Archive for November, 2008
THE PRESERVE
The Preserve, Scottsdale, AZ
Located in North Scottsdale, the Preserve is a gated community of 143 homes built by Monterey beginning in approximately 1998. Currently, there are 9 homes for sale. The prices range between $898,500 and $650,900. Two of the nine are short sales. One is lender owned. In 2007 the price per square foot was at a high of $287.41. The most recent lender owned property sold for $168.68 per square foot.
The reason I like this community is that it is small and the homes are well kept. The HOA is not as restrictive as some. The location is nice and quiet. Far enough away from the craziness of Desert Ridge and the 101 as well as the new shopping at City North and Scottsdale 101, yet close enough to get there in a reasonable amount of time. The lots are larger than most subdivisions and many have NAOS property surrounding the home(s). A good deal of the buyers for our community are move-up buyers from the neighboring communities of Tatum Highlands or Tatum Ranch. However, we have attracted out-of-state and Canadian buyers as well.
One of the most recent sales was an REO (bank-owned) property which sold for $516,000. Keep in mind that the bank doesn’t care about comps, they just want their money. The new owner is in the process of moving in and has already put some money into the house with painting, yard clean up and new carpet. The home does not have a pool and the backyard needs landscaping. This was a steal for this buyer, but the home definitely needs work.
The real estate market soft due in part to the fact that there are so many homes for sale in the Phoenix metropolitan area — more homes than buyers. While there are fewer short sales and REO properties, right now most buyers are looking for those bargains. So, if you don’t have to sell, you should wait until the marketplace gets stronger. I don’t think we’ll ever see the craziness of 2005, but I do believe we will see some of the value come back into our homes.
THANKSGIVING-2008
What Do We Have To Be Thankful For?
As Thanksgiving is once again upon us we should sit back and think about what we are thankful for. Whether it is the lo
ve of family and friends, innocence of our children, the roof over our heads, the food that we are about to eat (and plenty of it), our health, our wonderful country. For where else on earth could we be considered so blessed.
2008 will no doubt go down as a year filled with anguish and fear. This has been quite a roller coaster ride for many. I’ve not been in the real estate business too long and this is quite possibly the worst time to get in. My husband’s business is down….as is everyone’s. However, I’ve put things in perspective. Perhaps this is just what the doctor ordered. We’ve been a society of instant gratification. When we want it, we get it. And, if we cannot pay cash, we charge it. I’ve sat down and taken a long hard look at what the difference is between wanting and needing. I truly think this economic downturn has given me the opportunity to see what’s really important to me and that having that extra pair of shoes doesn’t make me a better person.
Take some time this holiday season to look around, really look around. Try to be thankful for the little things. This country has suffered through worse and we’ll get through this as well. My wish for you this holiday season is that you find love in your heart and peace in your soul — that which you deserve.
DID YOUR HOME GO DOWN IN VALUE
If you live in the metropolitan Phoenix area, chances are your
home value has decreased as much as 29%. Zillow is reporting several communities within the Phoenix area have drastically dimished value compared to those of 2007. However, it seems that most homeowners are in denial about the value of their homes. I’ve run into this as an agent. It is our job to educate our sellers as to the value of their home within this marketplace.
I don’t believe in leading people down a primrose lane. If they want to sell, they’ll need to see what their competition is, what has sold within the last 6 months and place themselves in the market to be competitive. Long story short, if you don’t need to move, don’t. If you’re in a position to hang on for a couple of years, hopefully, the markets will stabilize. Right now is not the time to move if you don’t have to.
I do believe there are values out there if you are an investor. Just be careful of where it is that you’re buying. There are certain areas, i.e., Scottsdale and Paradise Valley that Zillow has not shown significant drop in value. The entire valley has seen it, just to varying degrees.
Even in the White Mountains the home values have decreased. Investors who bought two years ago just want out, even if it means taking what they paid or less. Recently, a lot in Torreon sold for $98,000. That is a great price for that area. I know that Bison Homes is also suffering with the market downturn and you can get a really nice cabin in Heber, Overgaard or Show Low.
There are other new developments throughout Show Low and if you can purchase, now is the time.
SHOULD I STAGE MY HOME?
