Pinetop White Mountain Blog

Good Afternoon Everyone,

The headlines read:  Housing Prices will continue to decline.  Sales are slow.  Real Estate is still troubled.  Etc. Etc. Etc. 

One of today's headlines in the Arizona Republic is all about negative news in the Real Estate Market.  DON'T LISTEN TO THEM! DON'T READ THIS STUFF!, because that is what it is "STUFF".  And the kind of stuff you step in when you are walking your dog if you aren't careful.

Yes, prices may fall a bit more but not everywhere.  In Phoenix, perhaps, in the larger cities, perhaps, but it isn't happening in the White Mountains.  In the past month the average sale price has increased! That is right it has increased, marginally to be sure, but prices are starting to go back up.

Why, because the junk is gone.  The garbage the banks dumped on the market last year is gone, gone, gone!  Thank goodness.  There are still some foreclosures and Short Sales out there but they aren't low end junk.  They are nice homes in nice areas and they are going quite quickly.

Most bank owned properties at good prices are seeing multiple offers on them.  Buyers are having to up their offers and sweeten the pot to get their offers accepted.  You are not going to steal something in the White Mountains any more. 

Does that mean you can't get a good deal?  Absolutely not!  Prices are the lowest they have been in our market in almost 8 years.  We are back to pre-boom prices for the most part, and the sellers really are motivated to move their properties.  When they say "Bring an Offer" they mean it.  They want to sell it to you!  

Take a look, make an offer, make a move of some kind, because if you don't the deals of today are going to be gone tomorrow.  Add to this the low interest rates and you have the perfect opportunity to get in to a great home at a great price. 

Don't listen to the news, get out there and make some moves.  The economy is improving and it would improve a lot more if everyone would quit waiting! Waiting for what I don't know, maybe 2012 and the end of the world.  Economies don't grow unless people are willing to spend what they make, at least to an extent.  Right now everyone is sitting on their wallets afraid to make a move because the media keeps telling us how bad everything is. 

Well, it isn't going to get any better as long as that thought process prevails.  It is time to get out and do some of the things you have been putting off, including buying property.  It is still one of the strongest investments you can make, it just isn't going to be the windfall it was at the height of the market.  In the words of Gerald O'hara in "Gone with the Wind"  "...Katie Scarlett, Land is the only thing that lasts!..."

Talk to you soon.

Sandra Paulow, Associate Broker, GRI, SFR, REALTOR®

(928) 242-0300   

Good Afternoon Everyone,

A few days ago I suggested to sellers that if they didn't have a note against their property they might consider carrying a note.  There are many buyers out there now who for one reason or another cannot qualify through conventional means for a loan.

After that post I had several calls from Buyers looking for Seller Carry-backs so they could purchase a home.  Many of those Buyers were a bit confused on what having the Seller Carry the Note really meant, and what would be required of them should they pursue that option.  I decided that I needed to follow-up that post with some things to clarify what a Seller Carry is and what would be required of the Buyers.  I really appreciate the calls, and hopefully some of them will turn in to serious buyers, but....there are some things buyers need to know if they feel a Seller Carry might be an option for them. 

First and foremost, you are going to need a significant amount of cash up front.  Sellers will usually require a minimum of 20% in Cash as a down payment, to even consider carrying a note.  They are acting as a bank and as such, if the buyer defaults they will have to go through foreclosure proceedings the same as a bank.  It is not an inexpensive process.  They must cover themselves financially for this reason.   

Second, you will probably be paying a much higher rate of interest than you might through a bank.  Usually 2 to 5% higher interest.  The reason is the same, if the seller is going to carry the note they want a good return on that money.  They may be looking at the Carry-back as an investment and they will want it to be a profitable investment if they are going to take the financial risk associated with that Carry-back.

Third, you need to anticipate that you will have to refinance that property fairly quickly.  Most Carry-back Notes requires a balloon payment (payment in full) within just a few years.  If you have any doubts about your ability to do that, don't even consider entering in to this kind of agreement.  You need to start planning for that eventuality immediately.  If you have credit issues you need to start working on getting your credit cleaned up right away.  Talk to a lender, find out what you will need to do in order to qualify for that refinance in a few short years.  Five to ten years may sound like a long time but from my own experiences I can tell you that date shows up before you know it.    

Finally, you may be required to sign an Addendum to the Purchase Agreement stating that you will not in any way modify that property without the seller's permission until the note is paid in full.  Keep in mind that if you don't pay the seller is going to have to take the home back to resell it. If you modify it in a way that makes it less marketable than it was when you bought it, you could be open to legal consequences for those actions.  

These situations can work very well if everyone is fully informed and both parties are aware of their responsibilities to the other.  Just be careful and make sure that the agent you have representing you is looking out for you in the transaction.  It can be a great option if handled properly, however, it could come back and bite you if you aren't fully informed about your responsibilities in the transaction.   

