Real Estate Information

There’s a new community being built in North Scottsdale – built by K. Hovnanian Homes, this luxury community at Pinnacle Peak offers something different.  The developer is partnering up with Peit Boon, a Dutch architect based out of Amsterdam.

Boon’s architecture is seen is some of the most affluent scenes around the globe, from country villas in Europe, to beach villas in the Caribbean Islands, all the way to country club mansions in South Africa.  For the past 25 years, his company has designed beautiful exterior and interior spaces for both private residences and corporate clients.

The Line K at Pinnacle Peak offers modern, semi-custom home.  The gated community features 26 one-acre home sites and a variety of floor plans.  Unique features, such as an outdoor master bathing suite, can be added for maximum personalization.  Home prices for the community begin from around $700,000.

If you’re interested in new communities in Scottsdale or anywhere in the Phoenix Metro Area, or are looking for a resale home, we can help! As market experts, we know areas to help you find the perfect home. Contact us today to speak with our expert Buyer’s Representatives!

Home prices are rising quickly in the Phoenix Metropolitan Area – shooting up a record 8% in March and around 20% in the past year.  According to a new report from the W.P. Carey School of Business at Arizona State University, the median home price in the Phoenix Area is now around $134,900. 

While the market appreciation isn’t expected to continue to rise like it did in the boom, home prices are still expected to rise through the rest of the year.  The appreciation is accredited to the combination of a drop in bank-owned homes available, decrease in overall housing inventory, and an increase in the number of homes sold. 

Bank-owned homes and foreclosures have dropped in the Phoenix Metro Area over 60% year over year.   The surge of investors to our market looking for great home bargains along with regular resale transactions has served to decrease the housing inventory tremendously in the last year, while the addition of owner-occupied buyers have increased home sales around 35% year over year.

While the median home price for the Phoenix area is still much lower than it was during the boom, home prices have gone up nearly $30,000 since last August.  The increases in traditional sales, new-home sales, short sales, and investor purchases have all added to the price increase.   Some of the areas which show the greatest increases are those who were hit the hardest in the foreclosure wave: San Tan Valley’s average price per square foot has increased 31%.

The increases in the residential resale market has led to an increase in new home sales – the highest percentage of those are in the Southeast Valley, with Chandler and Gilbert showing the greatest number home sales in March.

If you’re considering selling or are interested in the latest value of your home, please contact us today!

According to data from RealtyTrac, since 2007, about 1.8 million U.S. homeowners have sold via pre-foreclosure sale, and most of those were short sales.

In addition, for the year 2011, there were 830,000 completed foreclosures, and from the start of the financial crises in September 2008, there have been about 3.3 million completed foreclosures, according to reports from CoreLogic. Also, 1.4 million homes with a mortgage were placed into foreclosure inventory for the year 2011.

Other types of deductions

Mortgage Interest Deduction – taxpayers are eligible to deduct qualified mortgage interest on their main home and a second home if they itemize deductions on Schedule A

• They must be legally liable for repayment of the loan to deduct the loan interest.
• For 2011 filings, taxpayers who could not pay at least 20 percent of their down payment may have had to pay for private mortgage insurance (PMI). If the taxpayer qualifies, the PMI may be deductible as mortgage interest.

Real Estate Taxes – homeowners are able to deduct real estate taxes separately from mortgage interest on Schedule A and from property taxes

Nonbusiness Energy Property Credit (expired at the end of 2011) – taxpayers may claim energy-efficiency credits for up to 10 percent of the cost of various home energy-efficiency improvements

Residential Energy Efficient Property Credit – a nonrefundable personal credit is available for property used to produce energy in a personal residence located in the U.S.

• The credit is also available for wind energy property and geothermal pumps.
• Real estate taxes must be based on the home’s value and assessed at least annually.

The housing market is showing signs of improvement.  January’s home sales are up 8.1% on a year-over-year basis.  This is especially good due to the Phoenix area being one of the worst declines in the housing market nationally. At the worst point, Phoenix homes declined to 57% of their peak values.

