Tips on Selling in a "Down Market", Pitfalls to Avoid

As I have been saying for some time now, prices are not going up here in Phoenix; nor are they flat; they are, in fact, declining. People are beginning to realize this and the latest figures in the Arizona press back up this assertion. Those folks blaming these reports for depressing home prices need to get their heads out of the sand and face reality.

Having said all that, I am definitely getting the feeling that buyers are beginning to come out of their shells here in the Valley of the Sun. With prices down considerably from the peak, but interest rates still at almost historical lows, buyers, quite rightly, feel that this is a good time to buy. However, they are in a strong position. Unlike recent years, they have plenty of inventory to view, can take their time making their selection, and can expect reasonable sellers to work with them on price and terms. Notice I said reasonable. Too many homes on the market today are so massively over-priced, and the owners are so ensconced in cloud cuckoo land, that they are not really for sale. Oftentimes, one of these owners of overpriced homes will tell you “Hey it gets shown a couple of times a week….” What they do not realize is that shrewd agents are showing the overpriced “turkey” in order to sell the fairly priced home down the same Arizona street.

What is a seller to do? Well, if you have to sell your home, you have to price it accordingly. “Price fixes everything” has always been my mantra and always will be. If you want to sell your Phoenix area home the list price has to be in what I call the “Top-Ten” of lowest prices. In order to sell a home, it has to be shown. It will not get shown, at all, if the price is unreasonable. If you want to sell your home make sure, at the minimum, that you have as many clear photos as possible. You should have a virtual tour. If your agent has neither of these things, fire him or her. Buyers, mostly on the internet, skip over properties without visual representation. You cannot afford to be skipped over.

Finally, in this type of market, watch out for the bottom-feeders. There are people, and agents, who churn out junk-offers by the score at an arbitrary 70-75% of the asking price in the hope of finding desperate sellers. Often, even if you agreed to their low price, they just want to tie up your property until they can find a buyer to sell it to, at a profit, of course.

Also, beware the offers that are 30-35% over asking price in which you kick back excess funds, over appraised value, to the buyer. These almost always involve bank fraud, corrupt appraisers and an excellent chance of a trip to the hoosegow.

Don’t let greed or desperation blind you.

Anthem Arizona, A Terrific Place To Call Home

Many times over the years, a new subdivision is created with little or no real thought about the infrastructure required to support the newly-created community. Well, this is categorically not the case with Anthem. Everything you need is there, or on its way, and then some.
Created by Dell-Webb, this Arizona town on the outskirts of Phoenix offers homes to suit all budgets; from the mid to low $200K all the way up to “oh my goodness gracious.” There is something for everyone. From a young family just starting out to a retired couple looking for space to entertain the grand-kids, from time to time, Anthem has you covered. All of this, plus an easy commute via I-17 to Phoenix if that is where work takes you.
Also, for the family, there is the lure of brand new schools, with excellent sport facilities, libraries and, in some cases, theatre complexes to help keep your children motivated and actively involved.
Plus, the recreation facilities are world class. The park-like, open space communal area with duck-ponds and waterfalls are an absolute joy to behold. Early one evening, recently, I saw a father with his young son and daughter doing a little fishing. What better way to unwind after a long day of work, than to kick back with your children and exchange stories of your day, whilst teaching a worm to swim at the end of a fishing pole? Remember, though, “catch and release” only! Arizona living at its finest.
There is also a model railroad that runs through the park offering rides to one and all.
For the more energetic amongst us, the diversions are endless, offering basketball and tennis courts plus a gymnasium complex with 2 swimming pools that are the envy of the surrounding Arizona communities.
The huge gym is stocked with up-to-the-minute equipment, including stationary bikes, treadmills, free weights; you name it, it’s got it! Aerobic classes are offered and there is also a rock-climbing wall for those days when you don’t have enough time to conquer Everest.
Then there are the pools. An enormous regular pool for swimming and an even larger one with water slides and water features worthy of a water park anywhere in the world. Watch out for the enormous bucket in the air that fills up and then overturns and splashes down on everyone. Great fun for all kids aged from 8 to 80. Lifeguards are in attendance but please, be careful out there.
Anthem, like much of the Valley of the Sun, has golf courses that rival the finest that Scottsdale and Phoenix have to offer.
Everything is right here in Anthem including Wal-Mart, Home Depot and many other nationally renowned “Big Box” stores. There is also an outlet mall for those canny shoppers among us who like saving money. Plenty of good eating to be found from upscale local restaurants to well known fast-food stores.
In all my years of selling real estate, I have rarely seen such a well planned and executed community. Anthem AZ is truly a great place to start or raise a family. What are you waiting for?

It's An Ill Wind...

