Bank Owned Homes from El Mirage to Queen Creek:

Recently, I have been home shopping a lot with first time buyers. Just before my trip to Austria I got a foreclosure under contract in Queen Creek where I represent my clients as their buyers agent. My buyers were pretty much under the gun finding a new home since the landlord they were renting from was getting foreclosed upon. This time, however, they did not want to find a new home to rent since they had been tenants for 14 years and my clients felt they were long overdue for home-ownership. Having their thirty day notice in hand, making offers on short sales was not an option since my buyers were not in a position to deal with long response times. “We need to find something by yesterday” is what I kept hearing from them every day since I met them for the first time. Logically we had to boil down the search for properties to REOs (Bank Owned Properties). So, for the better part of two weeks, we started to cruise almost every subdivisions in Queen Creek looking to find a home fitting their budget, needs, and wants. At first, it was very discouraging. Only one, out of approximately ten homes, we explored was in move-in condition without requiring any major repairs necessary. After 5 days intensive shopping; we hit the jackpot and my buyers settled for 2400sqft , 3 bedroom, 2.5 bath home in Johnson Ranch, which was a former builder model. Of course it had all the “goodies” including a pool with a heated in-ground spa.

At the same time, I was working with another nice couple, also first time home buyers. Whose needs were completely different. I had to shop in the exact opposite geographic area - Surprise and El Mirage, Arizona was the target area. If you follow my blog you probably have seen them on their shopping spree. Although their time frame of moving in is not as critical, they also would prefer a quicker response time once they put in an offer. So our main focus here was to find a bank-owned property in good condition. Easier said than done. Compared to Queen Creek finding a livable bankowned property in the Surprise and El Mirage area currently takes about exploring fifteen REOs to find one which is in move-in condition without any major deferred maintenance or repairs needed.

Of course the copper thieves are still active and are stealing the coils out of the AC-compressors across the valley, however there was one major difference between Queen-Creek and the Surpise/El Mirage area: Most of the repo -homes in Queen Creek had the power turned on, while none but only one out of the fifty (or so) homes in the West Valley had electricity. At first I thought it had something to do that there perhaps were proportionally more foreclosed homes with swimming-pools in lender inventories in Queen Creek. Keeping the pool-pump running helps preventing the pool from turning green, however after looking a little bit more closer into my “Pool versus No-Pool Power-On” theory I discovered that the bank-owned homes with drained pools also had the the electric service turned on. The only thing I can think of why the electricity is turned on at most REO properties in Queen Creek is most likely because of the competitive environment due to the insanely high listing inventory. But then, the inventory in the West Valley is not exactly low either…Go figure? At the end it all might have been just pure coincidence.

Apparently, I am not the only one who perceived the physical condition of REO properties in Queen Creek better. Steve Belt had a similar observation:

Subsequently, however, home condition wasn’t as bad as I feared. For whatever reason, the bank owned homes look better than Chris Butterworth found in Litchfield Park recently

Looking at a hand full of REOs compared to a huge listing inventory cannot give a clear conclusion where the “better condition” REOs are geographically located, however I find it fascinating that local real estate blogs may indicate that the overall physical condition of REO inventory in Queen Creek appears to be in slightly better shape compared to some areas in the West Valley.

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Being married for 50 years is an accomplishment! I asked my dad what the secret sauce to a good and long marriage is. His answer was quite simple: “Just do what she says, and everything will be fine”.

Now the honeymoon is over and I hope there will be many happy years ahead of you guys!

Sporadic Blogger will be back:

Lately it has been a bit quiet again here on the Greater Phoenix Metropolitan Area Real Estate Blog - not intentionally. In the last couple of weeks I have been busy getting my real estate broker license and had to devote most of my time to other high priority activities as I mentioned here before. On top of that, I had to prepare for my trip to the motherland. No - it is not that I really needed a vacation, however there is a certain celebration which I really need to attend. Perhaps I will write about it later…

photo credit: hessmapeace

So the little free time and energy I had was just enough to recharge my batteries, going after a new-found passion and to hang out on twitter for a little bit.

