Are Arizona Real Estate Homes Priced Correctly?
The Five (5) Fatal Mistakes Home Sellers
Make When Pricing Their Home -
- Sellers often price their home based on “need’ rather than the market.
- Sellers use the ‘wrong’ properties for comparison when pricing.
- Sellers build in a ‘negotiating cushion’ and then have no one with which to negotiate.
- Sellers take advice from ‘well meaning’ but uninformed parties.
- Sellers allow positive emotions about their property to influence their pricing decisions.
It can be difficult for sellers to be objective about the value of their home. Often times sellers estimate high, yet some sellers have no idea how much their home has appreciated and have underestimated the value. Sellers would be wise to rely on a real estate professional for a realistic price assessment. The dynamic is changing in many real estate markets around the country. Sellers, in many cases, are no longer in the driver’s seat. Keep this in mind when you select a list price for your home.
Comparable sales from a few months ago may be out of date for the current market. Even though your neighbor’s home sold for an exceptional price, it may have been the only game in town at the time.
The chance that your home stays on the market longer, it creates a negative stigma. Buyers will have concerns and wonder what perhaps might be wrong with the home. In most cases, the only thing wrong is the price.
If you agree to lower the price you are now chasing the market. By doing so is the correct thing, however it can be fruitless if you reduce too little, too late. Meanwhile, more well-priced listings come on the market and sell. Pricing your home correctly the first time is key.
Seeking out a professional listing agent that will provide accurate sales in your immediate neighborhood with informative knowledge will lead you to great success in getting the best price for your home. Selecting A Listing Agent - Consumers be wise!
Inquire of the agent you are considering to provide you with a detailed marketing plan to let you know how he or she will accomplish the sale of your home. Consider using a listing agent that does market extensively on the Internet. Buyers are turning to the internet more and more now to find their dream home. It’s very important to be sure that the agent you choose is up on the latest technology and offer the maximum exposure on the internet.
If you are looking into buying or selling a home in the greater Phoenix metropolitan area, hire a REALTOR® like myself, who wants to win your business. I invite you to contact me direct to assist you with all your real estate needs or questions!
I will be honored to share with you an educated idea of what your home’s value is based on experience, local knowledge, and comparable actual sales in your neighborhood! To get a FREE no-obligation Home Evaluation specific to your needs be sure to contact me direct. If you have any general questions about buying or selling real estate please don’t hesitate to contact me.
If you are relocating to the Phoenix Metro area and need information about schools, employers, local taxes and financing? Be sure to Contact me for all of your relocation needs including:
· Community and school information (with maps)
· Personalized home searches based on your needs
· Expert advice on local taxes and financing
· Expert advice on local businesses and employers
· Referrals for movers, utilities and other local service providers
· Hotel reservations and other travel assistance
· Anything else you need to make your move successful
Please feel free to browse through a search of Arizona homes and let me know if I can be of assistance to you in any of your real estate needs. I also work with great Lenders that are available upon request to help you get pre-qualified.
Other helpful resources:
· Before Your Search Begins - Basics of Home Buying
· TO RENT OR TO BUY? - BUYING THE BEST HOME: SERIES 2
· What A Difference A Year Makes…
· A Great Time For First Time Buyers - FHA Loans
· Why do 1,000 new residents move to Gilbert, Arizona each month?
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Fredericksburg Live - AM 1230
Some of you already know that I have appeared as a guest on the Fredericksburg Live portion of AM 1230’s radio programming several times now. The Thursday program is sponsored by Tom Murphy, and is titled Borrow Smart and Retire Rich. I have now been asked to be a regular participant of the radio show, and am honored to do so. In discussing the program, and it’s future with Tom Murphy of Carteret Mortgage, I am excited to see where this program is heading.
For homebuyers, sellers, and those anticipating refinancing their home, this show is a wealth of information. AND, is a fantastic forum in which to ask specific questions you may have about real estate, mortgages, and a variety of other financial topics. So, I encourage you, to listen and call on Thursdays between 9am and 10am, and ask your questions.
