Unfortunately, many buyers are competing against cash buyers – and losing.  The old saying, “cash is king” is true in this competitive  real estate market.

Recently one of my buyers made an offer on a foreclosed property. Over asking price, very clean, and a desirable offer to any potential seller. However, the buyer lost out to a cash buyer even though the cash buyer offered less. Even the REO agent wanted my buyer to get the home, but has no say!

Why? You ask? Would the bank accept a lower offer? In our market, appraisals are all over the place. As of May 1, in order to “fix” or “remedy” the problem, a new federal Home Valuation Code of Conduct  was placed into effect. No longer are the lenders allowed to speak with the appraisers – nor are they allowed to “choose” the appraisers that will be appraising a home “they” are lending on. Bottom line? It’s a mess!

The left doesn’t know what the right is doing, homes are not appraising, and there are multiple bids on the most desirable homes.

Despite the issues we face, Realtors will continue to push through the paperwork, the difficult appraisals, and we will write two, three, four and more offers in order to get our buyers a home. Ridiculous? Yes!! BUT, this, too, shall pass!

For more insight and understanding about what’s going on, click on the links here and here.

It appears as though our Phoenix, Arizona market is adjusting. I’ve been keeping track since January 1, 2009 (and before), and posting updates regularly.  If you will recall, in January, we were up to almost 60,000 active listings. Things are changing.  As of today, May 3, 2009, we are at just above 39,000 active listings. Inventory stats of all listings in our MLS are as follows:

March 19

Active: 48,837

Pending: 10,869

April 3

Active:  45,694

Pending: 11,896

April 10

Active:  44,348

Pending:  12,963

April 17

Active:  42,907

Pending:  13,403

April 29

Active:  40,437

Pending:  14,226

Listed below are the comparisons for the cities and for the zip codes indicated. Note that I am only including Single Family Residences and not townhomes, apartment homes, etc.

The condensed version? The first housing credit is $7,500, and it has to be repaid; the second one is $8,000 and doesn’t have to be repaid.

BIG SAVINGS OPPORTUNITY FOR HOME BUYERS! 

In order to clear up this confusion, I logged on to the website for the IRS at IRS.gov. Here’s the story, in very simple terms:

Both tax credits are for first time home buyers and only for primary residences:

If you purchased a home after April 8, 2008, you may be entitled to a credit worth up to $7,500 which must be repaid over a period of 15 years.

According to the IRS website, the second, and newer plan is for those first-time home buyers who purchase a home during the first eleven months of 2009. These buyers will be entitled to a maximum credit of $8,000 which can be claimed on a buyer’s 2008 federal tax return.

Yes, I said 2008!

So, during 2009, you have but to close on your first home prior to December 1, 2009 to be able to take advantage of this credit. Any questions? Be sure to check out the IRS link provided above as well as with your CPA.  The IRS link provides indepth detail on how this first time home buyer credit works best for you.

Call me at: 480.216-3334 or email me at: This email address is being protected from spam bots, you need Javascript enabled to view it for any help I can offer.

Many buyers that ARE in the market to purchase a home have an unreasonable expectation of what homes cost. They hear all about the “deals” out there for $50,000 $60,000 and up, and are looking at those prices. And they want a four bedroom, pool, three car garage, etc. I’m even hearing such things as “that home is way overpriced!” Really? How does the buyer know that – unless he/she hears that from a friend, or watches the news, or reads the newspaper. How about “asking” the Realtor?

EVEN if the property is overpriced, it won’t appraise! Typically, those low ball prices indicate a beginning price, or the property has major issues. Even up to $100,000 is a questionable number when purchasing a nice home – even in Arizona.

Many are walking away from the short sales. One warning for all of those buyers considering of a short sale, and thinking what a great deal they will get. Yes, SOME may work, but the majority do NOT.

For one example: What if you make an offer on a short sale, and the seller, as most do, has a second on the property? What if the second lender won’t acquiesce on the money owed to them? Then what? I’ll tell you what!! For months you wait – the first finally agrees on a dollar amount -  but the second won’t budge.

The deal falls through. Simple as that. Never mind that the second loses its entire dollar amount owed if the home is foreclosed upon. I was showing a home on Saturday, spoke with the listing agent, and after months of waiting, this exact scenario happened, and the buyers walked.

Consider purchasing from a seller with whom you can negotiate, and who will make those repairs, and provide you with the disclosures and insurance information that is important. On Saturday, last, I showed several homes – one of which was listed by a seller! It was comparable in size and in price – and in STELLAR condition.

Yes, this is a great time to buy a home, but do so wisely. Work with an experienced and knowledgeable Realtor who can advise and counsel you through the process.

The City of Phoenix offers many services that are useful and necessary for its growth and its stability. Recently, Phoenix announced that it is  implementing the Neighborhood Stabilization Program (NSP) which addresses abandoned and foreclosed houses within the areas of greatest need.

Expected to become available from the U.S. Department of Housing and Urban Development in Spring, 2009, NSP funds will be used in a variety of ways, including down  payment or closing cost assistance for homebuyers to purchase foreclosed houses for use as their own residence.

 Homeownership presents new challenges and new opportunities in this economic climate, but many families have positioned themselves to be successful in this environment.

These homeowners have been careful with their credit, have stable work, they have savings accounts, and they view homeownership as a long-term wealth-building strategy for their family. These potential home buyers are well positioned to take advantage of the numerous housing choices currently available, and NSP funds may be able to assist. 

Neighborhood partners - you … or someone you know… may qualify for $15,000 in down payment and closing cost assistance to help buy an affordable foreclosed home anywhere in the City of Phoenix through the City’s Neighborhood Stabilization program (NSP) Home Buyer Assistance Program. 

For more on what the City of Phoenix offers, be sure to check out the City’s link here. The City offers a plethora of services available to those who seek it out.

I suspect most of us have heard about the opportunity to obtain a "free" credit report from the three major reporting agencies each year allowing each of us to challenge any negative reporting, and then access our report for seven days after. You will be given a special report number - be sure and write it down - and you will need that in order to access any updates. I had one item on mine that was clearly bogus, and I challenged it as being untrue. I received an updated report that indicated it was removed.

In addition to checking your payment records, etc., it allows you to check the spelling of your name, any addresses that belong to you, and to correct any incorrect information! I cleaned mine up.

I recommend that anyone thinking of purchasing a home take advantage of this annual opportunity. Just recently, I suggested that my daughter check out her credit. It was great! - She wants to purchase a home - hopefully here, so I wanted to get her on board. NO ONE wants to be turned down for any kind of loan. This is just one way to be prepared.

Be sure and sign in and get your free annual credit report here at: Annual Credit Report. Pay attention to the options of paying for any extras. You do not have to - unless, of course you choose to - pay for your FICO score, etc.

As of this morning, we have 50,108 active listings - the lowest in about three years. If you're thinking about purchasing a home, don't wait until everyone else is thinking about it, or you'll pay a higher price.

Homes Arizona provides real estate services in Phoenix, Arizona and surrounding areas including the communities of East Mesa , North Mesa , Gilbert , Chandler , Ahwatukee, Apache Junction, Gold Canyon , Queen Creek , Tempe , and Adult Communities, Scottsdale, new home construction throughout Maricopa and Pinal County. My website offers you information on the Phoenix Valley schools as well as the ability to search all homes that are for sale in the Phoenix, Arizona area. These links only show you a sampling of the available homes.