McCormick Ranch Blogging

Inspections and the "as is" addendum

Irene Hammond — Tue, 06 May 2008 09:13:23 GMT

There are lots of homes out there being sold "as is'. With all of the foreclosures, short sales, and vacant homes where there is either no one, or no money to put into repairs, the houses are requiring an "as is" addendum added to the purchase contract. One of the first questions I get is "Do we get to do any inspections?" YES. The "as is" addendum is letting the buyer know up front that the seller is not in a position to do any repairs. So what you find in your inspection process allows for you to consider moving forward or canceling the contract.

Lots of those vacant homes have no power on as we are looking thru them. Where carrying a flashlight was a safety item in my car, now it is a standard home showing addition. I feel like one of those CSI's wandering thru the crime scene, my eyes following the beam of light looking for clues. I digress... The concern in homes without power on is also inspections. "How do we inspect with no power?" Great question. Once we are in contract, we get he power turned in. Many times the power is on, just turned off at the breakers, and the water is turned off at the house. Gas is another issue. It is almost always off. There must be someone present when the gas is turned on, so the Gas Man can check for leaks, and get the pilot lites all lit correctly.

Because of these issues, we (my mom ,my partner and I) suggest doing a 15 day inspection rather than the standard 10 days. This gives us time to get the power, water and gas on.(can take a couple of days) And gives you time to fully inspect. The normal process is to have the home inspector and termite people come out, usually the same time, Then if the home inspector finds anything requiring a more detailed look, there is enough time to get other trade specialist in to determine condition and cost of repair. The home inspector only identifies issues needing care or maintenance not cost of repair. Allowing for you the buyer to make the most informed choice about your new home as possible.

A great Race in Old Town Scottsdale

Irene Hammond — Sun, 04 May 2008 22:05:24 GMT

It was a great day in Old Town Scottsdale for a bike race. That's my sweetie in the front of the pack. The temps were perfect, it was delightful sitting outside Fine's Cellar in the shade and watch the racers fly by. The course was fast and demanding and the racers had a great day. Good news, no injuries. I like that! This was the second annual Cyclo de Mayo, a big thanks to Scott Delaune who worked so very hard putting this race on the past 2 years.

That darn FICO & changing mortgage requirements

Irene Hammond — Sat, 03 May 2008 17:49:02 GMT

If you don't know already the Mortgage world is in an upset. With requirements for loans having gone so wild, where all you needed was a pulse to get into a home... they have now swung back hard the other way. The 'golden rule' was 20% down and you get the best pricing, no Mortgage Insurance. That was what every buyer really wanted. It is what created the 80/20 loan combo as well as the 80/10/10 and many more variations for people with less than 20% down.

The Mortgage world has created a new 'gold standard'. 30% down and 70% loan. Ouch!

Let me explain what this means. First when you apply for a conventional loan there are many things that go into determining the interest rate you will be paying. You credit score, or FICO is first and foremost the biggest contributing factor. Then the amount of the loan, for example, if your loan amount is less than 100k, you get a little bump in the rate you pay. Then the % of the loan to the value of the property or purchase price. Where 20% down was the magic number, now it is 30% down if your credit is anything less than perfect. The difference between someone with a 720 credit score or higher and someone with a 620 credit score is 2.75%. So if the interest rate was 6% for the A+ credit of 720 or higher, the same loan would be at 8.75% for the person with a 620 credit score.

The moral of the story, keep your credit score up! If your credit score is low, put as much down as possible (your goal is 30%) . Or purchase a home using an FHA loan (in Maricopa county till the end of 2008 that is a purchase price of about 350k).

Cyclo de Mayo - Bicycle Race in downtown Scottsdale

Irene Hammond — Fri, 02 May 2008 16:05:32 GMT

My husband is a dedicated cyclist. You know, they guys out riding, even in the summer when it is over 110. He belongs to a team, Procon and this weekend they are having the second annual Cyclo de Mayo. It is a crit, meaning they ride multiple laps along the course. They will be in Old Town Scottsdale, riding a 1/2 mile course, with groups heading out to ride from 7am to 5pm. There will be a Kids Zone, with "moonbounce", Bike Rodeo, and Pinata party. Come out to join the riders, or watch the excitement. (these guys get moving, about 35mph on a bike). Register to ride with bikereg.com.