If for some reason, you are unable to listen to the program during that time, please feel free to email me your question. We will discuss it on the air, and I will reply via email the information discussed on the air.
The tentative upcoming schedule is as follows:
All programs are from 9:00am to 10:00am
8/28/2008 - We will be discussing the Advantage Plus loan program, that is a wonderful tool for sellers of high end properties to consider, and is a fantastic program for buying a home with lower monthly payments.
9/4/2008- We are anticipating having as a guest, Michele Freemyer who is an attorney, and manager of Ekko Title in Fredericksburg. Michele will be addressing your title and real estate questions.
9/11/2008 - The majority of the show on this date will be devoted to reverse mortgages. Reverse mortgages have piqued the interest of many consumers. Tom Murphy and Kim Thagholm of Carterert Mortgage will address issues, benefits, and concerns associated reverse mortgages.
9/18/2008 - We will highlight some recent successful situations, where our clients have purchased homes with instant equity, and discuss the value curve of these properties.
9/25/2008 - Tom Murphy will have a guest speaker from the insurance industry to discuss financial aspects of the insurance field, as they pertain to the consumer.
Note: This is a tentative schedule only, and is subject to change without notice.
How To Use Escape Clauses In An Ethical Manner
Every agreement that you use should have a clause that lets you out of the agreement in the event that you change your mind or find out something about the property that you don’t like. One of the best reasons for this is that it takes the fear out of making offers. You no longer have to worry about writing up the perfect offer, or making 100% sure that you are not missing something.
The escape clause can be simple and obvious… for example
This agreement is subject to a satisfactory inspection by buyer prior to closing.
The good news about using a clause like this is that everyone knows it’s there. The downside is that if the deal is really good, or the seller or broker is on top of his game, you won’t be able to get away with using this clause. The selling side won’t allow you to include it.
So - another option is to use a clause that is “not so obvious”, but that still allows you to get out of the deal if you want to. The best example
I can point you to directly is the default clause that is used in many of the ‘property purchase’ agreements I helped create along with an amazing real estate attorney. You can find the Investor-Friendly Investing Forms and Contracts here.
If you want to create your own clause in your contracts, here’s what I’m talking about when I say make it “not so obvious”-
By the way, this default language is also used in many of the standard residential and commercial contracts used by Realtors depending on
which state the property is in. In the ‘default’ section, you’ll want language that allows you as the buyer to get out of the deal.
In everyday terms it sounds like this:
In the event that buyer defaults on this agreement then the seller shall keep all money paid to seller so far as full and complete liquidated damages.
So this means that any earnest money that you’ve paid to date is forfeited. When you buy homes like my Mentorship Students do, you’ll probably have $10 or less at risk. And I know that you can deal with a $10 risk. So what are you waiting for?
Now because this language is not so obvious, it’s good because your deals look like they are a real serious offer. The problem that we’ve seen is that if you don’t use the right language patterns in talking to the broker or seller, they may get upset when you use this clause to cancel the contract. The reason is because they aren’t expecting it.
Even worse, is if you are worried about how they might react, you’ll tend to delay telling them, and in turn just make this task more and more unpleasant for you to handle the longer you put it off.
So here’s how to avoid all of that stress and tension….After all, real estate investing should be fun, right!
Step one - Use the liquidated damages clause.
Get it in the forms disc here, or ask your attorney to create it for you.
Step two - Use the higher authority principle.
This means that you will always have someone from the outside who isn’t able to attend the negotiation. With commercial property it is often your investors who play this role. With residential, it can be your partner. If you don’t have a partner then get one or imagine one. Mention your partner from time to time by saying things like
“Oh… my partner is going to hate this, but if we were able to pay you the $190,000 that you’ve said was the lowest you’d go, would you consider carrying back some of that or probably not.. ?
Step three - Use language patterns to foreshadow the future.
It sounds like this:
Wow that’s great Mr broker… so what you’re saying is that if we could, and I’m not sure that we can… my partners probably going to have a cow, but if we were able to pay you the full $190,000 amount you mentioned (and the other terms you’ve negotiated). .then that would be a fit for you? From this point just use the rest of my Instant Offer SystemTM to finish closing the deal. (If you don’t have it yet, the Instant Offer SystemTM is included in my Protégé Program.)
