Phoenix Real Estate Home

Today I am going to write about a topic I am experiencing firsthand…seller denial. I have been considering listing my single family house in Fountain Hills, Arizona for sale. I had not run comparable sales (comps) for my house in quite a while so I entered all the pertinent data about my house into the MLS: square footage, # of bedrooms, # of baths, 2c garage etc, then I waited for the MLS to tabulate the comparable market analysis (CMA) so I could see the average list price & average selling price in the last few months for homes with similar features.

It came up on the screen…I was SHOCKED! I was so convinced there was a mistake, I had a colleague at Thompson’s Realty run the numbers as well, no surprise, she came up with the same numbers I did.

I found myself being taken over with the voice and mind of a prospective seller.  The feeling I was experiencing was MY house should sell for ALOT more that what the numbers say…regardless of the fact that the numbers were right there in black & white. Then the typically seller dialogue started to play in my head, “but my house is architecturally unique, I have a premium lot, I have unobstructed mountain & fountain views…etc”.

I logged on to the Phoenix Business Journal’s e-mail update this afternoon and there is was again…what I did not want to read or hear. An article titled, Survey: Homeowners still in denial about falling values.

Sometime this afternoon the REALTOR voice and mind inside of me came back to life. I know the current market in the Phoenix Metro Area does not lend itself to overpriced listings or attempting to ”test the waters”. I needed to remind myself that I am fortunate to have bought my house prior to the big run up in ‘05. If I were to sell it today for the average sale price of comparable homes, I would still be looking at a modest profit, not bad in today’s market.

With all that said, I am still pondering whether I can swallow the reality and list the house for a realistic price…I will keep you posted!

I just read an article in the Phoenix Business Journal today regarding a new bill that Gov. Janet Napolitano has signed into law to regulate individual loan officers in the State of Arizona. As it stands now, only the mortgage broker is required to be licensed.  Personally I am in agreement with the new law.  All realtors are required to be licensed, not just the broker they work for, so why should the mortgage profession be any different?

To read the full story click on the link:  http://www.bizjournals.com/phoenix/stories/2008/07/14/daily11.html?f=et73&ana=e_du

There’s an article in today’s Arizona Republic that discusses down payment assistance programs — the fate of which lie in the hands of the Senate and Congress.

These programs have their supporters, and their critics.  My feelings are mixed. There is little question that they can help some folks get into a home who couldn’t otherwise.  On the other hand, it appears the default rate is higher on loans where down payment assistance is used.

Personally, I hope they stick around, as generally speaking they are more good than bad.

I love information.  I love maps. I love having access to on-going studies.  Information can be the key to success.  One of my favorite sites for information is the Maricopa Association of Governments website.

I can spend hours on this site.

Interested in what is happening with the money from the freeway tax?  Here is the “2007 Annual Report on the Status of the Implementation of Proposition 400”.

Would you like to know what has been recommended for the CanaMex trade route through Maricopa County, AZ?

How about the development studies for the Hassayampa Valley (the area north of I-10, west of the White Tank Mountains, and south of Wickenburg).  Including recommendations for future freeways?

The Maricopa Association of Governments does a lot of long range planning for issues that cross city, town, and county boundaries.  This includes transportation, air quality, water quality, regional development, and human services.  Keep in mind that many of the items found on this site are *recommended* and may never be implemented.   But it’s really cool to know what could be.

I received the following in an email recently: “With the current market situation do you still think Whispering Ranch is a good investment”?

Jay and I have a Whispering Ranch page on our website.  and Jay’s blogged about the Ranch.  We love the area with its high desert vegetation, mountains, and views. Is it a good investment?  Is it the next north and east Scottsdale? – Only time will tell.

Being successful speculating in land is sometimes likened to investing in stocks:

Land tends to be a long term investment

Unlike a dwelling that can be rented, raw land often sets empty and does not generate income.  Prices fluctuate more with raw land and financing is *not* always easy to obtain.  When the market for homes begins to slow – land sales may be all but non-existent and tend to take longer to recover.

Do your research

What is the growth potential for the area?  What is the current zoning?  How far away are the available utilities?  What is the water situation?  Is there a flood way or flood plain issue?  There are restrictions pertaining to building in a flood plain and disturbing a flood way.  These restrictions tend to affect the value. Walk the land if possible – a large or deep wash has the potential to be designated a flood way in the future.

Take advantage when the market is down

Not only are the prices lower when the market is slow but sellers tend to be willing to negotiate.  It can be difficult to obtain a loan on raw land.  A buyer may need to ask the seller to finance part of the purchase (called an owner carry back).  When the land market is doing well sellers may not consider an owner carry back – why finance when they can wait for a buyer who has all the money upfront?

Only a small portion of real estate professionals have experience with raw land transactions.  Finding a knowledgeable agent can be a valuable asset in successful raw land investing.