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The High Costs of a Low Interest Rate

by | May 15 2012 | Leave a Comment

Mortgage rates are low, very low!  For a 30-year fixed mortgage rates are below or close to 4 percent.  However, does it make sense to refinance when you consider the costs involved?

Closing costs can be steep.  Origination fees, title insurance, recording fees and so on add up to a good chunk of money.   I guess the biggest question you need to ask  yourself is how long you plan on staying in your home to pay back these costs.  When you consider the monthly savings of a lower mortgage payment, will you recover these costs in the time frame you will be in your home?

Let’s say your closing costs are $5,500 and this equates to a $277 savings per month on your mortgage payment.  You would be able to “payback” the closings costs in approximately 20 months.  So, if you plan on staying in your home longer than that it would be wise to refinance.  Also, If you are one that is focused on paying the principal down and staying in your home until it is paid off, consider bi-weekly mortgage payments.  Then you are really going to make a dent in the principal.

Of course, there are more factors involved in deciding whether to refinance at a low interest rate but if you can determine how long you plan on staying in  your home and what the closing costs will be, you are at a good starting point to move forward or not.

Top Ten Things To Know About Reverse Mortgages

by | Apr 24 2012 | Leave a Comment

I have heard a lot about reverse mortgages lately and wanted to learn more.  Following are ten pertinent things the US Department of Housing and Urban Development, specifically Secretary Shaun Donovan, points out:

1. What exactly is a reverse mortgage?

A reverse mortgage is a home loan that lets you convert a portion of the equity in your home into cash.  However, unlike a traditional home equity loan or second mortgage, (Home Equity Conversion Mortgage) HECM borrowers do not have to repay the loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage.  You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are buying.

2. Can you qualify for FHA’s HECM reverse mortgage?

To be eligible for an FHA HECM, you have to be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and it must be your primary residence.  You are also required to receive consumer information free or at very low cost from a HECM counselor prior to obtaining the loan.  You can find a HECM counselor online or by calling (800) 569-4287.

3. Can you apply for a HECM even if you did not buy your present home with FHA mortgage insurance?

Yes.  You may apply for a HECM regardless of whether or not you purchased your home with an FHA-insured mortgage.

4. What types of homes are eligible?

To be eligible for the FHA HECM, the home must be a single family home or a 2-4 unit home with one unit occupied by you, the borrower.  HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.

5. What are the differences between a reverse mortgage and a home equity loan?

With a second mortgage, or a home equity line of credit, borrowers must have adequate income to qualify for the loan, and they make monthly payments on the principal and interest.  A reverse mortgage is different, because it pays you – there are no monthly principal and interest payments.  With a reverse mortgage, you are required to pay real estate taxes, utilities, and hazard and flood insurance premiums.

6. Will you have an estate that you can leave to heirs?

When the home is sold or no longer used as a primary residence, the cash, interest, and other HECM finance charges must be repaid.  All proceeds beyond the amount owed belong to your spouse or estate.  This means any remaining equity can be transferred to heirs.  No debt is passed along to the estate or heirs.  I was happy to read this part as this was my first question about these loans – i.e. what is left behind if someone dies?

7. How much money can you get from my home?

The amount you may borrow depends on:

  • Age of the youngest borrower
  • Current interest rate
  • Lesser of appraised value or the HECM FHA mortgage limit of $625,500 or the sales price; and
  • Initial Mortgage Insurance Premium – your choices are HECM Standard or HECM SAVER

You can borrow more with the HECM Standard option. In addition, the more valuable your home is, the older you are, and the lower the interest rate, the more you can borrow.  If there is more than one borrower, the age of the youngest borrower is used to determine the amount you can borrow.  You can refer to online reverse mortgage calculators for an estimate of the amount of funds you can borrow.

8. Should I use an estate planning service to find a reverse mortgage lender?

FHA does NOT recommend using any service that charges a fee for referring a borrower to an FHA-approved lender.  You can locate a FHA-approved lender by searching online at www.hud.gov or by contacting a HECM counselor for a listing.  Services rendered by HECM counselors are free or at a low cost.  To locate a HECM counselor go online or call (800) 569-4287 for the name and location of a HUD-approved housing counseling agency near you.

9. How do I receive my payments?

You can select from five payment plans:

  • Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence
  • Term - equal monthly payments for a fixed period of months selected
  • Line of Credit – unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted
  • Modified Tenure - combination of line of credit and scheduled monthly payments for as long as you remain in the home
  • Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower

10. What if I change my mind and no longer want the loan after I go to closing?  How do I do this?

By law, as with any mortgage loan, there is a three day right of rescission period.  You have three calendar days to change your mind and cancel the loan.  The process of canceling the loan should be explained at loan closing.  Be sure to ask the lender for instructions on this process.  Mortgage lenders differ in the process of canceling a loan.  You should ask for the names of the appropriate people, phone numbers, fax numbers, addresses, or written instructions on whatever process the company has in place.  In most cases, the right of rescission will not be applicable to HECM for purchase transactions.

Termites in Arizona

by | Apr 9 2012 | Leave a Comment

Do you know about the wealth of available pest resources freely available to those looking to purchase a home? Not only is it easy to find a good termite / pest inspector, but you can check out complaint history and even SEE if a home has been treated for termites in the past!

Finding a Licensed Termite Inspector

  1. The WDIIR inspection form should have the inspector’s license number at the bottom of the form next to the signature, the first two numbers of the license represents the year that the inspector was licensed.
  2. Go to Office of Pest Management Pest Management Professional search (click here). You’ll be able to see what type of license the inspector has, how long the inspector has been with a company, and also if the inspector has completed CE hours.

Finding a Pest Control Business

  1. Go to Office of Pest Management Consumer Resources section to conduct a Licensee Search (click here).
  2. You can also go to Complaints History section to find out if there have ever been any complaints on a pest control company (click here).

The company information will tell you how long they have been licensed and what type of pest control they can perform and it will also give you a list of all licensed employees.

Find out if a house has been treated for termites

Check out the Termite Report Search (click here). Here you can enter as much or as little information and it will do a search for that property for the last ten years.

The report will tell you:

  1. All WDIIR inspections will be recorded within 30 days of the inspection completed.
  2. All properties treated with termites will be recorded. This report will display what type of treatment was done, what chemical was used and how many gallons were used.
  3. This report will also give you the pest control company, licensee, and the date treatment was done.
  4. You will also find pre-treatment information on this report.

Things To Do Near Rancho Santa Fe

by | Mar 27 2012 | Leave a Comment

I have lived in Avondale, Arizona for two years now in Rancho Santa Fe, a nice little community near Luke Air Force Base.  I also lived here about eight years ago for three years.  I am amazed at the growth of this area since then!  Adjacent to Phoenix, Avondale has grown to over 76,000 people!  There are shopping centers and things to do everywhere now.  Before, you had to commute into the city for the good stuff, but not so anymore.  Following is a list of 10 things to do near Rancho Santa Fe for you and your family to enjoy:

Katydid Insect Museum

The Katydid Insect Museum is just a short ride to Glendale from Avondale.  This museum contains a wide assortment of insects, arachnids, reptiles and other fascinating creatures.  Katydid’s insect museum is a great place for bug-loving kids and the adults who tolerate their obsession.  The museum houses thousands of insect specimens, mounted in display cases and labeled, as well as lizards, spiders, and snakes.  The more adventurous (or crazy) visitors can even interact with some of the residents LIVE.  It only costs a dollar for admittance for children and those under six years old are free.  For more information, call 623-931-8718.

Arizona Fairgrounds

The Arizona fairgrounds are home of the annual Arizona State Fair.  The fairgrounds are located only a short 12 miles from Avondale.  The State Fair has attractions and vendors to please everyone.  Some of the attractions include a rodeo, a demolition derby and various types of racing.  There is a wide variety of food vendors and all kinds of exciting rides.  The fair runs from October 12th to November 4th and is open everyday except Mondays and Tuesdays.  For more information, click on the link above.

Wildlife World Zoo & Aquarium

Located immediately north of Goodyear in Litchfield Park, the Wildlife World Zoo has Arizona’s largest collection of exotic animals with over 2,400 individual animals representing more than 400 exotic and endangered species.  The state’s first Aquarium has now opened at the Zoo – 16501 W. Northern Ave., Litchfield ParkFor more information, their phone number is 623-935-WILD.

Goodyear Ballpark

While the Goodyear ballpark may not be quite the same as the University of Phoenix Cardinals Stadium, it’s still a fun place to visit with lots of events all year round.  The Right Field Pavilion has a picnic style atmosphere for the best views of the park and can accommodate up to 500 people.  Or you can enjoy a game from The Terrace, a private, covered area located on the third level behind Home Plate.  The Terrace provides a more casual atmosphere for groups up to 90 people.  Terrace packages include food and non-alcoholic beverages, cash bar service and private rest­rooms.  In addition to ball games, the park has a variety of events hosted by businesses around the valley such as Kids Run The Bases, every Saturday and Sunday where children are allowed to run the same bases their favorite ball players have run.  Check out the link above for more information on events at the Goodyear Ballpark.

Parks And Recreation

Avondale offers a variety of parks and hiking opportunities such as the hiking and mountain biking trails in the Estrella Mountain Regional Park that sits at the northern tip of the Sierra Estrella mountain range.  The park offers many trails that crisscross the foothills and plains.  You can also hike in White Mountain Park.  White Mountain Park has nearly 30,000 acres making it the largest regional park in Maricopa County.  Most of the park is made up of the rugged and beautiful White Tank Mountains on the Valley’s west side.  You can check out all of the parks in the Avondale area by clicking on the link above.

K1 Speed Indoor Go Cart Racing

K1 Speed Phoenix brings electric indoor go kart racing to the Phoenix, Scottsdale, Glendale and Peoria areas.  Whether you’re a diehard racing enthusiast or are interested in trying authentic, European-style kart racing for the first time, K1 Speed has it all.  The facility provides a genuine racing experience with 20hp electric karts that can reach speeds approaching 45mph and high-grip racing surfaces that allow drivers to push the limit through high-speed corners!  Needless to say, don’t be surprised if the adrenaline is flowing after your race.  For more information, click on the link above.

I hope this short list gives you some insight into just how much there is to see and do near Rancho Santa Fe in Avondale, Arizona.  Not to mention, Avondale is very close to many other active communities and to downtown Phoenix and Luke Air Force Base, home of the Thunderbolts, the Air Force’s primary F-16 pilot and maintenance training base.  The base often welcomes civilians to enjoy air shows and other festivities and meet the nation’s finest.

Enjoy Avondale!

10 Fun Things To Do Near Arlington Estates In Phoenix, AZ

by | Mar 5 2012 | Leave a Comment

Arlington Estates is a cozy, family-oriented community located on the northeast corner of 43rd Ave. and Baseline Road in Phoenix, Arizona, only 10 miles west of Phoenix Sky Harbor National Airport with convenient access to Interstate I-10.  The other great thing about Arlington Estates is its close proximity to so many fun things to enjoy in the Phoenix Metro area.  Following are the top 15 activities in the area:

1)  Heard Museum

The Heard Museum is unique not only in the exhibits that are displayed but also the style and grace with which it displays them.  The museum boasts more than 32,000 pieces of cultural and fine art.  There are permanent exhibits, like the famous Barry Goldwater collection of Kachina Dolls, as well as special exhibits year-round.  Some of the special annual events include the World Championship Hoop Dance Contest which is held each February, and the Heard Museum Guild Indian Fair and Market each March.  The museum also includes 11 exhibition galleries, free guided tours, outdoor sculpture gardens, a renowned café, art gallery, trading-post style shopping and more!  For more information call:  602-252-8848.

2)  Desert Botanical Garden

The Desert Botanical Garden in Phoenix has one of the world’s finest collections of desert plants.  It is one of only 44 botanical gardens accredited by the American Association of Museums.  At the Desert Botanical Garden you will find 50 acres of beautiful outdoor exhibits.  Home to 139 rare, threatened, and endangered plant species from around the world, there is no finer place to enjoy desert beauty than the Desert Botanical Garden.  The Garden is located in Papago Park in Central Phoenix.  For more details contact:  480-941-1225.

3)  Boyce Thompson Arboretum

The Boyce Thompson Arboretum brings together plants from the Earth’s many and varied deserts and dry lands.  Approximately 3,200 different desert plants can be found within the arboretum, and most of them can be seen along the 1.5 mile main trail. During wildflower season, the Boyce Thompson Arboretum is especially beautiful, displaying all the wonderful colors of the desert. Are you a bird lover?  More than 250 species of birds have been recorded at the Boyce Thompson Arboretum.  You can also attend classes, nature walks, and guided tours.  There is fun for everyone!  For more details call:  520-689-2723.

 4)  The Phoenix Zoo

The Phoenix Zoo in Arizona is one of the younger zoos in the country.  Not only is it a successful zoo, but it is a privately owned, nonprofit zoo.  That means that it operates strictly without any government funding – the Phoenix Zoo is totally supported by donors and private organizations. Recognizing the important role that zoos must play, the Phoenix Zoo has been very active in wildlife conservation programs.  The Phoenix Zoo is open every single day of the year, including December 25th.  In the summer it is advisable to get there as early as possible, since many animals head for shade and hide during the heat of the day.  The zoo offers a camel rides, a giraffe encounter, a petting zoo, pedal boat rides and much, much more!  For more information call:  602-273-1341.

5)  Phoenix Children’s Museum

Acting on the principle that learning is a joy, the Children’s Museum of Phoenix’s mission is to engage the minds, muscles and imaginations of children and the grown-ups who care about them.  With hands-on, interactive exhibits designed for children ages birth to 10, the Museum focuses on learning through play, with emphasis on early childhood education and school-readiness.  The Children’s Museum of Phoenix is located at 215 N. 7th Street, Phoenix, ArizonaFor more information call:  602-253-0501.

6)  Childsplay

Childsplay theater sets out to create theater so strikingly original in form, content or both, that it instills in young people an enduring awe, love and respect for the medium, thus preserving imagination and wonder, those hallmarks of childhood which are the keys to the future.  There is a wide variety of performances and events that can be found on the link above.  For more information call:  480-921-5700.

7)  Arizona Science Center

The Arizona Science Center offers hands-on, eye-opening fun with more than 300 interactive exhibits, a state-of-the-art planetarium, five-story giant-screen theater, live demonstrations, and traveling exhibitions.  Explore 350 hands-on exhibits, a five-story theater and a planetarium in a unique setting.  Group rates and facility rentals available.  For more information, call 602-716-2000.

8)  Musical Instrument Museum

Metropolitan Phoenix’s newest museum opened in spring 2010, billing itself as the first in the world dedicated to the celebration of global instruments.  Upon entering the airy, acoustically thoughtful building, you’re issued a wireless headset.  When you approach a displayed instrument, voila—its sound plays clearly in your ears.  The museum emphasizes instruments that have been used for folk and tribal occasions, and the collection includes instruments from over 200 different countries and territories.  Unless you’re the world’s expert on this subject, we figure you’ll be seeing and hearing instruments you’ve never even thought of before. Musicians will especially dig the Experience Gallery, where you can touch and play exotic instruments.  For more information call:  480-478-6000.

9)  Tovrea Castle

Tovrea Castle was built about 70 years ago by Italian immigrant Alessio Carraro as a grand hotel, intended as the centerpiece of an upscale housing developement. Tovrea Castle was built without working plans, and the final structure bears little resemblance to the intended design.  Construction of the castle was interrupted frequently, sometimes for long periods of time, due to the extensive landscaping taking place in the 277 acres surrounding the building.  Hundreds of cacti were transplanted along with 2,600 truckloads of river stones, which were whitewashed and used for retaining walls, terraces, and edging for the roads and trails.  Mr. Carraro’s dreams were ended by the stock market crash of 1929, and he sold the castle to Edward Tovrea, a business man who owned a meat packing plant on adjoining acreage.  The castle was lived in by the Tovreas until Mrs. Tovreas’ death in 1969.  The house was opened to the public only once, for one weekend in 1984.  In 1993, the City of Phoenix bought the castle along with 40 acres, and is planning to restore the castle for use as a visitors center.  For more information call:  602-262-6412.

10)  Mystery Castle

This unusual piece of architecture, built from recycled bottles, granite and bricks in 1930, is a tribute from a father to his daughter. Located near South Mountain, you may take tours through the castle. Largely constructed of native stone, the 8,000-square-foot castle contains 13 fireplaces, 18 rooms and various features of interest. Southwestern antiques furnish this unique facility.  For more information call:  602-268-1581.

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Having Fun Near Peterson Farms

by | Feb 21 2012 | Leave a Comment

Peterson Farms is a quiet family neighborhood located in Chandler, Arizona.  Peterson Farms is  within three-minutes of Chandler-Gilbert Community College and a ten-minute drive of the ASU Polytechnic campus.  This community provides an ideal balance of family living near all the conveniences.  Some of the more exciting adventures are:

1)  Just Roughin’ It Adventure Company

Just Roughin’ It Adventure Company is a full service backpacking and hiking guide company, leading tours in Grand Canyon, Yosemite, and Olympic National Parks, as well as Paria Canyon and the Superstition Mountains in Phoenix, AZ.  Guests are provided with top of the line backpacking and hiking gear.  And the food is NOT what you would expect on a camping trip.  Quality meals are prepared by an experienced and certified guide in the middle of the wilderness!  For more information call:  480-857-2477.

