Real Estate

Anthem Buy The Numbers

2011-12-01T06:00:00.000-08:00

As the busy season is on the way, I'm asked what the price per foot is in Anthem Parkside and Anthem Country Club. These values very as premuim view lots sell for quite a bit more than a standard internal lot. Parkside goes for around $80.00 a SF while the Country Club goes $113.00 per SF. With that said, there was a 2400 SQ FT homes that sold for $166.00 a SQ FT in 6 days in the club. Also, numerous that sold in Parkside for over a $100.00 a SQ. FT. So, as you can see it depends on the home.

Anthem Real Estate

2011-05-06T12:24:00.000-07:00

According to the Cromfort report which is based off MLS stat's, the Anthem and Carefree market have remained flat for over a year. The Cave Creek market has actually increased $0.54 per square foot compared to last year. The market in Anthem is still showing low inventory.

Anthem Inventory

2010-08-19T13:02:00.000-07:00

We are at all time low inventory in Anthem. There are 300 active listings but only 207 active listings without contingencies. In a normal market, usually 5 percent of the totals number of homes are for sale. With ~18,000 homes, you can see the numbers would indicate that it is a seller's market. However, as we know most people are upside down in their homes. This why the Anthem market is 70 percent short sales. Eventhough people dislike short sales, it might be your only choice. Also, you tend to get a better deal than foreclosures. Foreclosures tend to bring a sale price over list based on the number of people bidding on the property.

Anthem, Carefree, and Phoenix Market Update

2010-02-20T22:34:00.000-08:00

According to several sources, 2009 in the greater Phoenix area had the 3rd highest number of sales over the last 9 years. Only 2004 and 2005 saw more closings for a given year. At this time, the average sales per month are 7,729. At a closer look, I see the months of inventory under $100K are less than 2 months, whereas the price range over $1,000,000 has an overwhelming 38 months of inventory. Currently, there are 41,755 on the market while at the same time last year there were 52,624. This could be due to the banks holding their inventory.
The monthly medium price shows that the market trend bottomed out on April 2009 and shows that prices have risen upward by a small percentage every month. Within the Greater Phoenix area, 46% were Banked Owned Properties, 23.6% were short sales, and 30.4% were normal transactions. Banked owned properties shows the pricing decreased 7.3 percent per SQ. FT, and short sale pricing increased 3.6% per SQ. FT.
Forecast:
Short sales and Bank Owned properties will continue to dominate the market. Actually, I would expect short sales to overtake Bank Owned properties in 2011. The high priced areas through the valley (Paradise Valley, North Scottsdale, and Carefree) lagged behind the medium price homes by about 2 years. So, expect to see an increase of bank owned properties and short sales in these areas.

Buyers Outlook:
As a qualified buyer you will enjoy the ability to pick up properties at a great price. In the price range under $200,000 there are lots of buyers so you will see multiple offers on these properties. Once you get over $350,000 there are less qualified buyers, so these may be the best deals. Buyers can still take advantage of the tax credit and low prices so why wait. Interest rates will go up so it is time to buy.

Sellers Outlook:
If you are willing and able to price your home at current Fair Market Value, there are plenty of buyers in today’s market. If you overprice your home you can expect to see it remain on the market for months to come. Clean is king and views/upgrades are a bonus in today’s market place.
If you have exhausted all options, you may want to short sale your home. There is a new government program called Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is part of the Home Affordable Modification Program (HAMP). HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. This program is scheduled to launch in April. Be sure to contact a Realtor with knowledge and experience in short sales.

This published in the Arizona Republic in the Broker Corner Section for the North and West Valley.

Short Sales are here to Stay

2009-10-05T12:26:00.000-07:00

Get ready for the short sales. According to a Treasury spokeswoman, Treasury officials will soon announce a $2,500 subsidy ($1,000 to the servicer and $1,500 to the seller) to encourage short sales as a way to clear the excess inventory. The fees are designed to help compensate the servicer for the extra effort, and to incent the seller to be cooperative and leave the home in good condition. Presumably, the Treasury is trying to help facilitate a transaction that will result in less loss to the lender than in the case of a foreclosure.
To date, short sales haven't been particularly effective for a variety of reasons, including:
1. Banks have been slow to approve the high bid, particularly when it is below the last appraisal in the banks' file.
2. Realtors typically don't want to deal with all the extra work involved in a short sale.
3. Buyers typically don't want to deal with the length of time involved in a short sale, which can take 4 to 5 months because of the bank bureaucracy.

In Anthem, AZ, 61 percent of our market are short sales. Banks are not releasing inventory so many buyers must wait until they get approved. I utilize a 3rd party to work with the banks and strongly believe this is the best practice to get these approved. If an agent is doing it themselves, it may not be the best solution since many agents do not have the time to call the lenders. Take advantage of short sales if you can wait becuase often times you will get a better deal but you must wait 2-4 months in most cases. Call me with any questions.

