Pinetop White Mountain Blog

Good Morning Everyone,

We finally have a couple of days of sunshine in the White Mountains, hints that Spring really is on it's way.  It is hard to believe after such a long winter and so much snow, but it will show up in all it's glory before long.

Spring brings thoughts of all those projects around the house that need to be done.  Maybe a new kitchen is in the works or maybe just doing some deferred maintenance repairs are planned.

Here is a link with some great ideas for those projects.  Hope you find them useful.

<a href="http://rismedia.com/2010-03-11/5-tips-for-a-successful-home-remodel/">5 Tips for a Successful Home Remodel | RISMedia</a>

Have a wonderful Friday and a pleasant weekend.

Sandra Paulow, Associate Broker, GRI

Your High Country REALTOR®  (928) 242-0300

Good Afternoon Everyone,

I thought you might be interested in the following article.  I received this article from REALTOR® Magazine Daily News.  It was originally published in the New York Times. 

If you are in the market for a higher end home this is a great time to start your search, especially if you are a cash buyer.  Even in the White Mountains of Arizona, Homes in the 300K and up range are very plentiful and there are some great buys out there.  Homes that at the peak of the market in 2006 would have sold for much closer to 500K are being offered in the mid-300's.  Let me help you find your High Country Luxury Home at a great price.

Happy Reading!  Sandra Paulow, Associate Broker, GRI  928-242-0300

A Good Time to Buy a High-End Home

Some of the best housing deals are on high-end homes, many over $1 million. Some of them need TLC or they aren’t in the most-coveted locations. But there are plenty of desirable properties and lots of sellers who are getting impatient.

Buyers with cash have the best opportunities. Buyers who need a mortgage should move especially quickly. With the Federal Reserve ending its purchases of mortgage securities this month, the mortgage market is likely to rise from its current low level. Even if prices fall further, the rising cost of borrowing could eliminate any savings.

As Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, says, this is a "very good time to be a buyer at the high end."

Source: The Wall Street Journal, Nick Timiraos and James R. Hagerty (03/27/2010)

Good Afternoon Everyone,

If you are trying to sell in today’s market, by now you are undoubtedly getting very frustrated. 2009 was a terrible year for conventional sellers because there were so many REO’s in the market. They drove down values and changed the mind set of the buying public. If you are still trying to sell and you don’t know what to do, here are some ideas.

Today’s buyers are focused on one thing, PRICE! This must be your focus too. If you want or need to sell, you must price competitively. If you know in your heart that your home is not going to sell for the asking price, drop the price! There is no two ways about it, if you want to sell in 2010 you must be priced right because buyers are looking for a good buy and you need to be the home that they see as meeting that criteria.

Now we focus on the home itself. Are there deferred maintenance issues that really should be addressed? Does the home need a paint job? Is the carpet dirty? Could the cabinets use a little uplift and some cleaning out? Your objective now is to make the home desirable to a buyer. De-clutter, remove those family pictures, clean out the closets, and in general clear your personal items out and try to see the home as a buyer would. You live in the home and if you are honest with yourself you know there are issues that should be addressed. Bottom line, you have put them off long enough; if you want to sell now is the time to get them done.

Some other suggestions follow:

1. Get estimates from a reliable repair person on items that need to be replaced soon, a roof or worn carpeting, for example. In this way, buyers will have a better sense of how much these needed repairs will affect their costs.

2. Have a termite inspection to prove to buyers that the property is not infested.

3. Get a pre-sale home inspection so you’ll be able to make repairs before buyers become concerned and cancel a contract.

4. Gather together warranties and guarantees on the furnace, appliances, and other items that will remain with the house.

5. Fill out a disclosure form provided by your sales associate. Take the time to be sure that you don’t forget problems, however minor, that might create liability for you after the sale.

6. Get your utility bills together and put together a print out that your agent can pass on to buyers. This is almost always one of the first questions a buyer will have when they are getting serious about a home. A twelve month basis is always a good basis to help them make that decision.

There you have it, my recommendations for selling your home in a difficult market. Call me if I can help you evaluate your home and your pricing. As always, I am at your service.

Have a wonderful evening everyone.

Sandra Paulow, Associate Broker, GRI

Your High Country REALTORÒ (928) 242-0300

Good Afternoon Everyone,

Are you thinking about letting your home got to foreclosure?  Perhaps you have decided to try Short Selling the property!  STOP right now and don't do anything until you do the following: 

FIRST:  Get on the phone to your lender.  Don't hesitate because someone on the other end of the line might be nasty to you or because you are embarrassed.  You are not alone and no one on the other end of that line has any right to judge you.  Just make the call and insist that you speak to someone in the Loss Mitigation Department immediately.  Don't hang up until you get there. 

SECOND: Contact an Attorney.  A Bankruptcy Attorney might be the best call since that may be the only way you can protect yourself if you do loose that home in the end.  They will be able to advise you on the steps you need to take to try and work through the mess you find yourself in.  It isn't the end of the world, it just feels like it.

