Phoenix RE BarCamp 2010 Countdown:

Time flies and Phoenix RE BarCamp 2010 is approaching fast. If you are in or around the Real Estate Industry and you don’t know what RE BarCamp is, now would be the time to check it out and put April 9th 2010 on your calendar.

• RE Barcamp PHX 2010:
  in 25 days, 8 hours, 16 minutes, 4 seconds

I know everybody is busy, but trust me if you make time in your calendar then this will be a day well spent.

There is a very good reason why RE BarCamp has evolved from its original roots in San Francisco to a  movement with events happening all over the country now.  Not only can you select from many open, participatory workshop-events (referred to as sessions), whose content is provided by participants themselves, but it is also a great way to network, meet new cool people and  reconnect with old friends. This will also a great opportunity to take your existing online relationships offline and and meet your social media connections in real life.

If you are near the Phoenix Metropolitan Area, RE BarCamp PHX 2010 will be kicking off at the Scottsdale Stadium with the sign-in starting 8:30 am, April 9th 2010.  If you check on the who’s coming page there are people registering for RE BarCamp Phoenix from 2094 miles away willing to travel to this event. This fact alone should give you an idea! Take advantage of it and just show up – it won’t cost you anything, other than your time and effort getting to the event.

So what are you waiting for? Clear your calendars and head over to the RSVP page!

Oh, by the way, there is still time to become as Silver or Gold Sponsor to replenish your brownie-points in your good-karma-account.

Sunstreet Mortgage, LLC opens Phoenix/Mesa Office:

There is a new player in town! Today Sunstreet Mortgage, LLC has officially a new branch office to service the Greater Phoenix Metropolitan Area. Yes, while other mortgage companies are folding Sunstreet Mortgage, LLC is carefully and strategically expanding into the Phoenix Market.

Just in case if you are not familiar with the company I work for,  Sunstreet Mortgage, LLC is a Tucson, Arizona based mortgage banking firm founded by John E. Capp, Sarah J. Roads and Patrick W. Sniezek with branch offices in Nogales, Arizona and Albuquerque, New Mexico.

The three principal partners have over 56 years of originating loans and over 20 years of experience in managing all aspects of running a mortgage banking operation and are personally involved in the day-to-day operations. Gary Miljour will be managing the branch together with Kim Chartier.

Not to make this a a sales pitch,  however the most unique aspect of this company and a reason why I chose to work for Sunstreet Mortgage, LLC is that there is one layer of management and decisions are  made fast and locally.

Stay tuned, we will have a grand opening party after we have settled into the new space, but feel free to swing by anytime and come see us. You will find us at the Stapley Corporate Center , 1910 S Stapley Dr., Suite 202, Mesa, Arizona 85204

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photo credit: db*photography

Do you really need proof of a competing offer?

I spent way too much time on the internet yesterday and came across Jay Thompson’s blog post answering a Trulia Question on PhoenixRealEstateGuy.com. The same questions certainly provoked my thoughts and I felt compelled to write a slightly more elaborate answer response.I spent way too much time on the internet yesterday and came across Jay Thompson’s blog post answering a Trulia Question on PhoenixRealEstateGuy.com. The same questions certainly provoked my thoughts and I felt compelled to write a slightlymore elaborate answer response.

The question was:

I had an offer of $205,000 that was being considered by the bank on a property listed for $225000. Suddenly, at the last moment, the listing agent told my agent that there was another offer of $220000 that the bank was considering. We matched that price and got the property. But now I am wondering what proof is there that this offer really existed and that the listing agent was just not jacking the price up.

I just could have left it with a very short answer of: No there is NO proof and NO, you’ll never find out if the listing agent was just jacking up the purchase price!

Blaaahhh how boring! – at least, that is what came to my mind at first – but, as I was thinking a little bit more about this question (and reading some of the answers) I asked myself why Gregory S had asked the question on Trulia in the first place? Perhaps, it was because the conclusion is that his buyer’s agent did not do a good job educating him about the market and current values, or was George not really ready to buy a home – or just simply naive? Think about it – If you made an offer and everything seems to be groovy and at the last minute you get presented with the idea that the acceptance of your offer is in jeopardy because somebody is willing to offer more, you would probably raise an eyebrow? Wouldn’t you? I am not a poker player (I am left handed and cannot hold playing cards for the life of me and I barely understand how to play Farkle) but, wouldn’t you agree that if somebody raised your bet then wouldn’t you start thinking about whether you can afford to call their bluff, or to fold? Please, don’t tell me that you depend on the fiduciary duty of your agent to understand that concept.

Also, George’s questions did not reveal whether his purchase was cash or if he got a mortgage for the home, but in case you haven’t noticed, the appraisers, lately, seem to be on the ultra-conservative side… so if you financed your home recently, the likelihood of overpaying for it is slim to none – unless you put a silly amount of cash down.

photo credit: QteaThe price one ultimately should pay for a home, or anything else for that matter, is what one is willing to pay for. That is why you don’t need the proof of a competing offer!

Assuming the buyer’s agent did his research and shared the fact-findings with the client then there should have been a clear expectation of market value. Everybody’s definition of a “good deal” is different”, however the property in question must have had “some” value to George because he was worried about loosing it to another buyer.

