Don’t Buy ! Rent !
June 30, 2008
I am a real estate broker/agent. I make my living helping people buy and sell Real Estate in the greater Phoenix and Scottsdale area.
The first rule of Real Estate 101 taught to new agents is to ask “Why Rent when you can own?”
Traditionally, and especially in the past 10 years, following this home buying advice has proven lucrative and accurate.
However, the last 2 years has proven that this is not a hard fast rule to follow for every potential home buyer.
I have read so-called experts claim that if home prices do not rise, then you are doing little more than renting from a bank.
Since, as we have seen recently, real estate prices do not always go up, you need to follow a better guideline in your decision making than answering the age-old question of “Why Rent when you can own? and “renting is throwing money away!”
Here are the questions to ask yourself if home buying is right for you
- Do you need the flexibility of renting? or can you afford to stay in your home for at least 5 years or longer?
- Can you afford a 20% down payment?
- Can you afford a monthly payment on a 30-year fixed mortgage?
- ask your CPA … Does the tax benefit of home ownership offset a potential decline in home value?
- Have you reduced other real estate debt before you add more on this home purchase?
- Does a fixed monthly mortgage payment for the next 15 years outweigh the likely inflation of rents during that same time (called an inflation hedge)
These are broad questions that can have many variations for each individual situation. However, it is a good foundation from which to start your home buying process.
You do not need the Real Estate boom to enjoy the many benefits of owning a home.
However, you do need to the answer the right questions of whether or not real estate ownership is right for you and your family.
I always recommend you speak with respected industry professionals to get the best answers for your personal situation.
Here are a few highly respected real estate industry professionals :
- Denver - Gary Luckner
- Seattle - Ben Kakimoto
- Portland - Charles & Jennifer Turner
- Philadelphia - Stokes Group
- Atlanta - Heather Stanton
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Copyright © 2008 By James Wexler, All Rights Reserved. *Don’t Buy ! Rent !*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
luxury builder Camelot Homes offers 2 specs in Peoria, AZ
June 29, 2008
Camelot Homes , the #1 ranked Arizona small volume builder (by Ranking Arizona) is in demand new home builder based in Scottsdale is one of the most respected luxury home builders in Arizona.
Camelot Homes is offering 2 beautiful homes in Sonoran Mountain Ranch in Peoria, AZ that are well worth taking a look.
Sonoran Mountain Ranch is located in the Northwest (of Phoenix) Valley at 67th Avenue just north of Jomax Road. and is a spectacular gate guarded hillside community with luxury homes and majestic mountain views.
If you are looking to live in the Northwest Valley, go take a look at these 2 opportunities.
28633 N 68th Dr. Peoria , AZ - $475,900 ~~~ originally listed at $781,000
- 5 Bed/ 3 bath
- 3,644 sq/feet
28570 N 68th ave. Peoria, AZ - $475,900 ~~~ originally listed at $821,000
- 5 Bed/ 4 bath
- 3,829sq/feet
Both homes feature large open gourmet, stone, brick and impressive patios and foyer and wonderful mountain views.
These same new build homes were listed at $781,000 and $821,000 respectively.
I need to point out that I am not the listing broker agent.
I have received no compensation for this information.
I encourage you to speak with your real estate experts and industry professionals for detailed information before any buying decision.
Ask for Kellen Britt at the sales office and tell her James Wexler sent you.
The answer to Cheaper Gas prices !
June 28, 2008
It takes 15 minutes to get to most parts of Scottsdale. It takes 30 minutes to get to Peoria and can take as much as an hour to get from Peoria to the east vally cities of Mesa, Gilbert and Chandler.
Each day gas prices hit record highs. We are all frustrated.
I am taking a poll. Please Vote on the ideas below.
I would like to hear your opinions. Agree or Disagree!
As I see it, here are my best ideas for cheaper gas. The extra disposable income can go towards economic consumption which helps the economy, creates, jobs, ideas, innovation, more revenue for the government, more social programs and ultimately more wealth for all.
- Gas Tax Cut - a Gas Tax cut would provide immediate relief. However, people fear a tax cut would just cause more gas consumption.
- Income tax cut - I would suggest a tax break on the first $75K income. This group is more affected and has less discretionary income and savings. An income tax cut for certain incomes would open more disposable income. The problem with a tax cut is that while effective, it is not immediate. A tax cut has to pass the House, Senate and then a Veto by the President.
- Increase taxes - spending money on programs for finding alternative energy sources. However, I don’t know anyone who likes higher taxes.
