Phoenix AZ | Scottsdale AZ Real Estate

Win at REO Auctions !

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Tue, 28 Oct 2008 10:42:52 -0500

In Greater Phoenix, REO (Real Estate ‘bank' Owned) Auctions are quickly becoming today's ‘get rich quick' opportunity being touted by, well banks, and those who run the auctions.

REO Auctions are being advertised as your chance to win the Real Estate Auction sweepstakes.

However, be careful, do your homework and know the rules.

REO (lender owned) real estate auctions are offered by banks that have repossessed the property after they have gone through an unsuccessful (Arizona) trustee sale/foreclosure.

Typically, at the Trustee sale Auction, the property is offered at the amount owed (plus expenses).

However, if no buyer, and there are plenty of bargain hunters (if you don't believe me go to the Maricopa County Courthouse steps at 2pm any day of the week)) bids the minimum required by the lender, then the property is taken back by the bank.

The bank then lists the property for sale and/or offers it as a lot in one of the many real estate auctions in Phoenix operated by a multitude of (very profitable) Auction houses.

Most, auctions require registration and a $5,000 cashier's check in order to bid. Properties are sold "as-is" and buyer's typically pay up to 5% fee on top of the winning bid.

However, I urge you to do your research by obtaining a list of the properties for sale at the Auction.

Drive by the homes; even attempt to preview the home you are planning to bid upon. This is not a collectible on ebay. This is a big investment. Don't over-bid for the sake of winning.

Finally, some advice.

Yes, there are bargains to be had for prudent investors.

Phoenix, Scottsdale, Glendale, Peoria, Mesa, Tempe are beautiful communities over-run with foreclosures. There are plenty of success stories of homeowners who realized their American Dream at a dream price at these Phoenix area REO Auctions.

However, in most cases, if the property was so valuable it would have sold at the Trustee sale Auction and never made it to the REO auction.

Likely there is a reason that no one wanted to buy the home.

That reason is usually because it is not worth more than what you are paying!!

_______________________________

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

6 MLS Photo Tips to Attract Buyers

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Fri, 31 Oct 2008 10:41:18 -0500

The new AZ Regional Multiple Listing Service has launched the FlexMLS system which vastly improves the ability to view listing photos and virtual tours.

Good Phoenix area Real Estate agents will do well by their clients if they take advantage of this system to layout pictures/virtual tours to get them inside your home.

Ultimately, (i think) the goal of MLS Listings is to advertise (quickly) a snapshot of your home so buyers want to go see more for themselves and ask why they should buy your home (hopefully).

Here are 6 important tips to best showcase your home to prospective buyers.

Front View Elevation pictures - make sure you take pictures past noon with the sun at your back to provide the best lighting
Do Not have the Realtor for sale sign in the front yard when taking the MLS photos
Take the elevation so it takes up the majority of the photo - no one cares about the driveway and street in front of the home
All interior lights on and windows open - think bright and cheery
Remove unnecessary furniture to add size and space in the rooms
Leave something to the imagination so people will come look for themselves.

I do highly recommend you ask your real estate agent to spend the $79 to hire a true professional who prepares a virtual tour and provides the MLS photos.

Though, make sure you are at the home and instruct them with the above important tips to best showcase your home.

There is one extra step that statistics do prove that help homes sell more quickly and at better prices. That tip is professional staging.

The tips may sound the same as how you layout the MLS listing photos and is why I mention them that can help ensure your home stands out from the others on the market.

Focus on the front entry. This is literally the "first impression" a buyer has to your home.
Clean and clean and Clean. A clean home smells good - think new car smell
Remove personal items like family photos and unique collectibles. You want the buyers focused on your home.

Please contact one of the mnay excellent professional staging company here on Active Rain in your area, to stage your home:

_______________________________________________

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

If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire a Phoenix Realtor or Scottsdale Real Estate agent who is experienced with short sales and bank owned transactions.