I am not quite sure what it is, however, very often I feel that most everything real estate related has been covered by my fellow real estate bloggers and I am afraid to regurgitate the same topics and issues over and over. So every once in a while I get caught up reading too much and forget to write. Perhaps I should disregard this feeling because I have been repeatedly told that this is a fallacy and have to put back the gag on to my sneering inner voice.

This time Steve Belt over at www.realphoenixliving.com put me on the spot and his post reminded me that I don’t post frequently enough - I agree - and I hope two weeks of visiting the home country will give me some inspiration and will blow the cobwebs of my keyboard.

So bear with me….perhaps I will find an Internet connection somewhere in Austria, Germany, Switzerland or Hungary. If all fails, I will microblog on twitter.com from a Blackberry 8830.

I am still not completely packed while I am writing this post, so I better get it done before I miss my flight…

Windsor Square Historic District Home Tour:

One of our most enjoyable traditions in Phoenix is the historic district home tour. We have an astonishing number of historic homes and homeowners who cherish their properties and gladly share them with the public. This time Windsor Square is opening its neighborhood, homes, and gardens to visitors for the Sixth Biennial Historic Home and Garden Tour.

Next Sunday, April 6, from 11:00 a.m. to 4:00 p.m., you will be able to visit all of the 12 historic homes that are on this tour in Phoenix’s most northern historic district. Presented by the Windsor Square Neighborhood Association, the Home and Garden tour is a self-guided walking tour that gives visitors a look at unique architectural styles in homes that date back more than 75 years.

Windsor Square was originally envisioned as an area of fine homes, but the district’s development suffered from bad timing and a world war. Begun in 1929, the original developers’ high hopes fell to the realities of the Depression. Then as building began in earnest in the early 1940’s, everything was put on hold again during World War II. With the return of the GIs and the post-war building boom, Windsor Square grew to be considered Phoenix’s first suburb. Today’s 260 homes are bordered by Central Avenue and Seventh Street, Pasadena Avenue and Oregon Avenue.

With styles ranging from modern to traditional, attendees will see interior decorating ideas and unique approaches to the outdoors. For this year’s tour, the organizers have added a special feature to each home: a themed special event presented by a professional designer. Look for a garden party, a birthday celebration, and other festive scenes. Keep an eye out, also, for Phil Gordon, Phoenix’s mayor and a Windsor Square resident, who plans to be touring the homes as well.

Along with the historic homes, visitors will enjoy fine arts and crafts from street vendors, taste delicious foods, and be entertained with live music. All this for only $12, and children visit free.

You will find the tour at the Northeast corner of Central and Camelback, behind AJ’s Fine Foods. Tickets will be available on the day of the home tour at Medlock and 2nd Street (one block east of Central, north of Camelback Road). Vehicles may enter the neighborhood off Central Avenue at Medlock Drive or off Camelback Road at 2nd or 6th streets; on-street parking is free.

View Larger Map

Need a bit more incentive? The good folks of the Windsor Square Home and Garden Tour will donate 20 percent of tour proceeds to the Central Arizona Shelter Services (C.A.S.S). for Families and Children.

Mark your calendar now: Sunday, April 6 – Windsor Square Historic Home and Garden Tour. For more information, visit the Windsor Square website.

Bank Owned Home is Going Green:

Today is Saint Patrick’s and naturally “Green” is the theme for today! This video was taken yesterday while house-hunting with my clients in El Mirage. There is definitely a lot of inventory out there in the Greater Phoenix Metro area, however finding a bank owned property in decent move-in conditions still presents a little challenge. We saw a lot of nasty things inside of vacant REO Properties during our shopping spree yesterday. Moving items inside the refrigerator and used condoms inside a bedroom closet for starters, do I have to say more? You get the idea…

After looking at approximately fifteen foreclosed homes in the last two days in the El Mirage and Surprise Area we only came across one bank-owned home which had the power turned on. Only four out of the fifteen homes we looked at were in livable condition. Out of these four homes, only two showed improvements made by the Bank and/or the listing agent post-repossession - and we got a really good kick out of looking at one of these fixed-up lender owned properties: We weren’t quite sure if the Bank was planning on an open house for today or April 1st.

