The reality of realty is that searching for positive news about real estate is not that difficult these days. Foreclosures have dropped in certain areas of the Country. Some areas are showing rebounds, having an increase in sales volume and home values. The available home buyer tax credits and low mortgage rates are boosting home sales. Even the drop in January sales appears temporary because, after-all, the tax credit expires on April 30th and people will start pounding the pavement in search of the new home to use it on.

Real estate that is selling in most places is selling because the price is right. People are buying real estate that they view as priced appropriately. If the home is affordable it will sell. The real estate that is not selling is real estate that is owned by people who are having a hard time letting go of what they think their home is worth or who will lose their shirt if they sell at the correct price. The reality of realty is that home values are not nearly what most people thought they would be when they bought their homes at the height of the market.

Click here for a recent article from CNBC on what is going on in real estate right now.

The Reality of Realty is a post from: Phoenix and Beyond Real Estate and Area Information

In glomming on to positive news don’t forget to remember your basic math. Median prices have been going up in some areas, down in others. The median is the value that occurs in the middle of everything that has sold. For example, if seven apples have sold for $1, $1.25, $1.5, $1.5, $1.5, $1.75 and $2. The median price would be $1.5. The median value is the middle price, it does not represent the size, quality or type of apple.

In real estate it is important to remember that the median sales price represents the average price of what homes are selling for in a given area. It is not representing the size, condition or value of a home. The median sales price can be offset by foreclosure property that is selling in an area as well as by luxury property that is selling in an area.

The best way to determine the value of your real estate is to get it analyzed by and experienced real estate professional. There are many factors in determining real estate values today and picking an average out of the air could hinder the sale of your home. In today’s real estate market it is more important than ever to price your home appropriately.

Home Values is a post from: Phoenix and Beyond Real Estate and Area Information

Green homes are becoming more attractive for the environment and the wallet

When it comes to your home going green no longer means painting your house a shade of the color, it means you are taking steps toward improving both the environment and your wallet. In real estate green improvements can mean more energy efficient appliances like refrigerators, stoves, toilets and lighting fixtures to major improvements like adding solar heating, recycled materials and wind energy. Green improvements are not only becoming more popular but they are also becoming more attractive financially due to tax savings and long term cost effectiveness.

Choosing renewable products and making environmentally friendly decisions when it comes to your property can make a big difference. While being green is often a state of mind, for people who dedicate themselves to recycling, turning off lights, and bicycling instead of driving a car, making green improvements in the home has proven to make quite a difference.

For information about green choices for the home click here to read a recent article from Realty Times.

Going Green With Your Home is a post from: Phoenix and Beyond Real Estate and Area Information

The latest real estate headlines for the US are that home sales were down in January, some of these headlines even use the word “plunged”. However, there are a few areas scattered around that managed to buck this trend and no media frenzy can change that. Think about it, is it really a surprise that sales are down in January? January is the coldest month, even if you live in a southern state like Florida, who wants to move in to a new house in January.

Does anyone really feel like shopping in January when they have just completed a major holiday season that began with Thanksgiving at the end of November? Most people are just plain worn out by the time New Year’s Day is over, the last thing they feel like doing in packing up and moving. It is a month to relax and observe.

The original First Time Home Buyer Tax Credit was meant to expire in November and when it got extended and expanded people realized that they had more time to make a decision. January data is showing a dip because people wanted to stop and take a look at what the new year would bring. Now that 2010 is here and people can see that mortgage rates and property values are staying low, housing is bound to show a steady increase in sales and eventually prices as well. Even Warren Buffet appears optimistic, stating that he believes that housing problems will soon be behind us.

Click here to view Warren Buffet’s stance on the economy and real estate as a whole.

January, Shmanuary, Look Ahead When it Comes to Real Estate is a post from: Phoenix and Beyond Real Estate and Area Information

Interest rates appear to be staying put until the US economy gets back on track and stays there. This past week Ben Bernanke, chairman of the Federal Reserve, announced his desire to keep interest rates low due to the fragility of the economy. Unemployment figures are continuing to rise. These increasing unemployment figures are interfering with recovery and affecting real estate and general sales figures across the Country.

Historically low interest rates and low home values combined with the extended and expanded First Time Home Buyer Tax Credit, have been instrumental in boosting real estate sales in the United States. These incentives are bringing buyers off of the sidelines and have created a true “buyer’s market”.

Real estate is typically a catalyst for for economic recovery and keeping mortgage rates low will be a significant help in keeping the sales coming.