Do you Buy Leads?

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Thu, 10 Jul 2008 12:56:37 -0500

In this day of not enough buyers and too many sellers, ..

I am curious if any of my fellow real estate and mortgage industry professionals ...

have (you) purchased qualified leads from 3rd party providers??

Can you suggest the names of any lead providers ....

that are offering offering live real estate buyer leads and/or mortgage sales leads.

I am interested primarily in real estate leads.

However, I have received referrals from mortgage agents who have prospective buyers that asked to be pre-approved and don not have a agent.

Any names, contact info, suggestions, recommendations, personal experiences or warnings would be greatly appreciated.

----------------

James Wexler ~ Phoenix | Scottsdale Real Estate Blog

480.221.8080

Short Sales Suck ! - 7 Reasons Why!

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Fri, 07 Nov 2008 09:18:36 -0600

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.

Average time to get acceptance (or more likely a denial) from a lender is more than 75 days. Some agents say longer.
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.
estimates as high as 80%, some say 90% of offers on short sales do not consummate in a closed escrow
3 month waiting periods prevent buyers from looking for other houses which often result in opportunities lost.
REO /lender owned listings are now priced as well or better than short sales. Make your offers on these homes.
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.
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.

_______________________________________________________

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

Would Down Payment Assistance Programs Help or Hurt the Credit Markets?

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Tue, 21 Oct 2008 10:36:02 -0500

In the midst of the mortgage crisis, rising interest rates and tighter lending and the disappearance of 100% financing, the last lending option has been taken away for credit worthy borrowers who lack the money for a down-payment

Down-payment assistance programs like

have offered Phoenix area home buyers....an opportunity to obtain mortgage loans with the help of non-profit organizations and charity assistance groups that contribute the down-payment for buyers to obtain FHA loans.

However,

Federal Regulators believed that these lending practices and programs is actually a contribution or kick-back from the seller. Here's why.

The buyer is including an extra amount (usually 3%-5%) in the price of the loan which is insured by FHA which insures all loans involving down-payment assistance. The money then is a credit funneled from the seller to the non-profit organization to the buyer as a down-payment.

This practice, which has been described as a ‘loophole' in FHA guidelines that allows down -payments from charities has been banned.

Now that sub-prime loans require much higher down-payments, this has become a very popular strategy to get risky loans approved with little money down that are still insured by FHA. Thus, Wall Street buyers of loans can more comfortably buy the debt as any default would be insured by the FHA.

The housing-reform bill eliminatd this practice.

What do you think?? should this be reversed ??

Would Down Payment Assistance Programs Help or Hurt the Credit Markets?

------------------------------------------------------------------------------------------------------

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

Related Posts

What gambling on horse racing can telll us about Real Estate Investing

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Sat, 07 Jun 2008 17:53:56 -0500

The quest for the ‘ Triple Crown ‘ is over.

Big Brown comes in last in Belmont and it's bid for history.

whether your a horse racing fan or not, almost everyone likes the pomp and circumstance, the fan fare surrounding the Kentucky Derby, Preakness and today's Belmont stakes.

Horses with names like, Secretariat, Seattle Slew, and Barbaro are in the media and horses are stars in pop culture.

And even if you are not a gambler, almost everyone has a favorite 3-year old.

As you know, I relate everything to real estate (others feel like this about Golf) and there is something to learn from the Kentucky Derby and Belmont stakes.

The horse race is a sprint. Betting on a sprint is a gamble; anything can happen. However, real estate is not a sprint. Home buying never has been a race; if it is one, its a marathon.

Those who gambled, and invested , for short-term appreciation recently where on the wrong side of what was a bet (even educated) that the market would keep flying. We know the end of that story.

The last 100 years (marathon) of buying homes and investing in real estate has proven to be anything but a gamble.

Home buying, is proven to be one of the most a valuable way for families to save, earn and invest with , overall, wild successful results. The American dream has created so much wealth for so many Americans because we are taught by our parents to put away money every month, consistently over a long period of time (in 30-year and 15-year fixed mortgages.)