Give me a call if you have any questions about this or any other Real Estate Matter.  I am here to help. 

Thanks for reading.  Have a wonderful weekend. 

Sandra Paulow, Associate Broker, GRI, SFR  (928) 242-0300

Your High Country Connection for Real Estate!   :-)

Good Afternoon Everyone,

I was talking to a seller today about the possibility of listing their property and we got in to a discussion about a Seller Carry for a buyer.  At first this seller was opposed to the idea stating that he didn't want to get himself in the same fix as the banks.  After we talked a while though he saw that it might be a possibility.  

There are a lot of potential buyers in the marketplace today who have good incomes, steady jobs, and money in the bank.  Unfortunately they are not qualified for a traditional mortgage because they are self employed.  Business people, particularly owners of Mom & Pop type operations, write a lot of their business income off at the end of the year in the form of expenses.  As a result their net incomes on their tax returns are not as high as they would be if they were drawing wages from a regular job.  The tax benefits of being self employed are very appealing, but they hurt when a business owner applies for a loan. 

A few years ago Business Owners could do what was referred to as a Stated Income Loan.  That means that lending underwriters used something other than traditional W-2's and tax returns to verify income.  In today's market those loans have disappeared.  Banks and Mortgage companies are so afraid to lend because some of those loans have turned sour, just as many other loans have.  However, if they really looked at the statistics, they would probably find that some of those Stated Income loans have performed far better than many others where the buyers qualified under conventional means.

The point of this post is to help you understand that there are many potential buyers in the marketplace right now who have no choice but to find a seller who will carry their note.  Stated Income loans will come back once this firestorm of foreclosures slows, but it may be several years before that happens.  In the interim, buyers who are otherwise qualified to buy cannot because they cannot prove income to the lender's satisfaction.

A Seller who's property is free and clear and who doesn't need to get all their capital out of the property might be in a good position to act as the bank on a sale.  They would be assured a significant down payment and a monthly income for the life of the loan.  In the worst case scenario and the Buyer did default, they would simply foreclose the same as a bank might and resell the property.  The difference would be that they had a significant amount of cash on the front side of the transaction and they don't have to worry about paying off another mortgage holder. 

If you are trying to sell and you don't have a mortgage or note against your property, consult with an Attorney and a Tax Professional and see if a Seller Carry might be an option for you.  There are buyers out there who would love to buy but can't in today's tight lending market.  Many are very good risks otherwise. 

Something for you to think about anyway.  If you would like to know more, give me a call.  I'm standing by.

Thanks for reading.

SANDRA PAULOW, ASSOCIATE BROKER, GRI, SFR  (928) 242-0300

Your High Country Connection for Real Estate!

Good Evening Everyone,

I thought I would address the potential buyers out there who are looking for property but not buying property.  I have to ask you what are you waiting for? 

The home prices in our area have dropped anywhere from 20 to 40%.  The interest rates are at an all time low and they aren't going to stay there forever.  The tax credits may be gone but you have to look at these interest rates as a lifetime gift.  The tax credit was a one time shot, if you take advantage of these rates now you are looking at something that will benefit you for 30+ years!

Jumbo loans are back for the higher end buyers.  FHA, VA & USDA are wonderful opportunities for First Time or Move up buyers.  USDA is specifically geared for Rural Communities such as the Show Low area.

So I ask again, what are you waiting for?  Prices have already started leveling off in many areas and have shown slight gains in the last quarter.  Once the foreclosure storm ends, and it is slowing, prices are going to start to climb quickly once again.  Sellers will see the opportunity to recapture some of their recent losses and they are going to raise their prices.  We have already seen this happening in some subdivisions.  They are not going to continue on this free fall in value forever.

The economy is improving.  Businesses are starting hire again so this window of opportunity is slowly closing. 

So get out there and find what you want and commit to the transaction.  The days for watching and waiting are quickly disappearing and if you wait much longer you are going to find prices going up as well as interest rates.  Remember if the interest rate goes up, your buying power goes down.

Come see me an let's get started!

Have a wonderful evening everyone.  I'm standing by for your call.

SANDRA PAULOW, ASSOCIATE BROKER, GRI, SFR (928) 242-0300

Your High Country Connection for Real Estate! 

Good Morning Everyone,

I hope everyone had a wonderful 4th of July weekend.  There were certainly a lot of people in the White Mountains enjoying our gorgeous weather and the multitude of Holiday Activities.  Most probably headed for home yesterday although I know a few were going to stick around for a few extra days.

It was pretty quiet on the Real Estate front through the weekend.  Not really that unusual though.  People who come to the mountains for the Holiday come to play, not look at property.  What is does do though is put many in the mood to consider buying a home in our area for their summer or winter getaways.  I can understand it since that is how we came to make the White Mountains our year around home.  A short visit sold us on the area 10 years ago.  We've made the area our home for the past 8.

