To Buy or Not to Buy (Phoenix AZ real estate)

December 27, 2008

shakespeare and buying real estate This slight variation of Shakespeare’s famous line from Hamlet is the question I am hearing from as they buyers ponder and weigh-in on when it comes to that big decision to purchase real estate.

Here are 4 things to consider whether now is the right time for you to buy a home here in Greater Phoenix , Fountain Hills or Scottsdale….

1) A Home first, and investment last – a primary residence is just that, a residence, it is a place to live, to realize the American dream, to enjoy, to raise a family, it can create long-term wealth, however that is not the primary reason to enjoy homeownership

2) Low interest Fixed rates are a hedge against inflation – some of the lowest fixed rates are available; as a result you can buy the same house with a lesser payment, more importantly, with fixed monthly payments, you have a hedge against inflation, as your dollar buys more new home now, than it will later

3) Tax advantages – speak with a CPA or expert, however, there are some great tax advantages to primary homeownership, including no capital gains breaks on up to $500K in appreciation for married couples and deductions of interest against income

4) Long-term capital appreciation – many Americans have created significant wealth through home ownership and real estate across the country and here in Maricopa County, Arizona .

Remember, Capital Appreciaion should be the last reason to buy; as homes do cost about 8%-10% year to own when you figure in interest, taxes, insurance and upkeep. Though, if you have a fixed rate mortgage, pay down principal and are patient, history tells us, you will enjoy the many wealth creation benefits

Make sure you make prudent investment decisions when you buy Real Estate and buy a home for the right reasons.

Most importantly, make sure you can afford it, there is no sense working hard 7 days a week, even if we do have beautiful weather here in Scottsdale and the Greater Phoenix Valley, just to struggle to pay a mortgage that you cannot enjoy.

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

Written by James Wexler · Filed Under Articles, Buyers | 2 Comments

Phoenix AZ real estate Good news (sort of) ….. continued

December 21, 2008

For those who read yesterday’s Blog, about real estate pricing in the metro Phoenix, Tempe, Scottsdale area when I took a leap of faith of faith (or as some have suggested, forgotten how to read) when I was either bold or crazy enough to suggest that the S&P/Case-Schiller Report that announced home prices have plunged more than 30+% as “Good News”!!

I am not retracting my belief just qualifying it as an assessment that the news was a case of the Glass Half-Full v. Half Empty. Here’s why ….

1) It’s a Buyer’s market – for the Half of every real estate transaction, the Buyer, opportunities are created for those who have the conviction to step in when value in home prices is in their sights and the patience for long-term growth which historically real estate has given

2) Lenders easing credit – the lower prices, offer less risk for lenders. Let’s face it, values are not going to $zero. Lower purchase prices, lower loan amounts, lower payments for borrowers, more upside in appreciation, than downside

3) Lower interest rates – how you finance a home, is often times more significant than what price you pay, 30-year fixed rates are hovering near all-time lows. You can lock in a fixed payment with a reduced price and reduced rates than seen in many many years, thus lower monthly payments for the same house 3-4 years ago.

4) Reduction in inventory – we need to get past these inventory levels and reduce the glut of homes on the market. Not until then, can home prices rise again. This will happen. However, not until prices are lower. This negative price drop is a positive for reduction in inventory. The statistics show we are clearly moving in this direction.

5) Consumer confidence - every day , at least in Metro Phoenix , we see negative news. Negative news, is negative water cooler talk. Misery loves company, etc… you fill in the cliché’ . With lower prices, we will see more sales , more happy buyers who feel they got that “Deal” they have been looking for. Happy consumers, good news, buyer spending, confidence in the housing and real estate sector will return.

Yes, if you are a seller, times are tough. However, be patient. Prices are starting to correct enough to stimulate buying. Lower prices, means more buying, more buying means less inventory (supply) . Less Supply, in simple economics, means more demand. Prices then go up. It’s almost that simple.