Phoenix and Anthem Foreclosures

2009-06-06T15:21:00.000-07:00

As you may be aware, the larger banks have yet to release inventory, thus causing a lack of inventory. I have been in contact with several of the banks agents and they are as perplexed as I am. We all know that they have to release inventory since they have in access of 8 months of inventory. The big question is when they will release the homes? According to my sources, they fully expect the banks to release inventory by the mid-June. The other question is how many homes will they release? We have heard that Freddie Mac/Fannie Mae will release 30K units in Maricopa County soon and that Bank of America/Countrywide will release 30% of their inventory soon as well. I know that everybody is frustrated but we have to be patient. It will be interesting to see the list prices when the homes hit the market. You will be updated and I expect to see the amount of multiple offers decrease. However, as you know, the good inventory will always bring multiple offers. Please contact me with any questions.

USDA Loans Available in Anthem, AZ

2008-06-27T12:20:00.000-07:00

Great news for home buyers in Anthem. There is a new loan program that is offered in Anthem called the USDA loan. This is a true 100 percent loan. Not all areas are authorized for this loan but Anthem has been approved. Here are a couple of highlights of the loan program.

102% financing based on appraised value, if appraised value exceeds sales price,
borrower can finance closing costs!
• No monthly mortgage insurance, 1-time guarantee fee of 2% that can finance above the
appraised value.
• No asset requirements.
• No first time homebuyer restrictions.
• No minimum credit scores.
• Borrowers must not own adequate housing.
• Declining markets do not affect Loan To Value.
• 6% seller concessions and 100% gifting is allowed – Borrower’s can purchase a home with
no money of their own into the transaction.
• Geographic and income restrictions apply.

Please contact me if you would like to learn more about these restrictions or visit this link:

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

This is what we are seeing in Maricopa and Anthem

2008-04-20T17:17:00.000-07:00

Ironically, some of the hardest hit housing markets around the Phoenix area have become the hottest buyer markets with Queen Creek and Maricopa leading the way. Queen Creek, east of Gilbert in Pinal County, and Maricopa, southwest of Phoenix in Pinal County share many similarities. Both were quaint towns with small populations and extensive agriculture on the fringes of the Valley. But when the price of homes began to climb, both experienced hyper growth in housing with builders building homes as fast as they could sell them.

Both cities' early appeal was inexpensive housing that was priced at a fraction of the cost of homes in the more central Valley area. As prospective home buyers became concerned that rising home prices in the 2004-2005 timeframe might forever price them out of the market, they rushed to the communities to purchase homes. Unfortunately, many real estate investors did as well.

The growth in population quickly outstripped road infrastructure. As a result, long commute times ensued. Coupled with higher gasoline prices, many residents felt the pinch in their pocketbooks and lifestyles and looked to move. However, by this time investors had already begun to unload properties for sale which quickly increased inventory. As inventory grew and buyer activity declined, home prices dropped rapidly and locked many homeowners into their homes.

More recently, short sales and foreclosures have swamped these communities with cheap homes at real estate prices not seen in years.
"Prices on many properties are running at 40-60% of their 2006 market values. Frankly, that's astounding to see," says Gary Drew

A 3,272 square foot single-family home recently sold for $149,000. It previously sold for $300,000 in 2006.

A 2,154 square feet sold this year for $125,000. It previously sold for $350,000 in 2006.
However, it is this precipitous drop in prices that is fueling stronger buyer activity in Queen Creek and Maricopa from the perspective of existing homes under contract.
Queen Creek currently has 21% of available properties under contract vs. 9.3% a year ago.
Maricopa currently has 19% of available homes under contract versus 8.5% posted last July.
But, the improvement isn't isolated there. Even more promising is that several core Valley cities are experiencing an improvement in buyer activity as well.
Chandler, located between Tempe and Gilbert in the Southeast Valley, has seen improvement to 17% of available properties being under contract.

Gilbert, east of Chandler, has risen to 16% of available properties under contract.
Ahwatukee, a Phoenix suburb west of Tempe, is at 18% of available homes under contract.
Also, other outskirt cities where housing has traditionally ran less expensive are experiencing improvement.
Conversely, Scottsdale, known nationally for its shopping and a favorite destination for affluent out-of-state visitors, is trending at a low 9% of available properties being under contract. Phoenix and other Valley destinations range in between.

FHA News for Maricopa County

2008-03-07T08:29:00.000-08:00

Great news has arrived for home buyers. FHA has just announced that the limit for their loans have been raised to $346,250. As you may be aware, FHA is currently a great way for buyers that have mariginal credit scores receive a loan for a home. This is good for Sellers as well. They can offer to pay the 3 percent down payment. Market's such as Anthem and out lining areas that are offering great prices for newer homes can take advantage of this new loan program.