 2)  Chandler Center For The Arts

The Center is equipped with three theaters and a 2,000 square foot exhibition gallery.  With a total seating capacity of 1,500, the unique design of the Center allows for two rear sections of the main auditorium to rotate 180 degrees to become two more intimate performance spaces:  The 350-seat Hal Bogle Theatre and the 250-seat Recital Hall.  Patrons and artists alike have hailed the Center’s acoustics as being among the best in the country and the world.  The walls between the separate performance areas prevent sound interference, thus allowing up to three productions to run simultaneously.  You can enjoy music, dance, comedy, you name it!  For more information and events call:  480-782-2680.

3)  Jumpstreet

We have all seen kids and families jump on a trampoline just about everywhere, but have you seen them bounce from the walls?  Newly opened, jumpstreet is a family fun center  where kids and adults can jump on a trampoline, and then bounce off a WALL of trampolines!  Take in a great game of dodgeball or just some time to bounce off the walls and be a kid again.  You have to see it and try it for yourself!  For more information call:  480-270-8008.

4)  MVP Zone

MVP Zone is a premier indoor baseball/softball practice facility with batting cages in Chandler.  Featuring over 8,500 square feet of state-of-the-art training equipment, professional instruction and a wide variety of programs, The MVP Zone has something for every age group and skill level.  For more information call:  480-857-6000.

5)  Sweeties Candy of Arizona

Have a sweet tooth?  Looking for a tasty treat from the good old days?  Housing over 75,000 pounds of candy and over 3,000 different types, visitors of all ages will enjoy the newly opened sweet shop for a trip down memory lane or to discover a new favorite at Arizona’s largest and most comprehensive candy store.  There are sugar-free treats as well.  Family owned and operated for over 60 years, Sweeties Candy is not only inviting to children but allows adults to be a “kid in a candy store” once again!  For more information call:  480-899-4245.

6)  Xtreme Air Jump ‘N Skate Park

Xtreme Air is Arizona’s largest one-of-a-kind indoor entertainment park, featuring over 30,000 sq. ft. of air-conditioned space for families and kids of all ages.  This spectacular indoor entertainment center includes an indoor skate park for street style skate boarding and BMX bikes, 10,000 continuous feet of interconnected trampolines, with separate dodge ball/basketball bounce areas for youth and adult teams, one insanely large Velcro wall, and a fully-equipped arcade with video games and prizes.  The facility also features a coffee bar, parents lounge with WI-FI access, and clothing boutique.  For more information call:  480-409-4555. 

Guest Post: Homeowners Rebate Repeal of Affidavit

by | Feb 6 2012 | Leave a Comment

Last year the legislature passed HB2001, more commonly referred to as the “Jobs Bill” or the “Commerce Authority Bill.” The promoted intent of this bill was to create a more business-friendly state to attract all types of businesses both large and small, create jobs, and provide tax relief to businesses. The legislation focused on several key areas: corporate income, businesses property tax cuts, job training, the Arizona Competes Fund, and the newly formed Arizona Commerce Authority.

Currently many homeowners are unaware that their residential property taxes are lowered by a payment made from the State General Fund directly to the county in which the property is located. This payment is paid for Residential Properties Class Three of the property tax code, which generally includes owner occupied primary residences. This payment is commonly called the “homeowners rebate.”

Under the law, the process of receiving the rebate is complicated by requiring the homeowner to go through a cumbersome process of signing an affidavit beginning in 2012 and subsequent even numbered years, under penalty of perjury, that they live in the home or that the home is being utilized by a relative.

As outlined in the law, the affidavit is to be mailed along with the annual Notice of Full Cash Value to the owners of Class Three Property. The forms are to be completed and returned to the County Assessor within 60 days or the Residential Property will be reclassified as Class Four and the property taxes increased by as much as $600 depending on the home’s value.

Legislation’s Impact

Amongst many problems with the affidavit is that it presumes the homeowner is guilty until proven innocent. Many unsuspecting homeowners, unaware of the requirement or the consequences that the affidavit will be mailed along with the Notice of Full Cash Value, will miss the deadline to return the affidavit, resulting in their properties automatic reclassification of Class Four Property and the corresponding increase in property tax. The legislation creates a paperwork bureaucracy impacting approximately 1.8 million residential properties and increase costs to county governments in our state.

Action Points

  • Repeal the affidavit requirement impacting homeowners, counties, and tax dollars
  • Replace the affidavit with the requirement that county assessors target those properties that have a high probability of not being someone’s primary residence such as out-of-state owners, multiple properties in the same county, or those owned in the name of a business entity. Target the problem and not impact every homeowner in Arizona.
  • Restore the previous penalty for those that receive the homeowner’s rebate illegally. The previous penalty was 2-times the amount of property taxes. The penalty was reduced to 2-times the amount of the rebate. The reduction in the penalty for those properties in the wrong class sends the wrong message. If you want property classified by class correctly, why lower the penalty?

Guest Author

Tom Farley, CEO of the Arizona Association of REALTORS.

5 Things To Do Near Stetson Valley

by | Jan 31 2012 | Leave a Comment

Stetson Valley is located in a mountain preserve.  From anywhere in the neighborhood, you will experience breath taking views.  It’s just minutes away from restaurants and shopping yet secluded in the countryside.  Stetson valley is still on the rise, and plans in the near future still include an elementary school, and many large parks and walking paths.

Located in the northern part of Phoenix, there is a multitude of things to do near Stetson Valley.  Following is a list of 5 things you may enjoy:

1)  Arizona Desert Tours

For more than twenty years, Arizona Desert Tours has been guiding visitors through Arizona‘s back country.  Trained guides will teach you survival techniques while relating the lore of the area.  Enjoy the enchanting desert colors and scenery while touring. Services offered are 4×4 tours, cowboy cookouts, horse trail rides, gold panning, rafting, eco tours and corporate team building.  For more information call:  (602) 867-8162.

2)  Castles ‘N Coasters

Castles N’ Coasters is Arizona’s finest family fun and thrill park.  There’s roller coasters, miniature golf, go-carts, bumper boats, and much, much more.  Fun for the whole family!  The park is located at 9445 Metro Parkway East, Phoenix.  For more information call:  (602) 997-7575.

3) Arizona Science Center

Spend the day in the fantastic Planetarium, or enjoy the spectacular, informative IMAX films on a five-story screen, view enriching exhibits, or test out one of the over 300 hands on activities.  There are also special events to enjoy all year.  Whatever you choose, there is something for every member of your family.  For more information contact:  602-716-2000.

4)  Cave Buttes Recreation Area

Stetson Valley Phoenix AZAs a designated City District Park site, the Cave Buttes Recreation Area will most likely provide a combination of passive and active recreation opportunities to residents within a five-mile radius or service area. Ball fields, swimming pools, and golf courses are some examples of active recreation facilities. Passive facilities could include multi-use trails, group picnic areas, playgrounds, or educational centers.  For more information call:  (602) 262-7901.

5)  North Mountain Park

At 2,104 feet and 2,149 feet in elevation respectively, North Mountain and Shaw Butte are landmark Phoenix peaks in their own right. This area offers more than summit climbs; an array of trails of all levels of difficulty offers something for everybody. At it’s highest point, North Mountain elevation is 2,104 feet.  Shaw Butte tops out at 2,149 feet.  The major plant species found in the park are typical of those found in the lower Sonoran Desert and include bursage, brittlebush, creosote bush, palo verde trees and saguaro cactus.  Overall, more than 300 species of plant life are found in the area.  For more information call:  602 262-7901.

Communities Near Stetson Valley

9 Things To Do Near Fireside At Norterra, Arizona

by | Jan 16 2012 | Leave a Comment

Come to Fireside at Norterra, nestled against a mountain preserve, this spectacular community offers an intimate and peaceful hillside setting while being conveniently located between Scottsdale and Downtown Phoenix in Arizona.  Below is a list of 9 fun things to in the local area:

1)  Heard Museum

Every major city, and most minor ones, have museums.  The Heard Museum is unique, however, not only in the exhibits that are displayed, but the style and grace with which they are displayed.  Heard museum has more than 32,000 pieces of cultural and fine art.  There are permanent exhibits, like the famous Barry Goldwater collection of Kachina Dolls, as well as special exhibits year-round.  Some of the special annual events include the World Championship Hoop Dance Contest which is held each February, and the Heard Museum Guild Indian Fair & Market each March.  The museum is located at 2301 N. Central Ave. in Phoenix.  For further information contact:  602.252.8848.

2)  Desert Botanical Garden

The Desert Botanical Garden has one of the world’s finest collections of desert plants.  It is one of only 44 botanical gardens accredited by the American Association of Museums.  At the Desert Botanical Garden you will find 50 acres of beautiful outdoor exhibits.  Home to 139 rare, threatened and endangered plant species from around the world, there is no finer place to enjoy desert beauty than the Desert Botanical Garden.  The Garden is located in Papago Park in Central Phoenix.  For further information contact:  480 941.1225.

3)  Boyce Thompson Arboretum

The Boyce Thompson Arboretum brings together plants from the Earth’s many and varied deserts and dry lands.  Approximately 3,200 different desert plants can be found within the arboretum, and most of them can be seen along the 1.5 mile main trail. During wildflower season, the Boyce Thompson Arboretum is especially beautiful, displaying all the wonderful colors of the desert. Are you a bird lover?  More than 250 species of birds have been recorded at the Boyce Thompson Arboretum.  For more information contact:  520.689.2811.

4)  The Phoenix Zoo

The Phoenix Zoo has more than 1,000 animals on exhibit.  Because the Zoo makes a special effort to provide the animals with appropriate habitats, some of them may be a challenge to see.  Keep looking!  The zoo also offers many attractions such as the Safari Train, the Endangered Species Carousel, and pedal boat rentals.  The zoo is located at 455 North Galvin Parkway in Phoenix.  For further information contact:  602.273.1341.

5)  The Scottsdale Museum of Contemporary Art

The Scottsdale Museum of Contemporary Art focuses on modern and contemporary art, architecture and design.  There are five galleries that showcase changing exhibitions and works from the Museum’s growing permanent collection.  The Scottsdale Museum of Contemporary Art features an outdoor sculpture garden.  The Museum presents a variety of educational programs and special events for adults and families, including lectures, docent-led tours, workshops and classes.  For further information contact:  480-499-8587. 

6)  South Mountain Park

At over 16,000 acres, South Mountain Park and Preserve often is considered the largest municipal park in the country.  There are more than 50 miles of trails for horseback riding, hiking and mountain biking.  Dobbins Lookout, at 2,330 feet, is the highest point in the park accessible by trail.  If you aren’t into hiking, biking or riding, you can simply drive to Dobbins Point to get a fantastic view of the Valley of the Sun.  It’s just over 5 miles from Central Avenue to Dobbins Lookout.  The park is located at 10919 S. Central Avenue in Phoenix.

7)  Phoenix International Raceway

In 1964, when Phoenix International Raceway was carved out of the foothills of the Estrella Mountains, it was intended to be a new jewel in the crown of American open-wheel racing.  Today, PIR has a tradition that is unmatched in the world of racing.  If you love the excitement of racing cars then be sure and include the Raceway in your vacation plans.  For further information contact:  866-408-7223.

8)  Arizona Science Center

Spend the day in the fantastic Planetarium, or enjoy the spectacular, informative IMAX films on a five-story screen, view enriching exhibits, or test out one of the over 300 hands on activities.  There are also special events to enjoy all year.  Whatever you choose, there is something for every member of your family.  For further information contact:  602-716-2000.

9)  Out Of Africa Wildlife Park

Out of Africa Wildlife Park is an opportunity to see animals from all over the world, especially Africa.  Visitors enjoy an authentic replica of a real African Bush Safari.  Out of Africa is home to hundreds of wild-by-nature, animals.  Sit back and ride the tram while you enjoy a Safari experience.  Watch the giraffes, zebras, antelope and more in their natural setting.  The Park is open Monday through Sunday from 9:30 am to 5 pm year-round.  For further information contact:   928.567.2840.

7 Things To Do Near Las Sendas, Arizona

by | Jan 3 2012 | Leave a Comment

Surrounded by both the Usery Mountains and Tonto National Forest, residents of Las Sendas in Mesa, Arizona, enjoy beautiful scenery in addition to having a golf course, sports courts and numerous walking paths all on-site.  Below is a list of 7 things to do near this beautiful southwestern community:

1)  Desert Botanical Garden

Botanical Gardens Near Las SendasNestled amid the buttes of Papago Park, the Garden is home to the world’s largest and most diverse collection of succulent plants, including rare and endangered species from around the Southwest.  There are often special events such as the Las Noches de las Luminarias displayed during the holiday season each year and musical shows in the gardens.  The gardens are located on Galvin Parkway in Phoenix.  For further information, call:  (480) 941-1225.

2)  Dolly Steamboat

Enjoy a 90-minute “nature cruise” or “twilight dinner cruise” aboard the Dolly.  You’ll step back in time to America’s riverboat days.  The captain will share interesting facts about the historic Apache Trail, Canyon Lake, and the legend and lore of the Lost Dutchman’s gold.  The company is located in Apache Junction.  For more information, call:  (480) 827-9144.

3)  Arizona Museum of Natural History

One of the premier museums in the state!  “Dinosaur Mountain” is the largest dinosaur exhibit west of the Mississippi River.  See a constantly flowing 50-foot-high indoor waterfall and hear the thrilling roar of life-size, animated dinosaurs, including a saber-tooth cat and a Columbian Mammoth.  A mini-environment re-creates the Petrified Forest featuring a Cretaceous aquarium with live descendants of prehistoric creatures such as sturgeon and turtles who haven’t changed in 65 million years.  And much, much more!  The museum is located in Mesa.  For more information, call:  (480) 644-2230.

4)  Commemorative Air Force Aviation Museum

The Arizona Wing is the home of Sentimental Journey, the most authentically restored B-17 Flying today. Warbirds from WWII through Vietnam are also on display. Memorabilia from WWII can also be viewed. Warbird flights available or shop at our gift shop.  The museum is open daily.  For more information, call:  (480) 924-1940.

5)  The Phoenix Zoo

Whether you want to see the wide variety of animals, visit the petting zoo, do the “wild walk,” ride the Safari Train or the endangered species carousal, the Phoenix Zoo has it all.  There are also caverns, lagoons, and a discovery farm.  The Zoo is located at 455 N. Galvin Parkway in Phoenix, Arizona.  The entrance to the Zoo is off Galvin Parkway in the heart of Papago Park, between McDowell and Van Buren.  For further information, call:  (602) 273-1341.

6)  Golf!

Mesa is a golfer’s paradise with outstanding rates and all-inclusive or ala carte golf and vacation packages offered all year round.  Mesa is home to some of Arizona’s most renowned golf offerings designed by the best including Robert Trent Jones, Jr., Jack Nicklaus, and Pete Dye.  With more than 40 golf courses within a half-hour drive of downtown Mesa, the choices are endless.

7)  Mesa Arizona Temple

Since its dedication in 1927, the Mesa Arizona Temple for Latter Day Saints has greeted millions of visitors of all faiths from across the world.  This universal gathering place, which is set on 20 acres in central Mesa, hosts two nationally-recognized events each year including the World’s Largest Easter Pageant every spring and the Christmas Lights Display every winter, touted by Good Morning America as one of the best light displays in the country with more than 600,000 lights.

Communities Near Las Sendas

6 Things To Do Near Tartesso

by | Dec 13 2011 | Leave a Comment

Here is a list of 6 things to in or near the community of Tartesso in Buckeye, Arizona.  The town is rich with nature and a family atmosphere.  Neighborhood parks, nature trails, wide-open spaces, and access to the White Tank Mountains are an integral part of Tartesso, where families enjoy spending time together.

1)  Buckeye Valley Museum

The Buckeye Valley Museum was etablished in 1954 and run by volunteers until 2007 when the Town of Buckeye took over operations of the local museum.  The Museum is a great place to learn about Buckeye and its early beginnings.  Special Collections and Exhibits – Historic photographs, family histories, Hohokam pottery, artifacts from the early establishment of the Town of Buckeye, Arizona, Buckeye High School year books dating back to 1928.  The museum is located on 116 East Hwy. 85 (10th Street and Monroe).  Admission is free and contact information and hours are as follows:

Open September through June
Wednesday & Thursday 12:00 – 4:00
Friday & Saturday 10:00 – 4:00
Phone (623) 349-6315

2)  The Desert Skydiving Center

The Desert Skydving Center is located in Buckeye at 3000 S. Palo Verde Rd.  Whether you are an advanced skydiver or looking to make your first jump, the center provides an experienced and friendly staff on hand to assist you.  There are three types of jumps: 

Static Line
After only 5 hours of hands on training you’re in command of your first skydive.  As you jump from 3,500 feet or 5,500 feet, the parachute is automatically pulled open by a static line.  You will enjoy a 5-7 minute ride under your modern ram air parachute.

Tandem
You will need only 30 minutes of training because you’re harnessed together with an expert.  Jumping from over 2 miles high, you will freefall for 40 seconds, pull your own ripcord and enjoy an exhilarating 5-7 minute parachute ride.  You’re learning as you go on this low-pressure high-thrill skydive.  It’s a perfect first jump for those wanting a quick adrenaline adventure

Accelerated Freefall 
During the 8 hours of training, you will learn all of the important points of skydiving for the first time.  Using the real equipment you will practice exits, freefall, canopy control, and landings.  Then, with 2 instructors at your side, you will leave the airplane from over 2 miles high, freefall for 50 seconds, pull your own ripcord and then enjoy a breathtaking parachute ride.  You will feel a real sense of accomplishment as you land with our state of the art equipment.

