Take Advantage of Builders (Incentives)
July 31, 2008
Phoenix area home builders are struggling to sell homes. There has been a 56% drop in New home sales from June 2007 to June 2008 according to R.L. Brown’s housing report on the Phoenix area real estate market.
The days of waiting in line to pay a premium for a home from a Phoenix new home builder are a fleeting memory.
Today, large builders like Toll Brothers, Pulte, KB Homes, Hovnanian, and most smaller local builders like Camelot Homes are offering truly great products at unbelievable prices.
However, the competition for fewer and fewer buyers is so fierce that Builder incentives are ever increasing and are tempting many Arizona home buyers.
Builder Incentives include everything from cars, pools, plasma TV’s, vacations, upgraded interior fixtures like granite and stainless steel appliances, Green cost saving efforts like solar paneling and financial incentives like no money out of pocket closing costs.
Shea Homes offered BMW convertibles. Many builders offer free pools which can cost as much as a BMW or Lexus
Let me suggest that you look for these Builder incentives when you make offers and negotiate the purchase of a home from a builder.
- Inventory ’spec’ s (Completed homes, ) are opportunities as these completed homes sit, accruing interest or tying up cash, in builder inventory. The lower pricing on many of these are incentives alone.
- Closing Costs and (some HOA fees) paid through use of Builder’s preferred lender - maximums are controlled by RESPA (not the builder)
- Upgrades at reduced cost on appliances, flooring, counters and cabinets, even pools and patios from Standard features
- Lot Premium Reductions - get a premium lot for less
- Many builders are offering bonus to Realtors. Many Realtors will split this commission with the buyer as additional cost savings to the client.
Contact a real estate agent who specializes in new home builders and communities. New Home specialists can help you negotiate price and incentives.
Bottom Line, It is a buyer’s market. More and more it is ‘Ask and you shall receive.’
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Copyright © 2008 By James Wexler, All Rights Reserved. *Take Advantage of Builders (Incentives)*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
Planning on selling? Don’t Upgrade your home!
July 30, 2008
As a Real Estate Broker here in Scottsdale and the towns around Phoenix, I am asked by many sellers whether or not they should upgrade their homes in order to help them sell more quickly.
Now, I know there are differing opinions on the subject.
A well respected Associated Press author, J.W. Elphinstone wrote recently that more people are upgrading their properties in the interest of enjoyment while they are waiting for their home to sell. He also makes the claim that “an in-ground pool increases the selling price of a home by almost 8%.”
In contrast, a Wall Street Journal Reporter, M.P. McQueen suggested , “If you’re putting your home on the market anytime soon, you may want to rethink those plans to bump out the kitchen or add an extra bath.”
My humble opinion, if you are planning on selling, Do Not Upgrade your home . Period.
Even during the housing boom, projects would rarely recoup as much as 90 cents on the dollar according to M.P. McQueen. Today, it is even less.
There are many things you can do (that are not major upgrades) to help prepare you home to sell that are quick, easy and cost-effective such as Cleaning, landscaping, new light fixtures, staging and a pre-inspection.
Curb appeal may be the most important and least expensive improvement bang for your buck.
In most cases, in today’s Phoenix area real estate market,…
if you are planning on selling soon, Remodeling is a waste of money.
You will rarely get dollar for dollar return. And the money spent, cash in bank is better safe in your bank should you need it to ride out a lengthy time on market.
A home improvement loan is expensive and you do not need the extra montly payment while waiting.
If there is an upside to a down market, it is cheaper prices. Buyer’s are looking for bargains, even steals;
There are simply, too many short-sales, lender owned properties (REO) and desperate sellers who you cannot compete with by adding on more value to a home.
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Copyright © 2008 By James Wexler, All Rights Reserved. *Planning on selling? Don’t Upgrade your home!*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
Flood Insurance required in the Phoenix Desert
July 29, 2008
In many area of the country and in parts of Arizona water damage from floods are a serious issue.
In fact, flooding is the leading natural disaster in the U.S., reports the Federal Emergency Management Administration. Flood losses averaged $2.4 billion a year the past decade.
However, in Maricopa County which includes the dry towns of Paradise Valley, Scottsdale, Fountain Hills, Peoria, Tempe and Phoenix, why do lenders ask,
” Are you insured against floods ??
Further, if you are in a designated flood zone lenders mandate you have flood insurance. Yes, mandated flood insurance here in the Valley of the Sun.
