Monday, September 28, 2009

Selling Your Home?

In this market – and possibly this very moment – sellers across the country are
asking themselves one question: why isn’t my home selling?
While each client’s situation is unique, and we all think our homes are special, there is one underlying factor that makes or breaks a buyer’s decision to settle on your home: PRICE.

Pricing your home correctly in this market is one of the most critical actions you can take to sell your home faster – it's also one of the most difficult decisions you’ll have to make as a seller. Which is why so many people won’t do it. What sellers have to realize is that by making the decision to price correctly from the beginning they may be staving off further financial damage. For some, that means getting creative about finances, for others, it can sometimes translate to taking a small loss. In some cases, taking a small loss may be the best scenario.

Let’s look at it another way.
  • John Seller paid $300,000 on his home that is now worth $250,000. Many REALTORS® would tell him to come down on his price at the beginning by say, $20,000.

  • Now his asking price is $280,000.

  • Scenario (1):
    A buyer comes along after one month on the market. They know, based on the CMA, that Mr. Seller’s house is worth $250,000, so they put in an offer for $245,000. Mr. Seller decides to counter with $255,000, and SOLD! Now Mr. Seller can move on knowing that he is lucky not to have lost any more on his home.

  • Now Scenario (2):
    Mr. Seller actually decides not to come down on his price at all. As a result his home sits on the market for the first month with only a few bites from buyers but no official offers. An experienced REALTOR® would recommend that Mr. Seller come down 10 percent each month that his home doesn’t sell. He does it. Two months later Mr. Seller’s home is now at $243,000. Finally, in the third month, a buyer comes along and offers $237,000. At this point Mr. Seller is considering, but feels it’s too low, so his home sits another month. Frustrated, Mr. Seller decides not to come down on his price anymore. At this point Mr. Seller is in trouble. He is underwater on his mortgage and every additional dollar he loses on the home sale must come out of his pocket to pay off the loan. By starting at a higher value than the market will support, he stands to lose more than if he had factored in a small loss up front.
These two scenarios demonstrate the increasingly critical point of pricing your home correctly from the moment you decide to sell. While it may seem exaggerated, there truly are sellers experiencing situations similar to the ones described above. The good news is that by teaming up with an experienced real estate agent, who knows your market well, you have a far greater chance of making informed decisions about the price of your home. Your REALTOR® wants you to get the most money possible out of the sale of your home – and these days – that means reducing FROM THE START.

source: Wise Agent

Saturday, September 26, 2009

Chandler, Prudential Arizona Properties Office

Thursday, September 24, 2009

Point, Click, and Lose Weight … On iPhone

FoodScanner Demo from Andy Smith on Vimeo.

Existing Homes Sales Slide…Continued Price Declines.

Wednesday, September 23, 2009

One of our favorite songs - royksopp

Smooth Real Estate Transactions

Smooth Real Estate Transactions

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Monday, September 21, 2009

Phoenix, Arizona - Houses Bidding wars ONE MORE TIME!

Do we want to live bidding wars again? Do we actually have a choice?

Hanna and I practice real estate in Metro Phoenix AZ, heavily in East Valley Cities.
It is crazy out there! Tougher and tougher to "win" a property for a buyer.

First, finding a property that is an a good shape- with REO it is already a challenge. If one is found, there are multiple offers placed on the first day on the market. Trying to outbid the price 10-20% knowing exactly, that property will not appraise for offered amount! Explaining the strategy to the buyer that is being implemented just to get in the door. Next, waiting time to receive executed contract back from
the lender (sometimes 14 days or longer). You still not sure if you have the property tied up in or not, neither your buyer. Finally, appraisal came in low...what a bummer... Re-negotiating the terms with the lender again. By now, escrow is extended for 60 days or more. Finally, you are ready to close and just waiting for Title to be done. And waiting...

Second, the short sale bidding process. Competing against other bidders, having no idea if bank will even consider the price. If you buyer's offer gets chosen and offer is accepted by the seller, the waiting process starts there. To receive approval (or denial) from the lender/bank may take several weeks. So, eventually you may raise against nothing.

Third, "regular" sales by individuals that actually own the house and could sell on their terms. It seems like it is a sellers' market again, so multiple offers are very welcomed. Your seller will love you for bringing more than one offer to the table. It is great to be a listing agent in that position.