Headlines are a funny thing. By their very nature, they are, of course, designed to catch our eye. They are supposed to entice the reader to read further. Unfortunately, in this day and age, few do. I mention this because a client recently pointed out a headline, in a local Phoenix newspaper, which said, or words to this effect "survey shows Phoenix house prices to rise." Boy, was he excited; and no, he did not read the article. The poll was conducted, and I will not name names, by a cable company. Yes, a T.V. cable company. Respondents were invited to answer a series of questions by pressing a button on the remote. They overwhelmingly thought that house prices would rise next year. How unscientific can you get? A poll is only valid when questions are asked of a broad-based demographic, in this case hopefully of people buying or selling a home in the next year, or at least having the wherewithal to do so. Likely respondents in this "poll" could range from bored teens, the baby-sitter, folks trying to change the channel or even the family dog's errant paw. But people point to the headline because they want to believe. The facts, unfortunately, might lead you to a different conclusion.
I decided to do some research to see where this might all lead. I picked an area, the type of subdivision of which there are many in the Valley of the Sun, again I won't name it, that had 37 homes for sale, all in close proximity, in the $200-$300K range. Essentially, all were 3 bedroom, 2 bath, and essentially the homes were very similar, having been built by the same contractor. Of those 37, fully 29 were either vacant or had a tenant. This means that 78% of them are owned by an "investor". What does logic tell you will happen to prices if some of these guys "start to panic", (if you are a seller), or "Get real" (if you are a buyer)? Couple this to the fact that the Builder is still frantically constructing more competition on a daily basis: Plus he is offering no-money down, low interest rate financing, granite counter-tops and sundry other upgrades. Still think prices are going up?
Disaster, huh? Not at all. The vast majority of folks bought these homes 2 or 3 years ago in the $150-175K range. Admittedly, some folks who bought last year may have bought at the top, but historically all should be well over a 5 year, or more, period. Just not in 6 months. But the folks who still have equity in their property get real stubborn. They hope against hope that prices will rise at the same rate they did 2 years ago. Extremely unlikely. It never ceases to amaze me when, otherwise, sane folks; doctors, lawyers and other professionals, get real blinkered in the face of evidence to the contrary. Many say to me, "I'll just rent it for 6 months, and it'll be fine...won't it?" It might but I somehow doubt it.
Let's look at the positive sides. For those folks who thought they had missed out forever, on owning a home in Phoenix, here is another chance to get a foot on the ladder with sellers, both private and corporate, bending over backwards to help you. Have at it!
This is also a great time to trade up. Remember, a year ago you were so happy your house was worth $500K? But sad also, because your dream home with pool and horse facilities on an acre was $1,000,000? Well guess what? This year your house is only worth $350K, but your dream home is now only $700K. So last year the move would have cost you $500K ($1,000,000 - $500,000= $500,000); This year it will only cost you $350K to effect that move. What are you waiting for?
Seafaring folk have an old saying "It's an ill wind that blows no good..."

Desert Hills, Arizona; Rustic Ranches to Sophisticated Custom Homes

Desert Hills is a newer community the boundaries of which are, approximately, Anthem to the north, Carefree Highway to the south, 24th St. to the east, and I-17 to the west.

It has a very interesting mix of smaller cottages at the lower end of the scale, up to million dollar properties at the higher end.

Definitely a favorite amongst equestrians as demonstrated by the many ranches in the area, plus the varied homes that enjoy horse privileges and have corrals and tack barns in their backyard.

One of the big advantages of Desert Hills is the proximity, and ease of access, to downtown Phoenix afforded by I-17. It is eminently possible to work downtown during the week, but at weekends enjoy all the fun of horseback riding, easily achieved with a 30-40 minute commute.

Not too long ago, some would have deemed Desert Hills as a little too remote, although that may have been a bonus to others, but today as more and more homes are being built, the infrastructure is starting to arrive. Also, with the building of the eclectic and wonderfully charming development called Tramonto, at the western most end of Desert Hills, there are now supermarkets and fast food restaurants to serve the new residents. As of this writing, Home Depot is about to open a new store further increasing amenities in the area.

So, whether you are a horse lover or not, Desert Hills is a wonderful community to raise a family; or to retire and relax and enjoy the wide open spaces, and magnificent mountain backdrop.

Come set a spell, I'll bet you'll want to stay!

Carefree living in Carefree, Arizona. Desert dwelling at its finest.

On the north-eastern outer reaches of the Valley of the Sun lies Carefree, like neighboring Cave Creek, a hamlet nestled just to the north of Scottsdale. Principally known as a haven for retired folk, many of whom visit during the winter from colder climes and are known as "snowbirds", however, of late, many year-round residents are opting for the tranquility of Carefree, while commuting to their jobs in either Phoenix or Scottsdale. Consequently Carefree, much like Cave Creek and the surrounding environs has seen considerable growth in recent years.

Spanish Village is a shopping center in the heart of Carefree with many eclectic stores and restaurants. It is also host to antique car shows, home shows, art shows and horticultural events during the course of a year, making it an extremely popular destination for both residents and tourists alike.

A little further south on Tom Darlington Road we have another shopping complex known as "El Pedregal". This is a more upscale development with many art galleries, gourmet shops, boutiques and jewellers. There are several excellent restaurants at the facility, which is a two storey affair arranged in a circular fashion. There is a stage at one end and, due to the "amphi-theater" style arrangement, it is an excellent venue for the many musical concerts, of all genres, that El Pedregal hosts each year. Grab a glass of wine, sit back, relax and enjoy the show.

