North Phoenix Agent Blog

Local favorite B & B Appliances is a great hidden spot in North Phoenix. They’ve been family owned and operated since 1980, and just last year they relocated to a larger shop.

They sell a huge variety of appliances for every budget at straight retail. They also have a great scratch & dent section where they sell misordered, wrong color and blemished appliances at about 20% to 50% off retail pricing.

You want it? They got it. With over 1,000 square feet of floor space, they’ve got one of everything. You won’t find commercial grade Viking ranges and restaurant quality Sub Zero’s here. Go to Scottsdale’s Home Depot Expo for those. But for folks like me & my typical clients, making it on a regular workman’s wages, this is the place.

Visit their awesome website at www.BBAppliances.com. 331 E Dunlap Road, Phx, 85020. Call 602.870.1662.

“RealUmbrella, a new site for home buyers and sellers that launches today in California … seeks to link for-sale-by-owner buyers and sellers directly in an online platform that features digital documents and electronic signatures for a flat fee.”

“The company charges property marketing fees ranging from a few hundred dollars up to about $1,000 depending on the package chosen by sellers, and there are no fees for buyers who work with RealUmbrella sellers.” (From Inman.com)

I have a cracked tooth. It’s not painful, and as a molar it’s not visible to anybody but me, but it should be taken care of. Filled, mended, capped, whatever it is that dentists do to cracked teeth. I don’t know what they do. I don’t want to know. I just want to hire an expert to evaluate the situation, and then do exactly what he or she recommends, regardless of price.

The point? Sometimes teeth are like homes. For most Americans, your home is the single most expensive thing you’ll ever own. The average home price in metro Phoenix is over a quarter million dollars. I can’t think of anything else that most Americans will own which costs a quarter million dollars, on which many of us would consider going the Do It Yourself route.

Buying or selling a home is an incredibly complex process. The contract metro Phoenix Realtors use runs to 9 pages. Add in the required addenda, qualifications, additions and so forth, you’re at 13 or 14 pages of fine print in legalese.

Selling a home is at least a 30 day process where something happens every day.  I have several things to do every day to make sure the buyers, sellers, inspectors, the lender, home warranty people, home insurance people, and title company all make it to the closing table on time, at the same time, with no ruffled feathers and no dashed expectations or last minute surprises. All that activity is normally transparent to the buyers & sellers.

That’s the way it’s supposed to be. Sellers need & want to spend energies packing and choosing somewhere new to live. Buyers need to provide their lender with an endless stream of papers. Then in their ’spare’ time they need to pack, arrange movers, forward the mail and the utilities.

I’m busy at least 10 to 12 hours a day, every day, weekends and holidays included. I have a transaction checklist that runs to a full legal sheet of paper. The phone bill I rack up arranging all these items is larger than the gross domestic product of some Third World countries.

Would you choose the cheapest accountant you can find and trust him to complete your tax returns? When your children are sick, do you look for a discount doctor? Would you go to divorce court without an attorney after reading a few articles at Law.com?

For most of us, the answer is ‘of course not’. For most Americans, selling or buying a house takes way more energy, expertise and time than most of us are willing (or able) to put in.

There will always be some folks who can and do sell and buy real estate without a qualified Realtor’s consultation. I know several attorneys who’ve done it successfully. A couple of experienced investors I know who originally started out using Realtors now do it themselves.

The number one thing I learned after attending real estate school? If I ever give up my real estate license, I would never, ever, under any circumstances sell my house without hiring and paying handsomely the most experienced Realtor I could find.

Maybe I’m being naive. Or maybe there’s a lending rule I’m unaware of. But it seems to me that a lot of homeowners facing foreclosure would be well served if their lenders worked with them to refinance their debt over 40 years instead of 30. Why is the 30 year mortgage the gold standard?

Shailesh, I’m counting on your comments!

I suspect that the 30 year mortgage is based on olden days, back in the 1930’s and 1940’s (or 20’s?) when home mortgages became common. Back in the day, folks lived in the same house for 30 years or more. Dad worked at the same company for 30 years until he retired. He probaby started work at age 18 or 22 and retired with the house all paid off when he was in hid mid-50’s. People didn’t live much longer than their late 50’s, early 60’s, so this system probaby seemed logical to everyone involved.