The good news is that January’s home sales are up 8.1% on a year-over-year scale. Across the greater Phoenix area, buyer demand is also up as indicated by higher pending sales and homes receiving multiple offers. We are actually seeing a slightly 2005 style market with very high demand and multiple offer on homes due to the short supply. Currently about 1 in 4 homes are being purchased by investors.

Another promising indicator for the rise in the greater Phoenix area housing market is the increasing frequency of cash sales.  Cash sales accounted for 94% of home purchases under $100,000 in the greater Phoenix area in 2011. First time buyers, vacation home buyers, and formerly foreclosed owners are leading the majority of sales. Combined with Arizona's job growth outpacing national average, these buyer demographics indicate a stronger interest in home ownership for the greater Phoenix area.

Adding to buyer confidence is the improved affordability and favorable interest rates on mortgages. Compared to 1985 through 2000, Phoenix home prices are approximately 15% more affordable to median income buyers. The combination of price declines and lower mortgage rates, with some interest rates being as low as 4%, has made the current market the most attractive and affordable in many years. This affordability increase may explain why the Phoenix metro area is currently appreciating while the nation average has continued to decrease by 3.7% in price.

Affordable home prices makes for any purchase an amazing deal, regardless if you plan to purchase as a homeowner or as an investor. Remember, as a full-service real estate brokerage we offer buyer, seller, investor, and property management services. Please contact us today for any of your real estate needs!

Go through your entire house from top to bottom and remove the clutter. Get rid of anything that you no longer want or have a use for. Organize your closets, and pack away some of the items that you know you won’t be using for a while. A home should be fairly impersonal and displaying only the bare essentials. This will help potential buyers to see your home as a blank canvas, and imagine their own life in your space. Think about repainting some rooms, using warm, neutral colors. It helps give the feeling of a well maintained home and a sense of newness.

When showing your home, appearance, smell, and cleanliness are everything. Your home should be clean and appear move in ready. Smell is the first thing potential buyers notice. Keep your home smelling great by regularly mopping, vacuuming, and dusting. Make sure to wash down every surface. If you need help with getting all those nooks and crannies clean, it might be time to hire a professional cleaning crew.

Staging and room appropriate are important when getting your home ready for sale. What you have listed and what buyers see should match up. If your home is listed as a 3 bedroom, 2 bathroom house, it should reflect it. When selling your home, the exterior living spaces are just as important as the interior. Staging can help create a warm and homey atmosphere with just the addition of plants, vanilla scented candles or simple furniture sets. Mock set ups are another great way to liven up a room and give a buyer that homey feeling.

Lastly, take a step back and put yourself in the shoes of a potential buyer looking for a home. You may be used to how your home looks while a potential buyer will not be. This perspective may prevent you from noticing needed changes, while a potential buyer may spot needed changes instantly. Bring in a pair of fresh eyes to give an unbiased opinion on the changes that it still may need. From removing clutter, newly painted rooms, to simply having an unbiased observer, you can create changes that pay off in the long run.

Whether you plan to sell to downsize, avoid foreclosure, follow a job opportunity, or move up, be sure to keep these tips in mind.  Contact us today for more tips to ensure a smooth sale of your home!

You may have heard recently that there is no difference between a short sale and a foreclosure and I wanted to set the record straight. Short sales are an agreement between the seller’s lender and the seller to accept less than they are owed for the value of the house. During a short sale, the first lender will also offer payment to the second lien holder in order to encourage them to approve the sale. In order for a short sale to reach approval, all parties involved must reach an agreement on the sale.

Even though our foreclosures are significantly down, they still represent 15 percent of total home sales in our market. Short sales represent 66 percent.

Today, banks are incentivizing homeowners who are short selling their homes. They are also streamlining the approval process in order to approve a greater number of short sales. In addition banks are also offering relocation assistance on top of the existing federal and state programs.

As a Certified Distressed Property Expert, I am experienced in helping homeowners avoid the negative and long-lasting effects of foreclosure.  Contact me today in order to schedule a free no obligation consultation.

Chandler is seeing its first new commercial development project since 2009. Douglas Allred Company, a developer from San Diego broke ground on a 92,109-square-foot, two-story building in the Price Road Corridor. This has been a project in waiting for the past six years, to which the company has finally received funding for.