Why should you consider buying now?  It is really fairly simple; affordability, many properties to choose from, & great interest rates.  All combined those three alone should make purchasing a home in the White Mountain very appealing.  The market is just bursting with nice properties at prices we haven't seen since the early 2000's. 

Even the luxury communities are much more affordable right now.   Are you looking for that log or cedar sided cabin with granite counters, wood floors, and vaulted Knotty pine ceilings in a nice community?  We have them, many of them, and a prices that you won't believe.

There are some Foreclosures and Short Sales in our market, but most of the homes being offered today are by conventional sellers who either want or need to sell.  It isn't because they can't pay for it or that it has become a burden to them, it probably has to do with relocation for work or perhaps health issues that have forced them to give up their mountain getaway.  

So my question is, what are you waiting for?  Are you hoping that dream house you have been waiting for is going to drop in price? Maybe it will, or maybe someone else wants it just as bad and they will buy it tomorrow.  

Here are some facts.  Interest rates are artificially low right now and they probably aren't going to stay that way indefinitely.  Soon those rates are going to start climbing and when that happens affordability drops.  Increasing down payment requirements and higher mortgage insurance premiums are already making payments higher than they were just a couple of months ago.  Financial reform is going to make mortgage choices more limited and the cost of money is going to continue to go up.  

The tax credits that spurred many to action in the past year are gone now and while there is speculation that they may come back, only time will determine that.  

Prices may continue to fall for a while yet but eventually they are going to start to climb again.  When you combine that with higher interest rates this window of opportunity is starting to shrink. Right now prices are about where they would have been had normal appreciation factors been at work.  The sharp increase in values and the sharp plunges were not normal.  We are slowing returning to a more normal Real Estate market. 

If you would like information on properties in your price range.  Contact me, let me know what you are looking for and how I can help.  My phone is always on and my email is waiting to hear from you.  I know my market and I know the properties that are out there and I can help you find what you are looking for.  Just call!

Have a great week everyone.  I'll be standing by waiting to hear from you.

Sandra Paulow, AB, GRI, SFR --- (928) 242-0300

Good Afternoon Everyone,

My goodness what a busy weekend on the Mountain!  Tons of people in town to enjoy the wonderful High Country Weather and participate in all the festivities.

Yesterday was Show Low's Big Day.  It started off with a Biscuits and Gravy Breakfast at the Show Low Town Center.  Then the big 4th of July Parade.  Many other local businesses were offering 4th BBQ Lunches and there were games and fun to be had at the Show Low School.  Last night was the big fireworks show.  We didn't go but we could hear them going off.  I'm sure it was a great show, it always is.

Today there are Fireworks at Sunrise Ski Resort and discount lift tickets for those who want to take a ride up the mountain and enjoy the sites.  We are having guests today for dinner so we have been cooking and preparing all day.

Lots of people in the area looking for Real Estate too.  If you've had your eye on a property and you haven't made a move on it, you better not wait too much longer.  As people come back to the mountain for the summer season, property moves pretty quick.

I already have had one buyer who was a bit disappointed because they were planning to come up in the next week or two and a couple of the properties they wanted to see are already gone. 

For those of you who are selling, now is the time to get those prices on your properties in line because the next couple of months will be your best opportunity this year to sell them.  If you know you are high consider lowering your prices to spur activity.  The only way it is going to sell is if someone looks at it.  It you are too high they aren't going to bother.

Have a great day everyone.  It is really a gorgeous day in the White Mountains today.  Mid-80's with a little breeze just to keep the air moving.  The humidity of the past week has moved off to the East for a few days so it is perfect summer weather in the mountains.

Come on up and say Howdy! We would all love to see you.  If you are looking for your summer getaway, give me a call.  I'm standing by!

Thanks for reading everyone.

Sandra Paulow, Associate Broker, GRI, SFR  (928) 242-0300

Your High Country Connection for Real Estate

Happy Forth of July Weekend Everyone,

Have you been trying to work with your Bank on a Mortgage Modification?  Wonder why it is taking so long or why you are repeatedly turned down? 

Watch this video that aired on "Think Big Work Small" a while back and you'll understand why the Banks would rather work with a Short Sale or even Foreclose on the Loan rather than modify the terms of the original agreement.  It's all about money folks.  They don't care about you, only how much profit they can realize from your troubles.

It's time to get real angry about the actions that our Goverment is taking against you and in favor of the Banks.  Are you angry yet?

I AM!  

http://www.youtube.com/watch?v=ssl5yb7FewA

Sandra Paulow, Associate Broker, GRI, SFR (928) 242-0300

Your High Country Connection for Real Estate.