McCormick Ranch Sales numbers for April 2008

Irene Hammond — Fri, 02 May 2008 14:22:57 GMT

The numbers are looking good. We have even reduced the number of active listings just a bit. The total pending sales are remaining steady, and also see a bit of an incline. The solds remain steady. This is a good sign. Each month we are anxious to see the pending and more importantly the sold listings remaining steady and hopefully increase. The true test will come in the coming months. Without all of the big crowd pleasers (Super bowl, Barrett Jackson, Nascar etc) and with the increase of our temps over the upcoming months, our northern visitors will be mostly out of the picture. We will know in another couple of months if this was a seasonal influx or a true measure of the change in the market.

	1-Feb-08	3-Mar-08	4-Apr-08	2-May-08
Total Active Listings	578	556	572	554
Single Family Homes	277	279	287	285
Patio/Town/Gemini Homes	157	150	167	149
Apartment style Homes	144	127	118	120

Total Pending Listings	57	72	70	79
Single Family Homes	36	33	39	37
Patio/Town/Gemini Homes	17	22	17	26
Apartment style Homes	4	17	14	16
	Jan	Feb	March	April
Total Sold	29	42	55	55
Single Family Homes	14	21	19	32
Patio/Town/Gemini Homes	11	17	21	14
Apartment style Homes	4	4	15	9

Scottsdale Realtor Technology Symposium

Irene Hammond — Fri, 02 May 2008 14:10:25 GMT

Today was the Scottsdale Area Association of Realtors Technology Symposium. There were over 130 people registered, and it was a great turn out. There were 4 breakout sessions, Websites, Blogging, Lead Generation, and Flex MLS. I was invited to be on the Lead Generation panel. It was an honor and a treat. D. Patrick Lewis of John Hall & Associates was the moderator of our segment and did a great job. John Wake with Home Smart Realty and Amy Geddes of Clareity Security rounded off the group. It is a great treat to have associates who are knowledgeable and so willing to share their knowledge with others.

Thanks to everyone who worked so hard to put the event on. You did a great job, and I think everyone who attended received some great info!

Not the greatest photo, that is me in the middle.

Scottsdale Realtor Technology Symposium

Irene Hammond — Fri, 25 Apr 2008 17:49:12 GMT

Get your XP while they last

Irene Hammond — Sun, 20 Apr 2008 12:55:19 GMT

I have not written much in the past few weeks. I ordered 2 new computer towers from Dell, and have been busy migrating, making sure things are working and cleaning up files. Phew, glad I am mostly complete with that task!

While choosing what direction to take, one of the sales persons let me know that Windows XP would not be being sold in a couple of months. Since so many programs still have issues with Vista, I choose to jump on getting my XP's while they lasted. Many of the programs I use daily are not compatable with Vista. I know everyone has their favorites, I am looking forward to shifting over to Mac one of these days, just not today. So if you are considering getting a computer soon, and would prefer to keep XP then consider taking action sooner rather than later.

Snake Season

Irene Hammond — Sun, 20 Apr 2008 12:45:14 GMT

The Arizona Republic has been writing about it and the news reports have been talking about it. Snake Season. Did you even know there was such a thing? Rattlers are in the desert, and guess what, so are we. With the warming temps they are coming out of hibernation and are being seen. Not all snakes are poisonous, and they do serve a purpose. Snakes feast on rodents, and with the abundance of fruit trees, we have roof rats (that is a subject to save for another time). What is your best course of action to keep them away from your home? Clear debris from around your home, eliminating possible nesting areas. Clear the fruit off your trees, eliminating the food for the rodents, and thus food for the snakes. Watch where you are walking, and when hiking be alert. And if you do see a snake, keep your distance, no bravery please. If you or someone you know is bitten, call 911 immmediately and for more info contact the Scottsdale Fire Department at (480) 312-FIRE (3473)

I have only seen one rattler near a home, the home was surrounded by desert, and new construction had just begun across the street. It was happily sunning itself on the walk way to the home. Nope, they didn't buy that one. Even though we don't see them, they are still around. Please be full of care when out doors.

