Pinetop White Mountain Blog

Good Afternoon Everyone,

I found a great article today that I wanted to share.  It is Entitled        

"7 TIPS FOR CONSUMERS PREPARING TO PURCHASE A HOME". 

I found the article informative and it had great advice for those of you who are thinking about buying in this wonderful Buyer's Market.  Prices are the lowest we have seen in years and there is financing available.  You just need to be prepared when you go to see the lending institution of your choice. 

If we can help you with your search in the White Mountains of Arizona, please don't hesitate to call us.

SANDRA PAULOW, ASSOCIATE BROKER, GRI

BRUCE PAULOW, SALES ASSOCIATE, GRI

Your High Country REALTORS®     (928) 242-0300

HAPPY READING & HAPPY FATHER'S DAY!

7 Tips for Consumers Preparing to Purchase a Home

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CELEBRATE OUR NATION' BIRTHDAY

IN THE HIGH COUNTRY OF ARIZONA!

Enjoy a Small Town 4th of July

4th of July Parade

Fireworks

Art Festivals

Car Show

Tale a Hike

Go Fishing

Picnic Next to a Lake

Relax

Escape the Heat and Enjoy the Tall Pines

in

The White Mountains of Arizona

SEE YOU AT THE PARADE!

Sandra & Bruce Paulow

Your High Country REALTORS®

(928) 242-0300 

Good Afternoon Everyone,

This afternoon's post is devoted to the First Time Homebuyers out there who still want to get in on the $8500. Tax Credit on their 2009 return.  There are a few facts you should know so you will understand the urgency of getting moving now. 

You must purchase a home and the sale must close no later than December 1, 2009. 

You will want to shop around for the right lender for you.  Every lender has different loan programs and you want to be sure you find the one with the best program for you. 

Be sure to ask if you can use the tax credit as part of your down payment.  The Government has stated that it can be used but in my research, few lenders are actually doing it because there are a lot of loopholes that do not assure the lender of repayment.  Those I have spoken to say you will get it as a credit at tax time but they are not fronting the money toward downpayment. 

You need to start looking now.  Time flies once you start the home buying process.  It is already the 1st of July and December 1st is only five months away.  That may sound like plenty of time but the average sale takes a minimum of 45 days to close and should you decide to pursue a Bank Owned or Short Sale property, that time can easily double or triple. 

So don't wait.  Start your search today and let us help you find the right property at the right price and terms.  Time is moving quickly and you don't want to miss out on an opportunity to get that $8500 from the government.  Once it is gone, it is gone, and so far nothing has indicated that they intend to extend that deadline.  That may change, but for now, you have until December 1st to close your sale.

Call Us! We are familiar with the White Mountains Market and we can help you through the buying process.  There are a lot of very motivated sellers out there who are eager to sell their homes and are just hoping for an offer.  So make it a priority to start looking right away and maybe just maybe you can find the home of your dreams, at a price you can afford, and still get some additional money back on your 2009 return. 

SANDRA & BRUCE PAULOW,

Your High Country REALTORS®

Good Evening Everyone,

So you want to buy a foreclosure property, it's a great deal right?  Well it can be under the right circumstances but you must be aware of some cold hard facts first. 

1) Are you ready to take on someone else's problems?  Because you are when you buy a foreclosure or short sale property.  For whatever reason the people who owned that property before you didn't want it anymore so they walked away and left it behind.  They probably left it behind with some major concerns as well, so beware!

2) Are you prepared to spend a good deal of your own money in to the property to make it liveable again?  You need to be because remember number 1), you are buying someone else problems.  There is a good chance that the home has been lived in "hard" and when the former owner made the decision to walk away from it, they property decide not to take very good care of it either.  There could be some major repairs that are needed to make the home nice again, and it could be expensive. 

3) If you are going to move on one of these properties you better be prepared to do a good deal of "Due Diligence" so you know what you are getting.  While your agent and your Title Company will help you with it, there are often hidden defects, liens that haven't been paid, and other issues that need to be discovered before you go to closing.  Too often with these Bank Owned properties there are unpaid bills out there floating around that may come back to haunt you after the sale.

4) You need to ask yourself, am I really getting the best deal for the money this is going to cost me?  Am I settling for less than I could have just because the price is somewhat lower than other homes in the neighborhood.  It is possible that the nicer place down the street for a bit more money could be the better investment.  If you bring all the values down by doing what you are doing it could hurt you in the future too. 

5) Okay so you have decided to move ahead anyway.  Maybe this is the best deal for you and  maybe you are prepared to do what it takes including the cash infusion to bring that home back up to the standards of others in the neighborhood, so what do you do now?

Find yourself a good buyer's agent who is familiar with this type of sale and can help guide you over the humps and bumps that inevitably come with this type of purchase.  Keep in mind, lenders are not too keen on lending on some other bank's foreclosure property and your lender is going to scrutinize every aspect of the transaction very very carefully. 