It is important for you to know that homeowners insurance does protect you from natural disasters including wind, fire and lightning.
However, standard homeowners insurance does not protect you from floods.
If you want to buy flood insurance, it must be obtained through the National Flood Insurance Program administered by FEMA.
Without specific ‘Flood’ insurance, you are responsible for all costs related to flood disaster including cleanup and the contents of the home. Most importantly…
you cannot secure a Government loan to rebuild if you are not covered.
A year ago, the Insurance information Institute reported that 35% of all Americans mistakenly believed their homeowners’ insurance policies cover repairs or replacement from flood.
Make sure you know if you are in a area designated a flood zone. A title and escrow company can tell you with a quick preliminary title search.
In greater Phoenix, the Flood Control District of Maricopa County oversees the development and implementation of comprehensive flood hazard control measures in Maricopa County.
Be advised that even if you are in low to moderate flood risk or are just outside a flood zone area it may be worth spending a few dollars to protect your home and family.
Now, I have never heard of a flooding natural disaster in the Phoenix Valley.
However, during monsoon season waters do run off rapidly; and if you have been victim of water damage you know …
it can only take a little water to cause significant damage to your home and belongings.
I have included the names of some excellent insurance professionals who can help review your homeowners policy and see if you are covered :
- Scott Simmonds -
- Cedric Reynolds -
- Dennis Volz -
- Ben Zolofra -
- Dan Garzella- ____________________________________________________________________________
Copyright © 2008 By James Wexler, All Rights Reserved. *Flood Insurance required in the Phoenix Desert
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
Ranking Arizona - Vote Best of Phoenix
July 28, 2008
Ranking Arizona is which ranks the results of largest business opinion poll in Arizona.
The Poll of the Greater Phoenix general public is a vote upon business and leisure activities of Arizona’s b
usiness professionals.
Real Estate has several sub-categories including
- Active Adult Communities (Phoenix)
- Master-planned communities
- Small to mid-size local builders
- Real Estate Agents
- Luxury High-Rise Condominiums
- Real Estate Brokerages
- Custom Homebuilders
- Mortgage Brokers
- Title Companies
To enter your vote for Ranking Arizona 2009 use the pull-down menus on this site to find the companies you wish to vote.
I recommend taking a look at the companies in each list.
Although, I work for Coldwell Banker so I can safely recommend that as Best Real Estate Brokerage. 
I can say that listed are some of the best Real Estate companies in Phoenix, Scottsdale, Tempe, Fountain Hills, Peoria and Glendale.
I cannot recommend any specific community, builder, or condominium as #1.
However, one particular name that has received numerous industry awards is Camelot Homes who was honored to have won Ranking Arizona’s #1 Small Volume Builder of the year last year.
Camelot Homes develops master-planned community developments in many Greater Phoenix cities including
Scottsdale - ( DC Ranch & Silverleaf) , Peoria (Sonoran Mountain Ranch and Vistancia) and Chandler, AZ
The mission of the Best of Arizona Ranking polls and your voting participation is to provide a method that will help ensure that Phoenix area businesses provide an extraordinary customer experience while building their business.
The measure of that mission is your vote!
Log-in and vote! Ranking Arizona helps keeps business reach for the highest standards of customer satisfaction.
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Copyright © 2008 By James Wexler, All Rights Reserved. *Ranking Arizona - Vote Best of Phoenix*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
Will the Housing Rescue Bill work ?
July 27, 2008
Congress passed a housing rescue bill Saturday aimed at sparing 400,000 struggling homeowners from forec
losure. President Bush is expected to sign the Bill into law early this week.
The question on everyone’s mind nationally is “will the plan outlined in the Rescue legislation work” to help the struggling economy and support the ailing real estate market?
We are paying attention closely here in Phoenix where we are overrun with foreclosures in such prominent towns as Fountain Hills, Scottsdale, Peoria, Glendale and Mesa; even Paradise Valley has REO listings.
I believe that there is no silver bullet that will be a complete quick fix.
However, there is precedent and reason to be optimistic.
Let me give you some background.
In last Sunday’s New York Times writer, Amy Schoenfeld discussed the role of American Debt and the American Burden that has come since the first consumer loans took form in the 1920’s.
Ms. Schoenfeld, walks us through a previous time in history where ….
for the first time, starting in the 1920’s banks offered 3-year to 5-year mortgages with lump sum (balloon loans) payments at the end of the loan.