JP Pancakes

Irene Hammond — Sun, 06 Apr 2008 11:49:56 GMT

This morning I had breakfast at one of my favorite McCormick Ranch breakfast spots; JP Pancakes. Located in the Mountain View shopping plaza on the south east corner of Mountain View and Hayden Rd. It is a tiny spot, only 11 tables, and if you are looking to get in and out fast on a Sunday morning be there before 9am or plan on waiting. (the wait is worth it!) It is a no frills place, no fancy linens, just good food. The menu is not huge, and they only serve breakfast. A favorite of my family's is the baked pancake, at least I think that is what they call it. I get the Banana Pecan. It is a cross between a pancake and a souffle. (yummy) It takes about 20 min to cook, so don't dawdle when putting your order in, the coffee flows while you wait so bring good company and prepare to feast. If there are too many people ahead of you on the wait list, place your order and take it to go. Yup, breakfast to go. If you live too far just take the feast over to Mountain View Park, and have a picnic.

March Statistics for McCormick Ranch, and 85258 zip code

Irene Hammond — Fri, 04 Apr 2008 17:35:04 GMT

It is the beginning of April, time to take a look at March's numbers. The total number of listings is up a little more than 2%. The great news is the number of pending contracts is staying at the level of last month. With an increase of closed properties as is expected with the increase of pending contracts last month. I am looking forward to seeing this trend continue...

The average price of the single family homes that sold is just over $760,000, with the patio home/ town home/ gemini homes averaging $440,000 down from last month. The average on apartment styled properties was just over $170,000 up from last month.

	2-Jan-08	1-Feb-08	3-Mar-08	4-Apr-08
Total Active Listings	523	578	556	572
Single Family Homes	246	277	279	287
Patio/Town/Gemini Homes	153	157	150	167
Apartment style Homes	124	144	127	118

Total Pending Listings	36	57	72	70
Single Family Homes	19	36	33	39
Patio/Town/Gemini Homes	11	17	22	17
Apartment style Homes	6	4	17	14
	Dec	Jan	Feb	March
Total Sold	38	29	42	55
Single Family Homes	17	14	21	19
Patio/Town/Gemini Homes	11	11	17	21
Apartment style Homes	10	4	4	15

Foreclosures and your HOA

Irene Hammond — Fri, 04 Apr 2008 16:20:52 GMT

I have been thinking of writing about how foreclosures in a community hurt the HOA, and yesterday the paper had an article on the same subject. Couldn't find it today on their site.

When a community has foreclosures, the home owner has stopped paying their mortgage, and their HOA. Some times the HOA has not been paid for months before the homeowner is late on their mortgage. Think about it, if you were running short on money, would you pay your electric bill or your HOA bill? You get my picture.

So many times the homeowner has not paid their HOA fees in months, and months, when the property does get foreclosed on, one of the last to be reimbursed thru the sale of the property is the HOA. Making many HOA's hit hard by the reduction of income. The community I live in has had to raise the HOA fees, to cover all of their costs. Some HOA's have cut back on what services they are offering.

The Arizona Republic article talked about how some of the HOA's are negotiating with the landscapers, pest control services, pool companies etc. The Leadership Center at Chandler-Gilbert Community College is bringing in legal and financial experts for a special public session "Preserving Your Neighborhood in a Challenging Economy".

One more thing to consider when purchasing a home.