Getting the Answer from the Maricopa County Assessor’s Office:

After being on hold for about twenty-five minutes with the Maricopa County Assessor’s office, I finally got the answer to my question about my own Limited Property Value: and guess what? I was wrong!

I should have dug a little bit deeper in my research, but I partly blame iMAPP, a third party provider to the Arizona Multiple Listing Service, for throwing me for a loop.

Using iMAPP’s Tax Report for my own parcel, I based my assumptions on the LPV they provided for my calculations about the assessed value of my own home. Granted that “the LPV cannot ever get smaller” was a hint in and of itself. However, I should have checked the horses mouth (the original data source).

Now I feel a little stupid, but that will pass. Making mistakes is an inevitable part of blogging and even though I try real hard to avoid mistakes, they happen. On the other hand, making mistakes also has some benefits. How else would I have found out that iMAPP is not perfect?

© iMapp, Inc, 2008 | Information is believed accurate but not guaranteed. Buyer to verify all information

A Question of Value or a Question of Error: at the end of the day ends up being a user error aided by incorrect data provided by a third party provider.

Yes, maintaining the public trust is not only difficult when market conditions are changing, but it gets a little tougher when a data vendor throws in a little wrench.

A Question of Value or a Question of Error?

By now, most residents of Maricopa County have received their 2009 Property Valuation form from the Maricopa County Assessor, including me.

Of course, Property Taxes are also affected in this declining market as County Assessor, Keith E. Russell, wrote in the note he included in the letter I received yesterday.

…today we are seeing values decline in almost every neighborhood across the County.

Looking at my 2009 Valuation, Mr. Russell is right, the value of my home went up 67.88% or $167,260.00 between 2006 and 2007. From 2007 to 2008 the value increased another $51,500. By the same token, the Full Cash Value dropped by $67,700.00 on the latest assessment for 2009, to almost the same level of 2007.

Keep in mind that the Full Cash Value (FCV) is used as the basis to compute secondary taxes (bonds, budget overrides, fire districts, flood districts and other limited purpose districts) and is also the tax assessors opinion of what the market value of your property is.

Now lets take a look at the Limited property Value (LPV). This number is a result of a statutory formula mandated by the Arizona State Legislature and is used to compute primary taxes (maintenance and operation of school districts, cities, community college districts, counties). The Limited Property Value cannot exceed the Full Cash Value.

In my case the Limited Property Value increased a mind-boggling $167,260 between 2006 and 2007. From 2007 to 2008 the FCV dropped by $81,207 and increased again by $31,079 on the 2009 property valuation. This is kind of counter intuitive, don’t you think?

Assuming that the property tax rate remains the same as for 2007 and according to my calculations I won’t be enjoying an overall reduction in Property Taxes. I project that my 2008 Taxes will go up by $184.00 and 2009 will be an additional $25.00 on top of the 2008 increase.

Even though the Full Cash Value on my home went down by almost fourteen per cent this time ARS 42-13301 ensures the increase of the Limited Property Value by almost ten percent.

The tax rate based on the assessed value from the Limited Cash Value (primary) is higher (currently 5.7351%) compared to the tax rate (currently 2.2156%) based on the assessed value from the Full Cash Value (secondary), at least this is the way it is in Scottsdale (Tax Area 481400).

Wait a minute!!! Now, as I am writing this post, I just noticed that the Full Cash Value and Limited Cash Value are exactly the same on my “Notice of Valuation” of 2007. Using the calculation method outlined in ARS 42-13301 and comparing them to the amounts on my 2007 valuation, the Limited Cash Value of my property should be a whole lot less, unless I am missing something.

I am not quite sure what to do with this discovery. If this is a matter of improper valuation then I am out of luck, since an appeal has to be filed within 60 days of the notice date. If this is a matter of a correction of an error I might have a shot by filing a Notice of Claim.