3)  Buckeye Town Park

Things to do in TartessoTown Park boasts a brand new X-Wave play element for ages 2-12 years old.  There is a fully staffed pool in the summer months as well as a Skate Park.  You can picnic, swim, play and just enjoy the outdoors.  You may contact park staff at:  480-350-8625.  The park is located at 207 N 9th Street in Buckeye.

4)  Raven Golf Club

Raven Golf Club offers golfers experiences unique to their environments with superior course conditioning and exemplary guest service.  Each Raven golf course must pass a comprehensive annual 136-point inspection, which evaluates every aspect of the golf operation.  This ensures a consistent level of excellence and quality throughout the network of Raven branded golf courses.  Raven Golf Clubs have become some of the most highly acclaimed daily-fee golf courses in the world. 

Phone:  623-215-3443
Located at 4242 North Golf Drive in Buckeye

5)  K1 Indoor Go Cart Racing

Arrive and Drive allows individuals, be they seasoned pros or novices, to come in any time (except in the event of a private party rental) and feel the rush of adrenaline from the green, eco-friendly electric karts.  If you feel the need for speed, you can visit one of the public indoor karting centers to see firsthand what K1 Speed has to offer.  Battle it out with friends and family and see who can set the fast lap!  There are two locations in Glendale and PhoenixPhone: (602) 275-5278

6)  Katydid Insect Museum

The Insect Museum is a tiny strip-mall museum affiliated with an exterminating company, but has an astonishing collection of live and mounted bugs!  It’s a hands-on place!  Lizard and bearded dragons are on leashes.  The majority of the bugs tend to not play well with others.  There are 20,000 specimens in all to get your fill of reptiles, turtles, tortoises, beetles, roaches, millipedes, and scorpions. 

Hours:  Monday through Friday from 11am to 4pm
Admission is under $5 for adults and even less expensive for children
Phone:  623-931-8718
Located at:  5060 W Bethany Home Rd # 7 in Glendale

10 Things To Do Within 10 Minutes Of Sun River

by | Nov 28 2011 | Leave a Comment

Positioned on the southeast edge of the Phoenix suburb of Chandler, Arizona, the residents of Sun River have the advantage of enjoying the open Arizona desert to the south and the perks of the city life just to the north with restaurants and shopping centers, golfing and more!!

Following are 10 things to do within 10 minutes of this wonderful southwestern town:

1)  Hamilton Aquatic Center

The Hamilton Aquatic Center was named the “2001 Outstanding Facility” by the Arizona Parks and Recreation Association!  Enjoy a variety of amenities including a zero depth play pool, current river, two water slides and an eight-lane competition pool.  The pool is located at Arizona Avenue and Ocotillo.  This large aquatics center is jam packed with swim lessons and other water programs for young and old alike.  You can reserve the center for swimming parties, take advantage of the lap pool (which has designated hours specially for lap swimmers), join a swim team and more.  Or just come out and enjoy some time in the water with your family.

2)  Chandler Center For The Arts

Chandler Center for the ArtsThe Chandler Center For The Arts is jointly owned and operated by the City of Chandler and the Chandler Unified School District, and programmed by the Chandler Cultural Foundation, a separate non-profit corporation.  In addition to providing big-name entertainment, the Center hosts nearly 40 performing arts groups in the Phoenix metropolitan area, and prides itself on community education and outreach.  Tickets for events can be purchased online at Ticketmaster online or onsite at the Chandler Center for the Arts Box Office located at 250 North Arizona Avenue in Chandler.  The box office is open Monday through Saturday.  You can call 480-782-2680 for hours of operation.

3)  Chandler Skate Park

The mild Phoenix climate makes this a perfect area, all year long, for outdoor skating.  Whether you have inline skates, roller skates or a skateboard, it is likely that there will be a skate park near you where you can skate on a great surface and get the most of your skating experience.  Since the day it opened to the public, the Chandler Skate Park has earned a reputation that attracts some of the best skateboarders in the world to south Chandler. This spacious, 35,000-square-foot facility has been designed for all skaters no matter how skilled.  It is a free, non-supervised facility for use by skateboarders and in-line skaters.  The Skate Park is located at 4500 S. Basha Rd.  Amenities include concrete bowls, decks, blocks, and metal rails, as well as a ramada and playground adjacent to the Skate Park.

4)  Chandler Museum

Take a step back in time at the Chandler Historical Museum.  The facility, located at 178 E. Commonwealth Avenue, displays artifacts from Chandler’s long and storied past.  New exhibits are displayed regularly.  Entrance is FREE and the museum is open Monday through Saturday, 11 a.m. to 4 p.m., holidays excluded.

5)  Chandler Fashion Center

Chandler AZ Fashion CenterRight off the Loop 101 Price Freeway at Chandler Blvd., shoppers from Chandler, Gilbert, and south Tempe find this mall very conveniently located.  The Chandler Fashion Center offers an indoor/outdoor shopping experience and boasts over 180 stores including all the big names like Ann Taylor, Eddie Bauer, Abercrombrie and much, much more.  Very near the mall you’ll find a wide variety of eateries as well including Kona Grill, Chipotle Mexican Restaurant, Firebirds Rocky Mountain Grill, My Big Fat Greek Restaurant, Rockfish, and Dave’s Barbecue just to name a few.  There is also a 20 theater Harkins movie complex at the Fashion Center. (Image courtesy of Dean Ouellette)

6)  Rawhide At Wildhorse Pass

Rawhide is an authentic frontier town, and is considered Arizona’s largest western-themed attraction.  Located off I-10 in Chandler, Arizona on the Gila River Indian Community, activities at Rawhide include gunfights and stunt shows, mechanical bull rides, gold panning, real blacksmiths and live country music.  You can take an old fashioned western photo with your family in authentic old west garb.  You can shop for clothes, hats, toys, and gifts.  You can also enjoy the Rawhide Steakhouse and Saloon with live entertainment and a full, sit-down western meal.  If you want to visit an attraction or go on a ride, prices are posted and tickets are available at several ticket booths on Main Street.  The “Town Pass” entitles the holder to enjoy all the shows and attractions as many times as they’d like in one day and only costs $15 per person.  The Town Pass may not be offered during the summer months.  Parking is free at Rawhide.

7)  Bear Creek Golf Complex

Bear Creek Golf Course in ChandlerBear Creek Golf Complex is a 36-hole inland links golf facility consisting of both a long and short course.  The Bear Championship Course stretches to 6,825 yards from the back tees and plays to a par 71, The Cub Executive Course is a fun, sporty par 59, 3,501-yard course.  Bear Creek is a unique and exciting place.  In addition to two golf courses they have a full Practice and Learning Center, staffed by PGA Professionals who are available for both individual and group lessons.  Bear Creek Golf Complex is located at 500 East Riggs Road in south Chandler, 1/4 mile east of Arizona Avenue.

8)  Historic Downtown Chandler

Recently designated a National Register Historic District, Historic Downtown Chandler offers a unique collection of eclectic art galleries, trendy shops, a micro-brewery, the Arizona winery and award-winning, independent restaurants making Downtown Chandler a favorite stop on your Arizona itinerary.  While the area has the unique distinction of being the only downtown area in Arizona to feature both a micro-brewery and Arizona winery, this is also a great place to spend an afternoon, wandering through the one-of-a-kind shops, taking in a festival, breaking for a delicious lunch, and perhaps spend some time in the park.  You can visit the Downtown Chandler Community Partnership website for more information.

9)  Festivals

The Chandler area around Sun River hosts many festivals at different times of the year.  The annual Jazz Festival offers residents and visitors an opportunity to enjoy a fine selection of jazz musicians.  The weekend long event takes place in the spring each year.  Another popular festival is the Ostrich festival which is a community family event featuring live ostrich races and ostrich-themed activities, national and regional entertainment, a Saturday morning parade, a carnival, food, interactive activities for children, and much more.  The City of Chandler has a colorful and long standing tradition of Ostrich Ranching.  Chandler and Maricopa County led the nation in raising ostriches for their stylish and expensive plumes.  A complete list of festivals by month can be found on the Chandler Festivals and Special events website.

10)  Veterans Oasis Park

Veterans Oasis Park in Chandler is more than simply a recreational area with grass, paths and a pond.  This is actually an important part of Chandler’s reclaimed water processing where treated waste water is redistributed to recharge basins in the area.  That gave the city the opportunity to develop the park as a riparian and wetland habitat to share with the community.  The entire park covers about 113 acres, 78 acres of which are designed for groundwater recharge and wetlands.  The park can be found at 4050 E. Chandler Heights Rd. Chandler, AZ and their phone number is 480-782-2890.

10 Things To Do Within 10 Miles Of Arrowhead Ranch

by | Nov 15 2011 | 1 Comment

Characterized by picturesque mountain views and serene waterfront plots in Glendale, Arizona, Arrowhead Ranch has become widely known as the home of some of the most desirable properties in the Grand Canyon State.  Nestled in the foothills of Thunderbird Mountain, this master-planned community offers everything from championship golf via the Arrowhead Country Club to world-class shopping at the Arrowhead Towne Center.  Following is a list of 10 things to do within 10 minutes of this lovely community:

Arrowhead Towne Center

If you want to shop or eat or go to a movie, this is the place for you.  One of the newer malls in the greater Phoenix area, it is located in northern Glendale at 75th Avenue and Bell Road.

Thunderbird Park

There are about 1,000 acres of desert preserve here, the only mountain preserve in Glendale.  Major jogging trails and bike trails are here, along with horseback riding and picnicking opportunities.

Glendale Xeriscape Botanical Garden

Considered one of the best demonstration gardens in the state, the garden has over 1,000 varieties of desert plants on about 4 acres.  The walking paths of the garden are open every day, and there is no charge.  Want some ideas for your yard?  This is the place to go!

University of Phoenix Stadium (formerly Cardinals Stadium)

Home of the Arizona Cardinals, the Fiesta Bowl, and the BCS Championship Game, as well as many conventions and trade shows. The public can even take a guided tour of the stadium on non-game days.

Westgate City Center

Westgate City Center is a shopping and entertainment destination adjacent to Jobing.com Arena and University of Phoenix Stadium.  Although there are several stores there, it is known more for the restaurants and bars, as well as for the fountains and entertainment events.

Historic Sahuaro Ranch

Listed in the National Register of Historic Places, Sahuaro Ranch is just north of downtown Glendale.  Built in 1885, there are 17 ranch buildings available to be toured on this 17 acre property which also includes a rose garden.  Many special events are held at the Sahuaro Ranch, including the popular Antique Tractor and Engine Show each February.

Cerreta Candy Company

Take a special guided tour of this family-owned hometown candy factory.  They’ll show you how a sea of caramel becomes wrapped, tempting, tasty treats.  Learn how cream centers are enrobed in luscious chocolate.  These tours are about 30 minutes long and are offered Monday through Friday.

The Bead Museum

The Bead Museum got its start in 1984 in Prescott, Arizona.  Now it thrives in the heart of Historic Downtown Glendale, Arizona, just a few minutes west of Phoenix.  Here you’ll discover a fun and unique small museum dedicated to the art of beads and beading.

Cabela’s

Half huge retailer and half tourist attraction, this store for the hunting and fishing folks has a museum, an aquarium, and other attractions inside.  Cabela’s is located within walking distance from the Glendale Arena, and within about a mile of Cardinals Stadium.

And Just For Golfers

  • Desert Mirage Golf Course, Desert Mirage Course
    9 holes over 2,095 yards with a par of 31 (Public)
    8710 W Maryland Ave
    Glendale, AZ 85305-2467
    (623) 772-0110
    2 miles from the center of Glendale
  • Glen Lakes Golf Course, Glen Lakes Course
    9 holes over 2,403 yards with a par of 33 (Public)
    5450 W Northern Ave
    Glendale, AZ 85301-1406
    (623) 939-7541
    3 miles from the center of Glendale
  • Bellaire Golf Club, Bellaire Course
    18 holes over 3,493 yards with a par of 59 (Public)
    17233 N 45th Ave
    Glendale, AZ 85308-3551
    (602) 978-0330
  • The Legend At Arrowhead, Legend Course
    18 holes over 7,005 yards with a par of 72 (Public)
    21027 N 67th Ave
    Glendale, AZ 85308-6401
    (623) 561-1902
    11 miles from the center of Glendale
  • The 500 Club at Adobe Dam, Futures Course
    9 holes over 1,620 yards with a par of 28 (Public)
    4707 W Pinnacle Peak Rd
    Glendale, AZ 85310-3825
    (623) 492-9500
    13 miles from the center of Glendale
  • Adobe Dam Family Golf Center
    9 holes over 1,757 yards with a par of 31 (Public)
    3847 W Pinnacle Peak Rd
    Glendale, AZ 85310-4101
    (623) 581-2800
    13 miles from the center of Glendale

Fannie Mae’s Economic Outlook; What Will The Economy Do Next?

by | Oct 24 2011 | Leave a Comment

I read an article that said the economics and mortgage market think tank within Fannie Mae estimates a 50% chance the country will slide back into a recession by the end of the year.  On the up side, there is an equal chance the economic recovery will continue unabated, according to the group’s October 2011 Economic Outlook.

“Home prices are a key factor for any positive movement in the housing market, and the large inventory of distressed homes working their way through the market is putting downward pressure on prices,” notes Fannie Mae Chief Economist Doug Duncan.
“Now that we are entering a traditionally weak seasonal sales period, we expect home prices to show renewed declines after firming for several months,” Duncan added.

There are other dragging factors outside of housing as well such as the Greek debt crises spreading to other economies in Europe.  Closer to home, things like the scheduled expiration of various tax cuts and unemployment benefits will likely diminish monetary spirits.  Continuing financial reform is also stifling business growth.

The estimations are very much in line with other predictions.  Citing the same reasons as Fannie Mae, Moody’s Analytics Chief Economist Mark Zandi said in September there is a 40% chance the economy will slide back into recession within the next year.

Views vary at this stage in the game though – no one really knows at this point.  We can only speculate based on what we see, read and hear.

On The Brighter Side

On the more positive side of things the September employment report, while not great, showed that the economy added 103,000 jobs during the month.  The thinking is, if the economy was heading toward recession, it wouldn’t be adding jobs.

The latest piece of clarifying news came late last week in the form of stronger than expected retail sales.  Yes, consumers were spending again, and not just on necessities.  Even car sales were up substantially.

Businesses adding jobs and consumers spending money seems to indicate, in the minds of traders, that the economy may still be week, but it’s not headed for recession.

Job Situation

While the unemployment rate is too high, a number of business executives have complained they have openings they can’t fill because they can’t find qualified applicants.  Some estimates put the total of unfilled jobs as high as three million!

All of this suggests that recent worries about a double dip recession have more to do with economic problems in Europe and less about what’s happening in the U.S. economy.

While a stronger-than-expected economy is good news, for consumers it’s likely to mean that gasoline prices have stopped their slide toward the $3 a gallon mark and will probably start heading up again.

Varying opinions and mixed indicators make it tough to determine.  I check it daily because it’s so unpredictable right now.  I think the one thing everyone agrees on is that the economy will recover – it’s just a matter of when.  Hopefully, we won’t see another recession in the interim.  Let’s hope Fannie Mae is 100% wrong about their 50% prediction!

 

Best Arizona Neighborhoods for Hockey & Football Fans

by | Oct 11 2011 | 3 Comments

Looking for a home or neighborhood that’s no more than a short walk from the Phoenix Coyotes Jobing.com Arena, or the Arizona Cardinals University of Phoenix Stadium? Here are 18 Glendale Arizona neighborhoods that meet the criteria and are perfect as a second home, or your primary residence.

18 AZ Neighborhoods for Hockey and Football Fans

Showcasing Your Arizona Home

by | Sep 20 2011 | 2 Comments

Are you planning on showcasing your Arizona home for sale?  If so, you probably already know the obvious: repair broken items, clean, organize, etc. But maybe you haven’t thought of everything. Following are some things that may help you get that home sold even faster:

1. Use Neutral Colors And Decor

Of course, everyone has different taste and we all think our taste is stylish. But what you consider modern and chic may not be to interested home buyers.  In fact, it may just turn them off and send them right out the door!  When showcasing your home it’s best to use neutral colors, basic decorative items, and don’t go overboard.  You want to appeal to a large number of buyers when showcasing and the best way to do that is remain neutral rather than committed to one motif or another.  You can also solicit the advise of your agent or of a professional home designer or someone who stages homes for a living.

2. Remove Personal Items

If you can move most of your stuff out, do!  If not, pack and put things away as much as possible.  Again, your taste may not be theirs and people aren’t interested in your family photos or personal belongings.  Try to make the home inviting and comfortable when showcasing but at the same time remove your own personal element and taste.  Pack what you can and if need be, think about paying for storage space.  The less clutter the better.  It’s very difficult for someone to imagine your house as theirs if all of your stuff is still in it.

3. Check Out The Competition

You may want to take the time to visit some other open houses in your area.  What are other sellers doing when showcasing that you haven’t thought of or should avoid?  Pay attention to other potential buyer reactions to what they see and capitalize on what they like and what works.  Form your own impression and then when you get home, you may find you have a whole different view of what you’ve done with your own home.  You may discover things that you like and may even want to invest in reasonable things that you see others using to enhance the appeal of their home.

4. Invite Your Neighbors

Let’s face it, how much you get for your home affects the value of other homes in the neighborhood so it may behoove the neighborhood folks to join in your showcasing efforts and maybe even pitch in to help set it up.  They may even decide to spruce up their own properties outside to make the whole area look nicer.  They may also offer some insight on the decor and themes you’re using for showcasing your home.  Neighbors can also make the open house go a lot more smoothly by simply removing dead foliage from their yards, moving vehicles and allowing for more parking space temporarily, or just being attentive to outside noise on their part.  And it can’t hurt to have them around to develop a rapport with folks who are seriously considering your property – they’ll already feel “at home” in the neighborhood.

