Phoenix AZ | Scottsdale AZ Real Estate

Phoenix home prices are down 30%++ Scottsdale home prices are dropping. Phoenix area Condo project sales have stalled and are revering to rentals. Foreclosures rising by staggering amounts in Maricopa County.

Many Arizona Builders are drowning and Bankruptcy is the only life preserver.

Liar-loans and sub-prime mortgages are may total more than $100 Billion in losses according to Moody's.

The lending industry is going through tough times. Some might use the word "Crisis"

IndyMac, First National Bank of Arizona, Bear Stearns are giant names on the tombstones in the wholesale lending graveyard.

Lending giants Fannie Mae and Freddie Mac are on life-support. Most of Wall Street and some on Main Street are making funeral plans.

However, look up in the sky, it's a bird, it's a plane, it's the FED to the rescue.

The FED, led by the Treasury Department has temporarily, which for means indefinitely, increased the amount of money that these GSE (government sponsored private entities), Fannie Mae and Freddie Mac can borrow from the United States Federal Reserve.

Many are calling this a Government bailout; and bailout is a bad word as most Americans want the government to mind its own business and let market economics take its due course.

I want to be clear. I am not a fan of government interfering with business.

However, THIS IS NOT A BAILOUT!

I interpret this move by the FED as a national security issue that takes extreme measures in extreme circumstances.

This is not regulations or a bailout. ""This is modernizing an industry.""

These are new rules to prevent predatory lending, fraudulent borrowing, regulating CMO's and other risky Wall Street investment vehicles, foreclosure prevention counseling.

These are moves to prevent a repeat of such events in the future.

The sustainability of Fannie Mae and Freddie Mac ensure the long-term viability of the mortgage and lending industry, the foundation of the real estate market and the lifeblood of our nation's economy.

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Copyright © 2008 James Wexler *This is Not a Bailout for Fannie Mae *

Contact James Wexler (480) 221-8080 for your Phoenix AZ| Scottsdale AZ Real Estate needs

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It is a difficult time to sell Real Estate. Period! It is a buyer's market. Sellers have to be patient.

However, the levels of desperation are rising like the tide.

We have roughly 60,000 homes for sale (Greater Phoenix) between the MLS, foreclosures and For sale by owner in Maricopa County, Arizona. (Phoenix, Scottsdale, Mesa, Tempe, Chandler, Glendale, Peoria,etc..).

The remarks on listings read like a drowning person looking for an anchor to keep them afloat.

I will share one Bad MLS listing with you.

However, the names have been changed to protect the innocent.

A little background:

This truly fabulous home is currently listed at $2M

In an email to Real Estate Agents: The owner will agree to sell this for $1,450,000

Realtor Remarks << (must read)

" I am desperate, my family is far more important to me than the loss on this home. I really need to close on this home by the end of August if possible and this is a bad market in summertime in AZ. I WILL do what ever I can to make it happen. If you know of anyone looking for a beautiful home and a very good deal this is it."

I don't want to overstep my bounds. However, I am gong to take the liberty of offering some words of advice:

Buyers know you want to sell. They now you want to sell; sooner than later.

Telling them you are extremely desperate may solicit offers. However, the offer will likely directly reflect your desperation. Think - buyer/anchor and seller/ person drowning .

There are better ways to market your home that will more effectively solicit

There are several things you can do to improve your chances. First,

#1 Price , Price , Price - if you are not priced right, do not even list your home.

You can also read Marketing your Home to Sell in todays market with some quick tips and tricks that combined with the right price and a lot of patience will optimize your chances of getting you not only any offer, but good offers.

If you are thinking about selling your home, contact any of the real estate professionals on Active Rain who are experts in marketing your home to sell in today's buyers market.

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Copyright © James Wexler,  *Marketing your Home to Sell in todays buyers market *

Contact James Wexler (480) 221-8080 for all your Phoenix AZ | Scottsdale AZ Real Estate needs

Do you need 3 guesses? Probably not.  It's Home Prices in Phoenix, AZ.

In Maricopa County, Arizona which includes Phoenix, Scottsdale, Paradise Valley, Fountain Hills, Mesa, Peoria and Chandler home prices exploded from 2001-2005; Skyrocketing more than 100% in most places.

In fact, the Wall Street Journal reported Maricopa County as the fastest growing real estate market up more than 40% in 2005 alone.

Hence, the proverbial real estate bubble.

And we know what happened next, things slowed down considerably. And most experts would say that the resulting steep decline in home prices over the following 3 years was the Real Estate bubble bursting.

However, I am going to argue with these analysts and say that the Housing Bubble did not burst in Greater Phoenix. And that's the problem.

