INVESTMENT OPPORTUNITY-PHOENIX

Through my Search the MLS tab, view an

amazing investment opportunity in Phoenix.  Search for MLS# 4284409.

Exquisite remodel!  All four units have been completely renovated from the slate and cherry floors to the ceiling  New kitchens and bathrooms.  Washer/dryer, patio and/or balcony in every unit.  New cabinets.  Location is between Arcadia and the Corridor.  Seller will do private financing.  Seller will also provide all financials and rent information from tenants upon request from serious buyer(s).

This is a terrific opportunity to own and income producing property in a great location.

INQUIRING MINDS WANT TO KNOW

In the current real estate market, sellers want to know

how you’re going to sell their home….a lot of sellers are in a situation that requires “creating buyer urgency”.  Some are turning to unconventional (up until now) ways to market and sell a home.  There are companies that are creating an eBay type of site where potential buyers bid on properties….24 hours a day, 7 days a week.

There is a company out there doing just that.  By using the general theory that properties on the market for over 90 days sell for less than they might be worth, people can sign up for the program which begins with traditional marketing means, i.e., advertising, open houses and preview events.  All prospective buyers are qualified through the site.

It’s an interesting concept and for those who are having a hard time selling in this market, it opens another door through which additional buyers can compete.  The site claims that they have a good deal of “move-up” buyers.

EXTENSION OF $8,000 FIRST TIME HOMEBUYERS TAX CREDIT

Recently, the government has voted to extend the

first time home buyer tax credit through April, 2010.  Keep in mind that any buyers out there should click on and reference this website link regarding the “qualifications” for the tax credit.  There are income limits as well as your marital status which affect how much money you will get.

So, the extended tax credit, low interest rates, affordability and the fact that FHA is the predominate loan for first time buyers makes this a good market for people who are just coming in or have been fence sitting.

In addition, the federal government is extending a tax credit for current homeowners — those who have lived in their residence for 5+ years — in order to get people who were thinking of selling into a “maybe I should” mode.  This, of course, will depend on whether or not the homeowner has equity and is able to sell in a market with lender owned properties and short sales as competition.

You can search for homes directly through my blog site or feel free to contact me to discuss how you can take advantage of this program.

PHOENIX DROPS IN FORECLOSURE REPORT

According to the “Business Journal”, Phoenix has now

officially dropped from the top 10 on the list.  Now at #12, Phoenix saw fewer foreclosures in the 3rd Quarter.  This is a positive sign for the valley, but I don’t think is indicative of a market improvement just yet.  I know I should be more upbeat about this news, but it’s still too early.  We have to have a few quarters of positive before we can consider this a recover or a move in the right direction.

California continues to suffer.  I’ve also noticed a lot more California cars driving around.  Could this be that they are jumping ship?

$8000 HOMEBUYERS TAX CREDIT-FREIND or FOE??

Now that the end of the first time homebuyers tax

credit is upon us and the government is thinking of extending it, I’ll put my economic 2 cents in.  I don’t hold myself out to be anything but a concerned tax payer.  I will agree that the tax credit has spurred on people to buy homes.  However, as in all these types of programs, there is massive fraud.  It’s so disheartening when you hear about people purposefully scamming other Americans to this degree.  And, why is this even able to happen?  Could it be because the government is keeping as much of an eye on this as they do every other program they run?

I am not a proponent of artificially “propping up” the economy.  It does no good.  Cash for clunkers is a prime (and recent) example and so this this first time home buyers tax credit.  Are we putting ourselves into the same situation that got us here in the first place, i.e., allowing people who cannot afford to maintain a home buy a home?  I’m sure there are people who will do fine, but what are the odds that we’ll end up with more foreclosures out of this?  My guess is that yes we will…..

When are people going to realize that “the government” consists of its citizens.  It’s not some magical pot of gold that the elected officials in Washington are going into each day.  It’s borne on the back of us the American citizenry.  We are saddling our children and their children with massive amounts of debt.  The free market should be allowed to ride this storm out without “Uncle Sam”.

I believe that the low interest rates and the affordability of homes in this market would have brought buyers to the table.  Perhaps the numbers would have been smaller, but maybe it would not have cost us as much.  I am a realtor who loves to work, but sometimes it’s as if the hurrier I go, the behinder I get.  Basically, buyers should just go door to door and ask their neighbors for the $8000, because that is in essence what we’re doing.

$8,000 TAX CREDIT — A GOOD IDEA?