But times have changed. Almost nobody pays off a house through actual payments anymore. Americans are living to 80 and 90. Most live in a house only 3 to 7 years before they refinance or sell (and pay off their lender).  And if the lenders are willing to lend huge sums of money on a 30 year mortgage, knowing full well that most borrowers will pay off the mortgage through a refinance or sale, then why not lend the same huge sum of money on a 40 year loan?  What’s the difference?

Take your average $200,000 loan at 6.25% for 30 years. Payment is about $1231 a month. Stretch that out to 40 years and the payment drops over a hundred bucks to $1135.

Let’s imagine a real scenario (one based on a client of mine). Homeowner owes $200,000 at 8.125% and another $50,000 at 10.25%. Together, these are a $1933 per month payment. If the lenders both agree to extend to 40 years, and shave a little off their rates, the homeowner could see a drop of nearly $200/month in the payment ($200,000 @ 7.75% over 40 years + $50,000 @ 9.00% over 40 years). Two hundred a month is significant to this homeowner. It means the difference between holding onto her house, or facing a short sale.

Lenders would make more money in interest payments over 40 years than over 30. The buyer-borrowers could afford to stay in their homes. Lenders avoid the loss they almost always take when they foreclose on a home.

So why is 30 the sacrosanct number in mortgages?

Buying a Fixer Upper? There are many ways to make a new home livable while you are saving for that new living room furniture you want. Below are some quick tips to get your new home into tip top shape without spending a lot of money!

Make Each Room Your Own.
You’ve done it! You own your first piece of property. Make a list. Take each room and place a photo, plant, paperweight or personal item that reflects you and your individuality. Your home should show off your unique personality.

True Colors.
Any new room can be made comfy with a new coat of paint. Choose warm colors for rooms you will be relaxing in, and cool colors for offices and bathrooms. Six Points Hardware is a super place to get paint from a local source. 10009 N 19th Ave, Phoenix 85021.

Pay Attention to Light.
Does your new home have a great window that lets in beautiful light? Or maybe you have a sliding glass door that gives you a great view. Be sure to keep these spaces open and unblocked.

Curtains.
Go inexpensive with some pretty, simple curtains. Use white to match with everything, or pick a color that you know would brighten up the room.

Simplify.
While moving in to your new house, make sure to take charge and throw away useless items that you will not use. You are starting over! Folks who are less fortunate can put your castaways to good use. Try Saint Vincent De Paul or Goodwill. Or pick a niche charity that appeals to you. Try Arizona Community Foundation, Arizona Women’s Education & Employment, or the Boys & Girls Club of Metro Phoenix

Plants and Flowers.
Use your interior decorating eye and find the perfect places for some potted plants and flowers. Instead throwing out withering flowers, hang them upside down and dry them for a great wall piece. Moon Valley Nursery is a local favorite with several locations. They’ll help you pick the right plants for your space & lifestyle, and teach you how to care for them. Go Local!

Go Flea Marketing.
Spend a Sunday shopping at a local flea market for a unique piece for the new room in your home that is your favorite. Treat yourself and you just might come across a valuable piece! There’s a huge, awesome indoor swap meet at about Bethany Home road and the I-17. For swap meets in other parts of Arizona, try this site.

Rugs and Carpets.
Find a nice simple rug to save your carpet. A vibrant rug can add a splash of color to any room.

The Great Frame Up.
Fill a wall with photos of you, your pets, your friends and family. With today’s digital cameras and high-quality color printers, developing is a snap. Try Dollar Tree stores (or your local deep discounter) for cheap frames. Choose an odd number of frames and lay them out on the floor to get the arrangement right before you start nailing holes in your walls.

Chair Makeovers.
Give your favorite oversized chair a makeover and buy a plain colored chair cover. These work great and make it look like you bought a new piece of furniture! Anna’s Linens or Bed, Bath & Beyond often carry great chair covers.

I was going to try to write a post about the gut feeling I’m having that prices are dropping in the Phoenix area by about 1% to 2% per month.