Lynnsy Logue describes it perfectly, "America's housing bubble has not exactly burst. It's just sprung a leak the size of your average mortgage banker.

Real estate is tied to a lot of personal emotions. Real Estate agents and other industry professionals would try to convince you that it is a business decision that must be made with what is the best financial result in mind. Although, in theory this may be what is best for financial health, we know this does not happen.

On Wall Street when stocks drop, they drop fast. In fact, often times, before recovery can occur there must be one significant event causing a popular Wall Street term "Capitulation'. Like hitting rock bottom.

At that point, consumers (hopefully) regain confidence and stability returns and in time, prices rise again.

Unfortunately, this does not happen in real estate. When someone wants to sell their home. They leave it on the market for extended periods of time. If the home does not result in offers, the seller typically small price reductions. Rarely, enough to initiate a quick sale.

This behavior is a snap shot of what has transpired in real estate over the past several years.

If the bubble burst, home prices would have dropped 30% and the pain would have been over and done with. Much like tearing off a band-aid. It hurts, but its over quickly.

Instead,  like air leaking out of a balloon as it slowly drops from the sky, we are watching slow 1-3% quarterly price declines. Slow torture. Very Painful.

Why is any of this important ???

If you want to sell your home, you let the bubble burst.

If you have your home on the market for a maximum of 30 days and do not receive an offer it is priced to high. Period!!

You need to lower the price of your home 3-5% minimum. If you do not receive any offers within 3 weeks. Your home is priced too high. Period!

If you really need to sell your home then let the bubble burst. It hurts initially. However, ultimately, it is the less painful option.

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Copyright ©  James Wexler *What goes up like a Rocket and down like a Balloon? *

Contact James Wexler (480) 221-8080 for your Phoenix AZ| Scottsdale AZ area Real Estate needs

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Short sale specialists will tell you that you are missing the boat if you are not involved with these transactions in the greater Phoenix real estate market.

I completely disagree!! 

Here are 7 Good Reasons not to get involved with short sales.

1. Average time to get acceptance (or more likely a denial) from a lender is more than 75 days. Some agents say longer.
2. There is no guarantee the offer will get accepted at or near that price because the majority of Realtor list homes at random arbitrary prices that they think or hope the banks will accept.
3. estimates as high as 80%, some say 90% of offers on short sales do not consummate in a closed escrow
4. 3 month waiting periods prevent buyers from looking for other houses which often result in opportunities lost.
5. REO /lender owned listings are now priced as well or better than short sales. Make your offers on these homes.
6. Lenders are more inclined to reject offers that do not have financing with large down payments. Many FHA offers are rejected due to high decline ratios and lengthy underwriting times.
7. Banks are just not cooperative. In most cases, they prefer to reduce current REO inventory. Further, they can often collect PMI from insurers if the home actually is foreclosed upon.

I have prepared short sale packages for approval for sellers. I have negotiated contracts with bank asset managers. I have represented buyers with success. I have watched buyers wait and wait and miss out on other opportunities.

If you are thinking about buying a home, skip short sales. They Suck!

Instead, make offers on the many REO and lender owned properties on the market.

There are REO at as much as 50% discount to 2005 prices in Phoenix, Scottsdale, Carefree, Peoria and Fountain Hills.

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Copyright © James Wexler *Short Sales Suck ! - 7 Reasons Why!*

If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.

Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale AZ short Sales

With so much negativity surrounding real estate in all facets of the media, national and Phoenix area news headlines read like a Stephen King horror story.

Admittedly, these are some challenging times for homeowners and home buyers. Prices have dropped , sellers are losing equity in their homes, and many would-be buyers cannot seem to get a loan to finally make a purchase.

However, you may be surprised to know that things in Greater Phoenix are not as bad as the media seems to portray.

In fact, there are a lot of stories of real estate buyers and seller who are very happy; even ecstatic.

Let me tell you a little story about the....

"Couple who Buys Home in Scottsdale and Lives to tell about it!

Mr. & Mrs. Buyer (the "Buyers") have been trying to buy a home in Scottsdale for some time. However, with the boom in real estate , a 3 bedroom, 3 bathroom home, with a private pool/spa in a golf course community with city light views was just too expensive.

Finally, as prices have declined, the dream home that the Buyers have been keeping an eye on was priced just right. Good news, the offer which was accepted.

Now, this dual income family has a great FICO score and enough income. However, with 2 children and the expenses that goes with raising and saving for them, they do not have a large down payment. Fortunately, the seller was cooperative (As sellers are know to be these days) and agreed to participate in a Down-payment assistance programs like Ameridream, Nehemiah , and Grant America Program.