So, when you go out buying a property you should have set your priorities straight. Do you want to go after the deal of a century and “steal” a property; or are you looking for a home which fits your needs, wants, desires and budget at market price? George, I am sorry but, as the saying goes, you cannot have the cake and eat it, too.

I know the importance of getting a “good deal” and I, myself want an even “better deal” and really, who want’s a bad deal? – Trust me, I understand the concept, but what disconcerts me the most about this Trulia-Question is that most people automatically conclude or imply that unethical behavior of REALTORS® was a factor. How can we possibly know and why do we draw conclusions? Did the listing agent intentionally scare the buyer of loosing an opportunity by fabricating a “phantom offer” in order to make a commission? Was the listing agent not a good negotiator and fell for the bluff of the listing agent? Did the listing agent and buyers agent conspire to get a deal done? Yes, Yes and Yes that all could very well be. No doubt there are some bad REALTORS® out there who would do anything for a commission.

Yes, the possibility is always there, but let’s not forget about the consumers too!! I cannot tell you how many times in my career I had to talk family, friends and customers out of buying something because they “had to have” something and stopped thinking rationally.

Just act like my five year old – ASK QUESTIONS!

“Do I really need this? Do I really want this? Can I afford this? Am I paying the same everybody else is? Is it too good to be true?” Ultimately it is YOUR signature on the bottom line… and I hope your agent is not holding a gun to your head when you are signing.

It is human nature to second guess your decisions shortly after you made one; especially after a big decision like buying a home, but, if you can answer all the above mentioned questions with yes – then you probably got a good deal.

$100 Down payment HUD Home Financing in Phoenix – The 2,000.00 Mistake

You probably all know what a HUD Home is and the existence of one very special HUD Home Buying Program, the infamous “100 Down Financing” Program.

There are so many how-to guides and “special reports” floating around on the internet that I will spare you with all the details on the how, who what and where of buying a HUD home, I rather point you to the source: The website of the US Department of Housing and Urban Development (for general info) and Michaelson, Connor and Boul who is a primary contractor to the Dept. of Housing and Urban Development providing marketing and management services of HUD owned residential 1 to 4 unit properties in Phoenix and all over Arizona

Right now, in this turbulent market most rules have changed and what used to be possible is no longer. Forget about “all the experience” you have. Right now is the time to check guidelines and to keep tabs on what is changing – and if you are a REALTOR selling HUD homes helping your clients taking advantage of HUD’s special programs, please read the fine print.

photo credit: Joseph Robertson

We had recently a situation where a real estate transaction almost fell apart due to an oversight. And no this is not a post to bash real estate agents, this post is merely to make you aware that now is the time to watch every deal like a hawk.

A client was pre-approved for the $100 down deal and the contract was written for a HUD home. The client over-bid the price in order to secure the home.

The REALTOR actually was giving good advice based on the competitive price-point of the property. You know a $58,000 house with these low rates look pretty attractive and to contrary beliefs, there are still some cash-buyers on the loose, even in this market.

The detail where this deal almost went sour was when the agent presented us last-minute with the fact that the HUD home was overbid. We found out through many HUD updates (they are not communicated very well) that Hud will actually not extend out this $100.00 down program if the property is over-bid. What was a $100.00 down payment instantly became a 3.5% down payment. What a costly mistake, this minor oversight of the agent might have cost the buyer a chance owning a nice home.

Let’s do ourselves a favor and keep reading the fine print.

From The Old Mortgage Guy’s Almanac – Foolish April Weather:

April’s weather can fool many of us into thinking that winter is hanging on. We probably think the same way about current interest rates staying low forever, so don’t be fooled!

The feds are officially ending the support for the mortgage market on March 31st and have already slowed down the purchase of mortgage backed securities. The massive buying of mortgage backed securities by the feds overall lowered the rates by about 1%, but we already can see that the fed is already slowing their buying and, rates are starting to tick up. We will probably see rates go back to around 6% by the beginning of April.

photo credit: Muffet

So who is going to buy mortgage backed securities after the Federal Reserve completes their intervention? The answer is private investors. However the big question remains how attractive will mortgage backed securities be to the private investors once the government-induced demand disappears? If the Dollar remains fairly strong and the unemployment rate keeps declining we might see an environment where rates might make a move . In other words if the whole economy keeps improving (a strong dollar, adding jobs) private investors might be willing to accept higher risks and money might start flowing to the capital markets to the detriment of the bond market. In sum, positive signs on the stock market are negative for Mortgage bonds.

April 5th the new, higher one time MIP on FHA loans goes into effect and the upfront mortgage insurance premium goes up to 2.25%. The First Time Home Buyer Tax Credit is also set to expire in April (you must be under contract by April 30th 2010). So we have a bunch of uncertainties ahead of us which could influence the Housing Market and Mortgage Climate.

I wished I had a the “Old Mortgage Guy’s Almanac” to predict the mortage and real-estate-market, but I dont. So I just can give you my most educated guess. Regardless on how well the overall economic climate improves, rates will likely go up because the feds will stop their intervention.

So regardless if, as you’re reading this, there are still low interest rates in the air, make no mistake, higher interest rates are on its way!