5. Help The Neighbors Help You

Do you live next to a hoarder?  Maybe you might politely offer to help them box up some of the stuff in their yard or haul away trash.  If they have an excessively high lawn, maybe you or your teenager could offer to mow for them.  These kind of efforts will improve the quality of the whole neighborhood.  Even if someone loves your home, they can be easily turned away by an unappealing neighborhood.  Reach out and see what you can do to help your neighbors help you!

Overall, having a cleaned, organized, welcoming home will help you sell it more quickly. Extra efforts like those listed here may help you stay a step ahead of the competition.

Return Of The Home Buyer Tax Credit?

by | Sep 13 2011 | 2 Comments

Could we possibly see the return of the Home Buyer Tax Credit?

The National Mortgage Complaint Center, a consumer advocacy group, is asking Congress to introduce legislation to restore the federal tax credit for home buyers in order to “rescue the U.S. residential real estate markets” and prevent home prices from dropping any further.

$15,000

They are asking the tax credit be increased to $15,000 and be available to every qualified home buyer, including first-time buyers, repeat buyers and investors.

The National Mortgage Complaint Center said in a statement, “With the enormous devaluations we have seen in most U.S. residential markets, we need to stop the hemorrhaging, and do something meaningful to stabilize one of the most vital aspects to the U.S. economy — our residential real estate markets.”

Last Years Tax Credit

Last year, Congress offered a home buyer tax credit for first-time and repeat buyers to help spike home buying.  The maximum allowable credit for first-time buyers was $8,000 and $6,500 for repeat buyers.  The last version of the tax credit expired on April 30, 2010.  After that the demand for housing completely collapsed (despite record low mortgage rates).

Currently there is a huge surplus of homes on the market.  The excess supply and lack of demand are causing house values to drop.  Predictions are pessimistic with declines of 5-20 percent expected over the next year or two.

Nothing’s Been Ruled Out

Apparently, the Obama Administration has not ruled out bringing back the tax credits even though Congress is not currently considering any new legislation to expand it.

Reported in the New York Times, HUD Secretary Shaun Donovan said that though it is not known whether the tax credit will be revived, the administration would “do everything we can to stabilize the shaky U.S. housing market.”

As I see it, if the first tax credit only spurred sales while it existed, and was then taken away, another credit (exclusive of other market conditions such as employment) would have to be long-term to have any real lasting affect on the market.

Time will tell so stay tuned!

Case Study: Increase Your Real Estate Marketing Success

by | Sep 6 2011 | Leave a Comment

Being a real estate agent is more than just a flashy car or pristine picture of you in a business suit with the keys to a new house. That may get your prospective clients in the door, but carrying them through to the closing table takes a little more. You have to be continuously learning and applying your knowledge and experience to produce the best possible service to your clients.

Changing Landscape

Show Appeal Realty The landscape of real estate business is changing, and the internet and other opportunities are making it easier for the client to find information, and ultimately what they want in a property. So more people are looking for ways that you can help them above what they have already learned themselves. You’ll find many clients already have their eye on a particular piece of property, and just want you to help them get the best deal.

So let me share a past transaction with you, where I learned a few things that I think could be valuable to you.

The client was an investor looking to turn his cash into a stream of income. No problem, working with a cash buyer is easy, right? Well, it typically is, but this buyer had a little different look on the investment…

When a real estate agent or broker normally values residential real estate, they look at it in a 2 different ways:

1. Market Value by Comparable Sales Approach

This approach surveys the recent history of real estate transactions involving properties close (in proximity) to the subject property. These properties are of similar age, square footage, and type. The sales prices of these homes are average based on approximate square footage, and then averaged out to get a price per square foot.

Let’s take an example:

  • Property 1: sales price of $147,000, 1970 sqft ($147,000/1970 sqft = $74.62/sqft)
  • Property 2: sales price of $119,000, 1650 sqft ($119,000/1650 sqft = $72.12/sqft)
  • Property 3: sales price of $133,000, 1820 sqft ($133,000/1820 sqft = $73.08/sqft)

So if you average the 3 square foot prices, you get $73.27/sqft. So you can take the square footage of the subject property, and multiply it by 73.27, to come up with the value.

2. Market Value by Income Approach

This example looks at the property by the amount of income it will produce. So if you know that a property will produce, say, $15,000 in rent per year, and you have some $5,000 in expenses, you know that your net operating income is $10,000.

Again you would use the comparable sales approach to survey the current market capitalization rates. A capitalization rate is calculated by taking the net operating income of a property, and dividing it by the sales price.

Once you have an average capitalization rate, you then take the net operating income of the subject property, and divide by the capitalization rate.

So let’s say the capitalization rate is 10.8%. Here’s the equation:

Subject Property: $10,000 Net Operating Income / 10.8% Capitalization Rate = $92,592.59 Value

Most real estate agents will use one of these two methods to determine the market value of a home or small investment property.

My client was interested strictly in the capitalization rate. Because he had all cash, his money was only producing a measly 1% in a money market fund at the bank.

So he made a deal for a duplex for $99,900. This property, with allowance made for property management, 25% vacancy rate, and repairs, should produce approximately $9,000 of income per year.

So if you divide the net operating income by the sales price, you get 9%. This is the capitalization rate, or the equivalent interest rate he will now be making on his money.

And the great thing about using this approach is that it doesn’t take into consideration the appreciation of the property over time. So my client essentially “rolled over” some of his money market account at 1% into a 9% interest paying property, AND he’ll get the appreciation over time. If he sells the property later, the profit that he makes will just be icing on the cake!

Looking at the Deal

So I’ll encourage you as a real estate agent or broker, make sure you know how people are looking at the deal. The more you know about what your client wants, the better you can find suitable properties to fit their criteria.

And I want to share one more thing with you about this contract. I have done two deals with this particular client, and in each case, a mistake was made at the title company, which we corrected, and in both cases, my client ended up receiving additional money on the deal.

In this case, the property closed in the middle of the month. The rents were not due yet, and therefore, as the new owner, he was entitled to receiving the portion of the rent for the remaining days in that month.

The title company did not catch this, and did not put it on the HUD-1 statement. Luckily, my broker was there to point out this mistake to them, and it added over $500 to my client’s pocket.

So Here’s the Point

You need to check all of the paperwork and documentation in a deal, to ensure that nothing gets missed. You are the only one representing your client. The other agent, the mortgage company, the title company, and anyone else in the deal really doesn’t have your client’s best interest at heart, they care about their own interests.

And typically, your client is not going to know if something was missed. So you have to be dogmatic about checking and re-checking the paperwork to make sure it is error free. Like I said, both of the deals I did with this client had a mistake, one that would have cost him money, if it wasn’t caught.

So let me sum it up. It is important for you to be continually learning as you go through your real estate career. Make sure you find out and give your clients what they want. And then, be the hound dog that sniffs out any possible problem with the documentation, and especially, the closing statement. You will no doubt win your client’s trust, and they’ll probably even recommend you to their friends. And referrals are probably the most powerful form of advertising you can get for your business.

Guest Author: Jeffry Evans markets Belton real estate, located in central Texas. He also works with other real estate agents, brokers, and investors to take their real estate internet marketing approach to the next level.

8 Tips For Closing Escrow

by | Aug 30 2011 | 1 Comment

I used to be an Escrow Officer (E.O.) and I realize I took a lot for granted because I learned things that I normally wouldn’t have known as a home buyer before that experience.  Following are some things I learned along the way that might be helpful.

1)  Buyers: Read The Mortgage!

That’s right, that 20+ page document that places the lien on your property from the bank.  It would be unrealistic to think that  a buyer could do this in the time they are allotted for the closing.  So I used to contact buyers up front and offer to give them a copy to review before the day of their closing.  Then I would go over the major points on each page in the actual closing so the buyer actually understood what they were signing.  A lot of things can happen in the fine print.  Just think of the difference it would have made with bad loans that were done in the last 5-10 years if buyers had actually read and understood what they were signing!?

For example, some mortgages used to be written in such a way that even if the buyer didn’t have Private Mortgage Insurance or a Mortgage Insurance Premium, the lender still rolled insurance into the loan at the buyer’s cost in case of default.  I am no longer an E.O. so I don’t know if this is still taking place – make sure you read the fine print!  In fact, it wouldn’t hurt to get a copy of the whole loan package and review it before the closing.

2) Watch Your Debt

Buyers should never accumulate debt while in the process of closing on a home. Lenders consider factors such as debt ratio (the ratio of debt to income) and the credit score, for example, to approve loans.  They will recheck the financial situation of buyers prior to closing, typically repeatedly.  Especially if the transaction takes a long time to process which is common today with short sales and the like.  By going out and accumulating debt, a buyer is increasing their debt ratio (if income doesn’t increase as well) and lowering their credit score (which happens every time an entity pulls a hard, or full, credit report). 

If it’s pulled a lot in a short period, the score can decrease even more because the buyer now appears to be a risk to the lender.  So even though it may be tempting to buy appliances in anticipation of moving into a new home, it is smarter to wait until after the escrow closing to do so.  Buyers should also be aware that lenders will check bank accounts.  If Uncle Jim is generous enough to lend his nephew Bob $10,000 to help purchase a home and Bob doesn’t normally hold that much money in his account, you can bet the bank will question it.  In fact, unless money like this is bank approved, it’s not even allowed! 

Why?  Because the lender will avoid anything that could cause a problem with the loan and from their perspective, good old Uncle Jim may come back at some point and claim to own part of the house due to his substantial down payment.  Not to mention that if Bob is attempting to pay back a debt to Uncle Jim, he may find himself struggling to pay his mortgage payments to the bank.  Buyers should avoid this and at the least, be able to explain extraordinary income.

3) Full Disclosure

Buyers should always give full disclosure when they apply for a mortgage. Underwriters are known for being very stringent when it comes to verifying (repeatedly) the facts on a buyer loan application.  This process has gotten even more stringent as mortgage guidelines have tightened and lenders have made the underwriting process more and more thorough.  It is important to note, that the underwriter is the one who approves the funding of the loan, allowing the lender to wire the funds for the loan closing.

It’s also very important to make the lender aware of any changes such as marital status, changes in employment, or new credit issues.  The lender will find out about these things and this could bury the transaction altogether.

4) Know What’s On Title

On a short sale for instance, the title will be checked just before the closing a second time and can reveal legal judgments and liens against the seller that have been placed on the property right up to the day of closing.  For both buyers and sellers, it’s very important to request a copy of the title report on the property.  Any outstanding liens, encroachments, etc., have to be addressed and even if they’ve been taken care of, they still have to be cleared on the title report.

This can require some time and paperwork depending on the issue.  There’s nothing worse for either party then to get to the point of closing and find out that the deal will have to wait another number of weeks for a title issue to be cleared up.  Things such as bankruptcies and divorce can also present a problem without the necessary paperwork on record such as a final divorce degree or the paperwork clearing a bankruptcy.

5) Have Realistic Timelines

Buyers should be cognizant of how long it may take for them to find the right home and close on it if they are pre-qualified. A number of things can happen that extend the time from prequalification to closing for buyers, especially in short sales and bank owned transactions

The terms of the prequalification can change over a period of time and buyers do not want to find this out at the closing table.  Something else to note is that any changes that have to be made to loan documents can often require a whole new loan package since one change can affect many different documents that are based on the stated loan terms.  This is another good reason to get documents in advance and review them before the closing.

6) Close at Month-End

Buyers should try to schedule closings toward the end of the month whenever possible. Doing so, minimizes the amount the buyer pays in prepaid interest, which is added to the costs of the loan.

7) Consider Tax & Insurance Implications

If a buyer would rather pay their taxes and insurance in escrow to avoid the hassle of paying the bills when they come in, they can do this.  However, they should keep in mind that the bank is holding this money in escrow and consequently making interest on it as they hold it.  I personally would rather pay the bill and keep my interest!

8) Ask questions!

A good escrow officer should know how to properly explain loan documents in such a way that buyers can understand them.  While they are not responsible for the bank documents, they should be able to explain closing documents when they notarize signatures (they should at least explain their own).  I’ve seen this diminish quite a bit in the current market as title companies further protect themselves from liability (who doesn’t nowadays?).

However, if the E.O. can’t or won’t answer questions on the actual loan documents, they should contact the lender and have them do so.  For instance, the Truth In Lending (TIL) is one of the main documents to understand.  The amounts reflected on a TIL indicate to a buyer not only what they are paying in full over the life of the loan but also show the APR which when compared to the actual interest rate on the loan, indicates how much the loan actually costs.

There is so much to think about at closing time.  Reviewing documents in advance and asking questions in order to truly understand the transaction, can save a lot of headaches for buyers (and sellers), at the time of closing, and long afterward!

Six Tips for Making a Successful REO Foreclosure Offer

by | Aug 22 2011 | Leave a Comment

Cruise through nearly any neighborhood across the country and you’re likely to discover an REO foreclosure. An REO (Real Estate Owned) foreclosure home is one owned by the bank because the bank did not receive the minimum bid on the home during the foreclosure sale at the courthouse.

Buying REOs Can Be Tricky

Now that the home has become part of the bank’s inventory, they’re likely to price it attractively in an effort to sell it off their books as soon possible. As a result, you may be able to buy the home for a knock-out price. But be prepared; buying an REO foreclosure is a bit trickier than a traditional home purchase. It’s imperative that you make an educated, reasonable offer if you want any hope of snatching an REO foreclosure property. The more you know before you begin the often complex process the greater your chances for success.

When submitting an offer for an REO foreclosure property, keep these six tips in mind:

  1. Research three months of comparable sales. Select only those that closely match the REO foreclosure home with regard to amenities, number of bathrooms, number of bedrooms, square footage, etc. Keep in mind that REO foreclosure homes are generally priced a bit below comparables.
  2. Determine the bank’s purchase price on the Trustee’s Deed or Sheriff’s Deed, and then compare that figure to the bank’s asking price.
  3. If the REO foreclosure listing has been on the market less than 30 days, the bank is unlikely to deviate much from their asking price. Generally, the longer the home has been on the market, the greater your negotiating strength. If your offer is rejected, try resubmitting it in another 30 days.
  4. Take a look at the REO listing agent’s sold properties. Compare the list price of several properties to the sale price. This will give you an idea of the list-price to sales-price ratio the listing agent’s properties generally fall within and might give you a good idea of where your offer needs to come in.
  5. Realize that REO foreclosure homes are often priced to attract a great many buyers which generate a number of competing offers. Some offers may be cash, which banks smile upon. And some offers may be for more than the list price. Realize you’ll need to be flexible with your REO foreclosure offer if you want to close the deal.
  6. If you need financing, be sure to get pre-approved and send a copy of your pre-approval letter with your offer.

A final word of advice

When submitting an offer on a REO foreclosure property, do not neglect a home inspection. It’s true that there are many REO foreclosure deals out there to be grabbed but there are also some lemons. Most REO foreclosures are “as is” properties and what first appears to be a bargain may suck your wallet dry with repair costs. Be sure your offer stipulates that the property is subject to a home inspection.

Residential Housing Vacancies in the Phoenix Metro

by | Jul 11 2011 | 1 Comment

This table succinctly explains the total number of homes that exist within the city/area, the number currently vacant, and the the percentage vacant. There is no percentage (%) of accuracy or error provided with these statistics, however at the end of 2010 there were approximately 91,000 vacant homes in the Phoenix metro area.

Why Such High Vacancy Rates in Arizona?

Low Inventory on the ARMLS

Source: U.S. Department of Housing and U.S. Postal Service

Shadow Inventory?

This information provides us with some type of an idea that there are quite a few homes that are just plain vacant. I don’t want to continue the “Urban Myth” that there is a lot of shadow inventory out there, however when you see the numbers from these two federal agencies this clearly illustrates my point that the supply is artificially low right now on the MLS and at trustee sale as well.

Your Thoughts

So what gives, what’s the scoop, don’t see much of this in the local news media? Why only 21,000 active home listings on the MLS when there are over 91,000 vacant homes in the Greater Phoenix metro area?

Would love to hear your thoughts on this, anybody with a good idea on when the inventory levels will go back up on the MLS?

Related Article: Where Have All The Properties Gone?

Financing You Can Understand

by | Jun 27 2011 | 1 Comment

In this video, Elizabeth Warren, a professor at Harvard Law School and the Chair of the Congressional Oversight Panel for the Troubled Asset Relief Program (TARP) who is also the developer of the Consumer Financial Protection Agency, shares her knowledge and insight on financing, how it’s changed and how important it is for lenders to become transparent. 

Note what she says about capitalism – the idea is not to avoid capitalism but to feed it with transparent lending policies and terms thus, encouraging a stronger economy.

Also note that the idea that consumer credit would be restricted by this is not necessarily true – no one wants to say “you can’t charge certain fees” or “you have to charge particular fees,” they’re just saying, make it clear to the consumer and let them decide!

Saving Money on Flooring: Worth It?

by | Jun 21 2011 | Leave a Comment

Flooring is a huge expense. In fact, most of us put it off because it’s so pricey. Both my best friend and I have redone some flooring recently and we have totally different experiences. In my case, I’ve actually tackled flooring twice in the last few years – although the second attempt is ongoing. Ask any do-it-yourselfer and you’ll get an earful about saving money by installing flooring yourself. After all, it’s tedious, but certainly not rocket science. And I should know, I grew up in Houston surrounded by rocket scientists.

Flooring Projects: DIY or Outsource?