Your lender is going to want to be sure that not only can you afford the property but that the values in the neighborhood are going to hold steady in the future so they are willing to risk their money on this house.  They are going to watch everything very closely and there is no assurance even after you go through all the inspections, appraisals, and every other detail of a Real Estate transaction, that they are going to lend money on that home.  Appraisals are tight and money is tighter and banks are very cautious about lending these days anyway.  Add to that the fact that the property you want has already gone to foreclosure once, they are going to want some assurance that it isn't going to happen again.  

The point of this post is to help you be aware of some of the pitfalls of buying Bank Owned (REO) properties.  There are risks on the part of everyone; you, your lender, your agent, your inspectors, even your Title Company because there are no assurances about anything in the transaction.  The risk is all on the buyer's side and if the bank that owns the property can dump their problem on someone else without assuming any risk of their own, they are going to do it. 

You need guidance and you need to be sure you know where you stand and what you are taking on before you jump in to that sale.  Price isn't the only thing you need to be concerned about, there are a lot of other factors to consider.  So give us a call, let us help you decide if this is the right move for you.  If it is, let us help you find the right property at the right price.  If after looking around a bit you decide maybe this isn't the way you should go, let us help you find what you really want.  In today's real estate market you need the guidance of a professional to help you make good decision.  No one wants to see this current situation repeat itself ever again and we can help you avoid future problems by helping you over the humps and bumps in this kind of transaction. 

Give us a call.  Let us help you decide what is best for you.  Don't wait too long though because the market is picking up and the inventories are dropping, so the time is now to make your move.  There has never been a better time for First Time Home-buyers, Move-up or Move-down, or move across the Country Buyers.  The inventory is high, sellers are motivated to sell, and maybe one of those REO's is the right home for you.  Just call us and let us help you make that decision.  

- - - REMEMBER OUR MOTTO - - -

"WE WORK FOR YOU!"

SANDRA & BRUCE PAULOW, Your High Country REALTORS®  

GOOD MORNING EVERYONE!

Time may be running out for those First Time Home-buyers who hope to take advantage of the $8000 tax credit.  You only have until December 1, 2009 to close your sale in order to take advantage of this tax credit.  In some places and with some lenders you may be able to use that tax credit toward your down payment requirement.  Not all lenders are participating in this so you will need to shop around to see if you can find a lender who is willing to do the short term loan for the down payment.  Interest rates are creeping up too so that "bargain" property you have had your eye on may soon become out of reach for you because the payment may be too high. 

For all buyers time may be running out on capturing some of the best priced properties.  In most markets, those properties at the lowest prices are what is driving the market and it won't be long before they are gone.  You may miss out on the best opportunity we have seen in years of acquire that dream home or investment property you have been thinking about. 

In the White Mountains of Arizona in particular, the majority of the sales since the first of this year have been the REO and Short Sale properties.  The supply of this type of property is dropping and as a result our market is beginning to stabilize.  That doesn't mean there are still not some good buys out there, but they are likely Seller Owned properties rather than Bank Owned. 

In many ways that is good for you because that means there is a real person to deal with, not some nameless faceless entity who does not care whether you buy the property or not.  You may find that purchasing a Bank Owned property is not the best deal for you.  By the time you assume all the risk in the transaction and pay all the up front costs associated with the purchase, plus any repairs and liens that might be associated with it, you could have bought that nice one down the street for nearly the same price without the hassle.  

So don't miss out.  Time is moving quickly and while sales are not at the level we in the Real Estate Business would like them to be, there has not been a better time in recent history to purchase property.  Interest rates are still low, in most areas the economy is beginning to show signs of recovery, and prices are the best they have been in years.  

Let us help you find the home you have been looking for.  The selection is still good, sellers are willing to work with you, and for you First Timers don't miss out on that tax credit.  Time is running out and don't let your fear keep you from investing in your future.  Real Estate is one of the best investments you will ever make.  Even in rough economic times like we are in now, you will build wealth in time.  Markets go up and they go down, but land is permanent.

Thanks for reading.  Have a wonderful Monday.

SANDRA PAULOW, ASSOCIATE BROKER

ASPEN PROPERTIES, INC. IN PINETOP, ARIZONA

(928) 232-0300     

HELLO EVERYONE!

Summer is finally here and it is time for those summer backyard BBQ's and Parties.  I found a great article today that has some ideas for making those get togethers memorable and fun.  Enjoy!  Just click on the link below.

http://rismedia.com/2009-06-13/the-perfect-summer-party-how-to-make-the-most-of-your-outdoor-get-together/">The Perfect Summer Party: How to Make the Most of Your Outdoor Get-together | RISMedia</a>

Have a wonderful Saturday everyone and keep us in mind for all of your HIGH COUNTRY REAL ESTATE NEEDS!

