Pinetop White Mountain Blog

Good Afternoon Everyone,

Today's market presents many challenges for both Buyers and Sellers.  It is a hard pill to swallow that the market can have changed so drastically in just a couple of years.  The fact is that it has. 

A Seller has an especially difficult challenge to overcome and that is trying to sell in a down market.  Faced with countless foreclosures in the same neighborhood, it is very difficult to compete in the current market conditions.

The question you really have to ask yourself if you are trying to sell your property is:  Do I want to be an owner or a seller?   You have to first understand the difference.  An owner is what you are now.  You own the property, you would like to sell it, but it isn't selling.  So you ask yourself why?  The answer is simple, we are in a price driven market and if you are not priced to attract the interest of a buyer you are not going to become a seller.  You will remain an owner. 

The formula is pretty simple:

Showings = Offers = Sales. 

If you aren't getting any of the above than the answer is defined simply by one word ------PRICE!

The key to success in this market is that you need to be priced where the buyer is going to take a second look at your property.  If they are looking in a particular area and they see your property, they are going to look at the price.  If it is higher than any of the others they have been looking at they are going to move on.  It doesn't matter that your property may be nicer than the one down the street.  It doesn't matter that your property is in a better location.  It is higher priced and that is all that matters to that buyer.

So what do you do.  You first have to answer the question I presented to you in the first paragraph.  Do you want to be an owner or a seller?  If you want to be a seller than you need to move to step two and that is to take a really good look at what you want for your property to determine if you "have" to get that much out of it or if that is what you "want".  Remember no matter what the comps say, no matter how much you love your property, no matter what you think it should sell for, the buyer doesn't care.  If you want to sell it, you need to be the best priced home in the neighborhood.  In today's market that means you need to be 5 to7% below everyone else.  Buyers know you can't get below that repo down the street and that is okay.  They just want the best buy in the neighborhood.  If your property is the one, it will sell. 

So there you have it.  The formula for selling is pretty simple.

Get the showings = get the offers = get the sale!  That is all there is too it but to get to number three you have to get through numbers 1 and 2.  To do that you have to take a really close look at your pricing and then adjust it accordingly.  Remember, it may seem like we are near the bottom and in some places that may be true.  Where you are, it may not be.  You need to consult with your chosen professional to find out.  If prices in your area are higher than they are in other areas of your State, chances are you aren't at the bottom yet and it is going to get worse before it gets better. 

The bottom line is that you have to determine what you want to be.  If it is an Owner and you are determined to hold out for your desired price, you might as well sit back and ride it out because you are probably going to get your wish.  If you want to be the seller, than you really need to determine where you have to be to get the needed activity to get your home sold.  Buyers are still pretty scarce and the ones that are out there are pretty picky and very price conscious and the best price "wins".

Have a great weekend everyone.  If we can help you with your White Mountains of Arizona Real Estate needs, all you have to do is give us a call. 

---REMEMBER OUR MOTT0---

"WE WORK FOR YOU!"

SANDRA & BRUCE PAULOW

Your High Country REALTORS®

Good Afternoon Everyone,

There is good news for the Arizona Home Buyers, down payment assistance is back.  Thanks to Stimulus Money Arizona has a new program to help residents achieve their dream of Homeownership.

The program is call:  YOUR WAY HOME AZ HOUSING PROGRAM

The best part of this program is that it is open to any buyer, not just First Time buyers.  The Arizona Dept. of Housing will offer up to 22% in Down Payment Assistance to qualified buyers who are purchasing a foreclosed property.  Is this great news or what?????

The qualifications are pretty simple.

Must be a Primary Residence

3% Down Payment (2% of which can be a gift)

Have 2 months Reserves

Property must be a foreclosure and vacant

Maximum Purchase Price of $346,250.

Must meet income/credit Requirements

Will need to complete a Home Buyer Education Class

To get started, contact a lender and ask them if they are an approved "Your Way Home Approved Lender"?  Once you find the right lender you are on your way.  There are still plenty of homes that will qualify for this program on the market so don't miss out on this great opportunity.

For you First Time Home Buyers, don't forget there is still time to find your new home and qualify for the $8000. tax credit.  This is free money from the US Government.  Just think what you could do with an extra $8000.  Time is running out though, the sale must close escrow before December 1, 2009 so don't wait, move today!

Give us a call and let us help you find that perfect property.