Does this at all sound like short term ARM‘s (Adjustable rate mortgages) of the last 10 years?
Americans then, like Americans now, took on debt during the Great Depression and many leaders called on debt as a key to recovery.
Does this sound like the lowering of interest rates rapidly starting in 2001 after 9/11 to add consumer confidence to a shaken economy?
However, refinancing of theses loans was nearly impossible as home prices dropped.
Does this sound similar to the inability of today’s homeowners to re-finance into better loans to ride out the housing downturn?
According to one estimate nearly half of urban mortgages are delinquent in 1934.
Today, we have as many as 3 million Americans who may face foreclosure by several estimates.
The government acted quickly to make long-term loans the industry standard and provided for the refinancing of one million delinquent loans and offered insurance on loans.
Does this sound eerily similar to the Housing Rescue Act that the Senate just passed ?
Next, right after WWII, Americans buy homes with government insured mortgages.
Will the outcome of the Housing Rescue Act of 2008 be the same renewed consumer confidence and economic recovery that we saw in the 1940’s?
In 1951, 53% of homeowners have no mortgage debt.
This outcome may be a bit far reaching as we are a now a Country and economy built on debt. (According to the New York Times, Americans carry $2.56 Trillion in consumer debt, up 22 percent since 2000.)
However, the historical parallels are compelling and are difficult to ignore.
We may not reach the levels of 1951. However, if the Housing Rescue bill works we are well on the way of putting words like ‘recession’ in our rear-view mirror and are heading towards a recovery.
History tells us we have reason to be optimistic; dare I say ‘confident’?
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Copyright © 2008 By James Wexler, All Rights Reserved. *Will the Housing Rescue Bill work ?*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
Will mortgage brokers become extinct?
July 26, 2008
This past week week Wachovia Bank announced that they, (Wachovia) is exiting the General Bank wholesale mortgage origination channel.
This was a shocking follow up from the announcement from Bank America closing its wholesale division of lending through mortgage brokers.
Look no further than www.ML-Implode.com; Here you can watch the wreckage in the mortgage lending business tallied for the world to see.
Industry guru, Rob Blake wrote asked … are Mortgage Brokers are an endangered species?
He pointed out that If you listen to Mortgage (broker) Industry insiders you will hear whispers that the ‘all-powerful’ “banking lobby will finally get the Government to legislate mortgage brokers out of existence.
”
In his very well written article, he outlines the history of the banking industry’s “pursuit of the killing off their competition, many believe the banks decided upon a “scorched earth” plan to rid themselves of retail mortgage competition once and for all. The Plan was one they pulled from the S&L play book a decade earlier”.
Blake argues that if the Banks “Give the mortgage brokers just enough rope to hang themselves just like the Savings and Loans did!”
Before, you write this banter off as conspiracy theory hogwash, listen to what has happened and the now dreaded word of the year for 2007. Sub-Prime :
Sub-prime loans, Alt-A loans, option-arm ’s , etc.. where originated through private banks; specifically depositor banks to start. (many other private and smaller institutions entered the frenzy to make a quick buck from borrowers who mostly could not afford the loans. Although this is another topic for another day.)
Borrowers did not need to go to their local banks to get a loan. They could get these sub-prime loans through mortgage brokers who could virtually originate a loan to anyone who could sign their name.
Borrowers wanted to buy, they wanted these aggressive loans and the bank underwriters approved the loans. Hey, give the customer what they want, right? and, ultimately the deposit banks where approving these loans.
So, in the vast majority of cases, it’s not the honest mortgage broker’s fault. It’s the banks who approved the risky loans. Right?.. Wrong!
You know who is now getting the blame. and I will give you one guess’ and it is not the large banks.
The blame is resting (for the most part) on the mortgage broker.
Currently, their is a vast inspection and audit of the entire industry. Primary focus are new and strict lending guidelines and practices aimed primarily at the mortgage broker.
In fact, not only are the banks not being blamed. They are getting bailed out by the Government.
Think Bear Stearns. Think Fannie Mae. Think Freddie Mac.
Wow, a deposit bank, JP Morgan/Chase was able to sweep in and buy Bear Stearns . Not only at pennies on the dollar, but with guarantees and assurances and actual insurance from the Federal government. Not bad for Chase Bank, right?