Now that the window is closing on the $8,000

first time homebuyers tax credit the government is mulling over the possibility of extending it.  Is this a good thing?  Do we want to continue to artificially prop up our housing market?  While this incentive may have brought more people into the housing market is it a good thing to continue?  Would people buy anyway based upon the affordability of home prices and the lower interest rates?

I’ve had people both want to close before it runs out and then I’ve had people say that it’s not a deal breaker for them.  I have very mixed feelings about the government (that means you and me) spending any more money.  We are a capitalist economy and while this is definitely a challenging time, hopefully, this too will pass.  The markets whatever they may be need to ride it out.  Consumers are still a little gun shy and it’s going to be a slow and painful recovery.

I believe there are still homes that will go into foreclosure and we’ll likely see those start to drop off.  If nothing else, this has been a huge lesson for everyone about spending beyond your means.  We need to get back to what’s important in life….friends, family, etc……and not worry so much about what the neighbors are doing or buying.  Then and only then will we begin to see a light at the end of the tunnel.

$8,000 FIRST TIME HOME BUYER TAX CREDIT

I have mixed feelings about the first time home buyers

credit.  As a realtor, I think this has been a good thing to spur movement within the market.  I do, however, believe that the affordability factor does come into play here as well.  Perhaps people would not have “flocked” to buy, but I think that they still would have bought.  A tax credit incentive certainly sweetened the pot.

However, as a tax payer and proponent of small government I am not so sure that this is a good thing.  We are once again artificially propping up our economy.  Will the bureaucrats in Washington ever get it right?  Are we creating another mortgage crises?  Are we looking down the road at another collapse?  Perhaps a different one?  I cannot help but be concerned.  What has happened in our market should be of concern to everyone….no just homeowners.

We can no longer stick our heads in the sand.  Remember, you cannot complain about the problem if you have done nothing to help correct it.  We are all guilty of going along with the flow.  I think the “flow” has stopped and we all need to get involved.

WHAT’S HAPPENING IN THE PHOENIX REAL ESTATE MARKET?

Each and every time I take a client out to find a home

it’s an interesting experience…..last week was no exception.  I have a client moving here from Colorado.  A young man and his young family.  We spent about 5 hours looking at homes in Buckeye.  Because his price range is below $100k, all of the homes we looked at were bank owned.  There are a lot of short sales as well, but we don’t have the time to wait for those to go through.

While a couple of the places needed way more work than he was willing to do, the majority weren’t too bad.  The homes were all built in 2005 and later.  Very sad to see how people’s dreams fell apart….very evident that many of these homes were filled with children.  In any event, we put an offer in on a home that had been on the market 2 days….by the time I faxed the offer, there were 2 others submitted as well….I would hope that we get the house and hope that it’s not an investor buying to hold onto it for a couple of years to make money.  There are actual people out there who can buy a home and shouldn’t have to fight against all cash buying investors….that is where I think this is all wrong.

I am a total optimist and am holding out for the best possible outcome for my client…..unfortunately he lost his bid.  But, there are others and we’re getting to it!

INVESTOR BUYING IN PHOENIX REAL ESTATE

I just read an article that Fannie Mae has recently

launched a home buyer’s program called “First Look”.  This program bars investors from purchasing a foreclosed property for the first 15 days that it is on the market.  This is terrific.  How can a first time homebuyer using an FHA program compete against an “all cash” investor buyer who can close within weeks.  It’s a matter of business and, of course the bank will take the all cash buyer….it’s easier for them.

This is a terrific way to get people who will stay in the homes for longer than an investor will.  I think we need to stabilize the market for awhile.

While I also represent investors, I think this is a move in the right direction for those buyers who are just trying to take advantage of the bargains out there (in the form of foreclosed properties) and have a home of their own.

Kudos to Fannie Mae….what about Freddie Mac now???

DELAY IN CLOSE OF ESCROW

If you’re in the process of purchasing a

home and your close of escrow has been scheduled, great!  Just don’t change anything.  The new disclosure requirements may delay your closing.  Be sure that you continually check with your lender to make sure you’re still on schedule.  ANY change to the mix, i.e., rate change, will require additional days for “disclosure” requirements.  Keep in mind that weekends and holidays are not “business days”.

When writing a contract language has been added to the effect that any delay in the close of escrow because of the new disclosure requirements imposed on lenders shall not be the fault of the buyer.  If you do not cover yourself, you could be charged “per day” for any delay.  So, be sure that the language is in the contract.

In today’s marketplace (especially so), an informed buyer is very important.  Make sure that you have an open relationship with both your lender and your realtor.