Phoenix AZ | Scottsdale AZ Real Estate

Home selling is mostly common-sense. Price it Right and will sell!

However, it is such an emotional decision, that it often hard to follow your mind and instead follow your heart.

These are the 5 most common mistakes that sellers make when trying to sell a home.

1. Price your home right. Not what you want or need, but what the market dictates.
2. No offers in a month. Lower prices at least 3%
3. Price your home based upon comps of sold properties (within 3 months); Not active listings!
4. Incentives such as contribution towards closing costs allow buyers to come up with less money making it easier for the borrower to obtain a loan.
5. Do not overprice your home with the idea you have room to negotiate. Buyers will make offers on lesser priced homes.

As you can tell, most of the so-called secrets of real estate selling are price driven. Most homes, like most products in the economy, sell predominantly be price or value.

No one will pay 10% more for a car, if they can go next door and pay less for virtually the same car.

Real estate, although, not a commodity acts very much the same way.

For advice on home selling, always interview at least one real estate professional or more to get a true picture of the market in your area.

At $500-million, ... La Leopolda is the world’s most expensive house.

It's just been bought by one of the world’s richest men, billionaire Chelsea Football Club owner Roman Abramovich.

past owners include Microsoft's Bill Gates

Although, he likely paid Cash, ....Ordinary mortals would face a $3.2-million monthly mortgage repayment.

He also owns the $30-million Chateau de la Croe just down the road.

Hey Mr. Abramovich, do you need a Agent ??

I will cut my commission to 2%.

- James Wexler

A record numbers of foreclosures helped drive down prices 7.6%, according to NAR. 

In fact, foreclosures and short sales accounted for about one third of all existing homes sales.

Real estate prices continued to post steep year-over-year declines during the three months ended June 30, according to a new report from the National Association of Realtors (NAR).

Nationwide, the median existing single family home price plunged 7.6%

• Sacramento, Calif. prices plunged 35.6% year-over-year to
• $229,500. Cape Coral, Fla. saw a decline of 33.1%,
• prices in Riverside, Calif. dropped 32.7%,
• Los Angeles prices are down 29.6%.
• Las Vegas prices fell 23.6%
• Phoenix was down 22.5%

There were bright spots in the NAR report

Yakima, Wash. posted the largest price increase, up 8.9%

Binghamton, N.Y. was second with a price jump of 8.7% to $120,900

Condominium saw only a 3% drop nationwide , much smaller price declines than single family homes.

I expect that areas that have higher foreclosures will struggle until the excess overhang of foreclosed homes and short sales is reduced.

Areas that saw less development during the boom , will fare much better and likely near or at a bottom.

- James Wexler

Short Sale is fast replacing 'Sub-prime' as the word of the year for 2008

so, what exactly is a short sale in Real Estate?

a very simple explanation, ...

Selling short , or a 'short sale' means offering (and a lender accepting) lesser amount than money owed to the bank.

The good:

• salvage credit (potentially) and possibly avoid bankruptcy, ....
• Lender avoids a potentially larger loss and does not have to take ownership in their (REO) eal Estate Owned inventory

The bad:

• consumer gets a 1099 for taxes due on the discharged amount.
• Banks do not get to collect insurance from the PMI (private mortgage insurance) companies

Here's what is required to get a short-sale approved by a bank. (a cursory explanation)

• Call the lender and speak with a short sale specialist
• provide a written 'hardship' letter
• Estimated Net proceeds sheet - sale price minus selling costs
• Bank Statements, tax returns, 1099, etc to prove hardship
• Listing Agreement and/or Purchase Agreement

Not all lenders will accept short sales. In fact, most ‘Short Sales' have not been approved.

Finally, there are tax consequences to selling in a ‘Short-Sale', so consult your CPA before you attempt a 'short-sale'.

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Copyright © 2008 By James Wexler, All Rights Reserved. *SHORT SALE ... the new 'Sub-prime'*

ReBlogging - In case you do not know what I am talking about, ...

ReBlogging allows other Active Rain members, with your permission,  to (basically) cut and paste your blogs, by posting (reblogging) onto their personal AR blog.