The Buyers were fortunate (again) to take advantage of these charitable assisted down payment programs as they have been banned by the new housing stimulus package that was just approved by the President into law last week.

A Quick side note, take advantage of Down Payment Assistance Programs before they are no longer allowed October 1, 2008.

Things get even better , Mr. & Mrs. Buyer, are First time home owners and qualified under FHA Guidelines. FHA lending means a streamlined underwriting process , and a quite a favorable fixed interest rate.

Now , our favorite couple, the Buyers have moved into their Scottsdale dream home , with very low interest rate, and little money out of pocket. And , I should mention another happy person, the Sellers who are now able to move up and close on their dream home in nearby Fountain Hills, AZ.

Wait a minute, what about the news? prices are dropping. Are the Buyers going to be ok?

So I asked ? The told me that they are enjoying the new home and the many benefits of home ownership including the

• ability to qualify FHA streamlined underwriting and low interest rates,
• great purchase price due to value declines, they could own the Scottsdale home they could finally afford,
• used down payment assistance (Ameridream) before its no longer allowed Oct. 1,2008
• a a place to live, to use, to create memories, to enjoy, to raise a family
• Low fixed Interest rate allowed the Buyers the ability to fix a monthly payment that will not change for 30 years; while inflation does rise (Inflation Hedge)
  
• Tax advantages - they said they are deducting all mortgage interest from their income (speak with a CPA for tax advice) there are great tax advantages of home-ownership
• they know that primary residence should not be purchased as an investment.However, history tell us if we stay in a home 5-7 years, or longer the real estate value will appreciate.

Mr. & Mrs. Buyer read the news. They know their house is probably worth slightly less than the price they paid.

Mr. & Mrs. Seller have still survived. In fact, more than survived.

They are enjoying owning their dream home and have many important reason to do so; including their children's smiling faces.

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Copyright © James Wexler, *Couple Buy Home and Live to Tell about it*

Contact James Wexler (480) 221-8080 for all your Phoenix AZ| Scottsdale AZ Real Estate needs.

Americans are well known for their infatuation with debt and their inability to save.

However, there have been two places that Americans have managed to save to accumulate wealth.

• The first is their primary residence, their home (believe it or not).
• The second is in retirement plans such as IRA and 401Ks.

The primary reasons these investment vehicles have been successful amongst the free spending is that they are both forced savings plans. People will pay their mortgage first. Before any bills. If you have a fixed rate mortgage , principal will accrue and likely offer a nice savings nest egg down the road.

The retirement plans/IRA also are often pre-tax withdrawals prior to receiving your after-tax paychecks. Again, a forced savings.

Amidst these surviving opportunities to save money for later in life is a growing problem that is happening much too often.

Americans who are facing difficult financial situations are pillaging both these valuable resources. Now, there are circumstances that require a move to empty a 401K or get a (HELOC) /Home equity line.  Though, these are last resorts. And, sadly, more and more frequently, people are taking on new debt (yes, these are loans) to pay other debt.

The problem with taking from a Home Equity Line is that you rarely pay off the debt. Most hope to sell their home at some point in the future. However, debt accumulates quickly. Also, you are paying interest (more than 7%) on your own money. If your home grows at historical rates, you are just breaking even; not at all saving for the future.

Taking money from an retirement account poses a whole new set of issues. There are serious tax implications for early withdrawal distributions that you must be aware.

These tax issues need to be explained by a CPA only!

Also, and most dangerously, it is very rare that someone every repays their IRA or 401K. Typically, if you need money for financial hardship, you rarely pay it back in a lump or installments. Ultimately, that money is not working for you over the years and you will pay the price when you need that money down the road.

When people are struggling the predators come out with promises and untold offers to reduce debt and offer debt consolidation.

It may sound callous.  However, Yes, I do mean to scare you.

Be careful these are the last 2 options are taking on more debt from your home equity lines or borrow money from your IRA's / 401k's to pay off other debt.

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Copyright © James Wexler * Borrow from IRA to pay off Debt ?? Bad Idea! *

Contact James Wexler (480) 221-8080 for your Phoenix AZ | Scottsdale AZ Real Estate needs

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DC Ranch in North Scottsdale is one of the most spectacular communities amongst the many wonderful places to live in all of Greater Phoenix.

DC Ranch is an intimate golf and exclusive community designed by DMB Partners as a premier resort, retirement and golf community nestled in the McDowell Mountains.

This 3,700 acre master planned community is one of the most desirable place to live, not only in Scottsdale, but Arizona.

