Verde Valley Real Estate

Don't Wait To Take Advantage of the Home Buyer Tax Credit

2010-01-08T06:03:00.000-07:00

It was an early Christmas Gift from Congress...but a great one none the less. In November, Congress extended & expanded the Home Buyer Tax Credit. It was/is no secret this is like Cash for Clunkers last summer, if you are in the position: it's a no brainer. So that said what now.

First if you have not owned a home in the last 3 years this is your golden opportunity. $8,000 comes back to you, not in the form of a loan that must be repaid but actual money to you. This will come when you file your taxes, so it cannot be used as a down payment. Look at it as an $8,000 reward for becoming a home owner. So you've decided to take the plunge? Great, there is no time like the present. You see, there are steps in the process and it takes time. The $8,000 credit can only be obtained if you are under contract by April 30 and have closed escrow by June 30th. So that said, you've got to get moving.

Contact a lender! Find out what you can actually qualify for. You never want to look at a house that is listed for way more than you can qualify for...always stay within your budget. Find yourself a good Realtor. Interview us, look at our profiles, and make sure we are working full time in this business that way we are always looking out for you. Find a Realtor that "fits" with you and your needs. We are here to help. Then go shopping.

Ok, you're saying, Holly seriously its January...I've got till April. Well, true but...once you find the right house, you've got to make an offer, negotiate it, get it inspection, have a home inspection, have an appraisal, negotiate for & get repairs done (if any are needed), have a title search and finally close escrow. Sounds like a lot & it is. It's taking 40-60 days to get all of that accomplished. Don't be overwhelmed that's why you picked a great Realtor. So if it takes 60 days, you want to close in April, which puts you in February. That's 3 weeks away. And don't forget the fun part, looking at houses! Now is no time to waste, you don't want to be rushed and there is great inventory coming on the market every day, especially with the start of the New Year.

Now a quick note on the expansion. If you are a current home owner, and you have been in your primary residence for the last 5 of 8 years, you too can get $6,500! Congress didn't leave you out. So time to upgrade? Need more room? Want to down size? There is no better time, step right up and collect your reward.

Loan Modifications Can Hurt Your Credit

2009-12-29T12:22:00.000-07:00

When President Obama announced his Making Home Affordable program last spring, as professionals in the business we all hoped this might assist many home owners who were being adversely affected by the tremendous drop in the overall real estate. In the upper Verde Valley we have experienced a drop of nearly 40% in value over the last 16 months. Living in a smaller community we have also experienced contraction of peoples salaries through job loss, cut in hours, and for the self employed no one to service. The Presidents plan seemed like a really good start.

That was March, now here we are in December. I know only a few personally who have been successful in their quest to modify their loans. Of those they worked directly through our Congresswoman Ann Kirkpatrick's office. She has a full time staff person assisting homeowners. Others are still lost in paperwork Purgatory with their lender. And finally today, this latest article from CNN Money spreads more of the realities that effect us all.

http://money.cnn.com/2009/12/28/news/economy/loan_modifications_credit_history/index.htm

It's a good article reminding us, that everything we do in this modern era effects our credit. Loan Modifications are no different.

Does this mean I am recommending you avoid loan modifications - absolutely not. Every one's situation is different. Your credit is like your finger print. No two are the same, and like your finger prints, you must be mindful what you touch, when & how.

First recommendations, always talk to your lender. Putting your head in the sand does you no good & I promise the problem will not go away. Call your Realtor, CPA & lawyer. Get good advice from professionals. This can assist you in making good informed decisions.

As a country we will get through this. Right now it is not necessarily easy. But hopefully we will be smarter on the other side.

Permit? To do or not to do...

2009-11-19T14:34:00.000-07:00

"Permits...we don't need no stinking permits." Well,if you are a homeowner (or thinking about being one) you may want to do an improvement. Enclose the carport, add on a patio etc you will most likely need a permit. Now, mind you it may be easier not to get one in the short term, and I do mean very short term. However, in the future if you decide to sell, really do a big remodel or your neighbor doesn't like you & turns you in...the BIG DEAL is now sitting on your door step.

First things first. If you haven't added on or enclosed or enhanced (yes even for a shed) most likely you will need a permit. Go get one. I just had a client tell me their contractor told them not to get one! Not so good, now in order to sell their house we must have the permits and now there are penalty fees attached. Ouch.

You've added on and didn't pull a permit, no problem. Let's take the steps to rectify. Call Community Development Services. These nice folks are here to help. I just had a great experience with the City of Cottonwood & Mr. Tom Hall. He was a ton of help. Call them, really, oh by the way, there will most likely be a penalty.

Why? Most importantly, right now if your house is on the market, and you don't have permits and you get a buyer, their loan may not be approved. The unofficial word from Fannie Mae, Freddie Mac & HUD is PERMITS! Yes, even on foreclosures. It's work, but we are getting them thanks to great people like Mr. Hall even on foreclosures.

So before you head off to Home Depot for a bucket of nails & some 2x4's for that next project. See if you need a permit. It saves time & money in the long run. Believe me get the permit.