 The new building, Allred Park Place, will join three other office complexes in the area. The company is also buying the former Kuiper Dairy Farm, which consists of 65-acres of land for a different project. Combined, these new projects will bring more than 1 million square feet of new commercial space to the area of Chandler.

 This is more great news for Chandler, as it is already one of the few cities where it is possible to both live and work. It has access to both the Loop 101 & 202 freeways, as well as lots of shopping, dining, and entertainment. Now is a great time to purchase either an investment or primary home in Chandler as our inventory has declined 54 percent to a 2 month supply. Days on market are also down from 118 to 89 days. Prices are appreciating, and homes are selling for 97.5% of list price.

 Contact us today for more information on how to get started on your next great home!

Over half of all of the homes for sale in the Phoenix Metro Area are distressed.  But what does that mean? Are buying these homes even a good idea?

Distressed homes have either gone through foreclosure or are put on the market by the homeowner as a “short sale”. A short sale means that the homeowner can no longer afford to pay the mortgage on their home, and the mortgage is greater than the current market value of the home.  The homeowner’s lender then agrees to accept less than the outstanding loan instead of going through the foreclosure process.

These two types of sales are very different from traditional sales – they usually have a lot more paperwork, and in the case of a short sale, a much longer transaction. If you don’t have a qualified agent to represent you, these transactions can potentially be very frustrating.  Most buyers will shy away from these sales for the above reasons.

As a Certified Distressed Property Expert, both I and my team are experienced in navigating the potential pitfalls that these types of transactions have.  We can help you find some of the best deals in our current market.  Regardless if the property is distressed or not, this is an amazing time to buy a home.  Incredibly low interest rates combined with low property values will provide you with a great bargain every time.

One of the best advantages of buying a distressed property is that the seller is highly motivated to sell.  Banks are looking to remove the liability in the case of a foreclosure and a homeowner in financial trouble will want to get out of a mortgage they can’t afford. These sales are also much less emotional, and won’t be offended if your offer comes in below list price.

That’s not to say that your offer would be accepted – with low inventory, bidding wars are beginning to break out on many of these homes.  So if you’re looking for a true “steal”, chances are you aren’t going to find it.  Both buyers and investors are looking to take advantage of the great opportunities our market has to offer, so any home in move-in ready condition is going to go quickly.

One of the biggest disadvantages for short sales is their transaction times.  Sometimes, it can be difficult to determine who the investor is on the back end of the loan, and there may be two mortgage insurance companies – one on the homeowner’s loan, and another as an additional insurance that the mortgagor provides when multiple notes are bundled together and sold on the secondary market. 

A disadvantage to foreclosures is that some of them can be in rough condition.  Most foreclosures have been vacant for a while with little-to-no maintenance.  The previous owners could also have damaged the property, or taken fixtures from the property. Any renovations to a home can also make buyers uneasy.

With any transaction, it’s critical to have a professional home inspection prior to finalizing your purchase.  The AAR Residential Resale contract has a 10 day inspection period for the buyer to unilaterally cancel if there are items that come up in the inspection that they are unwilling or unable to fix.  It’s also in the buyer’s best interest to be pre-qualified – offers without one will often not even be considered. The McKinley Group has strong working relationships with several lenders who excel in navigating the difficulties that can arise in distressed property sales, and work on which is the best loan program and rate for you.

There are also a few different types of foreclosures depending on the type of mortgage that the previous homeowner had.  If the previous mortgage was an FHA-insured loan, then the US Department of Housing & Urban Development (HUD) is the seller. Only an agent who is registered with HUD, like our buyer’s representatives at The McKinley Group, can present an offer on behalf of their clients. One advantage of HUD homes for primary home buyers is that they have a 30 day restriction on investor offers.  A conventional loan can end up with Fannie Mae or Freddie Mac as the seller, who also have a time restriction on investor offers, but their time restriction is only 15 days.

If you’re interested in purchasing a distressed property, be sure to contact us today to get an experienced, knowledgeable, and qualified agent to help you through this process.