But then I thought, “I can’t post gut feelings on my blog. People don’t pay Realtors big bucks for gut feelings. I need hard statistics.”

Blogger John Wake to the rescue. He’s great with the nifty charts and graphs, and an all around super duper blogging Realtor. Check out his post about price drops in Phoenix.

Wondering what to make for dinner? Ever wished you could hire a cook?  Visit Dream Dinners instead.

Dream Dinners is part of a new wave in the culinary world – meal preparation franchises. They do the time consuming prep work and you breeze in & out of their kitchen with a fresh, healthy meal ready to go in mere minutes.

The North Phoenix shop is located at 822 E Union Hills, Phoenix 85022. There are franchise locations in 34 states, with 9 shops in the Valley.

I’ve tried and tried to write a beautifully written, well-crafted post explaining Dream Dinners. I’ve been at it for a half-hour. It’s impossible to explain what they do in well written prose. They’ve posted a nifty video on their site that explains it all.

I went to the website and signed up for their introductory package for $49. It includes 6 servings each of 3 different main dishes (Herbed Dijon Chicken Breasts, Parmesan Crusted Tilapia with Tomato-Garlic Aioli, and Tuscan Turkey Medallions). That’s 18 meals for $49 – a good value in my thrify book. Toss together a salad at home and you’ve got a balanced meal.

I visited their shop at 7th St & Union Hills, cooler in hand to tote home all my delicious meals. Sign in, tie on an apron, and grab a couple of gallon sized zip-top baggies. They’ve provided recipes, exact measurements of ingredients directions for putting it all together and even cooking instructions for once you get it all home.

Start at one end of the gleaming stainless steel kitchen counters where all the ingredients you need are set out: frozen meats, marinades, spices, toppings, garnishes. Place 3 chicken breasts in one baggie, add the herbs & Dijon marinade. Then fill another baggie with the bread crumb topping. Repeat w/ another baggie & another set of 3 chicken breasts.

Boom, you’ve got 6 servings of Herbed Dijon Chicken Breasts.  Pop ‘em in the freezer at home, defrost 1 baggie at a time, pop in the oven and you’ve got 3 main dishes in less time than it takes to wait on a pizza delivery.

Visit their website for more information. (They’re probably more eloquent than I am anyway.)

1. Remove photos of pets from the walls, shelves, or refrigerators.

2. Clean food and water bowls regularly, and hide them when not in use.

3. Stash away pet toys, crates, carriers, and leashes.

4. Vacuum carpets, upholstery, and wood floors.

5. Keep litter boxes clean and out of sight, and remove signs of doggy potty pads.

6. Open windows to let in fresh air.

7. Neutralize odors with fresh-smelling candles and air sanitizers.

8. Hire professionals to remove unsightly pet stains.

9. Board or crate animals during open houses.

10. Repair visible signs of pet damage, such as scratched walls or floors.

Source: Newsday, Aimee Fitzpatrick Martin (12/29/06)

For folks trying to sell their home in the Metro Phoenix market, it’s been a confusing year. Sometimes you hear prices are down. Sometimes the local media says the median price is up. Staging is vital. Staging is superfluous. Get a pre-listing home inspection. Don’t get a home inspection. Get an appraisal before you list. Appraisals are worthless. Who knows anymore?

Real estate & media types who talk about the importance of “being priced right” are (sometimes inadvertently) contributing to the confusion.

People who tell you “you have to price it right” could be avoiding the truth. These days in the Metro Phoenix area the truth often is, “if you really want to sell you have to be priced 2% to 5% less than the last sold comparable property.” 

Let’s say you’re a homeowner who needs to sell and you’ve invited several Realtors over to interview them. Many will Oooh and Aaaah and assure you that you really can ask $10,000 more than the competition because you’ve got shelves in the garage.

Some gutsy Realtors might tell you that while your home is truly lovely with many thoughtful & useful upgrades, it’s important to price below the asking price of homes currently for sale, and also below the last sold comparable property.

What that Realtor will say is “price below sold comps.” What you’ll hear is “your home is worth less than your neighbor’s.”  When you hear that, you’re going to experience an unpleasant mix of emotions. It’ll feel like someone just spat all over your hopes and dreams, told you that your home and your entire lifestlye isn’t worth as much as a tin shack on the beach in Guadalajara, called your children ugly and kicked the family dog while she did it.