Click here to see a recent article about Ben Bernanke and his commitment to keeping interest rates low.

Mortgage Rates Going Nowhere For Now is a post from: Phoenix and Beyond Real Estate and Area Information

I came across a couple of websites in Money Magazine we thought you might be interested in.

The first is WalkScore.com. This site calculates the walkability of an address based on the distance from the house to nearby amenities. Walk Score measures how easy it is to live a car-lite lifestyle—not how pretty the area is for walking. If you are interested in being within walking distance of restaurants, shops, libraries, parks, etc, you will enjoy this website.

Next is DIYorNot.com. This site helps you compare the time and cost of doing a project yourself vs hiring a local contractor. For example, the cost of having a professional replace a stove hood is $538 vs a ‘do it yourself’ cost of $400. Costs can be adjusted by Zip code.

Two fun websites I found is a post from: Phoenix and Beyond Real Estate and Area Information

Hi, Whether this is for you or your friends or family… please pass this letter on… it’s important. I was told today by someone I know well that her brother lost his house in foreclosure last week. When I asked why she hadn’t asked me for help … she said she thought it was too late. Now her family has a very short period of time to find a rental and it could have looked very different. Unless a home has already been foreclosed… it is almost NEVER too late… We have stopped foreclosures 5 days before the actual trustee sale – giving my clients an additional 4 months to live in their home rent free AND sell their home instead of having a foreclosure which now allows them to restore their credit and even purchase another home sooner. Bank of America, Chase, Citibank, Wells Fargo, GMAC, Wachovia, Washington Mutual and so many more… I have successfully negotiated with all of these companies! Don’t let the ideas scare you from finding out about your options… In fact… even though in some cases it has taken months of hard work…I have never had a short sale not ultimately be approved.  … the sale was made and the lenders relented and accepted the deal. I have been asked by so many friends and family about the process of foreclosure, short sales and loan mod’s that I have decided to write a letter to all of my email clients and friends to let them know I have had great results and can offer loads of information and knowledge to assist people in these very challenging and difficult circumstances. Whether $40,000 or $4,000,000. the banks have been told BY THE GOVERMENT to do everything possible to assist the homeowners in the best decision for them. Condo’s, investment property, single family homes… even mobile homes… lenders don’t want your property. So if your loan mod is going nowhere… or you are behind in payments and have decided to either “just let it go” back to the bank or begin the process of trying to short sell your home… No matter where you live… Email me and I will either help, educate or find a qualified person to assist you. I really care about helping our economy get back to a level playing field. Having homes currently in default transfer to new homeowners able to make payments help us all balance the system. But MORE important, I care about you. So call or email me and I promise I will do my best to help you with making the best decisions for whats right for you! AND I PROMISE… it won’t cost you a penny from your pocket…

Please call today or send this to a struggling friend.

Check out our video at   http://www.propertyindistressaz.com/

Sincerely

Foreclosures and short sales… NEVER GIVE UP is a post from: Phoenix and Beyond Real Estate and Area Information

Rarely will a consumer find so much contradicting, confusing and downright incorrect information on a legal topic as they currently do when it comes to short sales and related issues.  Rarely heard of just 2-3 years ago, short sales now make up a significant majority of current MLS listings in the metro Phoenix market and the trend doesn’t seem to be changing any time soon.  Agents, consumers and other professionals are scrambling to get up to speed on the process, strategies and legal issues surrounding short sales.  From a legal perspective, there are three (3) main issues I discuss with clients who may be considering a short sale (or other loan workout for that matter):  (1) deficiency issues, (2) credit issues, and (3) cancellation of debt income issues.   

With respect to issue #1 – deficiencies, short sales present interesting issues and possible outcomes.  Arizona has two anti-deficiency statutes that act to prevent a lender from collecting on a deficiency following a judicial or non-judicial foreclosure on certain residential property situated on 2.5 acres or less.  Because these statutes deal with foreclosures, many real estate professionals, including attorneys, take the position that Arizona’s anti-deficiencies have no application to short sales.  This is categorically false.  Either these real estate professionals do not understand the law, or they are trying to create confusion to help attract clients for their services.  While a short sale can result in a deficiency situation where a foreclosure on the same property would not (for instance, without a lender’s agreement to not seek a deficiency, a short sale involving a non-purchase money loan on qualifying property will not extinguish a borrower’s liability for a deficiency, while a foreclosure by the same lender at a non-judicial trustee’s sale will result in the lender being barred from seeking a deficiency), for many loans (specifically, purchase money loans on qualifying property), a short sale should never result in a deficiency for a borrower. 