Sandra & Bruce Paulow, Your High Country REALTORS®

(928) 242-0300

Good Afternoon Everyone,

Another good article from one of my online newletters, this one from REALTOR® Magazine.  The message is one we have been trying to convey all summer to potential buyers.  DON'T WAIT MUCH LONGER or that bargain house you have been watching all summer may not be such a bargain when the interest rate on the loan is higher.  Rates are going up, inventory is dropping, prices are stabilizing in some areas, and you could miss out on a great opportunity.

Happy Reading!

Sandra & Bruce Paulow, Your High Country REALTORS®

Buyers Shouldn't Wait on Falling Prices

Fear of overpaying for property is common these days, especially in places like New York where prices continue to be unstable.

If you encounter potential buyers who are frozen because they are concerned that they will pay too much, here are some factors to point out:

• Waiting for the right time can be expensive. Some buyers would have more equity today, despite falling prices, if they had bought when they were first considering it, instead of continuing to pay rent.
• Financing is fickle. Some people who were highly qualified last year can’t find financing this year because the credit market has tightened or their personal financial situation now makes them an undesirable borrower.
• Interest rates are headed up. If prices decline by another 10 percent, but interest rates increase by 1 percentage point, the monthly payment will be the same.

Source: The Wall Street Journal, Douglas Heddings (07/27/2009)

Good Afternoon Everyone,

Is the Real Estate Market beginning to show signs of recovery?  The answer is complex but it does seem to be the case in some areas of the Country. 

I came across an article today that says that prices have begun climbing in some areas, most of them on the East Coast or in the Mid-west, but that seems to indicate that things are starting to look better for the future of Real Estate.

I have included the article for your review.  If I can answer any questions for you about the White Mountains of Arizona area, we are here for you.

Have a wonderful afternoon and happy reading.

Sandra & Bruce Paulow, Your High Country REALTORS®

Home Prices Increase in 22 Metro Areas
The 2.1 percent average rise in home prices in 22 out of 25 metropolitan statistical areas (MSAs) from April to May suggests that recovery could be at hand in many areas, says Radar Logic, a real estate data and analytics company.

"This is in stark contrast to the same period during 2008, when a decrease in the velocity of home price depreciation gave way to the worst loss in housing value in recent history," the report says.

The report calculates that in the key MSAs it studies, prices have fallen 33.5 percent peak-to-trough and 31 percent peak-to-current.

Here are the 10 metropolitan areas where prices increased the most from April to May of this year:

1. Milwaukee, Wis., 4.9 percent
2. Charlotte, 4.7 percent
3. Boston, 4.6 percent
4. Cleveland, 4 percent
5. Washington, DC, 3.7 percent
6. St. Louis, 3.3 percent
7. Columbus, Ohio, 3.2 percent
8. Seattle, 2.8 percent
9. Denver, 2.3 percent
10. Philadelphia, 1.8 percent

Source: Radar Logic (07/23/2009)

Good Afternoon Everyone,

I came across an article from REALTOR® Magazine Daily E-mail news that I wanted to share with you.  It is a reminder that time is prime for buying property and the opportunity to get in on some really good deals may be slipping away.  Inventories are dropping, workout plans for Pre-foreclosure homes are starting to remove some of those properties from the market, and time is rapidly slipping away for you First Timers who want to take advantage of the $8000 tax credit.  The time to move is now, don't let this opportunity to move up, move down, or move in for the first time slip away.

Happy Reading.  Have a wonderful Monday. 

Sandra & Bruce Paulow, REALTORS®

Daily Real Estate News  |  July 20, 2009  |   Share

Housing Experts: Now Is a Perfect Time to Buy
Don’t forget to remind potential buyers of something that is obvious to real estate professionals: Now is the time to buy, but that opportunity may be slipping away.

For people who have a job and money, a dream house is within reach, writes Marc Roth, founder of Home Warranty of America and a columnist for BusinessWeek.

He points out that mortgage rates remain low, prices are still at historic lows, and the government is offering incentives for first-time homebuyers.

He also adds that the inventory of homes to buy is still large, but it is shrinking. According to the NATIONAL ASSOCIATION OF REALTORS®, the housing inventory peaked in November 2008 at an 11-month supply. At the end of May 2009, it had fallen to a 9.6-month supply.

Roth says anyone who dallies will miss a good opportunity to buy a first home at a terrific price or go shopping for a move-up property that is a great buy.

Source: BusinessWeek.com, Marc Roth (11/17/2009)

Good Morning Everyone,

Good grief, where does the time go?  I was just reminded in an article I was reading about how quickly time passes.  If you are a First Time Homebuyer your time to take advantage of a "free" $8000 is quickly running out. 

