To Buy or Not to Buy (Phoenix AZ real estate)
December 27, 2008
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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Copyright © 2008 By James Wexler, All Rights Reserved. *To Buy or Not to Buy (real estate) … that is the question*
Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs.
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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Copyright © 2008 By James Wexler, All Rights Reserved. *5 Reasons why Bad News for real estate buyers is Good News!! (continued from yesterday)*
Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs.
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’. 
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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Copyright © James Wexler * Buy ( Real Estate ) Low - Sell High *
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
“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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Copyright © 2008 By James Wexler, All Rights Reserved. *Lease Option vs. Lease Purchase*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs.
Letter from a Happy renter!
December 8, 2008
As a Phoenix AZ real estate agent, we are conditioned that buying is renting. I understand that there are several questions to ask yourself: Bottom line; each person’s individual situation situation is unique.Ask yourself these 5 questions, …so you can decide if now is “Not” the right time to buy real estate.
- Will you be in your current job for at least 3-5 years? - If there is any chance of relocation or job change in the near future, I would not recommend you buy with this potential financial instability.
- Do you see any major family changes, children, divorce or separation in the foreseeable future? children are a large expense and selling a home through a divorce or separation is not an ideal scenario for best results.
- Will a new mortgage test your financial limits? - there is no reason to work so hard to barely pay a mortgage on a home you cannot enjoy.
- Do you have at least 6 months of emergency savings in case of unforeseen financial hardships? Make sure that you have savings should an unforeseen event cause short-term problems in paying your mortgage. Losing your home can be emotionally and financially devastating to families.
- Do you have 10% (20% is better) down payment? - If you cannot get a fixed mortgage payment at a favorable rate, it is likely that you cannot quite be certain enough you will be able to afford your home for more than 3 -5 years.
However, there are renters who are very happy. I wanted to share a letter I received from a very satisfied renter.
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Dear Sir:
I am a proud renter and can buy any house I want–with the cash. I saved by not sending it to a bank to make BANKERS wealthy.
Check out these facts. I live in a ten year old house, the largest house on the block. My rent has gone up to $800/month. If i bought this house TODAY, not two years ago, I would be paying about $3800/month.
Since I have lived here, I have saved the difference between my rent and projected PITI. Two years ago at the BUBBLE peak, it would have been $5,000/month.
So here I am, my landlord is hoping I stay and rent while he is swimmng UNDERWATER.
Do you know many middle class people buyers or mortgage holders (not homeowners) who can save cash $3-5,000/ month??
The ONLY person with cash at the closing table is the buyer. The buyer has either money from a banker or cash.
I have owned many houses and did not believe renting was sensible UNTIL I started renting. The owner of this house CAN NOT SELL for at least ten years. So he MUST consider keeping ME HAPPY. Will a mortgage company do the same? My landlord—promptly fixes everything—he writes it off. I don’t have to write off anything, but look what I save! For me, A house is NOTHING more than shelter.
If I bought any time in the past fifteen years, I would be behind where I am now financially because of the amount of property taxes I would PAY—and the HUGE interest would PAY!
I am GLAD I AM NOT a buyer. We can and do travel all over the world with the money we would have thrown at banker. -
– A Happy Renter!
Buying vs. Renting is the age old questions. There are compelling reasons for both. Make sure you ask all teh right questions before you step into home ownership.
I hope this explanation is helpful to buyers and sellers of real estate in the greater Phoenix real estate market. Make sure you and your real estate agent are knowledgeable and aware of the questions for you to ask before buying.
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Copyright © James Wexler *Inspection Contingency - according to the AZ Association of Realtors*
If you are considering life in Fountain Hills AZ or living in a golf community, hire an agent who is an expert in Fountain Hills AZ golf properties and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ real estate and life in Scottsdale AZ
Coldwell Banker - A Message to Customers
December 7, 2008
I am a real estate broker with Coldwell Banker in Scottsdale AZ. There are a lot of great real estate brokers and real estate agents at many firms.
