Supra iPhone Key [Video Review]
August 25, 2010 By Leave a Comment
Buyer Backs Out on Short Sale
September 17, 2009 By Leave a Comment
Ever heard that one before?
If you list and negotiate short sales, I’m sure you have. During the past year, the time frame required to close a short sale has increased as more and more properties hit the market in a distressed state. Short sales occur when the bank allows the owner to sell the home for less than they owe.
On all buyer contracts, I require that they put up a non-refundable portion of their earnest money for a specified number of days. When I started with distressed properties, I required a 60-day non-refundable period with $500.00 of the earnest deposit held to keep the buyer in the game.
Actually, this is my advice to the seller, who then agrees to the terms of the contract which is in their best interest. I do not make the terms, I only advise them what would be best.
Since the time it takes to close a short sale has increased dramatically, so has the time that I recommend the seller require the buyer to be non-refundable on that portion of their deposit. There is so much work involved in negotiating with investors –> THROUGH –> servicers, that it’s required by my sellers to hold on to the buyers as long as possible.
My most recent lost buyer, which occurred this evening at 11 something PM, had passed their 70 day time frame and were well within their rights to cancel with a full refund of their earnest deposit.
Who is at fault? Well, I’m not about pointing fingers, but in this particular case, the culprit is the investor who backed the 2nd mortgage.
2nd Lien Holders Don’t Get Their Money
When the owner of a home doesn’t pay, the 1st lien holder (after property taxes and other senior liens) can foreclose on the property. If there is a 2nd mortgage, they lose everything.
During a short sale, if the 1st lender agrees to a certain amount, they usually offer somewhere in the neighborhood of 10% of the 2nd lien holder’s balance to appease them and make them go away. If the 2nd does not accept the offer, the 1st can eventually foreclose and the 2nd will get NOTHING! NOTHING! Do I have to spell it out to the investor? NOTHING! Even if they demand more than the 1st is willing to pay, and the seller, or agent, or grandmother agrees to bring money to the table for the 2nd, the 1st lien holder MUST APPROVE OF THE SALE and if they don’t, THE 1ST gets the additional payment, leaving with 2nd again, with NOTHING ABOVE AND BEYOND WHAT THE 1ST AGREED TO PAY THEM.
So, now that the 2nd, in this particular case, has held the deal long enough to allow the buyer to surpass their non-refundable time-period, there is now no buyer for the property and the seller is faced yet again with the burden of paying their mortgage with money they do not have.
So What HAS been accomplished?
Well, now we know the bottom line and as long as the bottom line is fair market value minus all expenses, we should be able to find a buyer for the property. If we don’t, the idiots who caused the delay, which allowed the buyer to bail out, will get NOTHING! I don’t think I need to repeat myself again.
Client Testimonials
March 14, 2009 By
“Thanks for all of the work that you put into selling our home. I know that was a very stressful time. I was beyond frazzled with all of the changes happening and all of the responsibilities that went with them. So, I think I owe you a ‘thank you’… for helping us sell our home and, of course, for putting up with me. 
” -Julie
Scottsdale’s Million Dollar Real Estate Trend
February 24, 2009 By 2 Comments
There’s no doubt about it. Home sales in the Million dollar range are few and far between. In today’s market, the big winners are closing between the $200K and $300K range, and rightly so. There is so much opportunity right now to invest in real estate that if you don’t get into the game now, you are nuts. Of course, if you can’t get into the game, that’s a different story. For that, you’ll need patience.
The following is a quick graph of Scottsdale Arizona’s Million Dollar Real Estate Trend:
While the trend is similar, reflecting the ebb and flow of the market, and the downturn in our economy, the number of homes being sold in the lower price range is far greater, which is outlined below:
For agents, knowing this could change your business focus. REO and Short Sale listings are the bulk of the market right now. Over the past few months, the number of pending sales have increased. This means that in the next few weeks/months we are going to see an inevitable spike in the number of homes that have sold.
These numbers are based on ARMLS data and are for Single Family Detached homes in the City of Scottsdale only. The data shown is not guaranteed to be 100% accurate.
September 2008 Scottsdale Market Wrap
October 1, 2008 By Leave a Comment
In the month of September, where cool weather is looming, yet still non-existent, and the last days of barbecue and swim parties come to a close, and the financial state of the union appeared to begin to crumble, we experienced the following activity in the real estate market:
In Scottsdale, last month we had approximately 4092 single family detached homes on the market, a 2% increase over the same month last year. The average days on market fell 33% over last year from 250 to 167. In September, 236 homes sold which is 34% more than last year at this time.
The average sales price for Scottsdale homes last year was $712,039, while this year, even though volume has increased, the average price has fallen off by 11%.
On a month to month comparison, in August, there were approximately 4089 active homes for sale which indicates virtually no change. Last year, the difference in homes on the market between August and September increased by about 175 homes whereas this year there was virtually no change.
This September we saw a decrease in the number of closings over the previous month by roughly 11.3%. The average selling price between August and September fell by 1.6%. Last year, between August and September, the average sold price fell over 15.5%. This indicates that the rate of decline is decreasing and the market as a whole in Scottsdale has leveled out.
The market slowed down between August and September this year, and prices on a whole are continuing to creep downward.
Inventory Levels for Scottsdale for September
Price Range: $100K – $199K shows 29 actives at roughly 3 months supply.
Price Range: $200K – $299K shows 226 actives at a 4.8 months supply.
Price Range: $300K – $399K shows 374 actives at 8.1 months supply.
Price Range: $400K – $499K is at 16 months with 448 actives.
Price Range: $500K – $1Million shows 1516 active properties with a 21 month supply.
Price Range: Above $1Million – 1499 actives with 33 closings last month for a 45 month supply.
That’s 3.7 years my friends. Are you in the market for a million dollar home? Looks like they’ll be around for a while. Guess whose home sells first in that type of market? The one with the best value and price.
All figures are calculated based on single family detached homes using data provided by the Arizona MLS and are not guaranteed to be 100% accurate. More detailed statistics can be provided to you upon request. If you find this information useful, consider subscribing to my blog to receive regular updates.
Japan on Life in Scottsdale
September 17, 2008 By 1 Comment
Yesterday I updated my status on Facebook calling on any of my friends to write about what it means to them to live in Scottsdale, Arizona, or what they liked most about it. Audrey Heald, who has been out of the country for the past two years teaching in Japan, contributed the following:
Things like running over the hard-packed desert ground in the cool of early morning, when bunny rabbits and families of quail are still out finding breakfast; or hiking Camelback Mountain, or Squaw Peak, or Pinnacle Peak, or South Mountain, or Shaw Butte, or any of the numerous others in Phoenix’s mountain preserves, smiling at the other outdoors-loving people out doing the same thing. High-end shopping and gourmet dining are here in abundance as well (though that could be a tick mark in either column of the tally sheet), and the lush four- and five-diamond resorts and spas draw clientele from around the world to experience the very best in golf and pampering. Everyone says it’s a desirable destination; I guess it just depends what you’re looking for.
The desert truly is a wonderful environment teeming with an abundance of life that you may not be familiar with in your part of the country.