Tree-lined streets, family parks, walking paths through breathtaking desert landscape and community centers with pools, fitness club and recreational facilities add to the intimate and pleasant nature of the community which is broken up into 4 unique villages.

• Desert Parks Village
• Desert Camp Village
• Market Street Village
• Country Club Village

The reputation of DC Ranch and its prestigious sister golf community, Silverleaf is unparalleled in the greater Phoenix area and all of Arizona.

The DC Ranch resort lifestyle affords some of the most desired locations in Scottsdale with access to highways, great schools, boutique shopping and fine dining cuisine just steps from your front door on DC Ranch Market Street.

The restaurants and shopping are one of a kind, even for Scottsdale and have now extended to Canyon Village with restaurants Grazie Wine Bar and Cafe' Ted.

Situated next to the DC Ranch Village Health Club, an 81,000 square foot state of the art health and fitness club that includes children's day care, mountain biking rentals and large heated pools, is DC Ranch Crossing which today is celebrating their grand opening anchored by AJ's fine foods.

If you have considered living in Scottsdale. I highly recommend you visit the on site sales office on Market Street or the model homes of the high-end builders throughout DC Ranch.

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Copyright © James Wexler *Life in DC Ranch Scottsdale AZ*

Contact James Wexler (480) 221-8080 for your Phoenix AZ | Scottsdale AZ Real Estate needs

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Kevin Boer of Domus Consulting Group, (IMHO) the premier Real Estate Social Media Consulting company,

 emailed this to me earlier for ..... those interested in Twitter and its many applications

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You're probably aware today is election day.  :)

Regardless of your political leanings, today represents a great learning opportunity on the use of social media, in particular Twitter. 

I encourage you to spend some time at the following sites:

http://search.twitter.com/search?q=%23votereport
http://election.twitter.com

If you want your own tweets to show up at these sites, simply add the word #votereport to your tweet.

 Not telling who I voted for! Short lines, lots of excitement. #votereport

As you're watching these sites, keep thinking about the potential real estate business implications as similar tools get developed for the real estate world. 

What would it look like, for instance, if there were a realestate.twitter.com or a menlopark.twitter.com? 

 What marketing potential would that present for a Realtor, broker, mortgage officer, title & escrow person, etc.?

Remember, vote early, vote often.

We are facing the most important election in our lifetime as a Nation. Do not pass up opportunity to guide the future of our country and that of the State of Arizona by voting tomorrow. Please Vote!

First of all, here is what you need to know to receive a ballot in order to vote in a city, county or state election in Arizona

As it pertains to Phoenix AZ real estate,

there are 2 critical ballots, Proposition 100 and Proposition 201

The first initiative is Proposition 100,

the Protect our Homeowners Initiative. Proposition 100 will protect families from the effects of a real estate transfer tax that could potentially be imposed by local government on the sale of Phoenix AZ real estate.

Currently, there is no real estate transfer tax. However, one could be imposed at anytime.

The second ballot is the - Proposition 201 - Arizona Homeowners Bill of Rights.

Particularly pointed at new home builders, the goal is to "provide homeowners with improved rights to deal with construction defects and shady home sales practices."

I am a big supporter of AZ real estate buyers rights. However, the bill in this current form increases builders costs and supplier costs. Though, in my opinion, We need better regulation and penalties for dishonest builders. We do not need to increase costs for the 99% of honest new home builders.

Whether you vote ‘yes' or ‘no' o either proposition 100 or Proposition 201,

DONT FORGET TO VOTE TOMORROW - remember 2004. Your Vote  Counts !!!

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Copyright © James Wexler * Phoenix AZ Real Estate owners - What you Need to Know to Vote *

Contact James Wexler (480) 221-8080 for your Phoenix AZ| Scottsdale AZ Real Estate needs

Call me for a private tour of  new homes in Phoenix, Scottsdale and Peoria and to learn more about life in Scottsdale AZ and living in luxury communities in  Phoenix AZ.

 Arizona Proposition 100, known by its supporters as the Protect Our Homes Act, will be on the November 4, 2008 ballot .

I encourage Phoenix AZ real estate owners to

Please Vote Yes on Proposition 100 that, in essence , would

‘prohibits the government from charging any new tax on the sale or transfer of real property in Arizona"

Currently, there is no real estate transfer tax.

However, one could be imposed at anytime. The effects of such a tax would take away equity from families and make the costs of sales greater. Both further hampering the ailing Phoenix AZ real estate market.

Finally, a transfer tax would be an additional tax to annual Phoenix AZ real estate property taxes. Thus, double-taxation.

Please Vote Yes on Proposition 100 to prevent double taxation.

you can visit www.protectourhomes.com and www.NoNewTaxes.com for more information.