One thing that impresses me with Coldwell Banker is their mission statement to clients, prospective clients and communities. I though it was important to share it today. 
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Mission Statement
NRT is a family of companies dedicated to creating exceptional real estate experiences for our customers and communities through the passionate delivery of Truly Remarkable Service.
We pledge to promote a fun, fulfilling and respectful environment, one that is open to change and innovation, providing personal growth opportunities for all.
Business Principles
- We consistently treat everyone with courtesy and respect.
- We are Goodwill Ambassadors who always speak positively about our industry, our company and each other.
- We identify and anticipate the needs of others and are empowered to take actions that exceed their expectations.
- We embrace our Vision and Mission believing that our individual performance affects the success of everyone.
- We are committed to personal growth, professional development and innovation in the pursuit of excellence.
- Our demeanor, appearance and facilities reflect our high standards.
- We encourage an open exchange of ideas throughout our organization.
- We are committed to identifying inefficiencies and communicating concerns, thus enabling us to improve our performance and systems.
- We are responsible for protecting the assets and resources of our company.
- We utilize our superior tools, resources and systems to provide our customers with exceptional service and guidance.
- To provide the highest level of customer service, we support our family of companies and strategic partners.
- We seek opportunities to recognize excellence.
- As people of integrity, we conduct ourselves with the highest ethical standards.
- We foster a culture where diversity is valued, quality of life is enhanced and individual aspirations are encouraged and fulfilled.
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Copyright © James Wexler *Coldwell Banker - A Message to Customers*
If you are considering life in Fountain Hills AZ or living in a golf community, hire an agent who is an expert in Fountain Hills AZ golf properties and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ real estate and life in Scottsdale AZ
Inspection Contingency - according to the AZ Association of Realtors
December 3, 2008
During the Phoenix AZ real estate boom of 2001-2005 that saw greater Phoenix AZ real estate prices soar more than 100% in most areas, buyers took advantage of the AZ Association of Realtors purchase contract that is designed to be fair, but buyer friendly.
The reality of the contracts is that you can make an offer and if accepted in writing you have a legally binding contract. In fact, you do not even need to deposit earnest money. The promise to deposit earnest money with an escrow company or brokerage is enough. I should qualify this by saying the seller must send a cure notice for the potential breach of the missing deposit. That gives the buyer 3 days to cure the breach by depositing money.
Ultimately, that gives the buyer quite a few days, more than 3 for sure, to ‘contol’ the real estate before deciding whether to go forward. Ethical?? No!! Legal Yes!
Further, the buyer has a standard (this can be amended) 10-day inspection period to ‘kick the tires’ and , in all reality can cancel the purchase contract it the buyer’s sole discretion with a full refund of earnest money. Although, this is not a ‘Free Look’ per a a legal interpretation. Let’s call it what it really is, a ‘free look’. They buyer has 10 days to make purchase decision while having complete legal control and binding contract on the subject property.
The discussion about ‘reasons for cancellation’ are always in dispute; Do you need a reason to cancel?
According to Michelle Lind, General Counsel of the Arizona Association of Realtors (AAR), the answer is “YES”!
Ms. Lind writes , ” Although the buyer is entitles to cancel in the buyer’s sole discretion, the buyer must “deliver to seller noticed of the items disapproved and state in the notice that “the buyer elects to cancel (section 6j)…. (continued) ….. If the buyer fails to state the reason for cancellation, the seller should deliver a ‘cure period notice’ to the buyer requesting the reason. If the buyer does not state the reason fore cancellation before expiration of the cure period, the buyer will be in breach of contract, Note: “Contract” refers only to the 2005 Arizona Association of REALTORS (AAR) Residential Resale Real Estate Purchase Contract.