- Open U.S oil reserves - by drilling in places like Alaska - less dependent on foreign oil - I have read that the US has more than 50 years of untapped Oil reserves.
- Raise taxes on SUV’s , trucks and high use vehicles - Increase incentives for more fuel efficient vehicles. These are standard in Europe - why not here?
- Regulate Oil speculation- commodities traders have had an impact on prices betting on future growth - again difficult to control global markets.
- Increase tax breaks/government benefits to providers of public transportation. Thus, passing on lower costs for commuters.
- Carpool, Ride a Vespa, bicycle or walk
whether you are a real estate agent, a soccer mom, a hard worker with a lengthy commute to work, simply if you own a car, we are all affected.
Please weigh in, vote, let your ideas be heard and if anybody has others, please add..
thanks and have a great weekend
5 Home Buying Rules to live by
June 27, 2008
Home ownership can be a personally and professionally rewarding endeavor where most Americans can raise a family, call a house a home and create wealth.
However, often real estate professionals, mortgage brokers, friends and family will tell you things like
- Don’t wait, buy now.
- renting is a waste of money.
- Taking on debt is always o.k.
- real estate prices are going up
- you don’t need a down payment
Now, these advisers likely have your best interest in mind. Often, their advice is spot on. However, they do not know your personal situation.
I am a big believer that home-ownership can be a great thing. However,
Here are 5 Home Buying Rules to live by to help you decided whether now is the right time for you.
- Do you want to own a home. - there is no reason to buy just because everyone else says you should. Home ownership can be expensive, can tie up your money and can be filled with upkeep headaches.
- Do you love the home. - Make sure you will be happy in your home for a long time. There is no reason to work hard to pay a mortgage on a home you do not enjoy.
- Do not buy until you have at least 10%; however, I recommend 20%. - you will get the best fixed mortgage rates available and have no PMI (private mortgage insurance)
- Buy a home you can afford - just because a lender will give you a mortgage does not mean you can afford the home. Make sure that there is extra money for utilities, bills and unforeseen events (job loss, health and medical bills, clothing, school, etc..) - you will not enjoy or last in a home if you take on additional debt just to pay your mortgage
- Pay off debt, improve credit score, obtain best mortgage - the cost of money (your mortgage) can be as important as the price you pay. - take a little extra time to improve your health to obtain the cheapest mortgage
If you are planning to buy a home in Phoenix, Scottsdale , Paradise Valley, Peoria or any of the towns in Maricopa County, …
make sure you take your time, make prudent decisions, and follow these 5 important rules of home buying, …
you can have wonderful place to live, enjoy and call home; you will receive tax advantages, a hedge as a safeguard against inflation and build equity as you contribute towards your nest egg.
please speak with your personal and professional advisers before any decisions. However, also remember…
you are the best expert of your own money and personal financial situation. Only you can decided if home ownership is right for you.
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the following are the names of a few noted experts
Michael Krotchie Guy JohnsonMark Thoman
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Copyright © 2008 By James Wexler, All Rights Reserved. *5 Home Buying Rules to live by*
Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs.
Appraisal Contingency - explained by Arizona Assoc. of Realtors
June 26, 2008
A quick post for my fellow real estate professionals in Arizona; 
as well as home buyers and home sellers who may be in escrow and should be aware of the AAR (AZ Association of Realtors) legal opinion on…
‘Appraisal Contingency’ and how it buyer & seller rights, time frames and earnest monies.
Please note, this opinion pertains only to the AAR Purchase Contract used in Arizona.
Neither the AAR or myslef is offering any opinion in other states.
However, I encourage all Real Estate Agents and Brokers to examine rules in their respective states.
In the past there has been some confusion on whether or not,
according to AAR Purchase Contract ….. as it pertains to cash buyers,
Can Cash Buyers ** cancel a contract if the home fails to appraise for the purchase price anytime during the escrow period??
In essence,
does the appraisal for sales price contingency runs the life of the contract??
According to the newsletter this month from AAR, This is NOT TRUE!
“Cash buyers can only cancel a contract within the inspection period, if a home fails to appraise.
Lines 59-61 (of the AAR Purchase Contract) only apply if financing is involved.
I hope this helps! and Good luck to all of you!
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Copyright © 2008 By James Wexler, All Rights Reserved. *Appraisal Contingency - explained by Arizona Assoc. of Realtors*
Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs.
