Chuck Willman, Arizona East Valley Realtor®

In my previous post "Purchasing Discounted Properties in Arizona- Step One: Before You Look" I explained that there are many properties that can be purchased at a huge savings... but one much know a thing or two before entering the market.

This post will deal with several opportunities that investors and "value purchasers" may want to consider. The key question being, "where do we find this stuff?"

Well... there are many places to look, but here are a few:

• Short Sales

• Courthouse Steps

• Bank Owned Listings

Short sales are listing for which the seller is "upside down" on the mortgage. That is to say that the home is worth less than the mortgage(s). Since the seller is "short" the difference between the amount owed to the bank and the retail value of the property- the home will be offered for sale at a discounted price. If one wishes to purchase a short sale, here are a few things to know:

• The process may be long... especially if the home was only recently listed.

• The offer may take a very long time to be considered. The bank will wait for the offers to come in and then will order (if the offer looks tempting) a BPO... which is like an appraisal. Then the bank will often look for an investor willing to accept the offer. This all happens behind the scenes... and it can take several months.

• The home is sold "as is"... properties tend to look worse than they did at the beginning of the process.

If the home is not sold, either on the existing market or through short sale, the bank will offer the home for sale "on the courthouse steps." In Arizona- this is, very often, a literal step. People gather at the steps and bid, auction style. The homes will have a bid price and title can be transferred to the winning bidder at a discounted price. If no one bids, the home will be sold by an agent who represents the bank.

Bank Owned Listings (also called "REO" or real estate owned) are sold "as is". The buyer is in a "what-you-see-is-what-you-get" situation. These homes may be in very distressed condition, but some of them are in surprisingly good condition. If the buyer wishes to purchase the property, he/she makes an offer. The bank will take time to consider the offer. The process can be brisk or lengthy. I'm seeing an average of between 30 - 45 days for the simpler bank owned transactions to go from acceptance to close.

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Chuck Willman is a real estate agent specializing in assisting first time home buyers and investors interested in purchasing property in the Phoenix metro area cities of Arizona. See him at www.azVest.com or by phone: 480.292.0600.

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Photo Credit: "Traveller" by Asif Akbar

Two deserts and two oceans.

These are the locations many have been reading about these past few months.

The four places in the nation that saw a great run-up in price in the middle of the decade and, consequently, they have also seen a steeper decline in home pricing in the past couple years.

• The two deserts are Las Vegas and the Phoenix area.

• The two ocean locations are Florida and California.

With the news of foreclosures, potential buyers have been approaching me (and other real estate agents) with this question:

"So.... uh... do you know where I can find a really good deal on one of those foreclosed properties?"

Short answer: "Yes."

Longer answer: "Depends on what you're looking for."

Over the past months I've been showing many more bank owned properties than ever. It's unavoidable... there are so many out there. Here are a few things to keep in mind:

• If you're using FHA financing the property will need to be in good shape. Major fixer-uppers will not make the grade.

• If the property has been purchased and fixed up recently (a fix and flip) "seasoning" could come into play. In many cases a property needs to be owned for 90 days before it can be insured during the transfer of ownership. Cash buyers need not worry- but those who are financing will need to take note.

• Buyers who do not have experience with construction estimating will want to consult with someone who does before purchasing "as is" properties. It's possible for the bargain to become a money pit.

• Banks are not always ready to deal and may not be in as big of a hurry as one might think. They need to do their own due diligence- so there are steps they'll take before taking huge losses.

There we go... a few rules of thumb for those thinking about such properties. Though I don't discourage people from purchasing bank owned homes, I do advise to go in with discernment. And yes... there are many outstanding values out there. Let's just make sure we know a few rules of the game before we decide to pursue this path to ownership.

In my next post I'm going to be speaking about making offers on bank owned properties.

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Chuck Willman is a real estate agent specializing in assisting first time home buyers and investors interested in purchasing property in the Phoenix metro area cities of Arizona. See him at www.azVest.com or by phone: 480.292.0600.

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Photo Credit: "Lost 3" by Sanja Gjenero

What creates a community?

I suppose we could say time. By accident we tend to stumble into each other’s paths sufficient to create some sort of relationship.

I think it’s more than that.

We become a community when we share a common bond. It may come through following the common path of witnessing a local team achieve… or, conversely, fail. It may come through collective festivities… where we party with one another.

However, as is true with friendships, many of our deepest relationships are forged through the fire of adversity. In short, through the crucible of mourning we find comfort with those who are “there” for us.

I wish it weren’t so.

The town of Gilbert experienced festivity and tragedy in a single day. With the passing of a local high school student, Kelly Tracy, and the injury of her brother in an early morning car wreck one community is doing what good communities do. They are reaching out to a family in their darkest hour.

The Highland High School band, distraught, cancelled their saturday parade appearance. The students were invited to an evening prayer service at the family’s place of worship, City of Grace church in the neighboring city of Mesa. Collectively they mourned.

This is diffucult for all of us... not just those who have lost loved ones under similar circumstances- our friends and family casualties to a preventable act- another casualty to a drunk driver. We catch ourselves saying that we shouldn’t have to meet this way so often.

Yet, our hearts are big enough to comfort.

A family needs our encouragement. They are witnessing what happens when a community comes together. Collectively we can provide that added strength that is needed when the burden becomes heavy.

The world lost another young one… Taken far too soon… and we wish the Tracy family well. We can only imagine the depth of emotion you’re dealing with right now. Our thoughts are with you.

For those who wish to offer your assistance (from AZCentral): A memorial fund has been set up through Washington Mutual and Chase banks to pay for funeral costs. A funeral service will be held at 11 a.m. Friday at the City of Grace Church, 655 E. University Drive, in Mesa.

Anyone who wants to help the Tracy family this week either through volunteering or contributions of another sort can contact Highland High School Band booster member Deidre Baxley, kdbxly@cox.net.

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Photo Credit: "Lonely Leaf" by Mateusz Stachowski

It's here! Gilbert Days 2008!

Beginning 9 a.m. Saturday November 15, downtown Gilbert will be awash in small town fun and festivities.

It all begins with a parade route that travels down Gilbert road from Juniper to the Town Square.

Then it's on to the Gilbert Municipal Center (South of Warner Road) for a party that lasts from 11 a.m. 'til the cows come home. (Note. The cows go at 5 p.m.)

The parade just keeps getting bigger and better. Expect to see plenty of floats, cowboys, horsies and any number of creative entries who will present their interpretations of the theme "Country Pride."

This isn't a one-off celebration. There's a carnival on November 22 & 23 along with a rodeo on the same days.

Of course, if you'd like a full slate of activities and directions, there's a handy website to find out more:

www.gilbertdays.com

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Photo Credit: "Festival" by Yarik Mission

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UPATE: I'll be withholding comments on this post. Please see my next post for further comments.

What Creates a Community? A Town Mourns a Loss

You can't leaf through business weeklies without finding a list proclaiming which city or state has the best this-or-that.

So I often take such information with a grain of salt. However, I *am* quite pleased that Business Week came out with their list of "best places to raise your kids" ... mainly because, of the 52 cities studied, Gilbert Arizona came in high on the list.

I know. Everyone has an opinion of which town is best.

Very often the place of our youth ranks very high in our own list. Since I happen to have lived in Gilbert as a younger guy I think their information is top-notch. :-)

I can attest that the quality of schools, the look of the country with access to the city, and the small town friendliness is tough to beat. It's just that kind of place.

Looking to make Gilbert your new home town? Let me know... chuck@newhomesaz.com.

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photo: Soccer Team by William Wilhelms