So you’ve used the escape clause. You haven’t made a big deal about it.
You’re probably finding that with my Instant Offer SystemTM it’s been easier to play the role of a reluctant buyer and get the deal closed using the language patterns I give you. You’ve mentioned that your partner is probably going to hate the deal. Then here’s what to do next:
When you are on the way out the door, mention-
“If my partner has a fit, or if there is any other reason that would keep us from moving ahead, then I’ll get back to you as soon as possible, probably within a week at the latest.”
Then get back to the seller in the next 5 or 6 days and say this…
(Here’s how you can get yourself some more time)
“It looks like we may or may not be able to make this work. Are you ok with me spending my money marketing the property knowing that it may or may not work out?”
Find a motivated seller in the next 2 days, and try these three steps. With a little practice, you might even close the first deal!
To Your Success,
Peter
How to Lower Your Real Estate Investing Risk to Zero
Imagine you were buying an investment property the traditional way, and you purchased a single family home.
Because you bought this house the traditional way you now have to sit back and hope. You hope that you will be able to find a renter. You hope that you will be able to rent it out for more than your payment. You hope that you won’t have any major repairs to take care of. You hope for a lot of things. And then you wait and see how you did over time.
That’s traditional real estate investing. You buy your properties and find out how you did afterward.
The biggest difference with buying real estate without your cash or your credit is that you know how you are going to do BEFORE you move ahead with the deal. This way you only choose winning deals and leave all the other deals on the table.
How can you do this? You use a “subject to” clause, which states that your agreement with the motivated seller is subject to your finding a qualified resident to occupy the property. In other words, your agreement is subject to your finding a qualified tenant-buyer. If you don’t find your tenant-buyer, then you don’t move ahead with the deal.
CAUTION! When you use such a powerful ’subject to’ clause, you need to be respectful of the seller. You need to let them know right away if you are having any problems finding your tenant-buyers-within two to three weeks. Under no circumstances would you ever want to tie up a seller’s property for several months and then tell them that you cannot find your tenant-buyer. That would be both unfair and wrong.
What you do when setting up your deal is to have both halves of the transaction complete before you ever fully commit to the deal. You find your motivated seller and lock up the property. Then you quickly go out and find your tenant-buyer. Then and only then to you fully commit to moving ahead with the deal.
How to Sidestep the Landlord Trap
Unless you have a way to get out of the hassle of the day to day management of a property, you are still going to run into the landlord trap. Here is a way you can safely sidestep the landlord trap and escape the headaches and hassles of tenants and toilets.
When you are talking with the motivated seller, you will say to them, “Mr. Seller, to make this a real win for you, would you like me to take care of the day to day maintenance on the property? Why don’t I take care of the first $200 of maintenance in any one month. That should take care of 98 percent of the problems. Would that work for you?”
Of course, the seller will be thrilled that you will be taking over the day to day upkeep on the property.
But wait a minute, you say, how does that get you out of the landlord trap? Next you go meet with your tenant-buyer. You tell your tenant-buyer, “Mr. Tenant-buyer, you’re coming into this property like you are the future owner. And we expect that you would treat the place as if you did in fact own it. Of course this means that you are going to be responsible for the maintenance on the property. But to make it a win for you and so that you know that you won’t have any major repairs that you are responsible for, let’s put a limit on it-the first $200 in any one month.”
See how easy it was for you to sidestep the landlord trap. If a repair happens and it costs over $200 who is responsible for it? That’s right, the seller is responsible. If a repair happens that is less than $200, who is responsible for it? That’s right, your tenant-buyer pays for it. What are you left responsible for? Nothing! You get to sit in the middle making money without the headaches and hassles of traditional real estate.
Of course, you do have specific responsibilities. Each month you have to collect a check, deposit a check, and write a check. The beauty of the system is that once you have set up a property correctly, you have a hands-off residual stream of income that flows to you each and every month. Then at the end of a period of time, you get a flood of money when your tenant-buyer gets his own loan on the property, cashing both you and the motivated seller out of the deal.
