FREE ARIZONA LUXURY SHORT SALE SEARCH
The Adam Lee Team is excited to announce our new FREE Luxury Short Sale home search. Short sales are a great way to get an awesome price on a home without having the repair costs that are normally associated with a foreclosed/ bank owned home. Keep in mind that generally a Luxury Short Sale is going to be in better condition because the owner of the property still has vested interest in the sale of the home. With the huge depreciation we’ve seen in Arizona over the past few years short sale are going to be here to stay. We’ve created this search tool to help you search through the luxury short sale market in the comfort of your home. If you would like any further information or want to set up an appointment to see one of these properties then please contact us.
The best moves for home buyers and sellers
Plenty of forces, from overly cautious lenders to inaccurate appraisals, are wrecking real estate deals right now. But one of the biggest roadblocks to getting a house sold these days is the disconnect between buyers and sellers.
In general, sellers have gotten more realistic in pricing their homes than they were right after the housing bubble burst, but agents say that many still don’t grasp how much they must concede to close a deal. And buyers are still spraying lowball offers around in hopes that sellers will be desperate enough to bite.
Take such unreasonable expectations, multiply by two, and what do you get? “A standoff,” says Glenn Kelman, CEO of real estate brokerage Redfin.
With the busy summer home-sale season drawing to a close, there’s little time to waste. Whether you’re trying to unload your place or land a new one, follow these dos and don’ts to negotiate the best deal — fast.
If you’re buying
Don’t say: “I’ll pay 85% of your asking price and not a penny more.”
Instead: Look for homes that are fairly priced and make a reasonable offer. “Coming in about 10% below list is a good starting place for negotiations now,” says Denver real estate broker Jeff Fogler. Yes, you have the upper hand in most markets, but the average homebuyer is paying only 2.7% below list price (see the chart). Set your expectations accordingly. You can always ask if the seller is willing to bridge a price gap in other ways — for example, by picking up your closing costs (which can run $7,500 on a $300,000 house).
Don’t say: “I haven’t put my own place on the market yet.”
Instead: List your current home before you start shopping seriously for the next one. Because it takes almost three months to move a house these days, sellers are loath to write home-sales contingencies into purchase contracts. You’ll have far more leverage if you’ve gotten rid of your house before you start negotiating: Sellers know there’s less chance of the deal falling apart. (Prequalifying for a mortgage helps too.) What’s more, you’ll know exactly how much money you can put into your new digs.
Don’t say: “This is my dream house.”
Instead: Stop imagining the great parties you’ll throw there and gird yourself to walk away if the seller won’t make reasonable concessions. Your ability to abandon negotiations is your most powerful bargaining chip. Given that plenty of other homes are on the market now, finding another place to love shouldn’t be too hard. You might let the seller know that. Nicely.
If you’re selling
Don’t say: “You’re offering how much? Forget you!”
Instead: When bidders lob low-balls at you, thank them for their interest — and ask that they come back with earnest offers. “If you become offended, enraged, or unreasonable, you’ve blown any chance at negotiation,” says Warwick, R.I., real estate agent Ron Phipps. These days many buyers are just testing you to see how big a discount they can get. Point the bidder to comparable recent sales that support your list price. (Received several super-low offers? Check the comps to make sure your price isn’t too high.)
Don’t say: “I didn’t know the deck was rotting.”
Instead: Pay a few hundred dollars to get your house inspected before you put it on the market. Then arrange to make any necessary repairs yourself. (In most states the law requires you to disclose to potential buyers any defects of which you’re aware.) “Taking care of any inspection issues upfront helps sellers limit the points that buyers can negotiate on,” says Pat Lashinsky, CEO of the national brokerage ZipRealty.
Don’t say: “It might take us a while to move out.”
Instead: Make sure to tell buyers — especially those who might have children starting school this month — that you’re willing to scram pronto, if possible. That will help you stand out from any short sales in your area, which may have lower list prices but can take months to close. “If the buyers have a strict time limit, they’re going to pay more money to get into a house quickly,” says Ellen Klein, a realtor in Rockaway, N.J. More money plus more speed: That’s what it’s all about.
Courtesy cnn
High-end home distress: Foreclosures, short sales catching up to luxury properties
The trend of short sales, foreclosures and walk-aways from distressed mortgages is moving from outlying, middle-class cities to the mansions of Paradise Valley and Scottsdale.
Beth Jo Zeitzer, president of ROI Properties in Phoenix, said some high-end homes in PV and North Scottsdale have lost 40 percent to 50 percent of their value — losses that can be measured in millions of dollars — and she expects the slide to continue.
“I don’t think we are done quite yet,” she said.