To survive a bidding wars again, we have to consider: buyer comfort zone, knowing the value of the property, and not letting emotion to drive a buying decision even though, buying a house is an EMOTIONAL process.

Megan Izdebska & Hanna Manoufar
Prudential Arizona Properties
3155 S Price Rd, Chandler, AZ 85248

Phoenix Real Estate - facebook page

Phoenix Real Estate - twitter page

Sunday, September 20, 2009

The Undeniable Truth About Plastics and Canned Foods

Friday, September 18, 2009

Amazing Pierre Cardin's House - a lot of Bubbles...

This masterpiece of modern architecture is located 10 km away from Cannes and was built in 1989.
The house has 28 round bedrooms similar to soap bubbles. Beds are also round.

Source: pierremeu

Wednesday, September 16, 2009

What's going on in the real estate markets in Chandler and Scottsdale

Trulia is one of our favorite websites that helps us the Agents as well as Buyers and Sellers to find a detailed analysis of what's going on in the real estate markets.

Below are a few statistics for Chandler and Scottsdale:

Chandler, AZ
  • The median sales price for homes in Chandler AZ for Jun 09 to Aug 09 was $197,000.
  • This represents an increase of 1.9%, or $3,750, compared to the prior quarter and a decrease of 18.4% compared to the prior year.
  • Sales prices have depreciated 5.3% over the last 5 years in Chandler.
  • The average listing price for Chandler homes for sale on Trulia was $325,917 for the week ending Sep 09, which represents an increase of 0.1%, or $414, compared to the prior week and a decline of 0.8%, or $2,591, compared to the week ending Aug 19.
  • Average price per square foot for Chandler AZ was $104, a decrease of 20.6% compared to the same period last year. Popular neighborhoods in Chandler include Sun Groves, Cooper Commons, Fox Crossing, Carino States, Saguaro Canyon HOA, and Provinces Master Community.

Scottsdale, AZ
  • The median sales price for homes in Scottsdale AZ for Jun 09 to Aug 09 was $307,000. This represents a decline of 4.7%, or $15,000, compared to the prior quarter and a decrease of 22.2% compared to the prior year.

  • Sales prices have appreciated 2.3% over the last 5 years in Scottsdale.

  • The average listing price for Scottsdale homes for sale on Trulia was $794,667 for the week ending Sep 09, which represents a decline of 3%, or $24,372, compared to the prior week and a decline of 2.1%, or $17,196, compared to the week ending Aug 19.

  • Average price per square foot for Scottsdale AZ was $163, a decrease of 36.8% compared to the same period last year.

  • Popular neighborhoods in Scottsdale include South Scottsdale, and Pinnacle Peak.

statistics from Trulia

Fail to prepare, prepare to fail -Tax Credit Extension

Our economy still needs a booster. The great way is to keep the tax credit (or increase it to $15,000) for 2009.

Again, not only for first time home buyers, for any home buyer that is willing to live in the property. New home builders are excited with statistics on home sales being up for last 3 months, inventory is down and demand is positive. They are not too enthusiastic about time running out. New constructions cannot be finished by the due date-November 30.

The National Association of Realtors said earlier this month that the credit has already brought 1.2 million new buyers into the market, including 350,000 buyers who would not have purchased a home without the credit.

Obama administration has been approached to evaluate the Tax Extension for 2009. The benefits may out scale the expectations. However, many say that housing recovery is the icing on a cake not the cake itself.

Megan Izdebska & Hanna Manoufar
Prudential Arizona Properties
Chandler, AZ 85248

Monday, September 14, 2009

Tax Credit for first time Home Buyers, September Newsletter

With low interest rates, a large inventory of homes, and decreasing home prices, there’s never been a better opportunity for first-time homebuyers, who are financially able, to purchase a home. In fact, the National Associates of REALTORS® predicted 53.5% of homebuyers in 2009 will be first-timers; due in most part to the $8,000 tax credit. But who qualifies as a “first-time homebuyer” and what are the exact provisions surrounding the tax credit? Keep reading for a short FAQ and find out why you need to act now if you plan on taking advantage of this great government incentive!