The old saying, those who don't learn from their past, are doomed to repeat it, is all too appropriate today.

Buying Real estate, home ownership, should be thought of as a marathon; not a sprint, not a horse race, it is not a bet or gamble.

Don't bet on your future.

Invest wisely and remember that home ownership is arguably the best way to create long-term value with the short-term benefit of use.

-------------------------------------------------------------------------------------------------

Bailout is Cheap - I am going to play Devil's Advocate

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Fri, 21 Nov 2008 09:24:40 -0600

Those of you who read my blog about Phoenix, Scottsdale Real Estate and new home builders and new home communities in Peoria, North Scottsdale and Glendale know that I have been opposed to the bailout in its current form.

I do think Congress has been working hard to get a plan that will take a major step towards helping (maybe not fixing) the financial crisis that has put a stranglehold on real estate in greater Phoenix, Scottsdale, Fountain Hills and the nation.

The "Rescue Package" will be the largest intervention since the Great Depression. Without going into too much detail the major changes are:

The government could get at $250 billion immediately, $100 billion more if the president certified it was necessary, and the last $350 billion with a separate certification - and subject to a congressional resolution of disapproval
letting the government insure some bad home loans rather than buy them - designed to limit the amount of federal money used in the rescue
To help struggling homeowners, the plan requires the government to try renegotiating the bad mortgages it acquires with the aim of lowering borrowers' monthly payments so they can keep their homes
The government would receive stock warrants in return for the bailout relief, giving taxpayers a chance to share in financial companies' future profits

I am still not satisfied that the plan will do anything to help real estate.

I expect the government to take possession of real estate , like REO's , think GEO's (Government owned real estate) and they should not be expected to manage a real estate portfolio any better than banks who are in that business.

As a result, I expect to see a lot of real estate hit the Phoenix, Scottsdale, Peoria real estate market in the next 6-9 months. More inventory, will drive down prices further. Maybe a necessary evil ? We will see.

Never the less, I am going to play devil's advocate for a moment.

There are approximately 300 Million Americans and about 1/3 are taxpayers or (very) roughly 100 million taxpayers. At a cost of less $700 Million , that equals 7K/ per tax payer.

Agreed, it is not as good as getting $7,000. However, I would argue that if taxpayers are going to pay for 'social' programs for the welfare of the American people, this is probably more important then health care, education or national defense.

Further, these banks should have be able to pay these loans back, with interest. Additionally, the stock (warrant) participation should provide profit participation from the taxpayer investment.

Clearly, we need the banks to be solvent so that depositors will come back and banks can begin lending money again. Not until then can Phoenix real estate get back on the road to recovery.

However, even at a cost of $7K, I believe that every homeowner, new home builder and real estate investor would take the money out of their wallet to get real estate back on track to lead the economic recovery we desperately need.

Let me know what you think.

------------------------------

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

Call me for a private tour of homes in Paradise Valley AZ or Scottsdale AZ or call me today at (480) 221-8080 to learn more about life in Scottsdale AZ and living in luxury communities in Scottsdale AZ.

Is Alan Greenspan to blame for the Housing crisis?

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Sun, 16 Nov 2008 09:08:28 -0600

Recently, the National Association of Realtors (NAR) reported, ...

A record numbers of foreclosures (up 25% year over yera) helped drive down Phoenix AZ real estate more then 30%

It does not matter if you live . Whether you are rich, poor, or live in a different Country, when people lose money they like to point fingers of blame. It is ingrained in us as Americans not to be wrong, so it must always be someone else's fault.

Today, When it comes to the housing crisis, people are losing much of their net worth; especially in Greater Phoenix and there is some blame to go around.

So who really is to blame?