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

Written by James Wexler · Filed Under Articles, Buyers | 2 Comments

Good News for Phoenix AZ Real estate (sort of)

December 20, 2008

Ok, ok, …. Maybe good news for the metro Phoenix area real estate and the housing market is pushing it a little. And I don’t at all want to sound happy or overjoyed as area residents in Scottsdale, Tempe and Desert Ridge home values, and people’s net worth slightly deteriorate.

However, after everyone catches their breath from this real estate and housing market news and looks a little deeper past this fright filled front page headline it may a little more easily digested as a case of “Glass Half-Full” versus “Half Empty”…. Here’s one man’s humble of Why!!

Take these 5 reasons. (stay tuned, I will go into detail of each tomorrow

1) It’s a Buyer’s market

2) Lenders easing credit

3) Lower interest rates

4) Reduction in inventory

5) Consumer confidence

Yes, this so called “good news” I am finding in what are agreeably are recent cloudy days, may be of little , (although these days, a little can be a lot), consolation for home sellers .

However, as I always say, Buyers dictate a market. And we need the above factors , all of which stimulate buyer’s to actually BUY!! Ultimately, reducing the glut of homes on the market will cause a follow through of rising home values.

Yes, residents of Tempe, Fountain Hills, Mesa, Peoria, and the area of Desert Ridge, and the golf communities of DC Ranch, this will happen, one day. I promise.

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Contact James Wexler (480) 221-8080 for all your Real Estate needs.

Written by James Wexler · Filed Under Articles, Sellers | Leave a Comment

Phoenix AZ Sellers Facing Foreclosure ??

December 18, 2008

Today, it is estimated that between 2 and 3 million Americans may face foreclosure.

If you are one of the many, you should… Options for Homeowners facing foreclosure

Know your Options if you are facing foreclosure :

In Phoenix | Scottsdale and all of Arizona, we use Deeds of trust, not mortgages, which change some of your options you may have in other states.

First and most importantly, …

1) Contact your lender to work out possibilities such as short-sales, loan re-structure or deed-in-lieu of foreclosure. Many lenders will work with you to try to minimize losses for everyone involved.

2) A short sale should be handled by Realtors with experience in foreclosure or short-sales.

3) Speak with attorney and a CPA regarding legal and tax (financial) implications that a short sale, deed-in-lieu of foreclosure or traditional foreclosure may have.

Finally,

4) make sure you act sooner than later. Most problems can be handled if there is enough time.

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

Written by James Wexler · Filed Under Articles, Short-sales / Foreclosures | Leave a Comment

Let’s focus on the real problem facing the economy!