Scottsdale Public Library

Irene Hammond — Fri, 04 Apr 2008 17:36:53 GMT

I love the Library. I know, it is a bit 'old school', all those dusty books and all; but the library is embracing technology and is a whole new place. The Scottsdale Library has way more than just books these days. You can check out Movies (lessening your dependence on Netflix and Blockbuster), books on tape/cd, music, language programs, down-loadable books (as part of the Greater Phoenix Digital Library) and so much more. Come and use their computers and Internet, or bring your own computer and access the web using their free WiFi. There are several different sizes of rooms available for meetings for residence and non residences as well. They also offer lots of Computer Classes. Oh, and they still have books you can check out as well!

With 4 branches of the Scottsdale Public Library, the closest to McCormick Ranch is the Mustang Branch, on 90th Street. Be sure to get your card, and log into the site, request your media and get an email when it has arrived to the branch of your choosing, also get email alerts when your materials are due back, or subscribe to their feeds on new items of interest.

See the library does has a new look. They are still offering youth programs, story times, after school homework help, literacy programs, and Arts and Culture programs.

Be sure to check it out!

Mortgage Forgiveness Debt Relief Act of 2007

Irene Hammond — Wed, 26 Mar 2008 18:33:40 GMT

The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007.

Normally if you do a short sale, or if you foreclose on a home, you would receive a 1099 for the amount of debt you have not had to repay. Then you would be required to pay the taxes on the amount as income to you.

The Mortgage Forgiveness Debt Relief Act of 2007 made it so many people having financial challenges from 2007 till 2009 who sell their home in a short sale situation or have their home foreclosed upon will not have to have the burden of being taxed on the amounts of the debt.

The catch is, not everyone is exempt from getting the 1099.

If the home was a second home or an investment property, you will still receive the 1099 and have to pay taxes on the debt. If you refinanced, pulled money out of your home, and it was used for anything other than adding to the value of your home, you will be gettting a 1099 and paying the taxes.

Check out the IRS information on this Act as you consider your options.

Short Sales - What Sellers should know

Irene Hammond — Mon, 31 Mar 2008 14:31:03 GMT

Read what you sign. The Short Sale Addendum (one of the forms that gets to be included in any contract that is a short sale) covers the seller if the bank should come back with an acceptance of short sale conditional on the balance being paid off.

Some times in a short sale the bank will want the seller to pay the difference the bank is being shorted.

When a seller applies for a short sale with the bank they have to fill out a package similar to a loan package. With all of the financial data; that means your 401K could look mighty nice to the bank.

The Short Sale Addendum in Arizona allows for all parties to be satisfied with the final conditions. If the bank agrees to the sale and the seller once they have the final agreement letter does not like the terms there is no contract.

Be sure to read these other posts as well:
Short Sales, info for the Buyer
Mortgage Forgiveness Debt Relief Act of 2007

Short Sales, info for the Buyer

Irene Hammond — Mon, 31 Mar 2008 14:28:33 GMT

There is a lot of talk these days about short sales. My first words of advice; if something looks too good to be true, it usually is. Short sales have snags all over them. If you are considering putting an offer in here are a few things to find out first.

Does the seller have one loan or two on the home? If the seller has 2 loans the likely hood of getting approval from both banks is slim.

Is the seller in a hardship? With out seller hardship the bank will not easily approve a short sale. Hardship could be death, divorce, health issues, and loss of job.

Does the loan have PMI? If it does, just forget about a short sale, the loan is insured and there is no reason for them to take less money.

Is the seller late; or rather how late is the seller on their mortgage? Has the foreclosure process begun? If the seller is on time with their loan payments, what incentive does the bank have for accepting a short sale?

Are the sellers investors? Or was the property a primary residence? The banks are more forgiving to personal residences than investors.

Does the seller have a big 401k or other investments? If so the bank may want it to pay off the difference rather than being shorted, and our short sale addendum allows for the seller step out of the contract.

Each of these items could mean no contract for the buyer, so it is important to know as much as you can, before you take up months waiting to hear if your offer has been accepted.