Borrowers ? greed and buying more than they could afford?
Lenders? greed in making money with easy underwriting?
Banks ? packaging risky loans to Wall Street?
Wall Street - ? selling pools of risky CMO's (collateralized mortgage obligations) to investors?
Government -? - lack of regulation ?

A fantastic multi-part history of the Housing Crisis details the Roots of the problem.

A name that is now being talked about who may be the key factor is financial uber-guru and financial world icon, and some say ‘Rock Star' is Alan Greenspan.

Alan Greenspan, Head of the Federal Reserve and maker of monetary policy introduced lax lending standards to halt the inflation of the 1990's bull (stock) market.

After he achieved this goal with great success he was challenged by the dot -com bubble bust in early 2001 and then the tragic events of 9/11. What did he do to stimulate the economy you ask??

After 9/11 he continued to ease lending guidelines (think sub-prime) and more significantly, he started lowering interest rates and lowering interest rates and lowering interest rates.

Under Greenspan the Fed cut rates from 6.5 percent in late 2000 to 1.0 percent in mid-2003.

As interest rates continued to drop and sub-prime and alternative (Alt-A) mortgages became easily available, builders built and buyers bought and investors invested.

The Housing market began to grow in 2001 and boiled until 2005 and grow into the Real estate bubble that burst at the end of July of 2005.

Look at the bright side, Alan Greenspan sees the bottom in housing next year and he cannot be so far off 2 times in a row! Can he??

FHA “Kiddie Condo” loan programs in Tempe, AZ

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Mon, 24 Nov 2008 10:21:34 -0600

Tempe, AZ (adjoining Phoenix) is home to Arizona State University and enrollment is at an all-time high. In fact, it appears that student enrollment growth at ASU will surpass available housing. Thus, there may be some great opportunities for parents to buy a home in Tempe, Phoenix, or Scottsdale instead of renting.

Annual tuition and cost of living is up. Even if you are fortunate enough t o receive scholarship aid, paying for tuition and housing can be expensive for most families. However, one way that may help hedge the cost of college is actually, buying a home in Tempe versus renting in Tempe while your child is a student at ASU.

If you are a parent with a student who is moving to Tempe, AZ for at least 4 years, buying a Tempe (Phoenix) area condo at today's prices and with all-time low interest rates on fixed rate mortgages may make more sense than renting for students for 4 or 5 years.

If you consider the cost of the mortgage, Phoenix property taxes, homeowners insurance, HOA (condo association dues) and maintenance and potential gain (or loss) over the 4 years of more.

If the the cash flow is about the same as renting and you are optimistic about the long-term growth of the Tempe / Phoenix real estate market, than buying a home in Tempe is probably a good decision.

If you decided to buy a Tempe, AZ home, get the right financing and take advantage of the "kiddie condo" program, there are many benefits of Kiddie Condo programs and buying a home for your future ASU (Tempe) grad.

A low down payment (as little as 3% of the purchase price).
A lower, owner-occupied interest rate on the mortgage Vs the higher investment property interest rate.
Helps the new borrower establish a solid credit rating and get a mortgage to report on their credit for the future building of a FICO score
at least one borrower must occupy the property as his/her primary residence, but extra bedrooms could be rented out to help cover the cost of the mortgage payments.
mortgage interest deductions may apply , however please speak with your tax advisor or CPA
future rental (after your child graduates ASU in Tempe) or selling of a profit

Tempe homes are selling at as much as 30% discount to prices just several years ago. If you are looking for homes in Phoenix, Tempe, Scottsdale, Mesa or any of the other towns that make up greater Phoenix, a purchase of a condo using the kiddie condo program may have more immediate and long term benefits than renting.

If you are looking to buy a home in Tempe or a kiddie condo in greater Phoenix, contact an expert mortgage professionals who can help with FHA loans and kiddie condo loan programs.

___________________________________________________

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

Borrow from IRA to pay off Debt ?? A Bad Idea!

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Wed, 05 Nov 2008 15:38:23 -0600

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.