Such declines mirror the loss of value in the West Valley, Pinal County and other less affluent areas, where many mortgages are underwater and the markets could take more than a decade to recover. Zeitzer said expensive homes that were bought for $2 million or $2.5 million now are valued at below $1 million, and distressed homeowners are walking away or turning to short sales.
“There’s a lot of abandonment out there,” she said. “We’re seeing it particularly in PV, a lot of the high-end condos, and we’re seeing some in North Scottsdale as well.”
Christopher Karas, a real estate agent with Russ Lyon Sotheby’s International Realty in Scottsdale, also is seeing an upswing in the number of short sales in wealthy submarkets.
“We are doing a lot of short sales of higher-end homes,” said Karas, who specializes in the PV and Scottsdale areas.
Karas and Zeitzer said banks are slower to foreclose and kick out high-end homeowners who have stopped paying their mortgages, because those homes cost “a lot to maintain.”
Zeitzer, whose work includes representing buyers of distressed high-end homes and condos, said it could cost a bank a much as $2,000 a month to maintain pools, landscaping and other features of expensive properties. The result, she said, is that banks are allowing walk-away mortgage holders to stay in those homes for as long as two years while they try to work out a short sale or modify the existing home loan.
Walk-aways and short sales have been occurring in hard-hit subdivisions on the Valley’s fringes for some time, with banks taking an inconsistent approach to dealing with those situations.
Karas said allowing homeowners to stay in their high-end properties and at least do some basic upkeep can help move short sales along and maintain the desirability of those neighborhoods.
“The bank has no desire to clean that up,” said Karas, adding short-sale homes and their neighborhoods show much better if residences are not abandoned.
Mike Bodeen, a real estate broker with Realty Executives Desert Ridge, said Scottsdale has seen a 37 percent drop and PV a 40 percent decrease in high-end home values since late 2007, when the housing bubble burst and the recession began. He said the declines aren’t as dramatic as those seen in outlying towns, but he expects things to get worse before they get better.
“Where many or most other communities have leveled off and are sprawled out at the bottom, PV is still in a free-fall,” Bodeen said.
The real estate agents said falling values and distressed mortgages are drawing investors and wealthy second-home buyers with cash from Canada, California and Chicago, seeking bargain-priced estate properties. Karas and Zeitzer said they are seeing high demand for entry-level luxury homes of 5,000 to 6,000 square feet priced around $800,000.
The Arizona State University-Repeat Sales Index released earlier this week confirms what the agents are saying. The index reports an increase in foreclosure sales of homes of more than $1 million, and it shows resale prices in PV and Scottsdale down 36 percent from April 2006 to April 2010. That’s compared with a 56 percent drop in Glendale, 50 percent in Mesa and 53 percent in Peoria during the same period.
Courtesy Phoenix Business Journal
What can $1 million buy in today’s housing market?
How much can $1 million buy you in today’s real estate market? The answer, of course, varies depending on where you’re looking to buy.
Throughout the U.S. housing crisis, home values have fallen sharply and short sales are becoming commonplace. However, many in local real estate markets — from New York and San Francisco to Anchorage and Omaha— are optimistic about a gradual recovery in home prices.
One price range of particular interest is the $1 million market, where affordability and luxury come to a crossroads. In some places, $1 million may buy you a mansion, in others the price will fetch a nice, yet moderate home.
Although these are not typical homes by any means, they provide a good point of reference for spending across the country as well as the health of local economies. For reference, we have also included information on the market for homes priced $1 million or greater, with information from Zillow.com.
CNBC.com surveyed 19 local markets across the country, gathering examples and individual perspectives on the health of local markets in America.
PHOTOS: Million dollar homes across America
So, how far can $1 million go in today’s real estate market?
New York, New York
$1 million+ market
• Homes for sale: 3,217
• Median size: 2,459 sq ft
• Median time on market: 68 days
In New York, activity has doubled in the first quarter from a year earlier, with 1,195 sales in Q1 2009 compared to 2,384 in Q1 2010, up due to buyers re-entering the market and sellers getting their asking price. Inventories are down nearly 24%, and with increasing demand. Buyers are optimistic of increasing values over time.
Short sales are also occurring in New York, and this is where buyers are getting the best deals, according to realtors in the area. The current example is a short sale that was originally purchased in January 2008 for $1.45 million.
The outlook is “extremely positive” over the next 12 months, as prices are expected to adjust with high demand and shorter supply.
San Francisco, California
$1 million+ market
• Homes for sale: 597
• Median size: 2,297 sq ft
• Median time on market: 48 days
The San Francisco market has seen an up-tick in buying activity across all price ranges compared to 2009, partly as a result of the federal homebuyer tax credit, which expired in April. The market is seeing a “promising” recovery, although prices and activity are still not back to “normalcy.”