SANDRA & BRUCE PAULOW, (928) 242-0300

NEVER BEEN LIVED IN BEAUTY!

FULL ONE ACRE LOT!

JUST OUTSIDE OF SHOW LOW!

EASY ACCESS!

FANTASTIC VIEWS!

OUTSTANDING PROPERTY!

PRICED TO SELL!

$253,000

SELLER WILL CARRY THE NOTE!

CALL TO SEE!

SANDRA PAULOW

(928) 242-0300

ASSOCIATE BROKER

Good Afternoon Everyone,

I thought I would address something this afternoon that every agent and every seller is dealing with in today's marketplace.  It is the "Pain" of having a buyer who is getting financing for the sale.  There is money out there for those buyers, but the sellers are being forced to make major concessions in order to get the buyer through the lending process.

Let me begin by assuring you that the Buyers really do want to buy your property.  If they have submitted an offer to you they are ready, willing and able Buyers.  However, those same buyers are up against some pretty serious obstacles with their lending institutions.  They are being forced by their lenders to put a lot of pressure on you to contribute to the costs associated with the loan.  In our area, the majority of our sales right now are the low to mid-range properties.  They are being purchased by First Time Homebuyers who are looking to get in while the prices are where they can afford them.  Most are having to acquire FHA Loans and there are a lot more hoops for everyone to jump through to get government backed funding.   

This may be new to some of you because we haven't seen FHA and VA loans as the prevalent form of financing in many years.  FHA loans have always been more difficult than conventional loans and while some of the FHA regulations on the structure itself have eased a bit, this type of loan is tough to get through.  The costs associated with these loans are much higher, and for most buyers that means they have no choice but to ask you to help them cover those costs at closing.   No one likes the situation but in order to sell properties we all must adapt to the "new age" in Real Estate and sometimes that adaptation is painful. 

In the past, when FHA or VA loans were used it was sometimes possible to raise the price of the property enough to offset some of the costs associated with the loan for the seller.  Unfortunately in today's market that is not the case.  In many cases the values are so tight in an area that there isn't any room to raise the price and it will show up when the appraisal is done.  We are seeing more and more cases where the homes won't appraise for the original agreed upon price, let alone the higher amounts.  The lenders are being very strict about appraisals  and even if they get an appraisal for the final agreed upon price, they are often asking for one or two more "desk" appraisals just to assure themselves that the home really is worth the amount on the Purchase Contract and that they are not lending to much on the property.  

Many markets around the Country are in what is being referred to as "declining markets".  Much of Arizona is included in that group.  That even makes things a little harder because in some cases the lenders are asking the appraisers to value the house according to the comparative properties and then subtract a small percentage to offset future potential losses.  Is it right? Is it fair? Probably not, but because the lending institutions are in such a mess due to their own lax lending practices of the past, today's sellers and buyers are paying the price.

My purpose in posting this commentary today is to help you understand that no one wants things to be this way.  Of course the buyer wants the best deal they can get, but they are not intentionally "beating you up" to get that deal.  Their agent is only doing what the lender has told them they need to do in order to make the sale happen.  You are going to be disappointed in the offers you see, you are not going to like the terms, and you probably are not going to net as much on the sale as you would like.  But, if you need to sell your property and you want the sale to happen, you will have to accept those less than ideal conditions because the lender controls the money.  If you don't agree to the terms that the lender wants, you will not sell your property.  It is as simple as that. 

I have seen many sellers who's first reaction is to reject the offer outright because they don't like the terms on the contract.  But, you must keep in mind that turning down an offer from a buyer who wants your property may not be the best course of action for you.  The next offer may be a long time in coming and it is very likely that the terms on the next offer are going to be similar, and perhaps not as favorable, as the one you already have in front of you.  You may not like it, but in this market the old saying "A Bird in the Hand" etc. really holds true.  If you can get past the initial reaction of anger and frustration and work through the details with your agent, it is very possible that you can pull the sale together to the satisfaction of all parties including the lender. 

We would all like to have sales that are easy and sail right through with a minimal of fuss.  Unfortunately in today's market those deals are the exception rather than the rule.  We all have to work harder and be more flexible than we have had to be in the past.  I am sorry to say that the "Good Ol' Days" are long gone and today's market is much tougher on everyone.  We are all having to learn the "new way" of doing business in the Real Estate World.

If we can answer any questions for you or assist you in any way with your next Real Estate transaction, please feel free to give us a call.  We stand by our motto:  "WE WORK FOR YOU"!

Have a wonderful evening and we look forward to hearing from you soon.

SANDRA & BRUCE PAULOW, Your High Country REALTORS®

(928) 242-0300 or email us at: sbpaulow@frontiernet.net