December 17, 2008

Let’s focus on the real problemAs we close out 2008, it is safe to say we are somewhere between a recession and a depression. It may not be the great depression of the 30’s but it is not a little recession either. At this point it is probably the Great Recession of 08. We do not want the economy to get any worse because that would be very bad for America and the rest of the world. We must focus our attention and resources on the root of the problem and not on the collateral damage caused by the problem. The bleeding will stop if we close the wound and address the source of the problem.$700 billion dollars plus is being used to bandage the credit markets in a failed attempt to restore American’s confidence in the banking system that in large part caused the problem by making loans available to people who could not afford to buy homes. This large infusion of cash into the banking system will never cure the problem because there is no assurance that the banks will loan this money to people who want to buy homes. The Federal government has already taken unprecedented steps to improve the economy by buying mortgage backed securities, by lowering long term interest rates to historic lows, by bailing out insurance companies, banks and unregulated financial institutions, by encouraging banks to work with delinquent home owners to modify their loans to keep them out of foreclosure and by promising to bailout the American auto industry to prevent massive layoffs. Much has been done by our government but the actions so far have not stabilized the economy and the housing sector because they have not attacked the festering wound. The problem is based on the law of supply and demand. As a result of all the foreclosures there is a glut of homes on the market. When the supply far exceeds the demand, prices must fall to attract buyers. The root of the problem is decreasing home values caused by excessive inventory. Because of decreasing home values, we have lost trillions of dollars of equity, borrowing power and buying power. Lenders do not want to loan money to people to buy real estate when real estate is depreciating in value and people do not want to buy real estate today that will be worth less tomorrow. So what should the Federal government do to stabilize home prices and reverse depreciating home values? The answer is simple and it directly attacks the problem.The government should make better use of the $700 billion dollars plus and start buying homes on the market thereby decreasing the inventory. Many of the homes on the market are owned by banks and as a condition of buying bank owned homes the government should require the banks to segregate the funds in a pool for the sole purpose of loaning the money to people who need a mortgage to buy a home. The decrease in inventory will cause home prices to stabilize, rather than decrease because the supply will be in balance with the demand. People will want to buy today rather than wait until tomorrow when the price will be higher. This will generate the needed demand and when demand exceeds supply, prices will rise again. When home prices start to rise, the problem is over and the economy will heal and the government can gradually increase interest rates to prevent the real estate market from over heating. The housing sector led us into this financial crisis and it will eventually lead us out of this crisis but the government must intervene and eliminate the excess inventory which the banks inadvertently caused. What will our government do with all these homes? There is plenty of need for affordable housing in this country. The government can fix the houses up and rent them out to displaced families who lost their homes to foreclosure, minorities, and low income families. Forget, for now, about improving our infra structure as our President Elect is proposing and concentrate solely on housing. Put the unemployed back to work by renovating, remodeling and managing these homes. Once we get the housing problem under control, we can work on our roads and bridges. The taxpayers would be better served by holding title to homes rather than worthless mortgage paper which is what the $700 billion is currently buying. The real estate values will eventually increase and over time the government can sell these homes in an orderly fashion for a higher price and pay down the national debt.In twelve months or less we should all be cured of this terrible hangover caused by an excessive supply of homes on the market. Let us all be reminded that all bubbles eventually burst. Real estate prices simply rose too quickly and the market could not support the inflated values. Real estate is still a very good conservative investment because it is more than just an investment; it is our home. America’s population is constantly growing but there will never be more land in America. There will always be a demand for homes and as long as the supply does not get excessive, prices will rise.

The lesson to be learned from the last five years is that if you are receiving more than a modest return on your investment, something is wrong and a bubble may be forming. The next time we experience something that seems too good to be true, stand back, resist the temptation to jump in and yell loudly for others to stay clear.

- Dominic J. Mancini , Attorney at Law

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Dominic J. Mancini has been practicing real estate law in the Chicago land area since 1975. He is a graduate of UCLA (1972) and DePaul University School of Law (1975). He has been involved in residential and commercial real estate closings, leases, zoning issues, mortgage foreclosures and landlord tenant issues. He has conducted a number of 1031 exchanges and reverse exchanges. He has given numerous presentations for first time home buyers and has been a licensed real estate broker since 1977. He is in private practice in Hinsdale, Illinois. You can reach Mr. Mancini at (630) 325-2580 or Domm1@msn.com.

Written by James Wexler · Filed Under Articles, Investing | 3 Comments

Buy Phoenix AZ Real Estate Low Sell Real Estate High (later)

December 13, 2008

You have all heard the investment phrase, ‘Buy Low Sell High’. Buy ( Real Estate ) Low - Sell High

However, how do you actually do that? at least when it comes to buying real estate as in Phoenix AZ Real Estate.

Let me tell you story which might help shed some light on this investing “ Holy Grail ”

“Finance 101 will often tell you that, “the best time to buy is when opportunities are created out of seller necessity. A couple I have worked with for some time, just bought a home straight out of a Builders Inventory (these days, builders have taken homes back from a buyer who could not qualify for a loan.) The original price on this home was more than $700K. They bought this brand large beautiful new home in a wonderful community of Peoria for $400K.