The Importance Of Staging, Especially In Today’s Market
In order to stage, you must think of your home as a product you’d like to sell. Say you were selling your car, wouldn’t you wash it first? You’d want it to shine like a new penny. The same thing applies to your home.
You’ve already decided to move, so in order to detach yourself emotionally, start packing! You’ll need to pack anyway. So, no time like the present. Your goal is to eliminate clutter….”clutter eats equity”. The vast majority of people cannot see beyond your clutter. This is also a good time to rid yourself of things you don’t use and don’t need. You could have a yard sale, donate to a charity, or perhaps you know someone who could use your things…one man’s trash is another’s treasure.
You want to remove all personal items as well. Take down all those family portraits you have hanging on the walls. You are not selling your stuff, you’re selling your home. In addition, all those photos on your refrigerator have to go! Make your space as clear as possible. Perhaps the furniture needs to be rearranged inorder to make the best use of the space. Leave room to manuever around the room. Be sure to pick a focal point in the room and work around that, i.e., a fireplace, or a bed in the master bedroom. This goes for all rooms and don’t forget the closets!
If you’re going to store your boxes in the garage, be sure that you start your clean up process in the garage – stack the boxes neatly. You must not forget the yard either. Stand in front of your home. Can you see the front door or is the yard overgrown? Remember “if you can’t see it, you can’t sell it”. The first impression is the most important. If a potential buyer doesn’t like the home when they drive up to it, chances are they won’t even get inside to see what else is there. Spruce up the outside. Keep the front door and area clean and neat. Here is an example of a “before” and “after” front yard.
What a difference!!!
I am a certified stager and offer these services to my clients free of charge. If you are thinking of listing your home for sale, you should hire someone who is knowledgeable about home staging as well as the real estate market. It makes all the difference in the world!
FHA LOAN LIMIT CHANGES COMING
Changes Coming After The First Of The Year In FHA Loan Limits
If you’re thinking of buying using FHA financing and you’re looking at homes that would fit the 2008 criteria of $346,250, you’d better hurry. As of January, 2009 the limits in Maricopa County are going down to $271, 050 (this is pretty much reflection across the nation). A significant drop most likely due to the drop in home values.
TORREON
What’s Happening
Within the towns of Show Low and Pinetop/Lakeside there are tree lighting festivities in December. Starting at 2:30 pm on December 6 in Woodland Park there’s live entertainment, cookies and hot chocolate, tree lighting and finishing off the day in Show Low with the parade which starts at 6:30 pm.
If you’re unfamiliar with Torreon, it is a gated golf community located off of Hwy. 260 or Hwy. 60 in Show Low. There are two beautiful 18 hole golf courses, a club house with a great restaurant and bar area, pro shop, fitness center, family center, pool and spa, and tennis courts. There are plenty of beautiful homes and lots for sale as well as vacation and seasonal rentals. There are also longer term rentals available. This is a wonderful community with many ammenities located close to restaurants and many outdoor activities are available.
We have owned our home here for a little over two years and love spending time where there is a true change of seasons. We do get snow in the winter and the fall evening are chilly, but the days are gorgeous and crisp. The sky is blue and the stars at night are fantastic.
Lending In Today’s Market
How To Approach Lending In Today’s Market
I just spent 2 days in a continuing education seminar focusing on lending. The lending industry has changed drastically in light of the climate of today’s real estate market. There are much tighter controls on lending practices in this country in order to avoid the preditory lending pitfalls of days past. This has the effect of weeding out the unscrupulous lenders which certainly brings more serious and qualified buyers to the table.
There are more FHA and VA loans being processed today than lenders have seen in 10 years. Be sure that when you are shopping lenders you find someone who knows how to do a federally funded loan. There are many nuances that a lender will need to know with regard to these types of loans. Conventional loans are harder to get as the bar has been raised with regard to FICO scores. Used to be that you could have a FICO of 600 which would be satisfactory. Now, in order to get a conventional loan, you need a FICO of 720 or better. However, both FHA and VA loans are not FICO driven. In addition, the down payment requirement is lower with FHA and VA.
Check my lending facts page for more information on alternative lending for today’s real estate market.
