30 – Day Market Snapshot for Maricopa County, Arizona

30-Day Market Snapshot
as of 10/28/2011
(from ARMLS for past 30 days
Residential sales only)

These numbers mean we currently have 2.54 months of inventory (2.57 last week)
(Active listings divided by sold listings!!!!)

Active listings in ARMLS	19,791	(19,830 last week)
Active with contingency	7,662	(7,704 last week)
Pending sales	11,322	(11,226 last week)
Sales in last 30 days	7,769	(7,704 last week)
Cancelled in last 30 days	1,682	(1,632 last week)
Expired in last 30 days	731	(732 last week)
Temporarily Off Market-last 30 days	551	(603 last week)

(Compliments of Baxter Home Sales At Keller Williams Realty Professional Partners • Phoenix/Glendale Arizona) 623.536.1111

Obama Recently Announced Changes to the Home Affordable Refinance Program

Widely anticipated changes to the Home Affordable Refinance Program (HARP) were announced on Monday, October 24,2011.

The two big questions are who will benefit and will the program work. The program has helped only a fraction of the homeowners that the administration had hoped for. By easing eligibility rules, the administration hopes 1 million more homeowners will qualify for its refinancing program.

A Roadmap of the initiative is as follows:

What is the Home Affordable Refinance Program, or HARP?
This program was started in 2009 to allow homeowners to refinance at lower rates. It was designed to allow borrowers to refinance their homes at lower rates without having at least 20% equity in the home. Few homeowners have been able to qualify due to being in a "negative equity situation". The administration hoped that the program would help  4 to 5 million refinance their homes, but in reality only about 900,000 homeowners have been able to take advantage of this program.

Why the lack of participation?
The program was limited to those borrowers whose home values have dropped no more than 25 percent below what is owed. Most of the hard hit areas have had a loss severity in excess of 50 percent. Also some did not want to incurr the refinance fees with the threat of looming continual downward price pressure on our housing market.

What changes are going to take place to allow more people to take advantage of this program?
The home owner's eligibility will no longer be limited by the loss severity or depreciation realized. The refinancing fees have been reduced dramatically so the cost of refinancing will reduced. The program will also extend through 2013.

Who is eligible?
Those whose loans are owned or backed by the two big  GSEs  Fannie Mae or Freddie Mac.To qualify for refinancing, a loan must have been sold to Fannie and Freddie before June 2009. Homeowners must be current on their loan. One late payment during the last six months will disqualify the homeowner.

Who will benefit the most?
Arizona, California, Nevada, and Florida

When will it begin?
Fannie and Freddie will issue the full details of the plan to lenders and servicers on Nov. 15, per the administration.

This program will do nothing to help the 6 million homeowners behind on their mortgage payments.

If you would like more information concerning your home value or to discuss how this plan can apply to your situation please feel free to contact us today. 623.536.1111

Source: “A Guide to Administration’s New Mortgage-Refi Plan,” The Associated Press (Oct. 24, 2011)

HOA or No HOA?

We have found over the years that our homes are only as valuable as the neighbor’s homes.  With that being said, sometimes it is hard to appreciate a homeowners association until you don’t have one, or until you drive through a subdivision that does not have one.  The difference in the subdivisions can be drastic.  Trucks and cars are parked down both sides of the street.  RV’s, including boats, campers, trailers, motorcycles and vans are parked on the side of the house.  Cars and trucks are parked in the front yard because garage and driveway space is taken.  Grease stains cover the streets.  Front yards are not landscaped or have multiple types of fencing blocking the front yards.  Trash and debris are piled high on the sidewalks. 

Unless there are rules with consequences in place, many homeowners and renter s do not take responsibility for keeping their exterior property clean, presentable and organized.  Therefore, if your neighbor’s house is not presentable, then your home has less value.  We see this example most when we list a property for sale on a run-down street or next to a neighbor who fails to maintain their property.  The neighbors and quality of the neighborhood will turn a potential buyer off right away. Many times when we have buyers in the car and we pull up in front of a home in an un-kept neighborhood or a property adjacent to an un-kept home, we do not even make it out of the car.

In summary, let’s look at the pros and the cons of living within a HOA:

Pros
Below are three ways in which a HOA is helpful and beneficial to a community.

• They are responsible for maintaining and paying for the upkeep of common areas, such as swimming pools, play grounds, public gardens. Without an HOA, the residents may not have a community with these amenities within their neighborhood.
• They help maintain or raise property values by regulating and putting rules and consequences in place to help keep a neighborhood looking good, such as preventing the issues above.
• They are responsible for mediating disputes between residents.   If there is a problem with a neighbor, the HOA should be able to help resolve it quickly and easily with hopefully little animosity left over, as it was the HOA making the final decision, not a complaining neighbor.

Cons
Here are reasons some people don’t like HOAs.