Now, this couple has bought this new build home low. Have they purchase at the lowest? My crystal ball has not worked as well as I would like. However, based upon their needs, wants and desires, they have bought “Low” and have a wonderful home to raise their family. How do they sell High? Well maybe the correct term is sell their real estate “Higher”.

Again, my home buying crystal ball is on the fritz. However, they have a very affordable 30-year fixed rate that they can comfortably afford and do not have plans to sell for many years to come. A historical outlook will suggest that their plans to live in this home for 5-7 years and possibly longer will give them an excellent chance to build equity, save on taxes, sell higher, and most importantly give their family a place to call home.

I would say that I have never seen so many great buying opportunities for the prudent, savvy, patient and credit-worthy real estate investor and/or new home buyer.

More and More these days, in Phoenix and the surrounding towns of Peoria, Tempe , and Fountain Hills to name a few great Arizona cities, Opportunities abound. You just have to know where to look.

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If you are a Phoenix AZ real estate investor or a Scottsdale AZ real estate buyer, Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale AZ short Sales

Written by James Wexler · Filed Under Articles, Buyers, Investing | Leave a Comment

5 most common mistakes that sellers make when trying to sell a Phoenix AZ home

December 12, 2008

Home selling is mostly common-sense. However, it is such an emotional decision, that it often hard to follow your mind and instead follow your heart. secrets of real estate

These are the 5 most common mistakes that sellers make when trying to sell a home.

Price your home right. Not what you want or need, but what the market dictates.
No offers in a month. Lower prices at least 3%
Price your home based upon comps of sold properties (within 3 months); Not active listings!
Incentives such as contribution towards closing costs allow buyers to come up with less money making it easier for the borrower to obtain a loan.
Do not overprice your home with the idea you have room to negotiate. Buyers will make offers on lesser priced homes.

As you can tell, most of the so-called secrets of real estate selling are price driven. Most homes, like most products in the economy, sell predominantly be price or value.

No one will pay 10% more for a car, if they can go next door and pay less for virtually the same car.

Real estate, although, not a commodity acts very much the same way.

For advice on home selling, always interview at least one real estate professional or more to get a true picture of the market in your area.

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

Written by James Wexler · Filed Under Articles | Leave a Comment

Asbestos Removal and Green Alternatives – Path to a Healthy Home

December 11, 2008

When remodeling, foreclosing or purchasing an older home, there are many things to consider in the real estate industry. Used for more than a century as a form of building insulation and piping, homes built before 1980 have the strong potential of containing asbestos.

With increasing awareness and technology, there are a variety of insulation alternatives and building materials which easily replace the need for asbestos. Potential and current homeowners should be aware that exposure to asbestos fibers becomes a health concern when high levels are inhaled over a long period of time.

Used in millions of homes, asbestos insulation can be a real problem for homeowners due to causing a variety of lung ailments, such as malignant mesothelioma and peritoneal mesothelioma. Recent studies indicate that over 2,000 to 3,000 cases are diagnosed every year in the United States alone. Workers and real estate’s-man all over the world are now receiving the proper indications and information towards the risks they face.

The United Nations Environmental Program states that the use of recycled building materials such as cotton fiber insulation can reduce energy use by 25 to 35 percent. The numbers continue to improve as more eco-friendly options become available. These kinds of figures have attracted those who were unaware of eco-friendly construction.

Asbestos removal in public facilities, homes and workplaces must be undertaken by a licensed asbestos abatement contractor if the National Emissions Standards for Hazardous Air Pollutants (NESHAP) are not violated. Once the removal is complete, green insulation options should be given serious consideration, such as: Cellulose, Cotton Fiber and Lcynene. These asbestos alternatives will not only reduce energy costs, but allow for a clean, healthy home, free of health damaging materials.