THIS IS THE LARGEST CHANGE I'VE SEEN IN YEARS. THIS WILL GET OUR MARKET BACK ON IT'S FEET..
FHA BUYERS CAN BE AS LOW AS A 550 FICO
FHA BUYERS NEEDS TO BE FULL DOCUMENTATION
FHA BUYERS NEEDS TO BE BUYING AS A PRIMARY RESIDENCE
FHA BUYERS CAN USE GIFT FUNDS FOR THE DOWN PAYMENT
FHA BUYERS CAN HAVE THE SELLER PAY HIS DOWN PAYMENT, CLOSING COSTS AND THE DPA FEE. A TRUE 100% LOAN

Give me a call and I can get you more details.

Anthem Model in Parkside

2008-01-23T17:47:00.000-08:00

The Parkside models will go on sale this weekend. If you are interested please call me. There will be a drawing for the properties. They also are selling view lots by the models. Here are the list prices.

Lot Model Price
4 3511-Charm $269,900
5. 3531-Holiday $289,900
6. 3562-Reunion $319,900
9. 4521-Encore $329,900
10 4531-Ovation $339,900
11 4552-Triumph $374,900
13 5501-Imperial $374,900
14 5531-Majesty $419,900
15 5552-Regal $399,900
16 6521 -Eclipse $419,900
17 6541-Starlight $559,900
18 6572-Wonder $639,900
20 8031-Rejoice $599,900
21 8092-Spirit $719,900

Certain models are priced right and other are not. However, these are the last new builds in the original Parkside area. Let me know if you have any questions.

This is REALLY FUNNY

2008-01-23T17:46:00.000-08:00

Click on the following link for a good laugh.

http://www.careerbuilder.com/monk-e-mail/Default.aspx?mid=22960571&cbRec=&cbRecursionCnt=1&cbsid=bfd04b2b84a54f1c95b80e3007120aee-254436153-RB-4

Anthem Deals

2008-01-03T22:36:00.000-08:00

There are so many deals in Anthem Parkside and Anthem Country Club. Some properties are being offered at the same price they were when they were sold new. The good news is that these properties have landscaping, ceiling fans, and window coverings. Some even have pools. These are great homes and people can use FHA loans which is a great solution for people with fair credit. These is a great time to buy for first time home buyers, second/vacation homes, and investors. Only if I can win the powerball!!

Foreclosure Scams

2007-11-14T06:48:00.000-08:00

There are some people out there stating that they can stop a foreclosure for a small fee usually around $500 to $1500. After the owner gives them money, they never hear from these people again. Do not get caught in this mess, call your lender and discuss your options to avoid foreclosure. If you can avoid foreclsoure, you may want to discuss a short sale.

First Time Home Buyers

2007-10-29T15:18:00.000-07:00

We have recently have seen an uptick in First Time Home Buyers. This is due to lower prices in the market place and the loan programs available for first time buyers. Their are numerous homes that are priced at the same value as 2004. The two popular loan programs are FHA and My Community loans. My Community loans will allow the buyer to purchase the property with zero down payment at credit scores below 660. FHA loans require a 3 percent down payment. If you were to choose an FHA loan, the max loan amount is 263K. With My Community the max loan is 417K. FHA loans have upfront Mortgage Insurance (MI), plus your monthly Mortgage Insurance.. With My Community, Lender Paid MI is an option. This means that you can opt for a slightly higher interest rate so you will have no mortgage insurance. As you can see, these programs are great for first time buyers.

More on Short Sales

2007-09-13T11:30:00.000-07:00

With a short sale, your mortgage lender may be glad to avoid costly lawyer fees plus not have the uncertainty of a possible later bankruptcy on your part and the delays that can happen with that sort of determination in their laps. In addition, eviction expenses and the responsibility of having to administer and eventually dispose of your home are other burdens they may not want to have. Ultimately, a foreclosure could cost your mortgage lender more than ten thousand dollars, money he certainly will not recoup if you later declare bankruptcy.
Your mortgage lender may consider your short sale plan if the price the new owner proposes to pay for the house is close to its actual market value. However, if the price offered is considerably less than the home’s worth, then you must convince the mortgage lender that it is still in their best interest to go ahead with what is a certain sale versus their being saddled with the task of having to administer a hard to dispose of and costly piece of property. Remember: mortgage lenders are in the business of financing property, not managing it.

Short Sales

2007-08-25T07:41:00.000-07:00

One of the most frequent questions about a Short Sale is the Borrower's potential tax liability after the sale. The IRS requires lenders to submit a Form 1099 stating the forgiven amount. Sellers who meet the Internal Revenue Service definition of insolvency (either in bankruptcy or with debts exceeding assets) will not have to pay taxes on the forgiven amount. Most good accountants know and understand this, and are aware of IRS Form 982, which is used specifically for this purpose.Even more help is on the way, the U.S. House of Representatives has introduced the Mortgage Cancellation Tax Relief Act (H.R. 1876), which would eliminate taxes on any debt forgiven on a principal residence through either short sale or foreclosure. The NATIONAL ASSOCIATION OF REALTORS® has been working to support this bill.