• Residents feel as if the HOA is always watching them to see if their grass is mowed to the right level; if they have planted the right types of flowers in their yards; or if they have a pet that is oversized or of the wrong breed.
• The dues they owe are just another added expense for them to consider when factoring how much home they can afford.  The dues typically will go up over the years, without much warning also.
• An HOA can put a lien on your home if you do not pay your dues within a set time frame. And if you fight them in court and lose, more than likely you’ll have to also cover the HOAs legal bill.
• A management company is usually hired to also help set and enforce the rules, which cause some worry to the homeowners as they feel that they are giving control of their properties/community to a company that is managing several others and thus having no personal tie to the community.

When considering these cons to living in a subdivision, just remind yourself that it is true that some HOA's are overzealous in their enforcement of the restrictive covenants, but those regulations were not created just to harass people about every little detail, but instead to protect the residents' property values. Their purpose is to help maintain a certain consistency, conformity, capital improvements, and conveniences for the neighborhood.  In doing so, an HOA inherently restricts the rights that would otherwise exist for its members based on municipal codes.  The collected dues are used toward the maintenance of the common areas or community property, or for other services.  It is not meant to be a profit-making venture in most cases.

So, what is the value of your homeowner association? If you consider the amount of assessments you are paying annually and compare that to any drop in value of your property, wouldn't you agree that the value you are receiving for the payment you are making is worth it?

Top Ten Reasons To Use Baxter Homes Sales

1. 2 For 1:  You really have 2 listing agents representing you instead of one!  We are interchangeable and are experts in both the buying and selling sides of the real estate transaction.  Secondly, we can be at two places at the same time to better serve your needs.
2. Experience:  We have closed hundreds of transactions over the past several years.  With the tough market that we are currently in, our experience will help minimize any negative circumstances that may arise.  Our team consists of professional, seasoned and efficient listing agents, buyer’s agents and short sale specialists.
3. Keller Williams Reputation: Keller Williams agents lead the industry in experience, education and results.
4. Education:  Marta Baxter - Bachelors Degree in Business Management /  Marketing Arizona State University;   John Baxter -  Bachelors Degree in Finance / Information Technology Stetson University Deland, Florida.

Continuing Education - We attend real estate classes on a regular basis to stay informed of the latest issues concerning the industry.

6. 98% Short Sale Success Rate for 2011 – We have closed over 250 short sales since 2007.
7. Communication:  We believe in strong communication during the listing and escrow period and are always available.
8. Save You Money on Fees:  We will discount the real estate fees on your listing if you either purchase another home from us or if we sell your home ourselves (We sell over 30% of our own listings!)  When you purchase a home from us, we pay for your home inspection!

9.       Area Specialists / Networking:  Due to our extensive experience in the area, we can price your house right thus netting you more money.  We have lived and worked in the area for more than 20 years thus having extensive knowledge about the schools and the local community.  We have excellent relationships with many of the local realtors thus creating another reason to get your home sold.

10. No Obligation Guarantee:  If you change your mind, you may cancel at any time.

Should I Consider a Short Sale?

Are you currently late on your mortgage payments?  Do you foresee being late in the future?  Is your loan balance more than 50% higher than what your home is worth?  If you answered “yes” to any of these questions, you may want to consider short selling your home.  If you have a hardship causing you to be in a distressed financial situation for reasons including, but not limited to the following:  divorce, job loss, income reduction, job transfer or illness, then we can most likely get your home approved for a short sale.   You must provide 2 years of tax returns, 2 months of paystubs (if working), 2 months of bank statements and a financial worksheet stating your current monthly income and expenses. These financials (for the exception of the tax returns, in most cases) must show a hardship. 

We have seen that short sales are much easier on the credit than a foreclosure.  Usually it is in your best interests to proceed with a short sale before you go into foreclosure.  If you are interested in short selling your home or know someone who is interested, please visit our website at www.baxterhomesales.com for more information.  Before completing the necessary forms, please complete the information page on our website so that we can better advise you on your specific situation.

Don’t Let Your Short Sale End Up in Foreclosure!

With a national success rate on short sales of less than 50%, are you prepared to take a risk with a listing agent who is inexperienced in this field?  The banks do not make it easy and you need a disciplined, aggressive agent who has closed at least 100 short sales.  Too often, the listing agent or negotiator will give up at the first  ”no” that they get from the bank. The short sale negotiation is a game and whoever plays the best game wins.  Many variables exist that need to be in place in order to insure the success of a short sale.  The short sale package, consisting of all of the seller’s financial information and purchase contract need to be set up for success and there are many details to consider in preparing for a short sale.  Additionally, the banks do not have the infrastructure in place to approve all of the short sales they are faced with.  You must find a realtor who is well-versed in the dynamics of a short sale and one who is experienced enough to get into the bank’s hierarchy if need be.   In some cases, however, if the bank’s net on a short sale is not favorable, there is a first and a second mortgage that will not work together or a mortgage insurance company wanting additional funds from the seller at closing, a the bank and or seller may let the property go into foreclosure.  We have a trained team who specializes in short sales and have a 97% success rate in getting these sales approved and closed.