In my first house, we ditched the builder-grade carpet after about six years. We didn’t have a huge budget, but we also didn’t have the confidence to try installing anything ourselves. We were first time home owners with an eye on reselling the home in the next year or so, and the nasty carpet was standing in our way. We also really didn’t want to mess up anything that would affect the home’s value.

We paid a flooring company about $10,000 to put in 1,200 feet of laminate flooring. The laminate was nice, but not top of the line. The price included busting out tile that was poorly laid by the builder and had cracked after two years. It also included all of the necessary underlay and trim. We bought the flooring and hired labor from a boutique shop that had favorable terms – no interest for a year, and since we were planning to sell in that timeframe, we thought we’d pay back the loan from the proceeds of the sale. Easy.

Exactly 13 months later and some big juggles to avoid incurring interest on the special loan, we were out of that house and had enough to cover realtor fees and about 80 percent of the floor. We then turned our sights on the new 3,000 square foot fixer-upper in the perfect neighborhood. We knew going into this house that it was going to be a lot of elbow grease and not much cash to spend.

Why? Partially because we realized, as we watched the last batch of floor installers, that laying flooring isn’t that big of a deal. We also realized that flooring is much cheaper at a warehouse if you’re willing to do the dirty work than paying for the luxury of having it done for you. Finally, we also knew we were stretched big on the budget just to get into this house – there wouldn’t be much money for the house for at least a few years. So, after three years of cheap carpet in every room including the bathroom, it’s time to redo all of the flooring myself. And I’ll admit I like it better this way.

DIY Flooring: Never Again!

My good friend, let’s call her Shanna since that’s her name, had her husband install flooring in her house. They were renting an old farmhouse her parents planned to tear down in about ten years to make room for a very large home surrounded by the old trees on the acreage. They didn’t want to invest money in a home that wasn’t theirs and with a handyman husband, it made perfect sense to do an inexpensive laminate flooring job to make the house home for the next five years or so.

Shanna’s husband worked hard and got the entire downstairs refloored in about a month, working a few days at a time. Shanna, meanwhile, lived with her two daughters in the middle of the construction zone during this time. When I made it over for a play date with my two sons, I praised the flooring – it looked great, and after recently paying big bucks for my floor, I was jealous she had hers done for so much less.

She looked at me, shook her head and confessed that she would never want to do it again. She would much rather pay the premium and hire the job out. It would have been done in a few days and she would have been much more at peace during the process.

Flooring: The Hard Way

After hearing Shanna’s experience, I was hesitant, but the budget was tight enough that it was do it myself or don’t do it at all. So I’m doing it myself. After shopping around for engineered hardwood flooring, I hit a jackpot and scored a Manager’s Special for $1 per square foot. That meant I loaded up 950 square feet of wood in the back of the Expedition and drove it home from a giant warehouse.

About 600 square feet of the flooring is still in boxes behind me three months later. My living room has had a concrete slab floor for over a month, and we can’t use the front door because my husband is still working on destroying the ultra-hip 1970’s tile we discovered in the foyer. Shanna would probably have had a heart attack months ago living in these conditions, but it’s a matter of preference and budget.

At the end of this summer, come Spanish tile or high water (Hey, it’s Houston in hurricane season after all) I’m going to have a downstairs completely redone in oak engineered hardwood flooring. It will be a glue-down installation and trimmed beautifully. Best of all, after only six months of hardwood, wood glue and painting trim, I’ll have it all for about $2,000, and even in the current housing market, I’m reasonably sure I’ll be making quite a bit more than that on the investment of time and money.

DIY Flooring: Is it for you?

Shanna couldn’t live this way, but I don’t have a problem with it and it doesn’t faze my two boys or husband one bit. Most homeowners aren’t interested in doing their own flooring, but as the economy continues to slump and house values stay low, there’s not a huge incentive to spend much on improvements since there may never be a return. If you need new floors, and you’re handy or brave enough to pretend you are, why not give it a try? Throw on some work clothes and save some serious dollars. Hopefully you’ll be one of us who never regrets a mess for an outstanding finished product.

Guest contributor: Rebecca Garland is a freelance writer who enjoys a range of topics including following the trends in Texas and Naples property. Rebecca is a Houston resident currently enjoying her busy life with two boys in a Clear Lake fixer-upper that is wonderfully located and endlessly in need of updating. You can read more about Rebecca on her professional writing website.

Arizona Expects Job Growth

by | Jun 7 2011 | 3 Comments

Good news for Arizonians!  The Arizona Department of Commerce recently reported in its bi-annual employment forecast that for the first time in three years, the state is expected to start gaining jobs in 2011.  Economists predicted the state will add about 17,300 non-farm jobs an increase of about 0.7 percent.  While meager, this is promising news for Arizona.  In fact, some experts expect gains of up to 2 percent.  The commerce department expects gains in 2012 could be even better, with an addition of about 34,600 jobs, or 1.4 percent of the state’s total.

Contributing Factors

There are numerous factors contributing to this positive outlook such as improvements in the national economy, stronger business and consumer spending, slightly better bank financing, and a weak dollar that may encourage foreigner visitors.  Foreign investment is already evident in the local real estate market.

However, there are still many threats to the economy such as high unemployment, weak housing markets, reduced state and local spending to include state cuts in medical spending for the destitute, and increased gas prices, that could affect the state’s most steady source of jobs which are in the medical field.

Strongest Sectors

Private education and health services are the two most promising sectors which could see a 3.6 percent gain.  Leisure and hospitality would be a close second at 3 percent.  The rise is likely as health care providers, hotels and resorts, and education companies hire more employees.

A Scottsdale-based economist, Jim Rounds, notes that the “recovery is just basically beginning six months later than (we expected) before.”  Notably, Arizona added about 2,500 jobs in February and March, compared with a year earlier, according to the Labor Department.

Job Fairs

Job fairs show signs of improvement with about 1,300 Arizona applicants landing jobs at a McDonald’s national hiring event April 19th.  The food store Bashas’ sent out a news release announcing job fairs as it looks to fill more than 400 full and part-time positions for its Food City, Bashas’ and AJ’s Fine Foods locations.

Forecasts

The consensus forecast among 15 Arizona economists is calling for an addition of 24,000 jobs, or about 1 percent this year compared with 2010.  Commerce Department economists expect certain sectors to do better than others based on job growth to date but conceded that some factors such as the state’s plans to shrink its health-care plan for the poor could reduce medical and other jobs.  Still, the department predicted the health care, private-education, leisure, and hospitality sectors will add jobs at higher percentages this year than other sectors, at 12,500 jobs (or 3.6 percent) and 7,700 jobs (or 3.1 percent), respectively.

Next year, the natural-resources and mining sector is forecast to be the job-growth leader with a 4.3 percent increase because an improved worldwide economy should spur a demand for Arizona’s copper, the Commerce Department said.   The private-education area is doing well because many adults have been going back to school, specifically online.

The leisure and hospitality sector, which caters to tourists, business travelers and local residents who patronize restaurants and hotels, is expected to add 7,700 jobs this year and 9,700 in 2012, partially due to a weaker dollar which could attract more world visitors.

So even with concerns such as rising gas prices and health care cuts, overall, a positive outlook for Arizona and a glimmer of hope that we will slowly start to recover from the recessive economy.

Three Sensational Places to Eat in Gilbert, Arizona

by | May 30 2011 | 4 Comments

Just a bit southeast of Phoenix you’ll come by Gilbert, Arizona. Positioned within the Phoenix metropolitan area, Gilbert exudes charm and boasts amazing accolades. Ranked by news hound CNN as the “36th Best Place to Live in the nation” in 2010 and as the “safest municipality in Arizona, 24th safest in the nation,” by the FBI, Gilbert has quite a reputation to live up to. Have no fear, its great restaurants step up to the plate. Here’s a peek at three sensational places to eat in Gilbert, AZ.

1. Euro Cafe


Located at: 207 N Gilbert Rd. Gilbert, AZ – Phone: 480-962-4224
While the atmosphere and décor are modest, you’d be hard pressed to find a more complete menu in the state of Arizona; it’s colossal! There truly is something to please everyone at Euro Café. If garlic, artichokes, olives and feta are on your lists of faves, then you’re in for an especially yummy indulgence. Start off with Mushrooms Meteora: perfectly baked button mushroom caps filled with feta cheese, capers, artichoke hearts and dill. Move on and select from over a dozen salad selections, a perfect pita, or even a sensational seafood or pasta dish. Whatever you do, leave room for dessert coupled with a fresh espresso. If you don’t, we promise you’ll regret it. Open Monday-Thursday 11a-9p. Friday and Saturday 11a-10p, and Sunday 12p-9p.

Nearby Community & Homes for Sale: The Islands Gilbert

2. Sushi Ave


Located at: 866 N Higley Rd. Gilbert, AZ – Phone: 480-218-5700
Don’t let the strip mall like location fool you, Sushi Ave is no ordinary sushi house. Step inside and you’ll be greeted by a slick décor and staff that understands the fine art of fast, yet courteous service. The sushi tastes fresh, and the portions are generous for lunch and dinner service. Sushi Ave even offers a sweet deal on happy hour, Monday through Friday 3pm – 6pm. Take pleasure in half priced sushi, rolls, appetizers, and drinks. What a way to kick start an otherwise ordinary Friday night! Kids menu available. Open Monday-Thursday 11a-9p, Friday 11a-10p and Saturday 12-10p.

Nearby Community & Homes for Sale: Higley Groves

3. Nando’s Mexican Cafe


Located at: 3519 E Baseline Rd. Gilbert, AZ – Phone: 480-633-1313
Nando’s Mexican Café breaks away from the often run-down Mexican eateries we’re all used to. In fact, Nando’s serves up fantastic Mexican cuisine from a fresh, stylish, dare we say hip location. You’ll love the vibe. Known for their pleasant patio, fast friendly service, and fab food- Nando’s Mexican Café consistently delivers. The menu offers lots of choices, from traditional Mexican fare to burgers, combo platters and kids selections. Even if you’re stuffed (which you will be) order up a round of the Chocolate Nachos for dessert. Oh, did we mention the gargantuan bar? Open Monday 11a-9p, Tuesday-Thursday 11a-9:30p, Friday and Saturday 11a-10p, and Sunday 11a-9p.

Nearby Community & Homes for Sale: Val Vista Lakes

If you’re visiting Gilbert, AZ, or if you’re fortunate enough to live there, be prepared to pack on a few pounds. The selection of great places to eat in Gilbert are truly impressive, and most are modestly priced- making flavor hopping a pleasure for your palate and your wallet. Enjoy!

Investing In Multi-Family Housing

by | May 17 2011 | 1 Comment

In today’s tumultuous economy, companies and individuals alike are finding real estate to be a particularly interesting investment sector.  While this is not a new concept, participation in this market sector has increased  significantly. One appealing strategy is to own moderate and moderate-lower income multi-family rental housing situated in primary and secondary urban areas.  It is critical to have professional property management for these facilities.  This strategy is based upon the continuing shortage of good housing in these income brackets and areas as well as a history of low vacancy rates.

Investing In Arizona Multi-Family HousingAn attractive strategy is direct ownership in forthcoming real estate acquisitions:  10 up to 100+ units.  The common experience has been that a prudent direct multi-family property can yield more attractive operating as well as long-term returns than alternative opportunities. 

Consistent Returns

Multi-family investments tend to generate relatively consistent returns due to the fact that the demand is a function of population and income, neither of which are likely to change very quickly, and both of which can be identified in emerging markets.  This strategy statistically makes sense as well with declining home ownership rates which peaked at 69% in 2004 and dropped to 66.4% in 2010.  This rate is expected to continue to drop to 64% by 2015.  Demographic changes play a significant role with a substantial jump in the older population due to the baby boomers, and the fact that 5 million households over the age of 65 rent.  In addition, immigrants are now an important element with 26 million immigrant renters who make up 45% of all rental growth between 1998 and 2008.  65% of immigrant households rent.  When you add to this a decrease in the median asking price per unit for multi-family properties, the appeal becomes even more obvious.

Multi-Family Investment Strategy

Without extensive knowledge and experience in this arena, an investor needs to have a multi-family real estate strategy which should include:

  1. Ongoing searches for real estate acquisitions that appear to be stable and profitable
  2. Once identified, an objective financial and marketing analysis should be developed to eliminate any potential acquisition that fails to meet goals for performance.  Depending upon preferences and goals, current criteria generally seek cap rates of not less than 8% and “cash-on-cash” returns of not less than 12%, loan-to-value (LTV) ratios of 70% to 80% (depending upon whether recourse or non-recourse financing is used), and debt service coverage of at least 1.25.
  3. Following an acceptable analysis, a Limited Liability Company (LLC) will often be established to ultimately take title to the property.
  4. The LLC will then present an Offer and undertake the subsequent “due diligence,” e.g., professional property inspection, professional appraisal, title search, ASTM E-1528-00 Environmental Transaction Screen, and lead paint and asbestos inspections, if required.
  5. The satisfactory completion of “due diligence” and ultimately a Purchase and Sales Agreement.  If the due diligence examination uncovers problems or deficiencies that cannot be cured, the negotiations should be terminated.
  6. Following execution of the Purchase and Sales Agreement, negotiations will be initiated to secure mortgage financing.
  7. All due diligence analyses and reports are made available to all parties to facilitate timely decisions as the goal is to negotiate expeditiously, which is in the best interest of the buyer and the seller.
  8. All conditions of the transaction (i.e. terms, interest rates, amortization, and payment schedule) are to be designed to meet owner’s financial goals.
  9. While understandably subject to the constraints of the Seller, the target is to complete a transaction within 60 to 75 days of the initial commitment to proceed.

This is a good list to follow.  Avid real estate investors will want to consider these types of opportunities because with the demographics listed above, a huge upward pressure on occupancy and rental rates may very well make this a golden age of multifamily housing!

How a Home Warranty Can Save You Money…And Time

by | May 9 2011 | 2 Comments

Most of us are all-too-familiar with Murphy’s Law:  “Anything that can go wrong, will go wrong.” If you are a homeowner or a real estate agent selling a home, you’ve probably used this phrase more often than you’d like! When the dishwasher breaks, the typical repair could cost $200, or even $600 to replace.  The refrigerator conks out –$500 to repair or $1,000 to replace. And don’t even think about the costs involved when it comes to your heating system — get ready to fork out upwards of $2,500 for a typical replacement.

But with a home warranty, if the repair or replacement is covered in your contract, then the low tradecall fee, which averages $60 but varies by state and contract, would be your only cost to repair or replace the item.  How’s that for peace of mind?

Having a home buyers warranty not only saves you money, but it also saves you time.  Now, you never have to worry about taking the time and energy to search directories for service contractors or repair technicians or wonder whether you can trust an unfamiliar one.  Usually, when a covered item breaks down due to normal use, you simply dial a toll-free number 24/7/365 and an authorized service technician will be dispatched to handle your needs.

Costs and coverage vary by state but often include a far-reaching range of appliances and systems from ranges/cooktops and built-in microwaves to door bells, heating/AC systems, plumbing, permanent sump pumps and even whirlpool tubs.

If you or your clients are ready to find a home warranty plan, here are some tips to keep in mind:

  • Look for a company with longevity.  Make sure the company you select has been around for many years and has a solid track record.  
  • Read their Better Business Bureau rating. Companies with very high BBB ratings tend to be more reliable and responsive to consumers.  Choose a company with an A+ BBB rating.
  • Seek “green” options.  Want to save on energy and help the environment?  Look for a green home warranty option, which uses ENERGY STAR qualified products to replace your dishwasher, water heater (to a tankless), kitchen refrigerator, clothes washer and furnace (to 90% efficiency).
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  • Ask for – and expect – knowledgeable help.  Make sure a customer service representative helps you understand your contract and that you know exactly what appliances and systems are protected under your home warranty.

So, next time you’re ready to host a party and that little voice inside your head is repeating Murphy’s Law, relax: a home warranty can help solve your problems without breaking the bank.

Guest contributor:Home Warranty of America, Inc. (HWA) of Buffalo Grove, IL, was founded in 1996 to provide home warranty coverage for houses, town homes, and condominiums. HWA offers a 30-day, money back guarantee on every home warranty. More information is available at www.hwahomewarranty.com.

6 Ways To Beat A Slow Real Estate Market

by | May 5 2011 | 3 Comments

Are you selling your home or thinking of selling your home? Don’t let a slow market get you down. Instead, take action and increase the chances of getting your home sold faster and for more money. These tips should help you stand out from the sea of homes in today’s buyer’s market:

Give Your Home A New Makeover

Before you go and buy all new appliances, get someone you trust to take a look at your home from a different set of eyes. You can ask your local Realtor to come look at your home and give you advice on what things can be done to make your home look new again.

Be sure to ask the Realtor to give you honest feedback and take what they suggest as constructive criticism. You can also hire a local designer for a quick run through. They should be able to give you samples of flooring, paint, fixtures, and quick fix items that would make your home pop.

A Pre-Inspection Can Save Your Sale From Buyer’s Cold Feet

If you do a home inspection before you put your home on the market you can fix any problems upfront before a buyer finds them. You can also let the buyers know you’re home is in tip top shape and ready to be moved into.

A professional inspector will go throughout your house form the roof to the basement checking every minor detail. Knowing your house has no surprises can give you confidence when a buyer writes an offer. This will give you negotiating power and help you get more money for your home.

Fix Any Problems Upfront Before Putting Your Home On The Market

Every home has something that can be fixed unless it’s brand new. If you’re inspection showed problems with the home or potential problems such as an aging furnace, get them fixed right away. Don’t put your home on the market knowing your home has problems.