You’re going to hate that Realtor. Instantly and irrationally, you’re going to wish bodily harm on that Realtor and imagine kicking her out your front door, action-movie style. How dare she imply that my house is worth less than the neighbor’s?!

If you are that home seller, I implore you to fight the urge to go Dirty Harry on the Realtor who’s just told you the most truthful thing she can. Take a deep breath and remember the dynamics of a declining market.

In a declining market, housing prices fall. As a seller, time is not your friend. Homes that sell six months from now will sell for less than homes that sell this month. This has nothing whatsoever to do with your house, your lifestyle, your children, your intrinsic self-worth, your financial situation, or your need to net a certain amount on this sale so you can move on.

All things being equal, in a declining market houses priced below the most recent sold comps will sell quicker than those priced above the last sold comp. And because homes priced below the competition and the sold comps sell quicker, the sellers will net more money than sellers who overprice and sit on the market for months and months, taking incremental price drops while they chase their competition to the bottom.

Sellers, do yourselves a favor. As long as your gut tells you everything else about that Realtor is OK, hire the one who gathers up her courage and tells you to price beneath the last sold comps.

The Real Estate Bloggers posted today about the disappearance of no-money-down purchases from today’s market, due to the credit crunch.

While I generally agree that buying a home with no money down isn’t a good thing, it’s important not to overcorrect in formulating our new attitude towards subprime borrowers.

Subprime borrowers buying homes they never thought they could was a major driving force in the great housing market most of us have been through in the past 3 to 6 years.  Here, when I say “subprime” I mean first time buyers, who generally are younger and have so little credit history that they’re pegged subprime when they make a loan application.

First timers buy a home, allowing the existing owner to buy up, who buys a home being vacated by another seller who’s probably moving up…

Undoubtedly there were some bad loans made in the go-go boom years of ‘04 and ‘05. Greedy lenders gave purchase money to people who shouldn’t have been loaned a stick of gum. Some people played the system to get homes they knew they’d never make a payment on, hoping against hope that they could sell at a profit before the 3 months of missed payments triggered a foreclosure.

But… if we forget about first time buyers, it could put a serious dent in the already banged up Metro Phoenix housing market.

We agents have a chance to wade into the current housing mess and really make a difference. Listing agents - don’t clutter the crowded marketplace with overpriced listings. Chris Butterworth posts eloquently on this topic.

Buyer’s agents - court first time buyers. Sure, they don’t spend as much money and they’re loads more work because you have to explain everything 3 times. But the first timers can still get qualified by the lender of last resort - the government in the form of the FHA loan. Plus, the emotional payback of putting someone in their first home is nearly indescribably wonderful.

‘Course, maybe I’m just a sucker for a well produced TV commercial. As I write this, I’m remembering a commerical for the show My First Place that runs frequently on the cable network HGTV. The spot features a weepy-eyed first time buyer and a beaming Realtor handing over the keys to the buyer’s first home.

Yeah, that one gets me every time. And those Hallmark commercials. Oh, and the Folger’s commercials where the college age son makes a surprise visit home and wakes his parents up by brewing fresh coffee for them (relive the magic here). Yep, I’m just a sucker for an emotional TV commercial.

The Arizona Business Journal reports that the Valley’s construction industry is holding it’s own during this economic shake up, and our jobs growth remains strong.

Maybe I was overhasty w/ yesterday’s post. Trying to sell residential real estate in today’s slower market can sometimes get a girl down. 

I’d like to see some local job growth figures to see if we’re growing or slowing. I’m off to put a call in to Janet.

For the first time in 4 years, the US economy actually lost jobs. For any sadists (or insomniacs) reading this blog, you can click here for the raw data from the Bureau of Labor Statistics. Scintillating reading!

This is depressing in and of itself, not least of all for the 4,000 people who lost those jobs.

I’m getting increasingly pessimistic about the impact the current housing/mortgage upset is having on the broader economy.  I think some of the Big Wig national economic forecasters are underestimating the impact a slow housing market and credit crunch worries will have on the US and world economies.