So, take a closer look at your own Property Valuation Notice before you forget it.

Let’s see if the Maricopa County Assessor’s Office will be able to maintain my trust.

I’ll be calling them the minute their office opens to find out the answer.

By now, the news about the devastating Tornadoes must have reached you all! In response to Lani’s email and the initiative of agentgenius.com, Jay Thompson and the Bloodhound Blog I am also asking to chip in and help:

[Help]

This week, thousands of people lost their homes and over 54 lost their lives. The destruction is devastating and over five states have a long road ahead in rebuilding after these massive destruction. Help raise funds for the reconstruction efforts by going to Bloodhound Blog to download one of the buttons connected to a PayPal account (thanks to Jay Thomspon) to promote the fundraiser.
[How]

Don’t have any money to give? Then Blog, Put up the banner, ask others to put up the banners, collect an office pool and [Help].
[More]

The biggest thing you can do it [GIVE]. We’d love to get the word out, as much our nation is suffering so badly now- put a button on your blog and tell people about it on Twitter, Facebook, and in person, but there is no such thing as giving to much.

So please dig deeply and give all you can…
[Thanks]

All funds will be givin in the name of RE.net - our online real estate community. Where ever you see [Help] around the RE.net, thank them, we surely will with lots of link love, and kudos.

Every little bit helps!

Historic Willo Welcomes Visitors This Sunday!

The homes do not have garages, walk-in closets, or entertainment centers. They were built in the 1920’s and ’30’s before people thought lots of storage space was essential in a home. But for every modern convenience they may seem to lack, the historic homes of Willo more than make up for them in charm and grace.

Once a year, a dozen or so homeowners in Phoenix’s Willo Historic District open their well-loved and well-cared for houses for the annual home tour. Homeowners invest a great deal of time and care (and yes, money) in restoring and maintaining the unique features of these homes. Styles run the gamut from English Cotswold to Spanish mission, French provincial, and Tudor revival.

Once farmland on the outskirts of Phoenix, Willo became a suburb in the early part of the 20th century, and almost two dozen subdivisions were built through the beginning of WWII. As Phoenix grew after the war, commercial development began to encroach. But in the 1980’s, Willo residents lobbied successfully for historic district status.

This Sunday, February 10, 2008, you can enjoy the 20th Annual Willo Historic Home Tour & Street Festival from 10:00 a.m. to 4:00 p.m. Willo is just west of Central Avenue between Thomas and McDowell Roads from 1st to 7th Avenues. Visitors can stroll the tree-lined streets from house to house, or take a trolley that will carry people throughout the neighborhood. Here is a sneak peak of 2 homes that will be on the tour.

There is also street fair with handcrafts, antiques, local artwork, and plenty of food choices. Tickets are $15.00 the day of the tour and can be purchased at 3rd Avenue and Holly. Free for children 12 years and younger when accompanied by a paying adult. You can also buy tickets for $12.75 online in advance (by 9:00 p.m. February 9) and pick them up at the event. You can find more information and purchase tickets here: http://willohistoricdistrict.com/hometour

Hope to see you this Sunday in Willo!

Hashknife Pony Express Riders Arrive!

February 1st 2008 is when tradition comes back to Scottsdale, Arizona – a day when the West’s Most Western Town deserves to be called just that. Tomorrow is the day when the Hashknife Pony Express delivers the mail at the Scottsdale Post Office.

Yes, the Pony Express still exists and is the oldest officially sanctioned Pony Express holding the longest contract with the U.S. Postal Services.

But, before the mail gets dropped off tomorrow at 12:30, the Bronze Monument “Passing the Legacy” will be unveiled at 10:30 AM at the Canal in Downtown Scottsdale.

Lately, there has been a lot of coverage of mega events like the SuperBowl, Barret-Jackson and The FBR Open. I, however, am very partial to history, art and tradition as you can tell by my previous posts and the cowboy in the video was also speaking from my heart.

Here is a video I found on YouTube:

It’s good to see that there are some people carrying on with the traditions of the Old West!