______________________________________________________

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

Related Posts

Eagles Nest - luxury living in Fountain Hills, AZ

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Mon, 24 Nov 2008 18:54:59 -0600

There are a lot of choices to buy luxury real estate in Phoenix, AZ, Scottsdale, Paradise Valley and the surrounding towns of Fountain Hills, Carefree, Mesa, Chandler, Gilbert and Peoria.

After deciding to buy real estate between Scottsdale , Paradise Valley, Carefree , Fountain Hills or any of the wonderful towns with great homes in Mesa, Gilbert, Chandler, Glendale and Peoria, you have to choose community.

Scottsdale luxury golf communities include Silverleaf, DC Ranch, Grayhawk, Troon Country Club and Troon North.

Peoria luxury resort and golf communities include Sonoran Mountain Ranch and Vistancia.

Fountain Hills is the home to luxury golf community Firerock golf and Country club.

One of the most desirable communities with unparalleled city lights and majestic mountain views that is home to the southwestern desert lifestyle is Eagles Nest in Fountain Hills, AZ.

MCO Custom homes promises that at Eagles Nest "you will encounter a world of unsurpassed natural beauty and a plethora of activities in the mountainside community in Fountain Hills, AZ" or reward yourself and "take in the magnificent views from the comfort of you new custom home."

They have just announced the release of new lots offering some of the most dramatic mountain views, desert views and city light views anywhere in Fountain Hills, Scottsdale or anywhere you can find in the Phoenix area.

Enjoy homes with views of Four Peaks, The Superstition Mountains, the city lights of Fountain Hills and the world famous Fountain Hills, AZ ‘Fountain' shooting water 500 feet in the sky.

I should also mention that the sales center is currently offering FireRock Country Club (Fountain Hills, AZ) golf membership incentives with the purchase of a custom home site or custom home in Eagles Nest.

If you want to build your dream custom home in Fountain Hills, AZ take advantage of premium home sites priced from the mid-$400K to over $1.5million.

I know Eagle's Nest in Fountain Hills, AZ very well. If you want to enjoy the privacy and serenity of Fountain Hills with the immediate proximity of Scottsdale, Mesa and Phoenix, Eagles Nest in Fountain Hills, AZ might be for you.

Call the Eagles Nest sales office for a private tour of Eagles Nest community in Fountain Hills, AZ or call me today at (480) 221-8080 to learn more about life in Fountain Hills and living in luxury communities in Fountain Hills, AZ and Scottsdale.

___________________________________________

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

Is your new home Builder going bankrupt?

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Tue, 18 Nov 2008 11:19:01 -0600

Until now, Phoenix area home sellers where those most severely impacted by the sharp drop in Arizona real estate prices and disappearance of home buyers.

A new victim is emerging; .....Buyers of new home construction.

There are an increasing number of builders who are suffering from this Real Estate recession. As a result, they are having problems with financing and many new home builders in Arizona are filing for bankruptcy protection.

In fact, nationally, there are a record number of builders going broke and looking to the U.S. bankruptcy court for protection from creditors.

The larger builders are suffering less than the small local builders who were caught in the Phoenix, Scottsdale downturn and national mortgage crisis and have less access to capital to weather the storm.

Let me be clear. The vast majority of builders in the Greater Phoenix area are stable and have the assets and resources to remain.

However, there are also a growing number who are struggling to meet financial demands. As a result, they are having difficulty continuing operations.

What does this mean to buyers?

The new victim is the buyer of new construction from these failing builders. Buyers bough lots, picked floor plans and are in the middle stages of the building process of their home. Now, there are increasing instances of builders not being able to finish the homes.

The buyers of new construction are in a unfortunate situation. They have put down a minimum of 10% of the home value. They have prepared to move into their home at a predetermined date. Now the builder is insolvent and filing for Bankruptcy. They do not have the financial capability to complete construction.