THIRD:  Call your Tax professional.  Find out what the tax consequences might be if you do lose the home or sell it at a Short Sale.  There may be tax consequences for you and you need to be prepared for that possibility.

FOURTH: Now that you have talked to everyone and you have decided to try and Short Sale the house, call me.  I can serve as a resource for you in determining when and how to file the necessary paperwork with your lender to try and Short Sale the house.  I can't advise you, that is why I told you to call everyone else first.  But I can help you price the home so it will sell and get it on the market so potential buyers can find it. 

Foreclosure and Short Sales carry baggage for you as a seller.  You need to know the risks associated with them before you make any decisions.  You must know where you stand and then you can move forward. 

Let me know if you need assistance in these areas, I will be happy to guide you through the process and help you find the professionals you need to make educated decisions about your option.  Don't do anything rash until you have explored all your option.

Have a great Tuesday afternoon, until next time.

Sandra Paulow, Associate Broker, GRI

Your High Country REALTOR®  (928) 242-0300

Good Evening Everyone,

Wow, what a busy week.  The buyers are returning to the market and as a result the inventory is dropping.  I have been searching out properties for people for a couple of days and I am amazed at how few listings I have been able to locate for them. 

There aren't too many foreclosures left in our market, at least right now, but we are starting to see more Short Sales.  This may be the year of the Short Sale in the White Mountains.  They haven't been too prevalent before but we are seeing more and more of them now.  I'm sure it is a result of Sellers who have been frustrated by not being able to move their homes in the past year or so.

If you are thinking of buying the market is tightening up a bit so you will need to be diligent in your searches and you need to be ready to move when you find the right property.  Multiple offers are starting to show up on those few remaining REO's and Short Sales.  Short Sales are a challenge, no question about it.  Sellers and Buyers need to be patient because the process is lengthy and complicated. 

I am encouraged this week.  There has been much more traffic than we have seen in a while.  Maybe the signs of Spring are bringing people out once again.  I'm glad to see it, I would much rather be busy than bored.  

Have a wonderful weekend everyone. 

Sandra Paulow, Associate Broker, GRI

Your High Country REALTOR®  (928) 242-0300

Good Morning Everyone,

Well, the word is out, the Government says it is going to stop subsidizing the banks by buying down interest rates.  According to reports I have been reading this will become effective the end of March 2010.  It may be only a temporary measure to determine if the Banking World and the Economy can stand on it's own.  We really won't know what the effect will be until it actually happens.  However, predictions are that interest rates will rise. 

If you are in the market to buy, the time for fence sitting or waffling about your decision is coming to a screeching halt.  You need to get moving!  3/4 of a percent may not sound like a lot but it will make a difference if you are tight in qualifying right now.  Increased interest rates means higher monthly payments.  If your ratios are tight now, it could reduce the amount the bank is willing to lend.  To buy the house you want, you may have to come up with additional down payment to buy that interest rate back down.  Only your lender can tell you how it will affect you but you need to find out before the subsidy ends.  

The good news is that so far FHA has not made any decision to raise the down payment requirements or make any change to the amount the seller may contribute to closing costs on FHA Loans.  There have been grumblings for months that because the FHA reserves are getting low, there were plans afoot to raise the down-payment requirement and decrease the amount a seller could contribute to closing costs.  So far that hasn't happened but be aware, things change in the lending world on a daily basis and what it true today might change tomorrow. 

If you are a buyer, you need to start getting serious.  Time is running out on a lot of benefits to you in the current market.  The tax credits expire at the end of April, Banks may start raising interest rates, and in some markets those great deals on the REO's are getting kind of scarce.  As more troubled homeowners either negotiate Short Sales on their homes or finally manage to get some workouts done with their lenders, those great buys are going to get harder and harder to find.

Bank Owned properties are not being offered at Bargain Basement prices any longer either.  The days of Banks "giving away" properties is starting to show signs of slowing.  Low ball offers are being rejected outright and they are staying much closer to their original listing prices, especially if it is a desirable property.  

I am not trying to discourage you from buying, it is still a great time to buy.  You just need to be aware that the Real Estate industry is very unpredictable right now.  Lending changes from day to day.  Bank Owned properties are not showing up in the marketplace as readily as they were a year ago, and those same Banks are pretty firm on their prices these days.  If you want to buy, you need to get moving before all the goodies from the past year or so go away. 

Call me, let me help you get started.  I know my market and I can help, just give me a call and let me show you how. 

Sandra Paulow, Associate Broker, GRI

Your High Country REALTOR®  (928) 242-0300 

Good Afternoon Everyone,

The market for conventional sellers is not easy these days. The majority of the buyers in the marketplace are looking for a good deal. The condition of the home and who is selling it don’t matter nearly as much as the price. Here are some questions to ask yourself if you are considering selling in the current market.