If you know it, you have to disclose it, and buyers won’t be willing to pay top dollar for a home that needs repairs. They can buy a foreclosure instead. So, make the fixes before you market your home and that way you won’t have anything negative hindering your potential sale.

Hire A Stager

Stager’s can do some amazing things with a home that many people just don’t see. A professional Stager will be able to make your home dazzle and stand out from the competition. If you can’t afford a Stager, try to think about how a buyer would see your home.

Are there a lot of personal items that distract from your homes other features? Does your entrance entice buyers to keep going? Get rid of the clutter and remember, less is almost always more.

Hire A Full Service Brokerage

A full service brokerage will do more than put your home on the MLS and a sign in the yard. In today’s market it’s important use every avenue of marketing and expertise available. Full service agents have the connections and experience to get your home sold in any market.

You can find a great agent by talking to friends and family, but don’t stop there. Make sure you check out their online presence and see if they are tech savvy. In today’s world buyer’s are looking online more and more. If you have a Realtor who doesn’t know how to post your listing to all of the hot listing sites, you’re losing out on ton of potential buyers.

Price Your Home Correctly From The Beginning

If you followed all of these steps and over-priced your home, they wouldn’t matter. Buyer’s today have access to more information than ever before. They know the homes that are priced to sell and the ones that aren’t going anywhere. Buyer’s are very picky in a buyers market. They want the best home for the best price in the best neighborhood.

If you’re home doesn’t fit that description, you’ll be sitting on the market for a long time. You can make sure your home is priced right by doing what buyers do. Research homes in your price range online and have your Realtor walk you through your competition to get a feel of what you need to do to stand out. If the homes in your price range are in better condition than yours, you’ll need to beat them on price to get it sold.

Guest contributor: Lisa Udy, an Ogden Utah real estate agent servicing both Weber County and Cache County in Northern, Utah. You can read more by Lisa by visiting her Logan Utah real estate website.

Spending Is On The Rise

by | Apr 12 2011 | 1 Comment

Consumer spending was up for the 8th straight month in April and rose 0.7% in February, 2011.  However, vacancies are up too.  Residential vacancies largely steeped by foreclosures are depressing home prices and values and future numbers don’t look promising.  Vacancies are up 13% over last week’s report and up 12.1% from 2007 levels.  But despite the vacancies, in late 2010 the economy grew better than analysts expected.  The commerce department showed the Gross Domestic Product (GDP) was up 3.1% in the last quarter of the year, due partially to large rises in corporate profits.

Inflation accelerated as it’s fastest rate since June 2009.  Incomes also increased in February by 0.3%.  Spending is expected to have slowed however, in the first quarter of 2011.

The good news is, even with all of the vacancies, housing is spread liberally across the market.  Pending home sales compiled by a National Association of Realtors (NAR), were up by 2.1% in February over the month before.  While this is 8.2% below figures from 2010, this is still a promising trend.

Dr. Lawrence Yun, NAR Chief Economist says,  “Month-to month movements can be instructive but in this uneven recovery it’s important to look at the longer term performance.  Pending home sales have trended up very nicely since bottoming out last June even with periodic monthly declines, contract activity is now 20% above the low point immediately following the expiration of the home buyer tax credit.”  He went on to say that while we may not see notable gains in home sales in the near term, sales are expected to rise 5 to 10 percent this year.   Job creation and more affordable conditions will allow for more confident buyers in the market and thus, increased spending and more home sales.

Documents Needed To Buy or Sell Real Estate

by | Apr 5 2011 | 3 Comments

In the bigger picture, it’s all about fraud, hardship, and qualification.  Are you who you say you are?  How can you prove that?  Do you truly have a hardship that requires a short sale?  As a buyer, do you have adequate, stable income?  For all of these instances, having the appropriate paperwork readily available can save tons of time and heartache.

Typical Lender Required Documents

Identification
State-issued ID, drivers licenses, or passports can also be used.  Buyers and Sellers have to provide this to the lender to ensure identity and avoid fraud.  Additionally, you will be asked by the closing agent for this when you close escrow on the house because they are notarizing your signatures and have to verify your identity to do so.

Proof Of Income (POI)
POI is needed and this usually consists of two months or more of your pay stubs from employment.  If you’re self employed, you will be asked to provide copies of your 1099 tax forms.   In a short sale, lenders want to see POI from the sellers to substantiate their financial hardship and the purchase price for buyers is determined in part by their income.

Two Months of Bank Statements
These are required for buyers because lenders want to see stable, long-term income and verify that the money belongs to the borrower.  For short sellers, this is part of the documents required by the seller’s lender to establish a hardship.

Two Years of Tax Forms
Two years of tax forms are required by lenders for short sellers to establish a hardship and as another tool to review the seller’s finances.  For buyers, again, lenders want to see stable, long-term income.

Two Months of Mortgage Statements
Sellers with mortgages will need to provide at least two months of mortgage statements. This provides the information the escrow or title company will need for getting applicable payoffs to be included in the real estate closing.  These payoffs must be included before the title to the property can be insured covering lenders for new loans on the title and clearing the seller from all obligations (i.e. making sure the title is free and clear for the sale).

Short Sales
You’ll want to remember that because of the length of the transaction, all the documents required by buyers and sellers has to be updated, typically every 2 months for the lenders. This is one of the areas that holds up short sales the most – make your buyers or sellers aware of this up front and prepared to provide their documentation regularly so as not to slow the process.

Other Miscellaneous Documents

Divorce Decree
For instance, if a divorce has taken place since the property was purchased, the lender will want a copy of the divorce decree to ensure that the seller has a right to sell the property exclusively.  Buyers may need to provide this for name changes and/or to show that they are not responsible for the credit history or debts of their prior spouse.

A Quit Claim Deed or Disclaimer Deed
This type of deed may be necessary for married buyers and sellers who are living in a community property state such as Arizona.  If you are married and buying property, your spouse will need to sign a disclaimer if you want to buy the property in your name only.  A seller who is separated for example, but not yet divorced, will need a Quit Claim Deed if their spouse is not to gain proceeds from the sale or be part of the transaction.

Disclaimer: This is not legal advice, talk to the title company or lender involved as they can inform you of any documents that are needed for any situation and legalities.

Short Sale Q&A

by | Mar 14 2011 | Leave a Comment

Often when a home is foreclosed on by lenders, they are left with [sometimes substantial] losses.   For example, if the lender loaned the homeowner $100,000.00 and it is still owed when the home is sold in foreclosure for $80,000.00 the lender is now out $20,000.00. 

What is an Anti-Deficiency?

In some states lenders are given the ability to sue the homeowner for these losses or “deficiencies.”  Arizona’s anti-deficiency statutes actually prevent lenders from suing a homeowner for losses on a home after foreclosure.  As outlined in Arizona Revised Statutes, Title 33, Chapter 6.1, a person may not be sued by their lender if the property is located on 2.5 acres or less and is a single family residence or duplex (this only applies if the decrease in value is not due to negligence on the homeowner’s part).  Notably, if a lender seeks a deficiency judgment in Arizona, they have 90 days after the sale of the property to begin judicial proceedings to recover any losses.  If they fail to do so, they may forfeit their right to recover the deficiency.  The only exception to Arizona’s anti-deficiency statutes are VA loans. VA is allowed to obtain a deficiency judgment despite current state laws that prohibit such actions.

What is a Deed in Lieu?

The homeowner can avoid a deficiency judgment altogether if they deed the property back to the lender prior to foreclosure.  This is known as a deed-in-lieu of foreclosure.  By accepting the deed, the lender is agreeing to accept the property for the amount the homeowner (mortgagee) owes, thus eliminating any potential deficiency.  Keep in mind, if a homeowner deeds the property back to the lender, they may be taxed on the amount of the deficiency that was forgiven by the lender.  In other words, if the homeowner in the example above deeds the home back to the lender, the lender will forgive the $100,000.00 loan and accept the $80,000.00 as payment in full.  However, the homeowner may now have to report the $20,000 as taxable income on their next tax return.

What is a Short Sale?

A short sale is a real estate transaction in which the seller’s mortgage lender agrees to accept a payoff of less than the balance due on the mortgage loan.  Short sales are better for the homeowner than foreclosure because they are somewhat easier to recover from and they aren’t quite as bad on a person’s credit report.  A short sale transaction takes place between a buyer and seller and the seller’s lender and their investor who actually owns the mortgage note (such as Fannie Mae or Freddie Mac) as well as the  buyer’s lender, if applicable.  The investor of the seller’s mortgage has  a lot of control in a short sale.  They can dictate many of the terms of the sale such as the selling price, the allowable commission amounts to real estate agents, and what they will and won’t pay for on the seller’s side of the transaction.  Short sales can be cumbersome as there is a lot of documentation required by the seller to their lender such as their financials, a hardship letter explaining why they stopped making their mortgage payments, proof of income, W-2 forms, and bank statements.  In addition, short sales can take a long time while information is collected and buyers are qualified.  Moreover, many negotiations often take place between the seller and their lender and the buyer and their lender, as well as between the two lenders.  With so many entities involved and so much required for a short sale, buyers often give up waiting and forego the transaction altogether.  Many short sales have more than one buyer as a result and the process is drawn out even more as new buyers get qualified and sellers have to provide updated information regularly.  A short sale is further complicated if the homeowner has two mortgages, which is often the case.  The first mortgage lender may not agree to pay off the entire amount on the second mortgage and this can put a standstill on the short sale as negotiations take place between the two.  However, lenders do have an interest as they stand to take a smaller loss on a short sale than a foreclosure and under the new Home Affordable Foreclosure Alternatives (HAFA) program, they receive a monetary incentive for participating. Investors get $2,000 in exchange for sharing proceeds of the short sales with any second lien holders and second lien holders receive up to $6,000 for releasing their claims.

Who Should Take Advantage Of Short Sales?

Sellers who cannot provide the appropriate information to the lender for a short sale should not waste their time.  A participating seller also has to be willing to send updated information regularly, no matter how cumbersome.  If you’re a buyer who is looking to close quickly on a home, you may want to consider other options.  A seller who is going through bankruptcy may want to avoid the short sale option since the bankruptcy has to be finalized and documented for them to continue the process.  Sellers who have personal issues such as conducting a divorce, may also want to reconsider.  The lender’s investor will require either dissolution of the marriage on paper, or any parties on the recorded documentation will have to sign in the closing and in these types of situations, many times this becomes a problem.  In general, if a seller is willing to cooperate fully, and a buyer is willing to wait, a short sale is a viable option allowing the seller to better recuperate their credit over a foreclosure and providing the buyer with an opportunity to buy a good home for a great deal.

There is free help and assistance for home owners facing the possibility of foreclosure.  If you would like to talk with someone about your situation, click here.

Where are they now? REALTOR Magazine’s 30 under 30, Class of 2000

by | Feb 23 2011 | Leave a Comment

Reconnecting with REALTOR Magazine’s 30 under 30, Class of 2000 (See the original article)

A little over a decade ago REALTOR Magazine published the first of its famous 30 under 30 lists featuring a diverse group of 20-somethings taking the real estate industry by storm. Certainly, the class of 2000 entered the real estate world just prior to some of its grandest years. But as we know all too well, a challenging period followed.

So how did members of the class of 2000 manage and where are they now? Well, we’ve tracked down these young professionals, and we’re anxious to give you an update on what they’ve been up to over the last decade. As expected, some have exited the real estate industry. But many of these ambitious go-getters are still engrossed in the real estate business. In fact, many of these bright, talented young people have truly distinguished themselves in the real estate profession.

The thread that runs through every success story we unearthed? Adaptation to the dramatic market changes of the last decade and an inexplicable love of real estate.

Creighton Faust Jr.

Creighton Faust Jr. is still a part of the same real estate company he worked for in 2000. And that is clearly a good thing. About 2 years ago, Creighton formed a team with two other top-producing agents within his office, and he is more than happy he made the conversion to the team approach. Creighton says “I recognized a long time ago that the team approach was the way of the future in real estate but it takes time to find the right people and to figure out how exactly the team is going to work. We are doing well, even in a challenging market.”

In 2000, Creighton Faust Jr. believed networking is everything. Today, he credits effective networking as a critical part of his success. Always remembering real estate is fundamentally a people oriented business, he says “being honest and responsive has been vital to my achievements. This business isn’t rocket science. It’s hard work, but if you are willing to put in the time and effort, you can have success.” It looks like Creighton’s people oriented approach is working, because at the age of 28 he became one of the youngest members inducted into the RE/MAX Hall of Fame.

Creighton and his team believe a solid marketing plan is an important ingredient of accomplishment. He says, “The last couple years with the market softening I have noticed a lot of realtors stripping out all their marketing costs trying to stay afloat financially in this business. That is difficult to do because in this climate sellers are looking at us more than ever as to ‘what do you bring to the table’.”

Creighton adds “A few years ago it felt like everyone was a realtor.  Now, our profession is being weeded out, which is a good thing for those in it full time and for the long run.” It looks like Creighton Faust Jr. is here to stay.

Cristal Robinson

Ten years ago, Cristal Robinson professed a fundamental desire to help people. Back then, she helped them find a home. Today, she’s a lawyer, and still puts helping those in need at the forefront of her everyday activities. Her focus is on business planning, taxation, real estate, and immigration.

In her spare time, she divides her energy between a few non-profit organizations, and a part-time teaching position at West Texas A&M University. While she isn’t focused on real estate any longer, it’s clear that Cristal’s boundless energy has served her well.

Loni Graiver

Simply put: Loni Graiver’s been busy the last ten years. Not long after Realtor Magazine’s 30 Under 30 piece ran, Loni became disheartened with the service his clients received from lenders, so he opened a mortgage company. A short while later he started a title company as well. By the end of 2009, he was the number one mortgage broker in the state of Maine, with $60 million in home loans. Success was sweet, but limited the time Loni had available to show homes. Loni virtually worked himself out of the real estate business.

But 2007 brought yet another real estate adventure; Loni formed the Maine Real Estate Network company. Currently supported by 150 agents, the Maine Real Estate Network is the number one individually owned real estate company in Maine.
A decade ago, Loni expressed a deep belief that real estate can be a key source of wealth creation. Today, he’s convinced more surely than ever that real estate is a very sound investment, and to that end, owns a number of properties himself.

A little over a year ago, Loni Graiver decided it was time to simplify his life- seeking out a better balance between work and play. To that end, he sold both the mortgage and the title company.

Clarence Oliveira

The synergy between Century 21 M&M Associates and Clarence must be phenomenal. It’s been ten years, and he’s still a part of the firm. After his 30 under 30 appearance in 2000, Clarence’s career skyrocketed. In fact, in 2003 he ranked # 9 Among 110,000 Century 21 Agents Nationwide.

Maybe it is his heartfelt “client first” philosophy that has been the energy behind his success. Or, perhaps it’s the relationships he built in the early years with the members of the Portuguese community. Either way, Clarence plans on continually seeking to improve his skills while looking for new and more efficient ways of doing business. It’s likely we’ll see him in still engrossed in the industry in the years to come.

Adam Kaufman

When Realtor Magazine highlighted Adam’s success a decade ago, his volume was at $40 million. Today, he’s sold over 1400 homes and over 750 million in sales. Along the way he assembled a team of four professionals to help him reach success. Adam takes on a diverse portfolio of homes; from multi-million dollar estates to modest dwellings.

Adam says, “They key to my success is that I truly love what I do. Every day I get up and have the great fortune to assist people in the sale or purchase of their home. There is nothing else I would rather do than use my expertise to make sure things go right.” It’s this kind of dedication and drive that gained him recognition as one of Cleveland Business Magazine Most Successful Business Person Under 40. It’s safe to say, Adam’s found his calling.

Mark Spain

It’s easy to say the last decade has simply been good to Mark Spain. But we all know that success in real estate is not handed to you; you work for it. Mark’s hard work and that of his carefully collected team have apparently paid off because the honors and accolades keep coming and coming. Most recently, Mark and his team of RE/MAX Greater Atlanta professionals were thrilled to be named on The Wall Street Journal’s 2010 Real Estate Top 400 Professionals list as #29 team.

Since Realtor Magazine spotted young Mark back in 2000, he has devoted himself to success in the industry. In 2006 he exceeded the billion dollar sales mark of lifetime dealings. And remarkably, that seems like just the beginning of his triumphs. Mark Spain Team’s 2009 sales marked the ninth consecutive year the team exceeded the $100 million annual sales mark. And they’ve worked for it; with 453 closings for the year.

Adjusting to the market has been fundamental to Mark’s success. He tuned into market changes, and adapted accordingly. Mark has sought out continuing education for himself and his team and became short sales and foreclosure certified by the National Association of realtors. He’s also created a website geared toward homeowners facing hard times.

Frank Parks

Ten years ago, Frank Parks had just obtained his broker’s license. Not long after, he opened the independent real estate firm of Home Town Realty and it took off like a jet fighter. In just three years, Frank boasted over 30 agents. In 2007, he built a new state of the art building to house Home Town Realty.

Now, with a decade behind him, his business is more solid than ever. Frank says he modified his business with the changing market by diversifying into rental property management and foreclosure sales.  As far as the future goes, Frank says “We I try not to dwell on the past or predict the future.  Every day is a new challenge and different than the day before.  This is what I love most about this business.”

Frank is especially proud of the ribbon of generosity that runs through each and every work day. “I am most proud of our agent’s willingness to contribute to those less fortunate even in these trying times.  We have begun a mission of the month, where we support a local organization by giving time, resources or money.  We have been to several builds for Habitat for Humanity, mentor with Big Brothers Big Sisters and have donated to local food closets.” Unquestionably, Frank believes a cooperative giving to others makes for tremendous team building and morale enhancement.