1. Who exactly qualifies as a first-time homebuyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

2. How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

3. Are there any income limits for claiming the tax credit?
Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return.

4. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

5. How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns).

6. What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

7. I heard that some buyers are eligible to use the loan toward closing costs, is this true?
Yes. Buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home. Though, these same buyers will still have to come up with the minimum 3.5 percent down payment.

Advantages like this are hard to beat. If you are seriously considering owning your first home – and you qualify – let’s talk. I’ll go over the basics and answer any questions you may have about the home buying process. I also have contacts within the mortgage industry and can put you in contact with a lender who will determine if you financially qualify.

Megan Izdebska & Hanna Manoufar
Prudential Arizona Properties
Chandler, AZ 85248

Wednesday, September 9, 2009

New KIDS on the blog

We are "Brand New Bloggers" trying to read other blogs and educate ourselves how to do it, what to write on, how long the post supposed to be. Also, most importantly, how often and what content to post to start to be visible.

That is the purpose everyone is writing about: creating traffic to the website and receive leads. Does the content really matter? Does it have to be about real estate mainly? Otherwise potential prospect will not take you seriously if you write about your family, dog or what is being made for dinner today? Statistically, how many posts a week is desired to start to be effective. Any rules in general? Is blogging on other websites is as effective or more/less than on active rain? What is the best to start with?

I appreciate all the feedback.

Megan Izdebska & Hanna Manoufar
Prudential Arizona Properties
Chandler, AZ 85248

Tuesday, September 8, 2009

The top 10 cities where the economic reality now and the conditions are likely to get even better

The Forbes magazine published the top 10 cities where the economic reality now and the conditions are likely to get even better as health care, technology, and energy draw more employees into their ranks. Unfortunately Phoenix is not among them, maybe a relocation is the answer...

Here is the list:

1. Dallas
2. Houston
3. Minneapolis
4. Austin, Texas
5. Washington, D.C.
6. St. Louis
7. Seattle
8. Atlanta
9. Kansas City, Mo.
10. Denver

“Gone with the Wind”

Fellow realtors- either we are IN or we are OUT… Here it comes: non-traditional real estate online world. If you are on twitter, google, active rain, facebook etc, etc. you might catch a train. Otherwise you are missing out big time. You like it or not. That is the present and the future.
No matter what age you are. If you have a problem ask your kids. They are the best resource.

The world became global village, you need to be find virtually. The wind of changes is faster than we have expected, but how to keep it up? Enough to do during the day, what we have been doing already! And now we are being told it is not enough. Traditional marketing real estate channels are fading out (in my opinion). We can fight it or live it. It is scary at the beginning but once you started it is pretty addictive. Good luck every one!

Monday, September 7, 2009

Gilbert Home after "Extreme Makeover: Home Edition" - is for sale

The first home in Arizona after "Extreme Makeover: Home Edition" treatment is for sale, how much??? Only....$1.3 million. The Gilbert house, on Redfield Road, has six bedrooms and six bathrooms.

To find out more CLICK HERE

What predictions to follow...?

I wish I had a crystal bowl. Anywhere you look a different prediction in regards to our economy: good and bad... bottom out... not yet... maybe 2009... maybe 201... maybe never....
As a realtor I am being asked always the same question: do you think market is going to go down even farther? Is this community holds its value pretty well? Will it? Maybe it is not a good time to buy yet. I know, we talk about this over and over again. How to approach the concerns.
I wish someone would come up with universal answer for the time being. That would make our job easier. And I am not asking for sale speech or motivation dialogue we have at training meetings. Something real...

Read More

Rudeness or Courtesy? YOU PICK!

Rudeness or Courtesy? YOU PICK!
We are in hot buyers market again! You could tell, when you pull out with your clients at the property that has been listed for half a day and there are at least 3 realtor cars on the driveway already. How fun! Now, you wait in a air-conditioned car, or under the tree, or somewhere in shade until the people who are currently IN THE HOUSE are done viewing. It is called: COURTESY.
Realtor- TO- Realtor: have some etiquette and let everyone in a peace finish showing. Then you go in with your clients. If you do not wait, just decide to walk in any way it is called: RUDENESS and lack of respect. And your clients see that too (for sure!), because they do not want be interrupted when viewing the house themselves. I think good manners 101 in short lesson will help to refresh our good conduct of business.