Twitter Updates for 2008-06-25
June 25, 2008
- Fed Leaves Rates Unchanged - - first time in 10 months bringing an end to a string of 7 consecutive rate cuts - http://tinyurl.com/4va4kn #
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‘Cash-Back’ Deals and Mortgage Fraud
June 25, 2008
I have been hearing more and more stories of buyers approaching sellers with offers that include “Cash-Back“. Why is this white collar crime and mortgage fraud making a re-occurrence? - Buyers are taking advantage of ‘desperate’ sellers hoping they will cross the line to do anything to sell a home.
Let me be clear that it is illegal. Period! In fact, on June 19th, the FBI charged More Than 400 Defendants Charged for Roles in Mortgage Fraud Schemes as Part of Operation “Malicious Mortgage. 
A cash-back transaction scenario is where a buy pays more than a home is worth with the extra money being paid from the seller (outside of escrow) back to the buyer
Wikipedia defines Mortgage Fraud Cash-Back Schemes:
“The buyer and seller or the buyer and real estate agent collude to deceive the lender as to the true sale price of a property. The seller or the real estate agent gives the buyer a cash rebate which is not disclosed to the lender. As a result the lender lends too much, and the buyer and/or seller pocket the overage. This scheme usually requires appraisal fraud to deceive the lender. “Get Rich Quick” real-estate gurus’ courses frequently rely heavily on this mechanism for profitability”
Here is a Cash-back Scenario“
- Homeowner lists home for $320K
- Buyer approaches seller and offers to pay$400K and ask for $80K extra paid back to the buyer after and outside the escrow.
- Seller agrees as still receives the $320K net they had hoped
- Buyer is able to put down 20% on $400K ($80K) and receive a 30-year fixed mortgage with no PMI (private mortgage insurance)
- Buyer then receives the $80K back after the close of escrow; thus, getting a fixed rate, no PMI mortgage with no money down.
- other situations are buyers putting down $40K and getting $40K cash back in the buyer’s pocket.
- Buyers are committing fraud.
- Buyers and sellers are inflating home prices which as the recorded sale becomes a ‘Comp’.
- Houses usually go into foreclosure further hurting the housing market.
- Banks and shareholders take the losses.
- Losses are passed on to fair dealing consumers in higher rates and fees and stricter lending guidelines.
- All of these prevent buying; Lack of buying causes prices to fall or prevent recovery.
The Land ‘Gold-rush’ in Phoenix of the last 10 years saw the unfortunate proliferation of many unscrupulous brokers , appraisers, mortgage brokers, buyers and sellers who participated in cash-back schemes which hurt the honest majority and contributed to the large amount of foreclosures in metro Phoenix and many of the surrounding towns including Scottsdale, Tempe, Peoria, Gilbert, etc…
If you are approached with such a cash back deal or know of participants email: px_cashback@ic.fbi.giv
Thanks for helping the 99% who are contributing to your housing market and national economy.
For further details ask these local experts:
Jeremy House Hal Atkin Shailesh Ghimire Neil Garfield
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Copyright © 2008 By James Wexler, All Rights Reserved. *’Cash-Back’ Deals and Mortgage Fraud*
Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs
The Price of Real Estate vs. The Price of Money
June 24, 2008
When it comes to buying a home or investing in real estate, there are two matters to always consider.
The price of Real Estate versus the price of money.
In the last several weeks, interest rates and long-term mortgage rates have risen considerably. 30-year Fixed mortgage rates have risen from below the 6% level a few weeks ago to nearly 6.3% this past week.
On Wednesday, the Federal Reserve Board will announce interest rate policy and whether or not they will cut (or raise) interest rates.
Wall Street thinks the FED is done cutting rates for the time being as a result of inflation fears. In fact, “some economists believe the Fed will begin raising rates as soon as this summer” while “others believe that rate hikes are more likely in early 2009.”
why is this important when it comes to buying real estate?
On one hand, as Lewis Corcoran, a very talented mortgage broker points out , “We can never expect people to buy homes simply because, as the National Association of Realtors keeps saying and has been saying for 2 years now: “now is a great time to buy a home.” as we do not know for sure when and where the bottom will be found.
However, one must also take into consideration that if the experts are correct and interest rates do continue to rise trough summer and into 2009, then, …
No matter how you cut it, even if home price remain level or even decline slightly, the actual cost of the home is rising. (Please see Home Prices down Price you pay is Up)
Again, how you finance your home can be as important as the price you pay. The price of money is steadily rising. If we have hit a bottom in real estate prices, then the cost of your home is going up. Period!