This is such a growing concern that Sam Wercinski, Arizona's Real Estate Commissioner, issued a Consumer Alert to buyers of homes form Arizona home-builders.

"Homebuyers and their real estate agents have the right to know if a builder is in financial trouble and what the status of their earnest money or home completion is. The Department of Real Estate can help provide this information and give assistance to consumers in need,"

The Arizona Department of Real Estate is now posting information on builders who are in bankruptcy or are having financial difficulties so consumers can make informed decisions and take steps to protect themselves.

A list of known builders is available on the Department's website: www.azre.gov Consumers should also reference the Commissioner's Advisory No. 2 on the website's home page which provides guidance for homebuyers, real estate agents and others impacted by a builder ceasing operations.

You can also contact the National Association of Homebuilders (NAHB) or the Arizona Association of Homebuilders for information on local builders financial health.

If you have been considering buying a home from a new home builder, make sure you check the list before making a decision.

If you are in the middle of the home building process, ask your Realtor for an update and information on its ability to continue and complete construction.

The end of capitalism is upon us!

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Sun, 23 Nov 2008 10:33:46 -0600

Those of you who are kind enough to take time out of your busy days to read my blog, rants, ravings and musing of all things Phoenix | Scottsdale real estate, know that I am not happy with the $700 Billion bailout of the banking system in its current form.

The proposal, now being debated before Congress, calls for more than a $700 Billion (call it a cool Trillion) fund that would solidify bank balance sheets, though not make mandatory the lending of money to borrower' the orginal concept of the plan.

I call this the end of capitalism.

I do not say this because it offers little help to the real estate market and home values.

I call it the end of capitalism because the bailout by the Federal Government is giving a free pass to corporate America. Basically, big banks were able to participate in 100% of the profits. Yet, virtually, none of the losses.

Think about it like this.

If you could go to Las Vegas, wager and win keep you profits would you? If you do not win, the house would come and give your money back in the form of a low interest loan and say ‘try again'. Now, with this new found money, you have a second chance. If this second change is successful you keep all the profits above and beyond these low interest loans. If this second change does not prove successful, you don't have to pay the money back.

This bailout of those who are not rewarded for taking risk is completely opposite to what built our economy which rewards for risk. And of course, that risk comes at a price if you don't succeed.

What makes matters worse is that if the program does not prove successful and the banks cannot right the ship, the owner of this $700 Billion in bad debt are the American Taxpayer. Most Americans would probably not make this investment the Government is making for us.

Does it get worse?? Possibly.

What also scares me is , "what if this bailout plan actually works?"" and the government takes the debt as the banking system pumps more loans on the market with the new found lottery ticket winning from the FED.

I see the government becoming the owner of a trillion dollars in REO debt as a result of these worthless loans. I call them GEO (think REO, but Government owned real estate) properties.

Ultimately, the government will need to sell this inventory of homes. I expect a flood of GEO real estate on the Phoenix, Arizona real estate market.

These homes will be sold at steep discounts to already sharp price declines as the government has little concern for profits and losses (as we well know).

Government owned real estate will further drive down prices (if that is even possible) and paralyze any chance of homes that are not short sales, REO , GEO's and bank owned homes in the greater Phoenix area from selling.

We do not need more homes for sale in Greater Phoenix AZ or any real estate market across the country.

Most people in Phoenix, AZ and most Americans have most of their net worth tied up in their primary residence. Until, supply of homes stabilizes, real estate prices will continue to decline. Until we resolve this issue, Americans will not be able to recover the current economic stranglehold.

Do not let banks have a free pass.

I suggest that we are able to participate in a greater amount in the profits and are offered more security in terms of capital stock. We should be shareholders of the company if we are going to be partners with the banks.

Equity participation for investment risk is how the banks would make an investment. Why should we be any different? Capitalism should apply. There is no reason for the Government (U.S. Taxpayers) to make bad investment decisions.The banks wouldn't and either would you!

Do not let this Bailout be the end of capitalism.