I am new to this reblogging , so this is a quick and broad first glance analysis 

The Good - 

• does deliver content on your outside blog; and content is king when it comes to search engine optimization
• Although, not original content. You can however, make it slighly more original  by adding a message to the post prior to reblogging.
• Make sure you use strong keywords and other SEO Techniques that Google likes.
• If you are using reblogging as content filler for your outside AR hosted blog, it can be impressive to consumers. Make sure you get a personalized domain to brand your outside AR blog.
• Does help cross marketing by agents working together to help each other build our on-line businesses towards consumers (which I think is the ultimate goal)

The Bad -

• It is not original content. and while helpful, it will not be nearly as beneficial as writing your own proprietary content.
• The outside blog content is still on AR servers.

The Ugly -

• Not too ugly (imho), re-blogging does not have the desired effect of posting original content on an outside blog (like a wordpress or typepad)

My assessment is that it cannot hurt at all. And likely, can help. It is No replacement for well written , strongly optimized (SEO) unique and original content.

However, you are adding more and more content and pages for Google to see.

If google reads someone elses article on your blog, that you re-blogged, the link will come to your AR blog - with your contact information for that consumer to see.

If you are going to Re-Blog , I think you should write your own blogs and also re-blog a supporting article or one that you can add on to the conversation in your own post. Thus, you are getting the best of both worlds.

Like everyone, I am new to re-blogging. Not sure how it will prove sucsessful. Trying to attract Google is a never-ending challenge; However, I think it is a good feature for AR members who want content and do not have the time to write consistently.

I want to hear your thoughts, ideas, and criticism so that we can all learn what will work best to build our on-line brands together.

and please feel free to re-blog this blog about reblogging on AR blogs

Good Luck -

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Copyright © 2008 By James Wexler * Re-Blgging - The Good , the Bad and the Ugly *

Phoenix and Scottsdale area lenders are tightening their lending practices. It is increasingly more and more difficult for home buyers to get loans.

Now 100% loans, or ‘majority financing‘ is a very limited option, buyers and sellers have to be creative to get real estate transaction closed.

There are 2 strategies that may work;

The Lease-option and the Lease Purchase

A common name you may here these referred to is "Rent-to-Own" .

I have to recommend that you do not attempt this without the advice of an experienced attorney and/or real estate professional.

Lease option - "contract in which an owner leases her house (usually for one to five years) to a tenant for a specific monthly rent, and which gives the tenant the right to buy the house at the end of the lease period for a price established in advance"

Lease Purchase - "a Lease to Purchase contract combines a basic lease contract with an option to purchase contract, which creates a Lease to Purchase contract." The main difference being that the lease purchase contract, the Buyer is obligated to buy; if not, the buyer would likely be in breach.

Again, both contracts can provide language where a portion or all of the rent payments can go towards the purchase of the home; Thus, allowing the buyer to accumulate down payment to more easily obtain a loan.

Hire a real estate attorney or experienced real estate professionals who can prepare documents, explain and protect your interests.

Here are the names of a few real estate professionals with whom you can speak.

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Copyright © 2008 By James Wexler * Lease Option vs. Lease Purchase *

Related Posts

• Short Sale Nightmare - a Seller speaks!
• Take Advantage of Builders (Incentives)
• Will mortgage brokers become extinct?

A new advertisement in the Sunday Real Estate section of the Arizona Republic for a condominium community called Avalon Hills in Phoenix that asks "Why Rent when you can own ???"; further claiming 100% of your rent goes to your down payment.

These days one of the main challenges for buyers is having enough of a down payment as a result of more stringent lender requirement in obtaining financing.

This 100% equity program allows people who want to buy to enter into an option agreement to purchase the property anytime within 12 months if they choose.

The buyer pays rent each month all of which gets deposited in an escrow account on their behalf; rent accumulates as equity towards a maximum (per the lease-option agreement) 5% down payment.

Several things happen.

1. the buyer gets a place to live
2. the buyer can test the community and see if this is a place they want to ultimately live.
3. they build equity capital towards their loan (money does not get returned should they decided not to exercise their option to buy
4. 5% additional down payment reduces loan amount, interest rate, and give the buyer a much higher likelihood of obtaining a loan

I have spoken with several real estate attorneys and lending institutions and they have all confirmed that if the money is deposited directly from the buyer into escrow on the buyers behalf, then it is not considered a seller contribution.

Also, remember Full disclosure when telling the renter about the program and the origin of the down payment.

However, I always recommend full disclosure when you speak with your bank prior to entering into any purcahse agreement. Show your lender the option agreement, contract and provide full disclosure ahead of time.