Creating Multiple Streams of Income
Let’s say it took you an entire year to find and put together your first deal (we have students in our residential mentoring program who are averaging one a month, but let’s be conservative.) After a year of part-time effort, maybe 5-10 hours a week, you have your first deal set up. And each month you are earning a stream of income from the property, plus you collected a big chunk up-front as the option payment, and you are waiting to collect a huge chunk of money down the line when your tenant-buyer gets new financing for the property and purchases.
Then the next year you go out and look for more deals. By now you are much better at it and you find two deals. Again, once you set up each deal, it’s a hands-off investment pumping residual streams of monthly cash-flow into your bank account. In year three you find four properties in your spare time and set them up. You keep doing more and more deals as your expertise increases. The only limit is your own ambition.
By setting up each property as an independent money-making machine for yourself, you are creating multiple streams of income buying homes in nice areas with nothing down.
Peter Conti, Real Estate Investing Author
Mentor Financial Group, LLC
Peter Conti went from auto-mechanic to self-made millionaire investing in real estate. For a limited time, you can access Peter’s best-selling eBook, ‘How to Create Multiple Streams of Income’ and get $429.56 worth of free investor tools. Go quickly to this page and download the free real estate investing material.
Know your HOA
Hello,
Hope everyone has had a wonderful and safe 4th of July celebrating the Birthday of the United States! We spent ours with our circle of car club friends. No, not driving our classic cars in this heat but hanging out in the pool deciding where we will go once the fall car season starts. Enjoy what ever air condition place your in and lets talk about another topic of what you should be looking at when considering an addition to your home and or garage or when purchasing a home and thinking of adding on space for parking for your passion.
The HOA (home owners association) and the Title Commitment or Title Report, the article below is from the Buyers Advisory from www.AARonline.com Each one of these documents are important for you as a homeowner to read and understand before starting a project on your home. As a Buyer, you will receive a copy of the HOA and the Title Report when making an offer to purchase a home. Make sure you are reading and understanding what you can and can not do as far as adding onto the property. Follow up with the city/town also for their rules and regulation. Better to ask a million questions before you start spend any money.
Just because the property may have a large lot or you feel there is plenty of room to add on that parking for your passion does not mean that you can. There could be restriction to consider that will determine if you can such as a wash, set backs, height restrictions, a land to building ratio, these plus may other items that may determine if you can or can not proceed. So while you are enjoying your air condition space read, research and ask questions.
Homeowner’s Association (”HOA”) Governing Documents
In addition to CC&Rs, HOA may be governed by Articles of Incorporation, Bylaws, Rules and Regulations, and often architectural control standards. The HOA is in place to own and operate portions of a planned community and attempts to preserve the value of property in the condominium or planned community. Read and understand these documents. Also, be aware that some HOA impose fees that must be paid when the property is sold, so it is important to ask if the purchase of the property will result in any fees. Condominium and planned community HOAs are also regulated by Arizona statutes; however, they are not under the jurisdiction of the Department of Real Estate. If you have questions about your rights and remedies regarding homeowners associations or community associations, read the information provided at www.azre.gov/PUBLIC_INFO/Documents/Purchasing_A_Home_Read_This.html#LINK11 or www.dfbls.az.gov/UserFiles/File/administration/HOA%20Package04012007.pdf
HOA Disclosures
If purchasing a resale home in a condominium or planned community, the seller (if fewer than 50 units in the community) or the HOA (if there are 50 or more units) must provide the buyer with a disclosure containing a variety of information, including the principal contact for the association, assessments, the money held by the association as reserves and, if the statement is being furnished by the association, a statement as to whether the records of the association reflect any alterations or improvements to the unit that violate the declaration. See www.azleg.state.az.us/ars/33/01260.htm and www.azleg.state.az.us/ars/33/01806.htm for the laws detailing these requirements.
Title Report or Title Commitment
The title report or commitment contains important information and is provided to the buyer by the title/escrow company or agent. This report or commitment lists documents that are exceptions to the title insurance (Schedule B Exceptions). Schedule B Exceptions may include encumbrances, easements, and liens against the property, some of which may affect the use of the property, such as a future addition or swimming pool. Make sure you receive and review all of the listed documents.