The current and pending Federal Legislation (pushed by the banking lobby) that requires heavy regulation and oversight of mortgage brokers. Mortgage brokers will continue to have less and less product availability. Comparatively to banks, they have unfavorable pricing of rates.
It is not unforeseeable that these factors may ultimately put mortgage brokers out of business!.
Ask yourself, ….why would you go anywhere else but a big bank?
Blake asks, “when the dust settles a few years from now, every one will go to a bank to get a mortgage because that is all that is left.
Often, where there is smoke, there is fire.
I hope he is wrong. However, I am concerned he may be right
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Copyright © 2008 By James Wexler, All Rights Reserved. *Will mortgage brokers become extinct?*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
Real Estate’s 100-year Storm
July 25, 2008
Today, we have entered into what I call the ‘Perfect Storm’ of Real estate where many factors have come together to cause this economic crisis that appears to have no end. 
The House of Representatives approved legislation providing help to struggling homeowners and more importantly liquidity to the lending giants Fannie Mae and Freddie Mac which was expected to renew confidence on Wall Street. It has not! The market dropped nearly 300 points the next morning (yesterday).
In fact, we have now watched Fixed rate mortgage soar today to their highest level in 1 year.
Most surprisingly,
The National Association of Realtor said existing sales resumed their decline in June after a slight rebound in May. The NAR Existing home sales declined by 2.6 percent in June, well beyond the 1 percent drop economists had forecast.
This is, how shall I say it, not upbeat news;
Typically, as home prices decline, sales will actually rise. (due to the cheaper bargain basement prices). This did not happen! and is is very shocking. And can only mean a likely a precursor to further and steeper declines in home prices or no sales.
It does not take more than having Internet access, network television or delivery of the Sunday newspaper to be aware of the fact that Real Estate is going through a difficult time here in Greater Phoenix and the surrounding towns of Scottsdale, Fountain Hills, Tempe, Peoria, Glendale, Mesa and many other cities in Arizona and unfortunately across many parts of the Country.
As real estate professionals, we cannot control the market. However, often have the task of being the bearer of bad news. And too often, people like to shoot the messenger.
If you are a real estate professional and your clients, friends and family ask. Do the difficult and be honest.
If you own a home and need to sell. Lower the price to where it needs to be.
If you cannot sell, speak with a lender to Re-Fi while rates are low enough to make a difference; And before credit lending standards become possibly more strict.
Homeowners may not love to hear it.
However, they will thank you later.
~~ James Wexler - Please don’t shoot , I am just the messenger
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Copyright © 2008 By James Wexler, All Rights Reserved. *Real Estate’s 100-year Storm*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
Housing Rescue Bill - Cost to you? only $25 Billion
July 24, 2008
I have recently written several articles about my support for the Housing Rescue Package that passed with resounding support in the House of Representatives and escaped the threat of Veto from President Bush.
I believe it is an important piece of Legislation that does 2 important key things to add support to the ailing housing and credit markets.
It creates badly need liquidity in the credit markets by permanently lifting the dollar amount of mortgages that can be repurchased by Fannie Mae and Freddie Mac and expands the federal mortgage insurance program allowing up to $300 Billion in insured loans by the GSE’s (government sponsored private entities).
Second, the Bill provides for $3.9 Billion in grants to help states or local governments buy and demolish or rehabilitate foreclosed properties.
Opposition was strong in many Republican camps arguing to block grants on the grounds that “the principal beneficiaries of this type of plan would be private lenders – who are now the owners of the vacant or foreclosed properties – instead of struggling homeowners who are working hard to stay in their homes.”; Fear of the public mentioning the dreaded “bailout” is not something Republicans ever mention or want to hear.
I argued that this is not a Democratic issue or a Republican issue. This is an American issue. I believe that we could face a prolonged recession and economic crisis. A scenario that that the Government needs to act quickly to avert.
Even Republican nominated Treasury Secretary, Henry Paulson said about the theory of such a quick and strong move by the Federal Government is , “(the bill is) of a magnitude more important to turning the corner on the housing correction and supporting our markets and our economy”.
Even more resounding statement came from Rep. John A. Boehner, R-Ohio, the minority leader who voted against the Bill, and “It’s a bill that I cannot support. However, It’s a bill that the market clearly needs ..”
However, I received a variety of criticism and backlash which as you know, I always welcome and encourage.
The main and understandable point of contention is what the ultimate cost to the good paying US Taxpayer.
Best estimates are that this will cost the Federal Government (meaning you, the Tax payer) a minimum of $25 billion.