I’m no statistician, so all I’ve got is warm and fuzzy math & gut feelings to lay out here. I think it could get ugly. Really ugly. I’ve not lived through a recession as an adult, so maybe I’m being a little paranoid.

But……

I think the frantic soundbites in the national media telling Papa & Mama Couch Surfer that their house is worth less, their jobs are in jeopardy, the war in Iraq isn’t getting better, and the Presidential election is shaping up to be a slug fest between about 117 different no-names…… All that’s likely to put Middle America on the sidelines.

They’ll stop buying little luxuries. Postpone vacations. Buy at WalMart instead of a department store. Drive an extra half-block to save 5 cents on gas.  And they’ll most certainly stop thinking about moving anytime soon. It’s just human nature to sit on the deck when the pool water’s clouded with mud.

The Metro Phoenix housing market is pretty clouded w/ mud right now. Not to mention For Sale signs and foreclosure notices. I’m hunkering down for a long haul outta this slump.

Starting a new blog has just made me aware of all the things I don’t know. Between widgets and text blocks and feed buttons and whatnot, I’m having nightmares about my blog.

I’m working on making the feed button easier to use. Bear with me. If you’re a blog newbie like me, go to Google.com/reader. Sign up for a reader account. Once you’ve got it, click the button on the left that says “Add a Subscription” and paste my blog address into their subscription space. Easy. You’re done. Now you’ll get an automatic update every time I post some new, brilliant, utterly unique thoughts on my blog.

Many, many thanks to my neighbor for suggesting tonight’s entry. I was experiencing a severe case of AHSS (Attitudinal Holiday Spillover Syndrome) and hadn’t come up with a bleedin’ thing to post.

Homestead Kennels is a local favorite among the doggie set! They offer all the things Valley dog lovers have come to expect from a doggie daycare: top notch food & water, outdoor dog runs, playtime & a loving environment.  But family-owned Homestead is a bark above the rest, offering extras like

• Grooming Services
• Obedience Classes
• Photos of your Beloved Canine Enjoying Playtime
• Luxury Suites
• Sibling Boarding Rates
• and a complimentary bath for every Fido & Fidette on the way back home to Mama & Papa

Their website’s a little Web 1.0, but give them a call. Man’s Best Friend will thank you. Located at 3730 East Edna Avenue, Phx 85032. Phone 602-992-2205.

Legal Disclaimers and Mumbo Jumbo: I do not have any connection w/ Homestead, nor am I even a dog owner. I’m waiting for someone to introduce the Valley to Kitty Day Care. Meow!

The blog will go quiet for 2 days while I’m vacationing and contemplating the meaning of Labor Day. Which, of course, requires lots of picnicking and beverages. Enjoy your holiday!

President Bush today announced a plan to give homeowners with mounting mortgage debt a chance to refinance their adjustable rate, subprime loans. Estimates are that 80,000 homeowners would be helped by this program.

An hour before the President’s speech, Fed Chairman Ben Bernanke spoke in Jackson Hole, Wyoming. He said, “Obviously, if current conditions persist in mortgage markets, the demand for homes could weaken further, with possible implications for the rest of the economy” and “We are following these developments closely.” In Fed-speak, this almost certainly means a rate cut is coming at the Sept 18 meeting.

The web & traditional media is chock-full of commentary about this issue already. My take? Bush & Bernanke put a Band-Aid on a gunshot wound.

Today’s plan lets 80,000 homeowners refinance under expanded FHA lending rules, provided they have good credit and at least 3% equity in their homes. The plan begins in early 2008. What’s not good about that, right?

But, it’s commonly thought that 2 million people might be in trouble in the coming 12-18 months due to a softening housing market (read, “falling prices”) and re-setting adjustable rate mortgages (read, “your payment’s going waaaaaay up”).

The people really hurting in this mess are those who (1) can’t afford their payments post rate-reset, and (2) live in a house that’s not worth what they owe on it because local housing values dropped. To put salt in the wound, these folks often ruined their credit by missing payments.

And the President’s plan leaves 1.9 million of them out in the cold. 

One hopes that the talking heads on tonight’s news are right when they say that more relief is likely to come in months ahead.