Call you Congressman and let your opinion be heard.

___________________________________________

call me today at (480) 221-8080 to learn more about life in North Scottsdale Arizona and living in luxury retirement communities in Scottsdale AZ.

You have been tagged !! My first 'Book MeMe'

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Sat, 22 Nov 2008 09:37:34 -0600

The great Don Rodgers tagged me for my first experience at a Book MeMe , so here goes.....

The rules are simple (i say with requisite hesitation)....

So, my instructions were as follows:

1. Grab the nearest book

2. Open the book to page 56

3. Find the fifth sentence

4. Post the text of the next two to five sentences

5. Don't dig for your favorite book, the cool book or the intellectual one. Make sure you Pick the Closest book

Tom Clancy's Cardinal of the Kremlin, hardly intellectual , reading for the second time , yes, it's that good.

I would rather have an officer tell me what he does Not know, than try to impress me with a truckload of #$%* !!

I thinkg I am supposed to interpret this as an analogy to life or at least real estate, but, I am not nearly smart enough to play philosopher, so , I will let it speak for itself.

I have tagged 5 people to do the same! Enjoy!!

Larry Bettag - St. Charles, Illinois

Sharon Paxson - Newport Beach

Dan Brudnok - Chester County, PA

Judy Toscano - New Hampshire

Rich Dansereau - Knoxville, TN

-----------------------------------------------------------------------------------------

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

Call me for a private tour of homes in Paradise Valley AZ or Scottsdale AZ or call to learn more about life in Scottsdale AZ and living in luxury communities in Scottsdale AZ.

What makes a home eco-friendly and "Green" ?

James Wexler, Scottsdale AZ Luxury Homes (Coldwell Banker) (wexzilla.com) — Tue, 11 Nov 2008 11:02:51 -0600

New Home Construction in the rapidly developed communities around Phoenix, such as Glendale, Peoria and Desert Ridge Marketplace in North Phoenix as slowed considerably as a result of little interest in new home construction.

Buyers are buying spec homes in builder inventory as they are priced at steep discount as new home builders are trying to dump inventory to reduce overhead of unoccupied homes.

However, there is a type of new construction home that is selling ...

Green Homes that are built with an effort to make them as eco-friendly as possible.

Dave Macklin reported that 9 out of 10 Realtors said home buyers are looking for energy efficient features in homes for reducing their carbon footprint and cost savings.

Interestingly, Mr. Macklin cited a a survey of 250 home builders reported that buyers are willing to pay more for green-built homes.

Mindy Allen mentioned that Green Home building is on the rise in New England.

Pam Dent in Charlottesville mentioned the many features of Green home building.

And the eco-friendly movement to build Green Homes is not limited to the United States.

According to Andrew Perkins, British Columbia, Canada is proposing legislation that will require buildings to be carbon neutral as early as 2016 - and every new building to have no carbon footprint by 2020

What makes a home eco-friendly and "Green" ?

Environmental friendly homes incorporate many of the following:
Built from existing homes to conserve materials
New homes with recycled woods and recycled construction waste
Non-toxic materials like paints and finishes
Energy star HVAC systems
Window, screen and awnings to produce shading
Dual Glaze e-efficient windows
Development in urban cores to save gas of residents

Shea Homes offers a green Certified home in their Shea Homes Trilogy series at Trilogy at Vistancia in Peoria, AZ orEncanterra at Trilogy Country Club in Queen Creek, AZ.

If you buy certain Shea Homes far from a urban center you will receive a Hybrid Car.

Solar Power
LED lights
Better ventilation
Soy and wool-based insulation and flooring
Dual Flush Toilets
Programmable Thermostats
Wood from sustainable forests

U.S. Green Building Council certifies home LEED (Leadership in Energy and Environment Design Gold Certification )

Make sure you look for the LEED Gold Certification if you are buying a new construction home.

_______________________________________________________

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

Related Posts