At the end of the day, Frank Parks is not always measuring success in terms of dollars earned. Rather, in lives touched. “We are going to stay faithful in doing for others because our philosophy at Home Team Realty is that ‘You get what you give.’” Years ago, Frank told Realtor Magazine that he wants people “to say positive things about the way I do business,” adding “that’s more important than making a dollar.” It looks like that philosophy has served him well.

Sheri Moritz

Building on a decade of success, Sheri Moritz has transformed herself into a self-made real estate guru. Sheri is the Broker/Owner at Real Living Realty Experts. In addition, she is the trainer/owner of Boot Camp 4 Social Media. And trust us; Sheri is serious about social media. From using Craigslist to generate leads, to tracking tweets on Twitter, she has investigated the good, the bad and the ugly of social media. Sheri presents her findings via blog or virtual classroom.

Sheri works to successfully marry real estate with technology and training. Along the way she’s helping others win in the real estate industry.

Steve DuBrueler

Steve DuBrueler entered the real estate business on chance. A real estate broker bet him that he couldn’t pass the licensing exam. He won that bet hands down.

Today, Steve is the president and CEO of Coldwell Banker Commercial Capitol Realty Services, founded in 2003. He considers a strong work ethic as the foundation upon which achievement is built. Steve believes he has obtained success by doing the simple stuff “basic hard work and a dedication to do things that others were not willing to do.” He adds that long hours, adapting marketing strategies and embracing new technologies are key elements to reaching his goals.

Steve reinforces what we’ve heard from other professionals regarding change. “With the current financial climate we have had to adapt to the market in order to continue to grow. Basically we are working hard as or harder than ever.” But his genuine enthusiasm makes it clear that real estate is his calling. “I enjoy spending time helping and training others.  I really get a charge out of seeing them succeed.”

What’s the future hold for Steve Dubrueler? “I want to spend more time working with Big Brothers and Big Sisters with events like Climb for Kid’s Sake which I do every year.  This year it looks like we will be in Russia to ascend one to the seven summits to raise money for the cause.”

Eric Birchler

A decade ago, Eric Birchler was dubbed the “Man with a Plan.” It looks like his planning has paid off. Over the last ten years, Eric has been a busy man.

He is proud to say he has purchased his family real estate business; one that’s been serving Lavallette, NJ for over 50 years. Now he is the broker of record and owner of the company. He’s also married to the girl he had just begun to date when he was acknowledged in Realtor Magazine’s 30 under 30 article and they have two children.

Somehow, Eric managed balance the demands of work and family life and even squeezed in enough time to go back to school. That’s remarkable. He received his BS in Business from Mount Saint Mary College and his Masters Degree in Real Estate from New York University. Eric says “I encourage the members of our real estate team to pursue higher education for themselves. It isn’t easy to balance work, family and education, but I really believe in its importance.”

Eric believes success in real estate is built upon seemingly simple factors “know what you’re doing, and put in a lot of hard work.” The man with the plan is clearly following his own advice.

Matt Dopp

Back in 2000, Matt Dopp said he closed the majority of transactions from referrals. Today, he’s still a firm believer in treating others how you’d like to be treated and believes in the importance of referrals. It looks like his straightforward philosophy is working for him.

Over the last ten years, Matt’s built achievement upon achievement. In fact, just over a year ago he became the owner of Utah Executive Real Estate, employing over twelve of Utah’s top-notch agents.

Today Matt focuses heavily on new construction and land development, and says “adapting to real estate’s changing conditions has been critical for survival and vital to my success.”

Eric Goosen

In 2000, Eric Goosen was branded an accomplished multi-tasker. That certainly has not changed. Over the last ten years, Eric has paired his multi-tasking skill with his passion for real estate and created a sweet combination that has catapulted him to the top of his field.

In 2005 he sold his brokerage to Real Estate One. He decided to stay on as an Associate Broker, and that has proved to be a smart move. Eric sells about $5 million a year, and with an average sale price of $70,000, he is really moving some property. Clearly, Eric’s pleased with his decision to stay on at Real Estate One, and it remains the largest real estate company in Michigan.

In addition to selling real estate, Eric has diversified into fixing and flipping houses. He’s branched out to investors, which has significantly increased his ability to work on more than one home at once – often having four homes in some stage of flipping simultaneously.  He says “I try to keep at least two in the process at all times – I spend a lot of time at Lowe’s, but we’re in this to do it right, and even include all the appliances.”

Another big achievement for Eric? Landing a city contract to sell homes. Here are the basics as Eric explains “it’s called the Neighborhood Stabilization Program and it’s a federally funded project in which a home is bought, fixed up and re-sold by the city.” Mark adds enthusiastically, “last year I did ten homes, this year I’m doing nine – thanks to the help of agents from my office, I’m having all nine open on January 23rd!”

While Eric says he works crazy double digit hours nearly every day, he still loves what he does, and is always looking to improve. Most recently, Eric has become involved in Lowes Realtor Program. So what can we expect the future holds for this go-getter? Eric says “I expect to be doing real estate until retirement – I love it, and every sale is still a victory!” Enough said, his passion is infectious!

Ryan Bishop

Ryan Bishop is still absorbed in the real estate business. He, like many others, has changed with the times. A decade ago he concentrated on first-time and move-up buyers, but today he’s focused on helping Washington home owners avoid foreclosure.

Ryan is a real estate agent with Windermere Real Estate City Group in Spokane, WA but he is also an active member of the Stop Foreclosure Institute. The Institute trains real estate agents in a number of ways to help homeowners facing foreclosure. From loan modification kits to helping sellers stop distressing collections calls; Ryan is there to lend a hand. Of course, he’s also prepared to assist homeowners with a short sale of their home when appropriate.

Steve Osburn

Steve Osburn has been in the real estate business for about 15 years now, but he still approaches each day with the enthusiasm of his first. This bank-auditor turned real estate mogul is now proud to say he is the designated broker and owner of Windermere Real Estate/Capital Group, Inc. in Idaho. Steve prides himself on staying at the forefront of industry laws and market trends – believing every client deserves the most informed agent.

In addition to running a first-rate company, Steve finds time to give back to his community. Recently, he served on the Board of Directors of the 2009 Special Olympics World Winter Games held in Boise, Idaho.

Tammy Mitchell Hines

Ten years ago Tammy Mitchell Hines told Realtor Magazine that most of her leads come from “manning the office phone.” It’s apparent that her long hours of phone duty paid off. Tammy is now the owner, broker of Tammy Mitchell Hines & Co. in Illinois, leading a hard working group of top-grade real estate professionals.

Tammy guarantees first-rate customer service by staying involved in her company. While she concentrates on working with sellers, she devotes a significant amount of time to coaching and mentoring her team. Her goal is to ensure that her team remains cohesive, productive, stimulating and fun. And her clients enjoy a stellar real estate experience as a result.

This high-energy professional manages the demands of family life, the fast pace of real estate, and still finds time to give to others. One project she is especially proud of is the $1000 yearly scholarship that she gives to an area high school student to use toward the college of their choice.

Ryan Searle

Ryan Searle has been on the ride of his life since Realtor Magazine spoke with him in 2000. He’s hit highs and lows, and managed every emotion in-between.

Ryan sold his Colorado real estate and mortgage company in an effort to spend more time with his young family. But like a true businessman, it wasn’t long before he saw a new opportunity; the foreclosure market. Ryan worked hard and enjoyed extraordinary success in the foreclosure market, but a significant lawsuit soon followed. After a lengthy battle, Ryan moved on with life, and began a new business in Texas.

Ryan says that those difficult years helped him grow, and remind him that “family is what matters most.” You can knock him down, but it seems Ryan Searle is a fighter.

Jennifer Berg

It appears as though Jennifer Berg’s career has come full circle. In 2000, she had recently left her career as a marriage and family counselor and enjoyed incredible success in real estate. Now, a decade-plus later, she has returned to her previous profession. Currently she is working as a Licensed Psychotherapist and continues to pursue higher education.

Jeff Quintin

Without a doubt, Jeff Quintin has accomplished a great deal during the last ten years. He’s still in the resort market of Ocean City, New Jersey helping mostly second home buyers find their dream beach house. But he has propelled his success using the team method he professed a deep belief in a decade ago. Jeff now leads a productive team of about a half dozen real estate professionals who sell an impressive assortment of million dollar plus resort homes.

Jeff’s recipe for success blends one part lead generator with two parts team builder and tops the mixture with relentless drive. It’s a formula that’s working.

Russell Williams

Ten years has changed much in the life of Russell Williams. A young family and a growing list of investment properties are just a few of the transformations. The result? Russell’s commitment to real estate only intensified. Indisputably, this focused professional is reaping the benefits of dedication.

It’s easy to hear the pride in Russell’s voice when he explains “I’ve been in the real estate business for 20 years, and I’m still working with Prudential.” Clearly, his devotion to Prudential is worthwhile. About three years ago he was asked to lead a Prudential real estate office in the high-end community of Wacthung, New Jersey. He jumped at the opportunity.

Russell continues to maintain his own listings while leading a sizable team of agents. Russell explains “some people want to manage exclusively…but I want to keep working with people, and I think the connection through my listings actually helps me be a better manager.” Russell couldn’t be happier with the course his professional life has followed since 2000, saying “I’m just going to keep on doing what I enjoy.”

Marc Messinger

Marc Messinger sold his successful real estate business in 2007 and invested the money into a few franchises. Once the franchises were up and running smoothly, Marc searched for his next challenge. He found it at Edward Jones.

A decade ago he channeled his energy into helping first time homebuyers; now he assists seniors as a Financial Advisor. Marc says “ten years ago I spent a great deal of time putting on seminars for first time home buyers and I really enjoyed it.” Today Marc presents seminars to seniors preparing for retirement with the same zeal, adding “I’ve found working with seniors to be very rewarding- I get a great deal of pleasure from it.” From finding first homes, to securing a comfortable retirement, it seems as though Marc has a knack for helping others realize their dreams.

J. R. Sangiuliano

JR Sangiuliano is still in the real estate industry. In fact, he’s still a vital part of Century 21 JRS Realty located in Clark, New Jersey. JR also spends a good deal of time blogging about the ups and downs of various aspects of real estate- offering his audience a wealth of knowledge.

Unfortunately, we were not able to reach Araceli Tamez, Ted S. Byer, Tim Murphy & Kristi Colzani, Ian Benge, Cindy Wrenn, Bill Margita, Elsa Giefer, or Chylene Ward.

Add Value to Your Home with Home Alarms

by | Feb 16 2011 | Leave a Comment

In today’s Arizona real estate market, there are many homes available in all ends of the economic spectrum from luxury to budget. For sellers, installing or updating a home security system can greatly increase the value of a home and its sales potential. Home buyers seek out housing that’s safe and secure. Properties protected by home alarms have substantially more curb appeal than unprotected homes.

Phoenix & Scottsdale Burglary Statistics

After all, from Scottsdale to Phoenix, robberies, burglaries, and thefts are an unfortunate dark cloud over Arizona’s sunny landscape. According to Citydata.com statistics, for every hundred thousand residents, there were over 1,300 burglaries alone in quiet, suburban Scottsdale in 2009. Phoenix saw over 16,000 burglaries in the same period per one hundred thousand residents; vandalism and theft similarly, affect thousands. The best way to avoid being part of such statistics and to convince potential home buyers that they won’t become a part of them is by securing your home. The Greenwich Study of Residential Security reports that residences without alarms were up to 3.5 times more likely to be burglarized than secured homes. And, installing a security system will not only encourage home sales and create a safe environment for your family and future residents, it can also decrease your home insurance costs. Perhaps most importantly for home sellers, an up to date home security system will not only help draw buyers to a home, it can actually increase the value of the property. In other words, installing a security system may mean a substantial increase in your sales price.

Increasing Home Safety

The key to increasing safety and sales through home security is utilizing a package of security features. Home alarm systems that protect a residence from potential intruders and theft should also include monitoring systems, capable of alerting home owners to fire or carbon monoxide danger as well as having the capability to notify security personnel and local law enforcement should an emergency occur.

Installing an alarm system with these features increases a home’s value and increases the chances of a timely sale. And of course, the better the alarm system, the higher your home value and the lower your insurance costs. Professionally installed, up-to-date wireless monitoring systems that feature adequate motion sensors offer a high return on your security investment.

Keeping Your Home Safe

Taking both safety and sales appeal a step further, property owners should be sure that their home includes reinforced front door locks, sturdy window locks, and automatic garage door openers as additional crime deterrents. Lawn areas should be cleared of overgrown trees or brush that conceal a home from sight and allow any hiding places for would-be intruders. A clear street view from windows and doors greatly discourages intruders. Lighting is also important; as is installing a warning sign on your property indicating an alarm system has been installed.

Remember, in today’s real estate climate, Arizona home owners increase not just their own safety and property value, but also greatly increase the appeal of their property to potential buyers by protecting their homes. Installing a technologically up-to-date home security system means greater home value and safety, and enhances the possibility of a faster and more profitable sale.

Guest Contribution: Ed O’Brien is passionate about home security. Having to learn the hard way about adequate home security, he offers free advice and knowhow to those looking into purchasing home alarms.

Avoid Housing Discrimination

by | Feb 14 2011 | Leave a Comment

Under the Civil Rights Act of 1968, which is sometimes referred to as the “Fair Housing Act,” it is illegal, in almost all circumstances, to discriminate in the sale or rental of residential property based on race, religion, national origin, and sex. This law was amended in 1988 to add disability and marital status to the list of protected categories. This is a federal law, and applies everywhere in the United States.

Housing Discrimination Laws

Additionally, some states and cities have housing discrimination laws that prohibit discrimination based on characteristics not covered by the federal law, such as sexual orientation and gender identity. Thirteen states currently have laws that ban housing discrimination based on sexual orientation, and several cities outside those states have done the same.

Still, despite all of these laws, which are generally enforced pretty aggressively, the U.S. Department of Housing and Urban Development (HUD) estimates that there are approximately 2 million cases of unlawful housing discrimination every year in the United States.

Don’t Be a Victim

So, what can you do to avoid being the victim of housing discrimination, and what can you do if you have been victimized? There are several things.

  1. First, and most obviously, if you see a real estate listing that clearly states a discriminatory preference (“Eskimos need not apply,” for example), don’t respond to it. Vote with your dollars, and simply refuse to do business with such a person. Also, it’s illegal to state a discriminatory preference in an advertisement for housing, so you should file a complaint with HUD. Most acts of discrimination are far more subtle, however.
  2. Because spotting and avoiding owners who intend to engage in housing discrimination is key, you should be aware of some of the common discriminatory practices that are much more subtle than a real estate listing that comes right out and states a discriminatory preference. One of the most common discriminatory practices is to simply decline the applications of members of a particular group. If you happen to belong to the group that the renter or seller doesn’t like, you might find your application rejected, with no reason given. In these cases, there’s often no way to tell that discrimination even took place. It’s possible, however, with the advent of online reviews, to see if a landlord has a pattern of rejecting qualified renters of a particular group, while accepting renters who do not belong to that group, even if some of them are less qualified. This is much more difficult to prove than the blatant (but rare) discrimination discussed above, but filing a complaint with HUD may trigger an investigation, if there is evidence to support it.
  3. If you determine that you have been a victim of housing discrimination, you have a few options, and need to consider which, if any, of the remedies available to you are worth pursuing. Obviously, filing a complaint with HUD is the easiest option, as it only takes a few minutes. However, there’s no guarantee that HUD will do anything with your complaint.
  4. If you decide to file a lawsuit against a renter or seller, you will have a lot of work ahead of you. First of all, you’ll need to hire a good lawyer who specializes in housing discrimination. You should also prepare yourself for a long, drawn out process, which has no guarantee of success.
  5. If you don’t want to file a lawsuit, you might consider making your concerns known to the public. There are many websites that are set up to let tenants and applicants review landlords, especially in major cities. If you know for a fact that a landlord engages in discrimination, you can make this known to the public, to discourage others from renting from the landlord. However, making such a claim against a person can have serious consequences, and you may find yourself facing a lawsuit for defamation.

Legal Rights

Housing discrimination, sadly, remains a problem in the U.S., and many other parts of the world. However, if you have been the victim of housing discrimination, you have legal rights and many different options at your disposal.

However, pursuing a claim for housing discrimination can be costly and time consuming. For that reason, it’s best to take steps to avoid being victimized in the first place. This will save you a lot of time, energy, and grief, and it will also deprive a landlord who would engage in unlawful discrimination of your business.

Guest Contribution: John is a writer for LegalMatch.com and the LegalMatch.com Law Blog. The above article is intended for informational purposes only, and should not be construed as any form of legal advice.

Interior Remodeling 101

by | Jan 24 2011 | Leave a Comment

Considering some home enhancements? Whether getting ready to sell or just looking to spice up the homestead, some interior remodeling projects offer a better return on your investment then others, while some can definitely help sell your house faster. Consider these six tips to be a crash course in remodeling 101.

Flooring

If your carpeting, tile or hardwood flooring have lost their luster even after a thorough cleaning/polish, it’s time for something fresh. Neutral colors such as tan or gray will go with just about anything. Avoid dark colors and the dreaded white.

Kitchen

This is an area where a little money goes a long way, and most of the work can be done by you. Kitchen cabinets can be resurfaced or painted and adorned with snazzy new hardware to update the look. Stained sinks are a no-no, even if they’re in good working order. Non-leaky faucets are also very important.

Bathrooms

Sharp bathrooms can make or break a home. New floors, fixtures and sinks can add a lot of visual punch in this small area, and a good deal of greenbacks to your home’s value.