Be sure to read these other post as well:
Mortgage Forgiveness Debt Relief Act of 2007
Short Sales - What Sellers should know
Short Sales - "If something looks to good to be true it usually is"

Text Google rather than call 411

Irene Hammond — Mon, 17 Mar 2008 17:31:18 GMT

What do tech tips have to do with real estate. Nothing, they are just cool, and when I come across one that is useful, I just have to share.

This one gets a thank you to Amy Chorew of Real Estate 2.0 and Mathew Rathbun of VARbuzz. Check out Mathews post for images and greater detail.

The tip, and why it is so great. Last week I called 411, from my cell, got transferred to the wrong number; called 411 again. With this tip, no 411 fees, and always get the right info.

Go to your text message server on your phone. Open a new message, in the "To" box type Google, or 466453 then for your message, enter the name of the business, if it is common like Starbucks, also enter a zip code and press send. A few seconds later you get phone number, address etc. of the closest busiesses.

Very cool and very easy. Add Google as a contact and it will always be easy to remember.

Have a great day,

Artesia a New community next to McCormick Ranch

Irene Hammond — Wed, 12 Mar 2008 17:43:17 GMT

As you gaze across Camelback Lake from the McCormick Ranch Golf Club you see a strange site in this area. You see new construction. Starpointe's new community Artesia is not in McCormick Ranch, but is just next door and so I am including it in the area communities.

The community located off Scottsdale Rd just north of Indian Bend Rd is in a great location, with restaurants (including the soon to open Roka Akor) and shopping walking distance from the homes. The community will have a fitness center, yoga and aerobics room, massage rooms, lap pool, spa, clubhouse with theater, event/ game rooms, state of the art golf simulator, pet spa and much more. The community besides being on the golf course will also have 10 acres of private park area, four miles of walking paths, and water gardens.

In Artesia there are two styles of buildings. The first has what they are calling Residences, single level condos, starting from $354,900 for a one bedroom unit, on the first thru third floors, and two bedroom units starting from $434,900. On the fourth floor they have the Penthouse with 2260 sqft, and 1211 sqft of private wrap around deck, I am sure the views will be stunning. The pricing is $1,199,900 for the penthouses.

The second style is the Brownstone collection, three story units starting at 2907 sqft with private garages, and views of the Pines course at McCormick Ranch. The prices start from $1,064,900.

If you are looking to be close to everything Scottsdale has to offer, and looking for new properties in an urban setting, Artesia may be right for you.

85258 Real Estate Statistics for February

Irene Hammond — Mon, 03 Mar 2008 20:29:47 GMT

This months stats are looking good. We have a nice increase in the number of pending homes. These reflect the sales that took place in February and are waiting to close. Notice the dip in the number of closed homes in January, those are the homes that sold during the holiday season in December. We should see an even better number next month, with 72 pending contracts 'in the hopper'.

The average price of a single family home that closed last month is $590,000
The average price of a town home/patio home was skewed a bit with a $1.5 million sale, so eliminating that from the average it was $473,000
and the average apartment style was $155,00. It will be interesting to see that number adjust with the increase in pendings (17) from the category.

	26-Nov-07	2-Jan-08	1-Feb-08	3-Mar-08
Total Active Listings	568	523	578	556
Single Family Homes	264	246	277	279
Patio/Town/Gemini Homes	168	153	157	150
Apartment style Homes	136	124	144	127

Total Pending Listings	51	36	57	72
Single Family Homes	21	19	36	33
Patio/Town/Gemini Homes	17	11	17	22
Apartment style Homes	13	6	4	17
	Nov	Dec	Jan	Feb
Total Sold	36	38	29	42
Single Family Homes	14	17	14	21
Patio/Town/Gemini Homes	10	11	11	17
Apartment style Homes	12	10	4	4

Scottsdale's Camelback Walk thru McCormick Ranch, a video tour

Irene Hammond — Sun, 02 Mar 2008 11:47:16 GMT

The Camelback Walk is a multi use path that meanders thru the parks, under roads, along the golf courses, lakes and communities of Scottsdale. It was designed to support the water flow of a hundred year flood, creating for us the wonderful open spaces to enjoy.