Questions about the title commitment and Schedule B documents may be answered by the title or escrow officer, legal counsel, or a surveyor. General information regarding title issues may be found at www.alta.org/consumer/questions.cfm or obtained from the title/escrow company employed in the transaction.
Hope this is giving you food for thought in your next experience in remodleing and or purchasing your next home. Please call if you have any questions. What are your questions, fustrations or just thoughts on all this? What would you like to hear about the the Auto Related Real Estate blog? Let me know.
Have a great day!
Denise G. Ham, REALTOR
480-213-1613 dIrect
deniseham@cox.net
www.HomesForCars.com
Sonoran Lifestyle Real Estate
Real Estate Definition - Purchase Agreement
A purchase agreement is an agreement between a buyer and seller for the purchase of real estate. This can also be called a purchase contract. In short sales multiple purchase contracts can be submitted to the bank who ultimately makes the decision for the seller in the short sale.Thanks for reading.
- Real Estate Wiz Kid
Lloyd Wright: Bird of Paradise House
Located at 3456 Via Campesina in Rancho Palos Verdes, this 5 bedroom/ 5 bath Lloyd Wright designed home is on the market, and could be yours for as little $1,890,500! What a price for a piece of architecture history. Seriously though, this home was built in 1965, and needs a serious amount of restoration. The good news is that all of the groovy architectural elements like the wood and colored plexiglass room dividers, luxurious wood panelling, stone fireplaces and terrazzo floors are still intact. The bad news is the ceilings have been “popcorned”, the guest house is a mess, and the whole place needs a thorough scrubbing. (more…)
Grand Central at Kennedy | Tampa FL Condos
Grand Central at Kennedy is a new place to live offering a new way to live in Tampa. It is fresh. It is exciting. It is vibrant. It is not the suburbs. Grand Central at Kennedy is an urban neighborhood concept contained in one city block.
Featured Best Buy in Grand Central at Kennedy: Priced Below Market. Upscale Living at its finest. Luxury 2Bed/2Bath 1667 sq ft, unique sought-out Emerald floorplan unit on the 7th floor. This is the 3rd largest out of 23 floorplans in Grand Central at Kennedy , an urban neighborhood concept contained in one city block. Enjoy entertaining your guests with the large amount of open living area and expansive glass walls from floor to ceiling. Gourmet kitchen has huge granite countertop island and Viking Professional Series with stainless steel appliances including gas stove, microwave, refrigerator and trash compactor. Hardwood floors and ceramic tile and carpet.
It also features a huge balcony overlooking the neighboring swimming pool and cabana, along with incredible views of the Channelside District and Cruise Ships. Amenities include two Swimming pools, fitness center, community clubhouse with multimedia center, retail business, concierge and more. Condo fees cover much of your needs including Gas, Cable/TV, Internet, Phone, Security, Water and Trash/Sewer. Seller to Provide Buyer’s First Year HOA FEES. Priced at $400,000.
To view all current listings at Grand Central at Kennedy, click here.
ASIAS MOST EXCLUSIVE SUPER YACHT MARINA AND YACHT CLUB
HONG KONG (Insert date) - Jumeirah Private Island Phuket, Asia Pacific’s most exclusive development is scheduled for completion in 2009 and set to offer levels of luxury, privacy and security as yet unseen in Asia Pacific. It will also be home to an elite super yacht marina and the private members only Jumeirah Private Island Yacht Club.
The super yacht marina will have 101 berths and will offer true “super yacht” facilities with 24 hour deep water access. The marina will double the number of designated “super yacht” berths in Thailand property, with 7 slips measuring in excess of 45 metres and an average slip length of over 22 metres.
The marina, located in a protected lagoon on the east coast of the island is surrounded by tropical mangroves, and will be built to top international standards. The marina will include facilities such as helicopter and/or ferry access to and from Phuket, fuel dock with pump out facility, yacht maintenance and repair services and individual berth technology pipes.