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Jesse Herman, the Awareness Coordinator at the Mesothelioma Cancer Center (www.asbestos.com). Lately I have been reaching out to real estate bloggers in efforts to getting some of our information published. Your blog seems like a good fit.

As you may know, homes built before 1980 likely have asbestos insulation in them. When homeowners remodel, they may expose themselves to asbestos, which could lead to the deadly cancer called mesothelioma.

There are many environmentally safe and healthy ways to insulate your home and this is among the topics we like to discuss.

Thank you for all your help,

Jesse Herman
Mesothelioma Cancer Center
jesse@asbestos.com

Written by James Wexler · Filed Under Articles | Leave a Comment

Top 5 reasons to buy Phoenix AZ Real Estate

December 10, 2008

5 reasons to buy a new home I call Arizona’s last 10 years the real estate ‘gold rush’ …. Well, at least the years of Phoenix AZ real estate growth that came to an abrubt halt at the end of 2005; where for the first time home buyers thought of getting rich and making money on their own and a place to live was secondary.

yes, a lot of money was made; and lost. However, there is a new opportunity to make a lot of money again. Over time, of course as real estate prices have retreated to 4 year lows and interest rates are near 5%.

I just want to remind ever Phoenix AZ real estate buyer to remember the

Top 5 reasons to buy a home. (the order is different for everyone)

a Home is place to live
enjoy tax benefits
a fixed mortgage payment in time (rents typically rise with inflation)
each month you save money by paying down your mortgage loan
build a nest egg over time

Today’s home buyer is seeing opportunities that they may never have expected.

I encourage you to buy a home only if you can stay in your home for at least 5 years, put down at least 10% (20% is better) and get 30-year fixed mortgage.

If you can handle the payment comfortably then history has proven that you will build a nest egg while enjoying all the other benefits home ownership has to offer.

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

Written by James Wexler · Filed Under Builders | Leave a Comment

“Rent-to-Own” a Scottsdale AZ Home

December 9, 2008

Phoenix and Scottsdale area lenders are tightening their lending practices. It is increasingly more and more difficult for home buyers to get loans.

Now 100% loans, or ‘majority financing‘ is a very limited option, buyers and sellers have to be creative to get real estate transaction closed.

There are 2 strategies that may work; The Lease-option and the Lease Purchase.

A common name you may here these referred to is “Rent-to-Own” .

I have to recommend that you do not attempt this without the advice of an experienced attorney and/or real estate professional.

Lease option - “contract in which an owner leases her house (usually for one to five years) to a tenant for a specific monthly rent, and which gives the tenant the right to buy the house at the end of the lease period for a price established in advance”

Lease Purchase - “a Lease to Purchase contract combines a basic lease contract with an option to purchase contract, which creates a Lease to Purchase contract.” The main difference being that the lease purchase contract, the Buyer is obligated to buy; if not, the buyer would likely be in breach.

Again, both contracts can provide language where a portion or all of the rent payments can go towards the purchase of the home. Thus, allowing the buyer to accumulate down payment to more easily obtain a loan.

Hire a real estate attorney or experienced real estate professionals who can prepare documents, explain and protect your interests.

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

Written by James Wexler · Filed Under Articles, Buyers | 1 Comment

To Buy or Not to Buy (Phoenix AZ real estate)

Phoenix AZ real estate Good news (sort of) ….. continued

Good News for Phoenix AZ Real estate (sort of)

Phoenix AZ Sellers Facing Foreclosure ??

Let’s focus on the real problem facing the economy!

Buy Phoenix AZ Real Estate Low Sell Real Estate High (later)

5 most common mistakes that sellers make when trying to sell a Phoenix AZ home

Asbestos Removal and Green Alternatives – Path to a Healthy Home

Top 5 reasons to buy Phoenix AZ Real Estate

“Rent-to-Own” a Scottsdale AZ Home

MLS search -- Phoenix Area Homes for sale

Phoenix Area Homes for Sale

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