Walls

Paint is a no-brainer; it’s cheap and you can do it yourself. Fix cracks before painting, and remove wallpaper. Paneling can also be painted over, so if it’s out of style or out of step, paint it. Again, avoid white like the plague; go for a neutral like coffee au lait for maximum impact.

Deferred Maintenance

People typically don’t want to buy a house they have to spend a lot of money to fix. Some issues may not be worth the investment, but some can be deal breakers right off the bat. Consulting with an experienced realtor or a home inspector can help you decide which issues to address, and which to let slide.

Don’t go overboard

When prepping for a sale, going big on remodeling isn’t always better. Something like a neat fireplace or addition that raises the selling price above other homes in the area may not help, and actually it can elevate the home into a niche market where sales are even tougher to close.

Remodeling 101 is all about the details. Stick to basics—a good cleaning, some organization and fresh paint can work wonders.

Private Mortgage Insurance: What You Need To Know

by | Jan 17 2011 | Leave a Comment

What is Private Mortgage Insurance and why do I need it?
Private Mortgage Insurance (PMI) is required by lenders if a down payment of less than 20 percent of a home’s value is made. It protects lenders against loss if the borrower defaults on the loan.

How much does PMI cost?

Cost varies, but is typically between half a percent to one percent of the loan amount, depending on the specifics of the loan. The amount can be paid up front in a lump sum, or added to the cost of the loan and paid monthly. The amount of PMI required is based solely on the size of the mortgage and the down payment.

How and when can I stop PMI?

PMI can be stopped when you owe less than 80% of your home’s value.
Achieving this through paying down the mortgage is the most obvious way to eliminate the need for PMI, but other options include:

  • Reappraising your house if the value has increased.
  • Remodeling to increase the value of your home.
  • Using a piggyback loan so that the loans are less than 80 percent of the purchase price.

What is The Homeowner’s Protection Act (HPA) of 1998?

The HPA requires lenders to inform borrowers at closing, annually, and upon termination, of your rights for loans closed after July 29, 1999. For loans before this time, an annual reminder of PMI rights should be sent, but no termination reminder is required. Also, PMI is automatically cancelled when your LTV reaches 78 percent if you are current on payments. High risk loans are automatically terminated at 77 percent if current. The HPA also requires termination of PMI at the midway point regardless of LTV (for a 30-year mortgage with 360 payments, this occurs after payment 180).

Is PMI tax deductible like a mortgage?

If a family’s income is less than $100,000 per year, the full premium can be deducted. From $100,000 to $109,999 a portion can be deducted. Incomes above $110,000 receive no deductions.

What is Mortgage Protection Insurance (MPI)?

Mortgage Protection Insurance is a form of life insurance that pays off your mortgage in the event of the borrower’s death. It is not a substitute for PMI.

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Related Article

Homeowners Insurance
The Meaning of Home Ownership

Looking Forward to 2011

by | Jan 11 2011 | Leave a Comment

Values for 2010 real estate property values is history and in your rear view mirror – and that’s a very good thing. Actually, by the time you read this article the clock will have ticked into 2011, which might be the best thing can could happen to you if you’re planning on a home purchase.

2010! Values dropped nearly 12.5 percent and nobody offered anyone a financial parachute. It was a free fall. However, it will continue falling in 2011 but only about one-third as bad as 2010. Around the middle of the new year that rainbow in the sky will show up and the stop and caution lights will start turning green and property values skyrocket up about 20 percent by 2014. Amazing what a change in government policies can do.

But the National Housing Federation indicates that housing and the purchase of new and existing properties will still be somewhat of a conundrum and remain sluggish in some areas of the country since affordability is not going to improve for many low-to-middle income households. The federation also indicated that home owners who bought in 2007 will likely be waiting until 2014 to see any profit in their properties. The good news is that while home prices may be taking a hit now, they will increase in the long term. Why? Because there will be an monolithic undersupply of housing in the USA.

Determining property values in 2010 was hard to decipher even for an experienced appraiser. And breaking bad value news to the property owners, was even a harder task. Having purchased a home in January, 2010 for $300,000 to find that one year later, the value had caved to $220,000 was a hard pill to swallow. The bottom line is, values will get better and lending freed up starting in 2011.

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Salvation Army Charity Event

by | Jan 5 2011 | Leave a Comment

Details
We were the highest dollar unit in the entire Valley!
Location: JC Penney’s
Address: 5050 E Ray Rd, Phoenix (Google Map)
When: December 4th 2010 from 10AM – 6PM

Our “A Minute to Give ItSalvation Army charity event on December 4, 2010 Video!

Downtown Phoenix Development Now on the Market

by | Dec 20 2010 | 2 Comments

A new investor may have found a way to drive an affluent crowd to downtown Phoenix. More than five years after construction began on the Chateau on Central, the mansions are now being offered for sale for half the original asking price.

The Chateau on Central

These brick, seventeenth century-style units cost between $1.4 and $2.4 million dollars. Located just north of downtown, The Chateau was a lavish project to begin with. But when the financial crisis hit, the project was halted due to several tragedies. After nearly two years of construction, the building sat empty and unfinished.

But a new investor has stepped in to finish the project, and the building is truly a symbol for Phoenix. After one of the most devastating financial crashes in memory, the project has been resumed and the area will begin to thrive once more.

The Arizona Economy

The economy in Arizona is picking up, and although the housing market is still making it difficult for residents to sleep at night, things are turning around. The light at the end of the tunnel has been scheduled for somewhere around 2014. With several industries poised to gain ground in 2012, there will be a flux of people coming to Arizona looking for work and opportunity. These four-story mansions may eventual host successful investors and businessmen who plan to invest in Arizona.

A Symbol

It’s an unlikely symbol; while so many residents of Arizona are struggling to avoid foreclosure on their modest homes, mansions on the market are being hailed as great news. But these half-priced bargains will drive more money into the area, while is beneficial for the whole community in the long run.

Either way, it’s also great news to see that something is finally being done to the project. The beautiful brick structures are great for the architectural skyline of Phoenix. No matter how bad things have been in the last couple of years, the project will continue eventually.

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Arizona Housing Market Dips as Expected

by | Dec 6 2010 | Leave a Comment

Just when it seemed relief was on the horizon, Arizona is experiencing another slight dip in the housing market conditions. People are worried that the recent rise in home prices was a fluke and that the housing market will continue to worsen. But experts seem to agree that everyone saw this dip coming.

Slowest Month of Sales

October is statistically the slowest month in Arizona as far as homes sales, and this year was no exception. We are entering the slowest period of the year, to be more specific. So experts expected to see a small dip, despite the optimistic stats from August.

Recovery

In fact, the recovery all over Arizona seems to be on the right track, even if this is a small set-back. Overall, there is a growing demand for employment in Arizona, which is moving people into the area. Although the foreclosure rate is still at an all-time high and these properties will continue to flood the market well into 2011, the more people that want to buy homes, the quicker we can clean up the foreclosure mess. But people see home prices dropping and they get nervous. Things have been so bad, and a lot of people have been badly hurt financially. We are hesitant to trust the economy and spend the money we want to.

Light at the End of the Tunnel

The important thing to remember is that there is clearly light at the end of the tunnel. Possibly this time next year, more likely around middle 2012, we will see a normal market. If we work hard to fix what we broke this time, we might even have a seller’s market! Things look down, but they are supposed to. As spring approaches, more people will be buying homes, and the market will be well on its way to recovery.

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Where is the Phoenix Housing Market Headed?

by | Oct 22 2010 | Leave a Comment

Foreclosures in Arizona are high. According to abc15.com, “foreclosures now make up 45 percent of the existing homes” on the market today in the Phoenix area. With the job prospects in Arizona looking as cool as they do, and the state of banks and lending facilities today, it’s no surprise that everyone is keeping close tabs on the housing market. Is it time to buy or sell? Should my family consider renting, or is a foreclosed home a great option for me? These questions are hot topics of debate. Experts vary in their opinion, but it seems that there are two main events that need to take place before the housing market becomes more stable.

Phoenix Jobs

Firstly, there needs to be an increase in job opportunities. People aren’t working, which is the reason foreclosures are up so high to begin with. But perhaps just as importantly, people aren’t considering moving to Phoenix to find work. If more industry came to Phoenix, then people would move to the area to look for more or better work. These people would need to be housed, thus purchasing the foreclosures that have soaked the market.

Lending in Phoenix

Secondly, banks and lending facilities need to start loaning money again. Currently, even potential buyers with great credit are finding themselves turned down for loans. It’s nearly impossible for people with poor credit to find a loan. Once the banks begin lending again then the people who are interested in buying homes may, which would lead to a more stable market.

The Phoenix Market

Experts seem to agree that this is not a seller’s market. Houses cannot be sold and many people owe far more on their mortgage than the house is worth, let alone what the house could reasonably be sold for. Depending on what sort of home you are planning on buying and what exactly you intend to use the home for, it can be a buyer’s market. The most difficult part of the decision at this moment is just how unstable the whole market is. Once we have a clear idea of what direction we are moving, it will be a better time to make a decision.

Download your free short sale ebook, click here to get started.

Is it Time to Rent or Buy?

by | Oct 18 2010 | Leave a Comment

It seems that the whole country is watching the housing market with bated breath, waiting for the next move. Have we reached the bottom of the market? When is a good time to buy? Or should we continue to rent, fearful of an uneasy market and shaky lenders?

The question of whether it is time to rent or buy has a very different answer depending on what part of the country you live in. As reported in a recent article in Time Magazine, there are a handful of cities in the country where buying is your best bet. That includes both Mesa and Phoenix, Arizona. On the other hand, in places like New York City, renting is still the better option.

Now is not the time to expect to be able to quickly turn houses for profit. But to invest in your dream home, or to find a few properties to rent for the next several years, the market is good. If you have the time and resources to purchase a home, do so! More and more would-be homebuyers are scared of being burned by the housing market, and they prefer to rent. Since first-time home buyer tax credits have expired and lending guidelines are stricter than ever, it’s more difficult to jump through the hoops. But if you can dance through the fine print, this is a great time for Arizonians to snatch up some prime property.

But it bears repeating that if you’re thinking about purchasing a home, even in Arizona, plan on staying put a while. If you’re considering buying a home for your family, versus buying for investment, it may take ten years before you’ve made a cheaper decision than renting.

From that aspect, it might seem like you’ve got plenty of time to think about it. This is a potentially false sense of security. There are many banks freezing foreclosure in many states, and once the foreclosures have been processed there will be a veritable flood of foreclosed properties on the market. When this happens, it will be the time to buy property in Arizona. Financial analysts are calling for the market to turn shortly after. It will be a slow incline, but a steady one.

If you are considering buying investment property, do some research and find out what areas of the country are best to buy and which are best to rent. Depending on your long-term investment strategy, that small bit of work can make a world of difference in your portfolio.

Download your free short sale ebook, click here to get started.

Arizona Homes, a Hot Canadian Commodity

by | Oct 11 2010 | 1 Comment

In a market that is both a blessing and a curse for Arizona homeowners, it’s easy to concede that investment opportunities are incredibly abundant for those who have the money. Interestingly, the people that have those money seem to be Canadians.

As reported by MH-Global Communications Network, 25 percent of home buyers in metro Phoenix are not from Arizona, and the majority group is from outside the country, namely Canada. Not only are the cost of homes and mortgages dropping, the exchange rate is favorable as well, ending up with a potentially profitably situation for a Canadian investor.

If you’re an American considering buying a home in Phoenix, one way to avoid this out-of-country competition is to consider investments that need a little work. Someone who is not planning on moving to Arizona is going to prefer an investment that doesn’t have them flying out every week to be a part of the project.

If you’re not an American, it may be a comfort to know that your money is good in Arizona. Prices are low and properties abound. More and more investors are choosing to make a home in Arizona, as well. It may not have been their first thought when decided on investing, but after spending a little time in Arizona, you’ll fall in love too.

Many home buyers do end up moving to the area, but many are staying away and simply investing. How can this change the landscape of metro Phoenix, and how will this affect the housing market?

It’s important to remember that if we lived in a protected community, then the economy would recover as quickly as the people did. As people have more money, they will spend more money in the businesses very close to them and our economy would grow. However, we live in a global economy. It will be interesting to watch and see how the economy of Arizona will change based on this influx of Canadian dollars.

Avoid Foreclosure

by | Jul 24 2010 | Leave a Comment

The depressed housing market is in on everyone’s mind these days. To make things worse the job market hasn’t been fairing any better, leading many families to a position where they are not able to afford their mortgage. While foreclosure may seem like the only alternative, it’s not. We can’t give you any legel or tax advice here, you’ll need to talk to your attorney or CPA for that, but we can give you some invaluable resources to get a better idea of why the market is where it’s at – in a few short videos. These videos shed some light on the current real estate market in each city throughout Maricopa and Pinal counties and introduce one option to foreclosure, short selling your home. Click any of the links below to learn more.

Real Estate Success in the Technology & Information Age

by | May 6 2010 | 1 Comment

There is a commonly ignored fact that is the 9,000 pound elephant in the room that many don’t want to address relating to being relevant and successful in the future.

by Rick LeForce

The ghoulish fact is that technology and information as we know it will massively change the very nature of the real estate industry as well as the consumer culture in the very near future. The reality of change is that it is a changeless state! Recent research measuring the amount of information and technology changes are projected to be at pace to double every 5 years!

If one was to this measure this massive compounding change, what will occur in the next 10 years? How will technology & information change the way we live, work in the real estate industry, as well as influence inter and intrapersonal behavior & dynamics? The main question I have for Washington D.C. is what is the future of global outsourcing!

The power of computers, telecommunications, Internet, and new technological improvements that will undoubtedly occur in the near future are set to change the stage of and create an incredible power shift between large traditional brokerages and franchises and small lean and mean technology savvy organizations.

The importance of what I am communicating to you is this. Either you figure out how to harness or keep up if not out pace with the changes that will occur in the real estate industry or you will be out performed by someone else and only be able to realize a basic subsistence. There is an entirely new hungry crop of Echo Boomers that will be graduating from high school and college that see real estate sales as an opportunity second to none. These new entries into the work force are computer sophisticated, techno savvy, and have no problems stepping on any one’s head.

The big question here is how do individuals keep up with all of this change? The answer is actually a very old answer and that is: traditionally individuals were able to join together to form corporations. The only new spin to this ancient answer is that these new work groups will have to adapt dynamic ways of communicating and collaborating and executing effective change within their businesses. This old rule with a relatively new spin of requiring more effective collaboration in business will affect all self-employed individuals as they work tirelessly to keep up with the incredible work load and burden that all too often is involved with keeping up with the inherent change that is occurring around us, whether we are aware of it or not in the realm of technology & information.

Basically we have two options:

  1. We can hide our head in the sand like an Ostrich putting their head into a hole in the ground.
  2. We can create effective networks and collaborate with like minded people to come up with creative solutions to out perform the markets in whatever industry we may happen to be in to reach our profit goals. IN OUR EXAMPLE IT IS TO SELL HOMES!

 

The guerrilla marketer, guerrilla manager, guerrilla, technician are all alive and well in the realm of the self-employed today. Often times they are self-isolated, so busy that they can not work on their business, only in their business. Stuck in a reactive, fire putting out mode, the captain of the ship is too busy swabbing the deck to steer the ship. No one is directing the boat clear of disaster. There is not a plan in place to adapt or implement massive change to be even more competitive since self induced isolation exists for the small business owner and it is often times no fault of their own.

The Answer:

  1. Marketing Plan - Arguably he most important part of a business plan: Often times the most important issue for a self-employed person or small company is to retain their best clients as well as secure new business with entirely new clients (where there is actually a profit margin). Small business people often times do not understand the absolutely crucial element of how the marketing plan should be carried out and executed.

    The Good News!: Essentially if most small business people can adapt guerrilla marketing methods utilizing technology to keep costs lower and increase conversion of new client accounts in an orderly and measurable way to keep growing, 90% of the battle is actually won!

  2. Creating a Client Centric, yet highly efficient client service system: So you have accomplished the overwhelming task of #1 which is building your marketing engine and are attracting profitable accounts. Now you need to more efficiently service these clients in a way that maximizes your time and energy. Utilizing new technology and customer centric yet profitable client service systems, one may actually balance out client demands with increasing profits.

    Although there are many other important points to running a self-employed or small business, effectively implementing the marketing plan as well as balancing meeting client expectations and being able to deliver those more efficiently utilizing efficient client service systems is the way to compete for market share in the real world.

    With the changes that will occur in the next decade, small business owners and entrepreneurs only have three main choices, retire, adapt & collaborate, or settle for being third or fourth place. The objective of all entrepreneurs should be to identify profit market segments, execute guerrilla marketing strategies, and collaborate inside their business to find more creative and effective ways to deliver goods and services to their clients.

    The writing is on the wall for the real estate entrepreneur. Either be willing to adapt an entirely new way of leveraging and implementing new efficiencies with technology and information systems to reach, maintain, and attract new clients or keep doing business the only way you know. Change is constant and organizations that embrace this rapid and dynamic force by utilizing effective guerrilla strategies will continue to out pace and out perform their competitors.

Search the Arizona Regional MLS

by | Dec 19 2009 | Leave a Comment

Don’t worry about signing up for anything, searching the ARMLS is easy to use and free! User friendly ARMLS search tool

Friendly Advice, and Helpful Tips

by | Dec 19 2009 | Leave a Comment

Buying or selling a home? Check out the Show Appeal Realty resource center for friendly advice and helpful tips.
Buyer and Seller Tips