Entry-level homes currently represent the hottest segment of the market and this strength is expected to continue into 2011, although buyers continue to demand high affordability. Realtors expect the overall market to remain stable, although summer buying is expected to give a clearer outlook on the rest of the year.
Las Vegas, Nevada
$1 million+ market
• Homes for sale: 130
• Median size: 5,947 sq ft
• Median time on market: 94 days
One of the cities hardest-hit by the subprime crisis, realtors in Las Vegas report only a flat increase in sales from 2009 to 2010, mostly due to the homebuyer tax credit.
Many sales in Las Vegas continue to be short sales, with approximately 80% of homeowners ‘underwater’, or owe more than their mortgage is worth. Short sales increased from 10% of total sales in January 2009 to 30% of sales in May 2010, and this number could continue to rise.
Supply of homes has dropped from approximately 22,000 in January 2009 to 12,000 in May 2010, with demand dropping at a similar pace. Although there has been a slight increase in prices of late, rising home values are possible in 2011, according to realtors in the area.
Anchorage
$1 million+ market
• Homes for sale: 74
• Median size: 6,379 sq ft
• Median time on market: 128 days
As in the rest of the country, sales in Anchorage were bolstered by the first time home buyer tax credit, but have slowed significantly since the incentive has expired. As a result, first time buyers dominate the market, while short sales and foreclosures continue to increase.
Realtors in the area remain hopeful that the market will remain stable for the rest of the year and steadily increase over the next 12 months.
St. Louis, Missouri
$1 million+ market
• Homes for sale: 33
• Median size: 7,064 sq ft
• Median time on market: 101 days
Realtors in St. Louis report that the city’s central corridor has seen strong performance over the past year, up 23% in May from a year earlier. Although the federal homebuyer tax credit increased sales, the opinion is that buyers were simply moving their timetable for purchases forward to take advantage of the program, and that the market will give up some gains.
However, prices look to have stabilized in most price ranges, while residential, non-condo properties are on the market sell 12% faster than they did in 2009.
Phoenix, Arizona
$1 million+ market
• Homes for sale: 342
• Median size: 5,000 sq ft
• Median time on market: 85 days
In one of the harder-hit local markets, Phoenix’s $1 million properties offer you much more for the price. In the beginning of 2009, the average price per square foot was around $265, but it has dropped to approximately $229 today. Inventories of million dollar homes has decreased 30% from a year earlier, and analysts say a decrease in overall inventory points towards a stabilized market in the next 12 months.
Buyers in the area are concerned of further market decline and are “extremely price sensitive.” However, buyers with the patience to purchase short-sales and foreclosures can gain a great advantage.
Dallas, Texas
$1 million+ market
• Homes for sale: 634
• Median size: 5,361 sq ft
• Median time on market: 93 days
Like many US cities, Dallas has seen an increase in sales and more interested buyers in 2010. One major trend around the city is the purchase of homes that are “move-in ready,” instead of homes in need of remodeling. Realtors also report that tougher lending guidelines around jumbo loans have reduced interest in spending additional money to close a purchase with a 20% or greater down payment.
In addition, individuals with “Mean Buyer” syndrome – buyers that have sold and are out to make up for their loss in the buying process – are numerous in Dallas and act to keep prices down.
Despite this, home prices in Dallas are stable and although prices may sink slightly before the end of the year, a surge may be on the horizon by Spring 2011, according to realtors in the area.
Minneapolis, Minnesota
$1 million+ market
• Homes for sale: 141
• Median size: 4,248 sq ft
• Median time on market: 73 days
In Minneapolis, homes in the $1 million range are approximately 3% of the market. At the current levels, it is estimated that the inventory would be bought out after a period of about 33.7 months.
The local market has been one of the best performing in the country in the past 12 months, recently reporting an 11.6% increase in prices over that period.
Omaha, Nebraska
$1 million+ market
• Homes for sale: 21
• Median size: 5,001 sq ft
• Median time on market: 103 days
Although realtors in Omaha report “very strong” sales numbers through 2009, the average sale price of homes sold in this period fell by about 15-20%. In addition, as the federal housing stimulus expired, the amount of completed transactions month-over-month dropped by nearly 65%.
Sales in Omaha mostly originated online, as buyers looked for deals and attempted to quickly close deals prior to the expiration of the home buyer tax credit.
Realtors expect the future to remain stable as long as rates remain very low, although many are bracing for the worst, with perceived unknowns in the job market. New loan restrictions and requirements also stand to potentially hinder activity, the realtors say.
Courtesy USA Today
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