. Nice Guy?
In the extremely competitive real estate market that is gripping the nation, and particularly the greater Phoenix area, should your agent be a nice guy?
Pricing Your Home in the AZ Real Estate Market
Competitive pricing has always been an important factor when selling your home. Now, more than ever, it is an essential component when marketing your home in the Valley of the Sun
Good news in Phoenix Real Estate
Some insight into existing home sales figures for Phoenix and the Valley of the Sun.
Phoenix; To Permit, or not to permit; that is the question
Discussing the pros and cons of modifying your home without the benefit of a municipal permit. Many Phoenix homeowners decide it's cheaper to remodel rather than movie; here is a guide to the planning process.
Phoenix Real Estate Predictions for 2008
One mans view of where the Phoenix area real estate market may lead us in 2008. Of interest to both sellers and buyers.
The role of personal responsibility in today's real estate market and its affect on homeownership in the Phoenix metropolitian area.
Yes, you can have your cake and eat it, too! Use your hard earned home equity to make ends meet in your twilight years.
Phoenix - Marketing Tips for Selling Your Home
Arizona home buyers have a plethora of choice; advice to get your home chosen.
Phoenix: Short sales and Foreclosures are Coming to Visit
Troubled homeowners in the Phoenix metropolitan area will be looking for answers to their real estate woes. Practical advice for a growing real estate problem.
Tips and strategies for both buyers and sellers negotiating in the greater Phoenix area in today's market.
Discussing the effects of a cooling housing market in Phoenix, Cave Creek, Scottsdale and the Valley of the Sun.
A synopsis of current trends in the Phoenix/Scottsdale area, including the rise in foreclosures and short-pays.
An interesting look at two actual cases of dubious lending practices, both here in Phoenix, AZ and one in California that have resonance for homeowners across the nation.
This is a discussion regarding correct pricing of a home in a slow market such as the one we are experiencing here in Phoenix, Arizona.
A look at problems facing both buyers and sellers in the Phoenix real estate market. As usual, a cooling market brings out the "ne'er-do-wells".
An overview of where the Phoenix area real estate market has been, and where it may lead us in 2007. Sound advice for home sellers and home buyers alike.
The pros and cons of incentives versus price in new home purchases in the greater Phoenix area. Who really pays for these? Are they worth it?
Tips on Selling in a "down" market, Pitfalls to Avoid
Pricing your Phoenix area property correctly has never been more crucial than it is now. Some fresh thinking on pricing, plus what to beware of.
Phoenix Real Estate Woes; A Silver Lining
Here's a common sense article on pricing in today's Arizona Real Estate market. It's a difficult market, for sure, but every cloud has a silver lining. Tips on pricing, and great ideas for trading up.
Before You Buy That Home, Do Your Homework
A differentperspective on buying a home whether in Arizona or anywhere else in the United States. Before you make that offer to purchase your new home, step back and take a long, hard look. You'll thank me later.
Preparing Your Home For Sale-A Guide to Listing Your Home in Arizona
Before you list your home for sale, be sure it is ready for it's close up. Here are a few ideas to help you get the most for your home.
Listing Your Home Is Easy, Selling Your Home is the Hard Part
Challenging market conditions require the expertise of a seasoned professional. Does your Realtor qualify?
Thinking of Retiring to Arizona
Selecting a knowledgeable real estate professional is of paramount importance, when you are looking to relocate to a new area such as Cave Creek, Arizona. You need an experienced local agent to help you navigate through the myriad decisions you will encounter in your search.
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