I really like the program and I expect to see more and more of this type of seller cooperation with buyers to close real estate transactions in today's challenging real estate and financing market.

For more information on such rent to own programs in Pheonix, Peoria and Tempe please call a Real Estate Agent

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Copyright © 2008 By James Wexler, All Rights Reserved. * 100% Equity 'Rent-to-Own' Programs! *

in the past several weeks, many large financial institutions and major depositor banks have been giving indication into the current and future financial impact into their impact of the sub-prime debacle.

Many large banks, if not all, were extremely hard hit by exposure to sub-prime mortgages and warned of potential heavy losses going forward as a result. 

Almost every major depositor bank and Investment bank has reported their 2nd quarter earnings.

These stocks and the financial sector as a whole hit drastic annual lows on and about July 15th in anticipation of severe quarterly losses .

However, since July 15th, these stocks have rebounded as a group dramatically.

• Morgan Stanley has gone from $32 - $45;  up 40%   in 3 weeks.
• XHB (home builder stock index) has gone from $14.70 to $19 today;  up 30%
• XLF (Financial stock index) has gone from $17.20 - $22 ; up 28%

Yes, the companies remained cautious in their outlook going forward.

However, the effect on earnings as a restult of sub-prime exposure was less than experts and analysts predicted.

In fact, it looks like Wall Street may have overreacted in its estimates of damage to credit and housing based upon these earnings reports.

What does all this mean?

Wall Street seems to interpret this, at least today :) , that although, their may be some further pressure on the housing market, that possibly the worst of the sub-prime market and the tightening of credit, may be moving into the rear view mirror.

Analyst Alex Potter, said, the "outlook statement is very muted" , however, "the U.S. performance was well above worst fears."

I urge you to be cautious as the future is still a little unclear. We have some unique issues in Phoenix, Scottsdale, Tempe, Fountain Hills, Mesa, Peoria, Glendale, Paradise Valley that differ from the rest of the Country.

However, if you have been planning on buying a home, can negotiate a great price and most importantly, can afford your fixed mortgage payment, this may be the time to buy that you have been waiting.

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Copyright © 2008 By James Wexler, All Rights Reserved. *a sign the sub-prime mess is behind us! *

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

Yesterday, I visited a wonderful community just north of Phoenix in the town of Peoria called Sonoran Mountain Ranch.

The particular builder , Camelot Homes , is one of the most respected and desired custom builders in Arizona with luxury communities throughout the state from Scottsdale to Chandler.

Camelot's development within Sonoran Mountain Ranch called Canyon's Edge offers several beautiful homes at fantastic prices offering some of the best value and equal quality on the market.

Nestled in the mountains, Canyon's Edge offers a 4,496 sq/ft , 5 bedroom, 4.5 bath home with a gourmet kitchen, granite counter-tops, stainless steel appliances and a four car garage.

Similar homes have sold for more than $1 million. This highly upgraded home can be owned for $775,900.

If you are looking for a luxury home in the northwest valley, it will be difficult to find a more special home at such a special price.

Contact your real estate professional, email KellenB@CamelotHomes or call the sales office directly to arrange a preview of this home and/or their many models.

Disclaimer: Please note, these homes are not my listings. Camelot Homes or any party has not paid me to make these statements.

Most importantly, when buying real estate, consult your personal advisers, and real estate experts.

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Copyright © 2008 By James Wexler, All Rights Reserved. *Great Home Better Price- Sonoran Mountain Ranch - Peoria *

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

Can you stand some good news?? 

Are you sick of negative Headlines?

Do you want to smile all weekend?

Do you want to look forward to Monday?

Read these stories which aggegate to all Good things?

• Olympic start tonight!
• Olympic Size Gains for Stocks -  NYSE Rally 300+ points Today
  
• US Dollar Soars !
• FED keeps Interest Rates Flat
• Interest Rates Dive
• Oil drops to $115/barrel  - gas will be near $3.50/gallon
  
• Pending Home Sales Rise

and a few personal ones which I cannot help but share

• AZ Diamondbacks in 1st Place
• my nephew . Sam the Rock Star (to the right_

and I want to hear all your good news that you should share !!!

Have a great weekend and (I know I sound like an AR newbie) , but.... thanks for reading and sharing

James Wexler , aka, Wexzilla

Phoenix | Scottsdale Real Estate

480.221.8080