I hope this explanation is helpful to buyers and sellers of real estate in the greater Phoenix real estate market. Make sure you and your real estate agent are knowledgeable and aware of your rights and protections
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Copyright © James Wexler *Inspection Contingency - according to the AZ Association of Realtors*
If you are considering life in Fountain Hills AZ or living in a golf community, hire an agent who is an expert in Fountain Hills AZ golf properties and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ real estate and life in Scottsdale AZ
Wealthy buyer cannot buy Peoria AZ home with 10% down
November 26, 2008
Recently, there has been loud complaints of the accelerated price decline of Phoenix AZ real estate. Although opinion differ what is the problem, no one can deny that there are several problems contributing.
Experts point towards mounting inventory of Phoenix AZ homes for sale, rising unemployment, the large number of foreclosures, poor management of loss mitigation at banks and tightened credit or lack of mortgage lending from banks. 
My personal, and humble, opinion is that there is an obvious unwillingness by banks to lend money. They banks now have the money. However, due to poor language and instructions when our Congressional leaders drafted the American Homeowner Rescue act which is better known as the $700 Billion Bailout! The language or lack thereof, allows banks to borrow the money from the Government which means the good paying U.S. taxpayer. Though, it does NOT mandate that they need to actually lend the money to qualified borrowers.
As a result we have (virtually) no money for buyers to use to do what this was supposed to do; Buy Homes!
The banks claim otherwise. However, I strongly believe that the reason being that if home prices continue to drop, homeowners are less willing to pay their mortgage if financial problems arise as the home is worth less then they paid. The can simply , and often do, just walk away from the home. Thus, the banks foreclose on the homes and lose money.
So until prices stabilize there will be now money. Here is an example of a personal story that paints a picture of the problem.
A hard working couple was pre-approved to buy a home priced at approximately $500K.
- Both husband and wife are pharmacists
- combined income of nearly $200K.
- Credit score over 680.
- No other debt.
- $50K savings
- $10K in checking
- 401K assets over $100K
- Made and offer for the home which was accepted.
- However, the bank/lender told the borrowers that they needed more than 10% down.
- Borrowers have the money.
- Due to a child in College, they do not want to use more than the $50K in savings.
- The lenders declined the loan!
What a shame for the buyer who wants to buy a home to realize the American Dream, raise a family and build a nest egg for their future. The ripple effect does not stop there. A seller cannot sell. Parties facilitating the transaction including, but not limited to, real estate agents, mortgage brokers, title and escrow companies, appraisers, banks (who make money lending), inspectors, movers, etc….. do not earn money which they can and do spend in the economy.
The problem is cash. Buyers don’t have it or do not want to part with it until the economy strengthens. Interest rate cuts help. However, that is not the problem. Banks are simply too fearful of lending to even the best borrowers without large down payments.
Bottom line, until we can get these banks to lend we will not see any recovery in the economy.
I am optimistic that a new draft with language that either mandates lending or insures loans by banks will have the intended effect of the original legislation, stimulate housing and the foundation for an economic recovery.
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Copyright © James Wexler *Wealthy buyer cannot buy Peoria AZ home with 10% down *
If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale bank owned homes
Remember these 3 Tips before you buy that Scottsdale AZ home
November 23, 2008
As a Scottsdale AZ real estate agent, I interact with real estate buyers and sellers. As a result, you can imagine the range of emotions I hear on a daily basis. If you are a Phoenix AZ real estate owner or real estate investor, the emotions
range from shock to sadness to anger. I am sympathetic as I too am a home owner.
I do get to balance the frustration with buyers who feel that this is a once in a lifetime sale. Phoenix AZ real estate prices are down more than 30% in the last 12 months alone. Even town like Scottsdale AZ, Fountain Hills AZ and Paradise Valley AZ are down more than 15%.
Most buyers, are still nervous as cash is still king and buying homes requires as much, or more, than 20% down payments. However, for the most part, they feel like kids in a real estate candy store. They are licking there lips and getting ready to buy at deep discount, bargain basement, even going out of business (no pun intended) sale prices.