Short Sales - What You Need to Know...But Don't Know to Ask

2009-09-09T11:17:00.001-07:00

Short Sales. They are good, they are bad and they can be ugly. But at the end of the day, they can be done. But there is definitely information you want on your side before you start this whole process. And at the end of the day, patience & persistence can pay off.

What you need to know: Short sales or "pre-foreclosure" sales allows a home owner who owes more on their mortgage than the current market will bare, and must sell. Now your reasons for selling will be looked at by the bank, your lender. So be prepared. First steps should look something like this:

1. Download the AZ Attorney Generals' Pre-Foreclosure Work book
http://www.azag.gov/consumer/foreclosure/documents/StateTaskForceWorkbook.pdf

This work book will be extremely helpful in the entirety of the whole process. In addition to resources, there are budget sheets and options if you want to stay in your home vs selling and after the fact, rebuilding your credit.
2. CALL A REALTOR who has expertise in short sales.
3. CALL YOUR LENDER...tell them what is going on, but ask for loss mitigation, not
collections or payments those departments only do one thing...collect payments.
4. CONSULT an Attorney and/or an accountant about the potential ramifications of a
short sale.

What you will need:
1. Ask your lender for a short sale package
2. A letter detailing why you need to do a short sale. For example: did you loose
your job, pay cut, loss of hours, medical, etc. Be detailed on what happened an
when.
3. Your most recent tax returns, bank statements, pay stubs, & utility bills. This
is all needed because when you purchased the house you had to qualify for the
loan. Now you are re-qualifying for the short sale. Sometimes this process is
more detailed than when you purchased.
4. A letter of authorization for your REALTOR to contact the bank on your behalf.
Many times we will need a lot of information to do this for you. This letter is
key!

Get this information together before you try to list your home. Have it ready, be in contact with your bank. Your REALTOR will help you price your home according to what the current market will bare. Be as close to the mark on this, if you are too far below, many banks will push you to the side and not accept your short sale.
So flash forward, you receive an offer on your home. Your REALTOR will help you negotiate the offer. Additionally, a pre-settlement statement will be received from a title company and must be submitted to your lender with all of your short sale package. From there your file will be assigned a negotiator. They will look through the package to make sure everything is there, is complete and then starts the process of qualifying you for the short sale. At the same time your lender is going to get either an appraisal of the property, a broker price opinion or both to make sure the sales price is in line. This is a long process and can take as little as 30 days to 6 months. PATIENCE & PERSISTENCE!
When your lender approves your short sale, there may be terms or conditions that you must agree too. This is where you need to consult an attorney & an accountant - again. MAKE SURE YOU UNDERSTAND! There may be tax consequences, so knowing and understanding is a big deal. If you agree to the terms of your short sale, the escrow with your buyer will proceed.

You can have success in this area. It is not easy, but it can help save you from foreclosure and save some of your credit. Know your options. Get all the information. Start with the Attorney Generals Pre-Foreclosure Guide, it just came out in July and is very helpful.

It's an Opportunity Market

2009-08-22T16:17:00.001-07:00

Well, it looks like we are seeing a new shift in the current real estate market. The past 6 months plus has been a real buyers market. That may be ending. If current trends stay consistent, we may now being entering a new phase which is an Opportunity Market.

For example. Recently a foreclosed condo started at a list price of $89,900. Not bad, 2 bedroom 2 bath approximately 1100 sqft. The bank dropped the price to $74,900. Get your attention? How about this a week later dropped the price to $69,900.
How about now? This unit would rent for about $700 per month? Peak your interest even a bit?
So this opportunity presented itself that was ideal for several different buyers. As former Diamondback 1st Baseman Mark Grace would say, "it was a big ol meat ball right down Broadway". The longer it was "out there" the more interest was garnered. Unfortunately only 1 buyer gets to purchase the property.

I am not advocating running right out & putting offers in on everything you see out of fear of loosing. I am encouraging buyers be ready. The market is shifting again beneath your feet. There are amazing deals that are popping up each day. Be educated, listen to your agent. Be ready to understand what is a good deal for you. If today is your day Carpe Diem - Seize the Day! It is not guaranteed tomorrow to be here. That's not a hard sale, here are the facts:

We are averaging 2.6 sales per day in the entire Verde Valley - Sedona MLS for residential resale. Inventory has dropped again from this time last year, currently we have 311 active Residential Site built homes in the upper Verde Valley.

Oh by the way, the $8000 tax credit expires at the end of November. If you think that is a long time away, September is in just over a week. Closing escrows takes on average about 45 days currently. Add that together and you are easily into November.

I would hate to see you loose out on $8,000. And the interest rate is pretty darn good as well. Do your research, be prepared and get ready to jump when your ship comes in.

Carpe Diem!

August Market Update...Things are Looking Up!

2009-08-12T10:19:00.001-07:00

Real estate continues to be a hot topic, and not just because I hang out with a bunch of Realtors. What is the market doing? Where are we going? Did we hit bottom? These are questions I ask myself everday as well as get asked. So let's look at the market so far in 2009.