Notwithstanding Arizona’s relatively broad anti-deficiency protections afforded to purchase money loans on qualifying property, lenders continue to misrepresent their rights and borrowers’ liabilities in short sale transactions.  Lenders continue to demand cash contributions from borrowers to approve short sales even though they would have no right to seek a deficiency if they foreclosed on the property.  Borrowers and their real estate agents should never engage in short sale negotiations without knowing exactly what rights and obligations a lender and borrower have under the loan and any particular workout scenario.

 For a more detailed analysis of Arizona’s anti-deficiency laws and their applicability to short sale transactions, see my letter to the Editor of Maricopa Lawyer attached. 

letter-to-the-editor-of-maricopa-lawyer

Marc McCain, Attorney at Law,  McCain & Bursh, PLC  602-604-2138

www.mccainbursh.com    mmccain@mblawaz.com

THE TRUTH ABOUT SHORT SALES AND DEFICENCIES IN ARIZONA is a post from: Phoenix and Beyond Real Estate and Area Information

It is important to research a neighborhood before purchasing your new home

While many people seem to think that it is not wise to think of your home as an investment, the reality is that your home is an investment. This being said there are some things to keep in mind when setting out to buy a home, the least of which is getting to know the neighborhood you wish to buy in. If you do your research and your homework selecting your home properly can insure more of a return for you when you decide to sell at some point in the future.

Research the neighborhood that you want to live in. Aside from knowing the schools and amenities that are available, take a close look at the property levels. Which streets hold more value? Is one edge of the neighborhood closer to a more upscale neighborhood, is one side close to a less desirable neighborhood? According to Realty Times, less is more. They say purchasing the least in the best neighborhood will give you the greatest return as every time a better house sells your value goes up as well.

While you may not look at your primary residence as an investment, in the long run it may be the best investment you have, so do your research and you will be happier in the long run.

Click here to read buying advice from Realty times.

Buying a Home? Research the Neighborhood is a post from: Phoenix and Beyond Real Estate and Area Information

Too Far Too Fast? No we are not talking about politics or social media we are talking about the stock market.

Have we gone too far too fast? This seems to be a common investor question. This question concerns the market increase from the lows of March ‘09 to the end of the year which moved up roughly 65%. The 65% increase is not so much irrational exuberance as it is the result of unrealistic gloom from last March. That market was reflecting unreasonable valuations that had many blue chip companies trading below liquidation value. It may feel like to far too fast that way but we shouldn’t invest on our feelings; rather, we invest because we want to accomplish our long term goals of retirement, freedom, and security. In historical context we have not gone too far too fast. We are in the 10th month of a bull market and the S&P 500 index is up 65%. Historically the average bull market has lasted 68 months and has gone up 176%. So rest assured there is still plenty of time to get in. The beginning returns of a bull market typically see the largest increases just moving back to more fair value pricings. If you are waiting for a big pull back to invest, when do you invest? What if the pullback never materializes? The stock market both here and abroad will take breathers now and then but no one knows where and when with exact precision. The best way to ensure participation is to stay invested and the best time to put money in the market is when you have it available. We readily acknowledge there are risks to growth. We are in uncharted territory which puts policy makers in the undesirable position of experimenting. This means there are opportunities for mistakes. But the 14 trillion dollar US economy is just too big to kill even with a variety of policy mistakes. If the economy grows at a conservative rate of 4%, enough health should be provided to the system to start driving down the last part of the recovery which is unemployment. So what is the answer to the question have we gone too far too fast? For politics it depends on which side of the aisle you sit on. For social media it depends on your age For the stock market the answer is no we have not gone too far too fast.

For regulatory purposes, we cannot post or respond to comments or e-mails through this site,This communication is strictly intended for individuals residing in the states of AL,AZ,CA,DE,IL,NC,OK,PA,TX,VA. No offers may be made or accepted from any resident outside these states due to various state regulations and registration requirements regarding investment products and services.

Rebecca Kennell is a Registered Representative and Investment Adviser Representative with/and offers Securities and Advisory Services through Commonwealth Financial Network ®, Member FINRA, SIPC, a Registered Investment Adviser. Custom Financial Design is located at 4647 North 32nd Street, Suite B210, Phoenix AZ 85018 (602) 952-5588

Too Far Too Fast? is a post from: Phoenix and Beyond Real Estate and Area Information