Great Southwest and More to come

2007-08-16T11:00:00.000-07:00

Our friends at Great Southwest closed the doors yesterday. Rumor has it that Countrywide is the next to fall. I can not understand why the lenders will not work with owners that are in trouble and willing to work with them. Banks seem to want the property back for some unknown reason and resale for far less than the market value. Great news for buyers who CAN get a loan. Hopefully, the feds will lower the rates soon. It could be a long ride.

Interesting Facts

2007-08-02T16:33:00.000-07:00

38 Percent of all closing in June were all priced between 200,000 and 299,999. The medain price of a home was 255,000 which is below the high of 265,000 in June of 2006. 24 percent of homes sold with 30 days, the average is 92 days, and we are seeing the 19 straights month that homes are staying on the market longer.

Foreclosure's in AZ

2007-07-16T06:12:00.000-07:00

Finding a foreclosure before anyone else or a “pre-foreclosure” can be a worthwhile investment. Buying a preforeclosure from a bank as a “short sale” can guarantee the purchaser equity on the day of closing. A “ short sale” or “short payoff sale” is one in which the lender allows the property to be sold for less than the exiting loan balance.
Understanding the foreclosure process gives you some insight into locating foreclosures at their earliest stages.
The Federal government forecloses on hundreds of thousands of homes each year that have been financed through several of its funding source: Veterans Administration (VA), Housing and Urban Development (HUD), FANNIE MAE and Federal Depository Insurance Corporation (FDIC). These homes can make lucrative investments and there are many special programs to allow purchasers to buy these homes with little or no down payment and many have repair allowances. Once the homes are taken back by these federal agencies they appear on the http://www.foreclosuresus.com database.
Banks and financial institutions take back homes that they have loaned funds against. They refer to the properties they retrieve as REO’s or real estate owned. Within larger banks, they are REO departments solely devoted to the resale of these properties. Banks supply their REO listings to the foreclosuresus.com database. Most contain the bank’s name and the contact person’s name and phone number.
New homes can also appear on bank REO lists. Builders who build “spec” homes, homes not presold but built “speculatively”, finance the construction through banks. Sometimes when a builder has several homes that have remained unsold for an extended period of time, the bank will take back the homes. These homes will also appear within the bank’s REO listings.
In some cases and with some additional effort, you can find these homes prior to going into foreclosure or pre-foreclosures. In the case of bank REO’s, when reviewing the list of banks and their contacts become familiar with local contacts of REO departments at banks in your city. As you become acquainted with these contacts, you can tell them the type of home you are looking for and the area. If you check back on a regular basis, you may obtain information on homes prior to it being added to the public database.
When you review the database further, you will notice that many smaller banks do not include their REO listings. They may have too few foreclosures to have a REO department. You should contact these institutions directly and ask who is the person designated to dispose of these properties. Again, your effort may reap you information about properties that are not in any public database.
“Preforeclosure Short Sales” are not handled in the REO departments of banks, but rather in the “Loan Loss Mitigation” Departments. You can find current, nationwide preforeclosures at http://www.ipreforeclosures.com
Bank Loan Loss Mitigation Departments
When a borrower begins to miss payments the loan is sent to the bank’s loan loss mitigation department. Most banks also consider short loan payoff sale requests in their loss mitigation departments.
Lenders only will approve a short sale as a last resort. The circumstances that would lead a lender to resort a short sale for a property are directly related to the property’s value as it relates to the amount owed to the bank. If a property was purchased in an inflated market that has experienced a severe downturn, the home may have decreased in value and the loan maybe “upside down”—more is owed than it is worth. The lender may consider a short sale. The same holds true if a property was refinanced at 100 percent plus leaving the property without equity. Another circumstance where a bank may consider a short sale would be in the case of a deteriorating property with would require extensive repairs to make it marketable.
Lenders also require borrowers to show hardship before they will approve a short sale.These can include financial hardship bought on by: catastrophic illness, death or divorce of a spouse, employment loss or incarceration of the borrower or borrower financial insolvency without any realistic chance of improving in the near future.
Cash Only
A short sale is always a “cash only” sale, which will keep many investors away. Also, it is an “arm’s length sale”, meaning you cannot purchase a home of a relative. If you do you are open to a lawsuit and the sale being reversed.
Buying a foreclosure or a pre-foreclosure from a motivated seller can be a good investment for you and in the case of pre-foreclosure a good solution for someone else. A “short sale” is one way to purchase a home with guaranteed equity to the investor.