The Jumeirah Private Island Phuket (marinas phuket, phuket islands, phuket villas, private islands, islands phuket) Yacht Club is planning to host regattas and black tie functions and will offer a range of facilities; club house, swimming pool, accommodation, formal and informal waterfront dining, business centre and fitness centre.
The benefits of berthing in Phuket include fuel, crew and dockage costs up to 80 percent cheaper than Europe and no luxury yacht taxes.
TGR contact: Anthony Franklin - Partner, Marketing Director.
Note to editors:
TGR
TGR Group develops and markets award winning luxury hotels and resorts. The management team has over 100 years combined experience working with leading, global construction companies and a successful track record across three continents.
Jumeirah
Jumeirah phuket properties are regarded as amongst the most luxury villas phuket and innovative in the world and have won numerous international travel and tourism awards. The rapidly growing Dubai-based luxury international hospitality management group encompasses the world renowned Burj Al Arab, the world’s most luxurious hotel (5 star hotels phuket, phuket hotel resorts) the multi-award winning Jumeirah Beach Hotel, Jumeirah Emirates Towers, Madinat Jumeirah and Jumeirah Bab Al Shams Desert Resort & Spa in Dubai, the Jumeirah Carlton Tower and Jumeirah Lowndes Hotel in London and the Jumeirah Essex House on Central Park South in New York.
The Jumeirah Group portfolio also includes Wild Wadi, regarded as one of the premier water parks outside of North America and The Emirates Academy of Hospitality Management, the region’s only third level academic institution specializing in the hospitality and tourism sectors.
Building on this success, Jumeirah Group became a member of Dubai Holding in 2004, a collection of leading Dubai based businesses and projects, in a step that aims to initiate a new phase of growth and development for the group.
Jumeirah’s ambitious expansion plans to grow its portfolio of luxury hotels and resorts worldwide to 57 by 2011 are well underway with projects currently under development in Dubai, Abu Dhabi, Aqaba, Doha, Phuket, Shanghai, Bermuda, Mallorca and London.
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What is the Multiple Listing Service
The Multiple Listing Service
MLS stands for Multiple Listing Service.
Basically, the MLS is a big property warehouse - sort of like a “home depot.” When property is available for sale, it goes in the warehouse. When it is sold, it gets taken out of the warehouse.
Since real estate cannot actually be stored in a warehouse, the MLS only contains information.
So the MLS is actually a database - an extremely convenient way to know what is available for sale at a given moment. That is why real estate agents developed the MLS. Quick knowledge of home inventory made agents more productive.
The Evolving MLS:
Since developing and maintaining the MLS system wasn’t free, agents created local “MLS Associations,” required membership, and charged each other annual dues (plus additional fees) so that they could pay for the necessary staff and materials to make it work.
In the really olden days, an agent submitted listings to their local association and the MLS staff compiled the data on what was available for sale and what had been sold. Once a week (or so) MLS members received a book that showed all the current listings.
Then computers came along and made it easier to create the listing books. When modems came along the books were no longer necessary, though it took agents awhile to adjust. MLS members could now “dial in” directly to the computer.
Finally, along comes the information age - and the Internet.
Beginning in 1996, some property information from the MLS was placed on the web. It isn’t as current as dialing directly into the computer, and information on the web does not contain all the properties available in the MLS. Plus, there is no national MLS or database. Information you find on the web is compiled from local and regional MLS systems, not all of which participate on the web to the same extent.
Why the MLS works for home sellers:
The whole MLS idea is a boon to sellers because of “supply and demand.”
How can you, as a seller, get access to the largest number of buyers? Placing an ad in a newspaper? Or putting your home information into a computer accessible by every MLS member who will show your property to their qualified buyers in your price range?
Being placed in the MLS expands a home seller’s sales force, exposes the property to a larger pool of prospective home buyers, and creates more demand for the property. The higher the demand, the more pricing power enjoyed by the homeowner - and the quicker a home will sell.
Why the MLS works for home buyers:
It is extremely convenient, does not cost a penny to buyers, plus…
…you get a qualified and experienced guide to help you through the complicated process of becoming a homeowner.
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