If you are in the market to buy and believe that the market has neared a bottom in Phoenix or Scottsdale or Fountain Hills or any town in your area; If you find a home that is a good value for you and your family that offers you a place to live, favorable tax treatment and you can lock in an affordable 30-year or 15 year fixed monthly mortgage payment , then consider making an offer on that home you have been watching.
Again, every situation is different, so please speak with mortgage and real estate professional to help evaluate whether now is the right time to buy.
Below please find experts who can help.
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Denver - Wade Young
- Houston - Michael Price
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Orlando - Hojin Chang
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Sacramento - Gene Riede
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San Diego - Kim Schmidt
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Copyright © 2008 By James Wexler, All Rights Reserved. *The Price of Real Estate vs. The Price of Money*
Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs
Real Estate Property “Flipping” Rule suspended
June 22, 2008
The White House temporarily suspends “flipping rule that imposes a 90-day waiting period before foreclosed homes can be sold in order for these buyers to receive FHA (Federal Housing Administration) insured loans.
According to the release, …
“For one year, the Federal Housing Administration will no longer impose a 90-day waiting period before foreclosed properties can be sold to receive government-backed loans” as “part of an effort to help speed the sale of foreclosed properties”.
In Maricopa County, Metro Phoenix, we are suffering from some of the highest foreclosure rates in the country. In fact, the foreclosure rate has nearly tripled since 2007, according to research firm RealtyTrac.
As a result, it is imperative that buying restrictions are eased and tax advantages are offered to excite homebuyers to purchase foreclosures, short sales, bank owned real estate, REO properties and resale homes.
Until the supply of homes is reduced, it will be difficult to see any improvement in sales volume and sales price.
Further, foreclosed homes cause wonderful communities and its residents suffer as they wait for a recovery.
Mr. President, this is a move in the right direction in what I hope will be many initiatives, by the Federal Government to legislate changes to stimulate real estate buying and prevent more foreclosures.
Americans are not asking for a ‘Bailout’. However, struggling homeowners across the country implore you to consider a bi-partisan bill and not Veto the American Housing Rescue and Foreclosure Prevention Act , a needed stimulus package that is now on the Sentate Floor.
I encourage you to support legislation that would stimulate buying and would have lenders ease struggling homeowners’ loans and make Federal Housing Administration refinancings more widely available.
Phoenix named Best Real Estate Bargain
June 21, 2008
Fortune Magazine on CNNmoney.com recently published a story about the Top 6 Real Estate Bargains as a result of the housing downturn.
Phoenix and the cities that make up Maricopa County was recognized by Forbes as a Best Real market that with prices in many of the planned communities around Phoenix dropping at least 20% and some home buying opportunites more than 30% from the 2005 peak.
Jay Butler, director of realty studies at Arizona State University is quoted. Mr. Butler says, “look to the planned communities that surround Phoenix, which are magnets for retirees and are dropping more to the tune of 20% to 30%. A $1 million home at the market’s apex might go for the mid-700,000’s now”.
What is important to recognize from the report is that these sharp housing correction may be offering home buyers the opportunity you had hoped for , but never expected.
It may be the time to buy a home in Phoenix \ Scottsdale.
Think Sale, Sale, Sale, think blue light special or Deal Days - yes, prices could go lower. However, they may not. You can buy , in many towns around Phoenix like, Peoria, Glendale, Anthem and Avondale that are 30% or more from the peak.
There are Short sales, REO (bank owned) homes that offer buyers even greater opporunities. ~please note that not all REO, short sale, and foreclosure opportunites are good investments.
Importantly, remember the reasons you are buying a home.
- Is it a place to live? A place to raise your family?
- Are you planning on retiring?
- Do you need the favorable tax advantages?
- Are you looking for a hedge against inflation?
- Are you looking for long-term appreciation?
- A place to live and call home? (I always say this twice)
If you answer ‘yes’ to most of the questions above, consider the fact that you can buy real estate and have all of the benefits of home ownership and own your house at a steep discount from the prices of 3 years ago.
Always speak with and consult industry professionals for advice on what is right for you as each situation is unique.
The other Real Estate Bargain cites that made the list and a respected industry professional who you can call.
- Las Vegas - Darren Hildreth
- San Diego - Gary Kent
- Miami - Wenceslao Fernandez
- Tampa - Robert Lipply
- Denver - Kristal Kraft
Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs
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