The $8000 tax credit being offered by the Feds to stimulate the economy has helped thousands of First Time Homebuyers in to their first home.  Do you want to one of them?  Then you need to move quickly.  Remember, it takes 45 to 60 days to close a transaction once you find the house you want.  If you are still sitting on that fence waiting, you could be running out of time to move.  The sale must close escrow before December 1st, and if it takes 45 to 60 days to close the sale time the sands in the hourglass are running out quickly.

If you live in Arizona and your income is low enough, you may also qualify for some downpayment assistance programs being offered as a result of the stimulus plan.  Check with your local lender and see if you can qualify.  Wouldn't it be great to own your own home?  Wouldn't you love to tell your landlord, sorry you are moving out because you've purchased your own home.

Don't wait any longer or any advantages may pass you by.  We can help you find that perfect place.  Prices have never been better, interest rates are still low, and we are there for you, all you have to do is call us.  We'll help you find your perfect home and get some extra cash just for doing it.

Have a wonderful Wednesday!

Sandra Paulow, Assoc. Broker, GRI & Bruce Paulow, Sales Assoc.,GRI

(928) 242-0300

Your High Country REALTORS®

---REMEMBER OUR MOTTO---

   "WE WORK FOR YOU!"

Good Morning Everyone,

If you are trying to sell your home in the current marketplace you are no doubt getting very frustrated.  Showings are few, buyers don't seem to be very serious about buying, and time rolls ever forward with your home languishing on the market for months and months.  No matter what you do, no matter what your agent is doing, nothing seems to generate activity.  Well, you are right, it is very hard to be a seller in the market right now. 

There are many factors that are contributing to this but probably the most prevalent of them all is that financing through conventional resources is very difficult.  For the most part the market is being driven by First Time Homebuyers or Investors who are looking to capitalize on the Bank Owned and Foreclosures properties that are being sold way below market.  Add to that the fact that about the only option for financing these days is a Government Backed FHA or VA Loan, things become even more difficult.  There is conventional financing available but the restrictions on them are very tight, credit scores must be very high, work stability must be proven, and the buyer must have a pretty hefty amount of cash in order to get conventional financing. 

My point today is to help you understand that there may be other options for you.  One option is called "Seller Financing".  In simple terms it means that you become the Bank.  The buyer brings in a fairly high amount of cash and you and buyer agree to terms where you will carry the note.  The buyer will make payments to you every month instead of the bank.  It is amortized just like a loan through a bank  and the buyer would pay you interest on the money you are carrying.  In many cases that is a pretty high rate of interest so you are making a pretty good profit on that note over time.  There may or may not be provisions in the loan for a balloon payment down the road.  They can vary from five years to twenty years depending on your and your buyer's circumstances. 

Is this a good alternative?  It can be, depending on your situation.  If you have a mortgage of your own that is still fairly new and has a high payment, it probably isn't a good option.  But, if your home is free and clear or perhaps with a low balance on an existing mortgage or line of credit, it might be.  You would get a good cash amount from your buyer and you would have a steady income from the buyer for the duration of the note.  The return on your money could be better than if you had it invested elsewhere. 

I will tell you that in the past couple of weeks I have had quite a few buyers who have called and want to buy property.  However because of the tight lending standards they cannot get a conventional loan to purchase property.  In our market here in the White Mountains many home purchases are for second homes.  Buyers cannot use an FHA or VA loan to buy a second home, they must go conventional.  In many cases the lending institutions want so much down that the buyers just can't meet those requirements.  They are all hoping to find a nice place in the mountains to escape the desert heat, but they must have a home where the seller will carry the note with a reasonable amount down until they can refinance when they can find the right loan at terms they can live with.  

Am I advising you to do this?  No.  I am only suggesting that it might be an option for you if you are trying desperately to sell your property with little success.  You would want to consult with an Attorney and your Tax Advisor to see if it would be an option for you.  If it is, than I urge you to consider it because there are buyers out there looking for property who simply can't buy right now because of the tight lending standards.  They are probably well qualified buyers who simply do not have the cash reserves to meet the lender's demands.  You may also avoid having to deal with the appraisal contingencies in today's market that are also causing trouble in the marketplace.  

There are options and this is only one.  You also might just check to see if that loan you took out a few years ago is assumable?  Yes, that word is back.  The buyer would have to qualify with your lending institution and the home would probably have  to appraise for the sale price, but it might be another option for you because creative financing is the buzz word in the Real Estate Industry today. 

Good Luck to you.  If we can help you in any way or answer any questions about this, please feel free to give us a call.  We are, as always, at your service. 

 "WE WORK FOR YOU!"

SANDRA & BRUCE PAULOW

Your High Country REALTORS®