Carefree also has a general aviation facility with a 4100 ft. runway, which is home to many aviation enthusiasts covering vintage aircraft to modern experimental lightweight craft. This year, at a combined antique car and plane show. We were privileged to have a bit "flying fortress" of World War II vintage fly over in all it's majesty. Very awe inspiring; an what a crowd it drew that day. We also were fortunate to have two F16 fighter jets do a fly-by from Luke Air Force Base. All in all a good day out for all the family.

That sums Carefree up really. Many people come to visit from all around, and some just cannot bear to leave. It has all the benefits of a small town with all the attractions and facilities of two major cities, Scottsdale and Phoenix, just a scant 30 minute drive away.

It cannot be beaten.

Cave Creek, Arizona; A Great Place to Call Home

Cave Creek is one of those towns you must visit the next time you are in Arizona. Situated in Maricopa County, about half an hour northeast of downtown Phoenix, in the Valley of the Sun.

First settled in the 1870s as a mining camp the town incorporated in 1986; consequently it will celebrate its 20th Anniversary this year. In fact, a visit to the Cave Creek Museum is very informative and is well worth it.

Nestled on the western side of Black Mountain, the town recently took steps that will lead to the opening of hiking trails on that mountain, which hopefully will lead to its preservation as a nature reserve. In that light, in recent years Cave Creekers voted to buy, via a self-imposed tax, the several thousand acres that now form the Spur Cross Ranch Preservation area. This is a very popular local attraction that provides many hiking trails, of varying difficulty, as well as many guided tours by park rangers through normally restricted areas several times a year.

About 10 miles east is the Tonto National Forest, which just recently was blanketed in a foot of snow; an occurrence that happens roughly once a decade that brought many visitors from all around, the youngest of which were glimpsing the white stuff, in person, for the first time.

Cave Creek is well known as an equestrian town and seeing a horse on the highway is almost a daily occurrence. Many homes, usually on more than 2 acres, are zoned with horse privileges in mind. (Check with the very helpful folks at Cave Creek Town Hall to make sure). The two main equestrian events are Fiesta Days in the spring and Wild West Days in the fall, which attract many visitors to the town.

The main street offers western flavored stores, including many saloon-style Bar/Restaurants. And yes, you will see a horse tied up outside, just like the movies. We also have a world class five star restaurant, Binkley's, which is a treat this writer reserves for special occasions.

Buying a single family home in Cave Creek "proper", generally, but not exclusively, north of Carefree Highway starts in the low $400s, and goes all the way up to the multi-millions. At the higher end, many homes have between 4 and 10 car garages, and it is not at all unusual, on the weekend, to see motorcycles and antique cars touring through the countryside.

If you were ever thinking of coming to Cave Creek, there has never been a better time. Prices have leveled, if not dipped slightly, since the madness of last year, giving buyers an opportunity to negotiate a fair price for their next home.

I live in Cave Creek myself, and heartily recommend it.

Before You Buy That Home, Do Your Homework

When it comes to buying a house, I often think that people do more due diligence and research when buying a computer or a stereo, than they ever do when buying a home. They know all about woofers and tweeters and gigabytes and hard drives, but get a blank look when you mention GFCIs and R-factors in insulation. Why is that?

Firstly, I think with certain products, say a new car, we've read consumer reports; we know the mileage; we know how well it holds it's value; so, all we really have to do is pick the colors. All the research is already done for us; an Accord is an Accord is an Accord, they are all the same.

Houses, generally speaking are not and I think we approach the purchase of a home from a much more emotional standpoint. That is entirely understandable. Sure, we check to make sure we are in the required school district, but after that it all gets a bit hazy. We walk onto the property, we love the rose bushes in the front yard, the flooring in the dining room is superb, the window coverings are to die for and the backyard barbeque area is just perfect.

In reality, and realty, these things are just superficial accoutrements. They are important, at some level, in the sense that you have to be attracted to the home in the first place, but before you make an offer you really need to cast a more critical eye over the property. Walk to the very back of the property. You might get a better view of the roof and chimney. Does it look ship shape up there, or will it need work. Are the floors even, or do they slope? Do the stairs creak and groan? How are the walls? Are they straight and even or do they look like they've been patched up lately, maybe from water damage. Sniff around the bathroom and under the sink. Any mildew-like odors emanating from there? Walk the perimeter of the structure looking for any foundation cracks or settling. Walk to the street for a different angle of the roof. Check the driveways and walkways for cracking. Their replacement can add up to big bucks.

I know what you're thinking; I'm going to get a professional inspection done anyway. Right you are and, of course, you always should. But you might discover something that puts you off the property before you incur that expense. Plus, having a good look around may influence the price you wish to offer, if you find items that will require attention.

Two final points. If they are around, talk to the neighbors as they can be invaluable sources of information, both good and bad. Finally, come check the place out after dark, you never know what you may discover.

Happy Hunting.