I want to encourage those who have been planning to buy and who can truly afford to buy to take advantage of a buyer’s market, deep discount prices, low mortgage rates, tax benefits to take a leap of faith and buy.
However, I also want to caution buyers to consider the following real estate buying rules so you don’t fall into a trap like many others have in the last few years.
- Don’t take on more house than you need to - one of the biggest mistakes that real estate buyers make is buying much more than they need and worse buying much more than they can afford.
- The impossible can happen - gas prices have gone down 60% in 4 months, the S&P 500 is down 45% for the year, real estate prices have dropped more than 30% in the last 12 months. These were impossible events to think could happen. Make sure you can afford what you buy and can afford to stay in the home for a long time.
- Diamonds are forever. Cash is not! - make sure you have sufficient reserves in the event of a prolonged recession, depression or emergency. If you don’t have at least 6 months of expenses in savings, dont buy!
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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Copyright © James Wexler *Remember these 3 Tips before you buy that Scottsdale AZ home *
If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale bank owned homes
Toll Brothers - New Home Expo in Greater Phoenix AZ
November 15, 2008
Phoenix AZ real estate is made up of new home developments that sprouted up during the real estate ‘gold rush’ of 2001-2005. In fact, I would argue that Phoenix AZ real estate leads the country in the number of new home builders who have come here to develop land. As a result, the choice between resale and new home construction is difficult. Although,, I have argued very good reasons for both, it seem lately the advantages weigh in favor of new home construction. 
There are many pros and some cons to both choices. However, are 4 Reasons to Buy a new construction home direct from a builder.
- Pricing/Value - most builders have a lot more room to negotiate than resale owners. The sales process is much more of a business decision versus an emotional one for most homeowners. Also, builder’s incentives make the price quite compelling.
- Modern Energy Efficient Design - makes a home eco-friendly and “Green” ?
- Design your Dream Home - both offers an array of modern floor plans that you can choose paint color, stonework, flooring, cabinets, landscaping and what seems to be an endless amounts of choices in amenities and design.
- Long-Term Equity Appreciation- Think New Car Smell! Lets face it, who doesn’t like New vs. Used is as American as apple pie. Think, new car smell.
After you have made the decision to buy new home construction from a Scottsdale AZ new home builder or Phoenix AZ new home builder, you have to decide which builder from whom to purchase. Again, choices range from large builders like Pulte, KB Homes, Lennar, Shea Homes and Engle to smaller luxury new home builder , Camelot Homes.
One of the builders that is offering great homes at even better prices is Toll Brothers. The are currently running a sales special called the Toll Brothers New Home Expo.
The Toll Brothers New Home Expo is this Saturday (today) and Sunday only. Communities include Windgate Ranch in Scottsdale AZ, Saguaro Estates in Scottsdale AZ and Treviso in Scottsdale AZ.
In Phoenix AZ visit The Villages at Aviano at Desert Ridge. Montevista in Phoenix AZ and the Desert Enclave in Sonoran Foothills.
Toll Brothers invites you to ‘ Take advantage of new low pricing and special incentives from *America’s luxury home builder* (trademark).’
Sales specials, Favorable financing, seller contributions, builder incentives and Free Upgrades are just some of the great deals during the self-proclaimed “New Home Expo Stimulus Package”!
I encourage you to visit the field models and sales office of any of the great new home communities from Toll Brothers in greater Phoenix AZ and Scottsdale AZ. The have great homes in builder inventory at prices we have not seen in many many years.
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Copyright © James Wexler *Toll Brothers - New Home Expo in Scottsdale AZ*
If you are considering buying a from a new builder in Scottsdale AZ or Phoenix AZ, hire an agent who knows the new home construction market in Scottsdale and Phoenix AZ and has the experience to get the job done.
Call 480.221.8080 to find out more about Phoenix AZ real estate and life in Scottsdale AZ
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