Do you have a significant amount of equity in your property? If you do, you should be able to sell at a very competitive price. Market conditions have changed drastically as everyone knows and it is unlikely to return to the pre-recession prices anytime soon. You probably will not receive a huge return on your investment but you should still be able to realize a reasonable profit margin if you equity position is strong.

Are you in a position where you must sell? If you must sell than you must be prepared that you are probably going to have to sell low in order to entice a buyer to your home. Buyers are focused on price and if your home is not priced competitively it will not sell. If you are in a low equity or no equity position you may want to contact your Mortgage Company to see if they will consider a Short Sale. If you can prove a hardship situation that shows that you Must Sell and you are not in a strong equity position, you may be able to get a pre-approval to try and Short Sale the property. Ask your Agent to help you analyze your home in comparison to others in the neighborhood to see what your true position is.

If you don’t have to sell but need more space or some upgrades, would it be more practical to use the equity in your existing home to put on an addition or remodel? The inventory of homes far exceeds the number of buyers. If you do not have to move and you like your neighborhood, perhaps investing in your existing home rather than moving or trying to sell in a down market would be a more practical solution.

Would selling in the current market net you enough to move to a larger home? If you can sell at a reasonable profit and net enough from the sale it can be a good time to move up. Remember, if you are selling for less than you would like, that seller with the house you have your eye on is probably selling low too. It could be a great time to move up if that is your goal. The tax credits expire soon so they may not help you unless you can sell quickly and get your new home under contract before the end of April, but it might be worth a try.

Are you in a position to acquire a new loan if you do sell quickly? Lending is tight. Before you decide to sell you want to make sure that you can buy another house if your existing one sells. Even strong buyers are having difficulty obtaining financing and you will want to know what you can afford to buy before you find yourself having to settle for less than you already have.

There are many things to consider in today’s market when you are thinking of selling. While it appears things are stabilizing to a certain extent, price is still the driving force in the marketplace. Foreclosures and Short Sales are what the Buyers are focused on and that makes it a real challenge for conventional sellers who wish to move on or up in the market today. You need to be prepared that unless your home is a killer deal it is going to take time to sell. You also need to consider whether it is need or want that is driving you to consider selling. If you need to sell than you need to be prepared to do what it takes to get it done. If you just want to sell, you need to be prepared that unless you are very competitive on pricing it may be a long time before that happen.

Price – Price – Price – is the word to remember today. If you can’t meet the price, it isn’t going to sell.

Have a wonderful afternoon everyone, until next time.

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

Your High Country REALTOR®

Good Morning Everyone,

If you are selling a piece of property and you want an Agent and a Brokerage to represent you with the marketing of your property, you wouldn't think a thing about signing a document giving that Agent and Broker the "Exclusive Right to Sell" your Property.  Everyone is familiar with the term  "Listing" when referring to a contract to sell their property, but did you know that there is also an "Exclusive Employment Agreement" for a Buyer?  

Buyer Brokerage has been around for a long time but it hasn't been widely used.  It may be a lawful requirement in some States, but in Arizona it has never become a requirement under State Real Estate Law.  However, whether required by Real Estate Law or not, as a Buyer you have the right to ask for Exclusive Representation by a Broker, and the Broker has the right to ask you for loyalty and commitment for representing you in a Buying Transaction. 

As the market has shifted to a Buyer's Market and the Market is currently dominated by the Bank Owned Properties and Short Sales, you are probably going to find that more Brokers and Agents will be asking you to sign a "Buyer-Broker Exclusive Employment Agreement". You may be asked to pay an up front retainer and commit to paying the difference between what the broker considers fair compensation for representing you, and what the seller is willing to pay on the listing side of the transaction.    

Why? The answer is simple economics.  With the Prices continuing to fall, the very competative pricing on the Bank Owned Properties, and with Short Sales being commonplace, the Brokers have no choice but to ask the Buyers to contribute to the Compensation paid to the Broker for representing the Buyer.  The Asset Managers handling the Bank Owned properties, and the Banks working with Sellers on Short Sale Agreements, are asking that the Agents involved in the transaction contribute to the sale of the property by cutting their compensation from the seller.  These transactions are complicated and fraught with risk.  The Brokers do not feel that they should be asked to do more work and assume more risk, and then share in the losses being suffered by the Banks.  As Buyers, you are getting some great deals out there, but the Brokers representing you are absorbing the losses and assuming the risks in the transactions. 

Don't be surprised the next time you go to a Real Estate office to inquire about buying a property that you are asked to Sign a "Buyer-Broker Exclusive Employment Agreement" and to put up a retainer much like you would for an Attorney or other Professional.  As markets change so do the rules of the game.  If you want an Agent to assist you through one of these complicated transactions, you will likely be asked to contribute to their pay for the service.  Remember, most Agents and Brokers sell Real Estate to make a living and to support their families.  The compensation they receive for assisting you with your purchase is what put's food on the table to feed their families.

Happy Home Searching!  Have a Great Weekend.  

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