For now, let's just consider single family site built homes in the Upper Verde Valley,(Cottonwood, Clarkdale, Verde Village & Cornville). Currently there are 316 active listings. Last August that number was 576. Current pendings (homes under contract) is 50 which is about the same as last year this same time. Ok, so the good news? Solds year to date for single family residential 213, this time last year 164. So that is a marked improvement.

That said, what is selling? So far the break down looks like this:
$0-$200,000 - 141 sales
$201k-$300k- 52
$301k-$400k - 14
$401k-$501k - 5
$501,000+ - 4

This is not stunning when you look at much of the activity has been in the form of REO sales (Foreclosures) So far that markets REO account of 105 of the 213 sales this year. And there are 44 active REO listings at this time.

The message, things are moving. Sellers: get priced right out of the gate, you've got big competition. Buyers get pre-qualified, talk to your agent and go! Many are beginning to say we have hit bottom, we shall see. Like most tops or bottoms, you don't realize the milestone until you are further down the road. That's why hindsight is priceless.

Arizona Atty General Warns of Consumers Beware of Bogus Property Tax Offer

2009-08-06T07:08:00.000-07:00

WATCH OUT! Many property owners are receiving a solicitation to petition the Tax Assessor's Office in reducing their 2009 Property Tax. This is BOGUS. This solicitation asks for property owners to send $198 to fight the current valuation and gives a potential "savings" in the upper right hand corner of the advertisement. It looks official but it isn't.

In Arizona, notices of valuation are given at the beginning of each calendar year in January. Property owners have until March 31st to challenge the property valuation with the county assessors office. There are papers that are filed directly with the assessor and no money exchanges hands. If you do not file a challenge prior to March 31st, you cannot challenge until the next year.

So put your $198 back in your pocket, save it for later. This is a scam. Please tell your friends and neighbors so they aren't a victim of this Bogus solicitation. You can check out the official release from the Attorney General http://www.azag.gov/press_releases/aug/2009/Property%20Tax%20Scam%20Alert.pdf

Taking Advantage of the $8000 Tax Credit

2009-06-24T16:56:00.000-07:00

There's been a lot of chatter about the US Government's Tax Credit for home buyers. The new inception of the Tax Credit is just that, a credit. It does not have to be repaid! So, if you were even remotely on the fence about purchasing a home, hopefully money in your pocket might encourage you just a bit.

Things to know. The $8,000 credit is only for buyers who have not owned a home in the last 3 years. Additionally, this credit is only good for a limited time. You have until December 1st of this year to take advantage of the credit. For more information or answers to frequently asked questions about the tax credit: http://www.federalhousingtaxcredit.com/2009/faq.php

Like all good things this will come to and end. Contact your Realtor, they will be able to help you take advantage of this opportunity.

Deal or No Deal

2009-05-09T08:07:00.000-07:00

The market is definitely picking up. Most of the single family inventory under $150,000 is moving quickly especially if it is in good condition. If the property is a bit more "challenged" under $100,000 the buyers seem to be standing in line.

Now that said, what makes a good deal for a buyer? It all starts with you, what do you want? I am getting phone calls from buyers that say "show me foreclosures and short sales". Great, but do you know the difference? Because those may not be the best deal out there.

Foreclosure: that is where the bank has already taken the property back through trustees sale or deed in lieu (that is where the owner basically signs the house back to the bank). The banks are motivated to sell HOWEVER they are not doing this blind. They have had usually multiple BPO (broker price opinions) and at least one appraisal. The bank knows where the market is. They may be slightly more aggressive in pricing but rarely are they going to drop 20% below list on an offer, especially if they just listed the property for sale. These properties are As-Is and will include lengthy addendum that favor the bank if you proceed. Read everything before you sign.

Short Sales: These properties are a bit more interesting. The seller/owner still owns the house, the market value of the property is less than what is owed to the bank, so in order to sell the seller must have permission from the bank to sell at the reduced price. This is not an easy process. The seller must demonstrate financial hardship, their lender will do a BPO and an appraisal and the file must go to review. This is after an offer has been received . This process review by the seller's lender can take months. If there is a first and a second note, both lien holders must approve the sale. So if you are in a hurry to purchase, this may not be your best bet. Also, the property is usually sold As-Is because there is little or no money for repairs.

Your final option as a buyer...the traditional "normal" seller. Yes, they are out there and pretty aggressive in trying to get their property sold. You can negotiation price, repairs and closing date where as you may not be able to with Foreclosures or Short sales.

In a nut shell, don't limit yourself to just short sales & foreclosures. Look at the inventory in your price range, sharpen your pencil and get ready to move.

Have we found the Bottom?

2009-04-13T14:49:00.000-07:00

Honestly, it's hard to tell. No one's crystal ball is working quite right. However, we are experiencing bright spots on the horizon. Buyers, WOW! What a great time to be you, and many of you are taking advantage. $8000 tax credit from Uncle Sam, interest rates are under or at 5%, and a great inventory to choose from. A another bright spot is the number of contracts written is up as are new pendings.
Sellers, if you are going to play in this market get competitive & get realistic. If you are, things around you are moving. So listen to your agent, we are ready to help you.