Other detractors commented that the cost to the Treasury, and the American taxpayer, could reach 100 billion.
The House of Representatives’ Republican whip Roy Blunt objected to what he said would be “a 300-billion-dollar bailout of mortgage lenders, allowing them to offload their worst loans onto the Federal Housing Administration. ” and stated unequivocally that he “believe rewarding, encouraging and reinforcing risky investments should not be the role of the government — and certainly shouldn’t be financed by taxpayers,” Blunt said.
There is little doubt that this legislation will be costly to tax payers. I agree it is not our responsibility to bailout business and consumers at every turn and for every decision that turns out unexpectedly.
However, I still believe this is more than a financial issue that could spiral to a National Crisis if the government fails to act. And I do believe the Government has some role in protecting our national interests personally and financially.
Events have transpired and conspired in an unprecedented way that no one could have imagined to cause a financial calamity. An economic disaster. A Financial ‘Perfect Storm”.
The government must act.
However, the question is fair, “At What Cost??”
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Copyright © 2008 By James Wexler, All Rights Reserved. *Ranking Arizona - *Housing Rescue Bill - Cost to you? $25 Billion*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
Be Careful when Buying Real Estate On-line
July 23, 2008
Believe it or not , home buyers purchase real estate on-line. 
In Phoenix, Scottsdale, Peoria, Glendale and other popular retirement towns this is a growing practice as these are popular vacation home and retirement cities.
Many of these buyers are relocating to the Metro Phoenix area and want to purchase before they move.
The advantage to buying a home on-line is usually cost savings. Although, many buyers simply see a home they love and make purchase offers, so not to miss out.
In many cases, buying homes site unseen; except for the photos and virtual tour of the house beautifully staged by the listing broker.
Some companies, including the widely respected, RedFin have made this a profitable business model. Although, they do offer personal service, and very good personal service, the majority of the home buying (and selling) process is done on-line.
60 Minutes ’s Lesley Stahl produced a story about Buying and Selling Real Estate on-line .
My brother’s wife’s family relocated from New Jersey to Fountain Hills, AZ finding and buying their home on-line. They are very pleased. (although, I did have the opportunity to preview and negotiate the Fountain Hills home on their behalf).
Generally, I recommend you consult a real estate agent as there are many aspects to home buying more than price; especially the contract terms and conditions.
However, if you are going to buy your next home on-line make sure you follow these tips.
- extended Close of escrow so that you have plenty of time to get the best available finance. You can always close early.
- Financing details must be in the contract so that if you do not get satisfactory finance you can cancel per finance contingency without breach -Terms of finance would include who pays for pay for loan costs (and appraisal)
- Choice of Escrow company. In Phoenix, the seller pays for Title Insurance and will often demand use of Title and escrow company of their choice. However, all items are negotiable and I prefer my buyers to have control of escrow to best protect earnest monies
- Inspection Period time frames including response times. Contingencies regarding this period are crucial.Inclusion of any other reports the buyer may need to determine the suitability of this particular property
- Buyer (and seller ) cancellation contingencies to allow for offer contract cancellation. Make sure you know these time frames and have them spelled out clearly.
- Cure Period Notices. In Arizona, virtually everything is ‘curable’ with a 3-day cure period. Arizona ‘Cure periods’ can be changed and negotiated to reduced. Make sure you know what these cure periods time-frames.
There is plenty more to understand and negotiate.
Be careful, there is more than earnest money at stake. Buyers and sellers can and do sue for breach of contract.
Make sure you know how to read and prepare offers for real estate that protect your best interest. Often, these -on-line contracts are prepared for and designed to protect those who write them; Themselves!
I urge you to contact a real estate agent to help you. Here are the names of experienced real estate professionals.
- Arizona - Candace Robinson
- Florida - John Elwell
- Texas - Jim Olenbush
- Nevada - Rae McKinney
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Copyright © 2008 By James Wexler, All Rights Reserved. *Be Careful when Buying Real Estate On-line*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
Win at REO Auctions !
July 22, 2008
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.
If you want some advice on REO Auctions here are some names of real estate professionals in your area.
- Tucson Real Estate Expert - Valerie Bradley
- Las Vegas professional - Darren Hildreth
- Sacramento Real Estate agent - John Lockwood
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Copyright © 2008 By James Wexler, All Rights Reserved. *Win at REO Auctions*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
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