Phoenix Metro Realty Blog

When was the last time you’ve heard of Free Business Checking? It’s back! AmTrust Bank, Arizona’s number 1 Small Business Bank now offers Free Business Checking Accounts. So stop by any of our 12 locations and experience the service you’ve never had before. Let us compete for your business and save you some money!

My name is Carmelyn Russell and I am the Customer Service Supervisor in our Chandler Branch. We are located at 2975 W Ray Rd, in the Southeast corner of Ray and 101. I will be more than happy to speak with you to better understand your needs as a business owner and see what we can do for you! You can reach me at 480-963-4419 or crussell@amtrust.com.

I am looking forward to serving all your financial needs!

10 Most Affordable Cities to Buy a Home
A family earning the national median income of $61,500 a year would be able to buy more than 60 percent of all homes sold in the last three months of 2008. Find out the cities with the most affordable homes.
Read more >
 
Who Will be Eligible for Foreclosure Help?
With the federal government hoping to finalize details for its $75 billion foreclosure prevention program by March 4, officials are fine-tuning eligibility requirements.
Read more >
 
Jumbo Loans: Still Available, Tougher to Get
Jumbo mortgages aren’t as easy to get as they were two years ago, but lenders say they are out there and available to those with the right income, credit scores and enough cash for a big down payment.
Read more > 
 
Home Builder Sentiment Rises Slightly
Home builder confidence rose slightly in February from its record low in January.
Read more >
 
More Vacation Properties Turn to Rentals
The supply of rental properties for vacation homes rose 12 percent in the last year, according to HomeAway.com
Read more >

Have you ever wondered what happens to your garbage once it’s picked up by the city? Do you know what kind of trees to plant at your home and where? These and other environmental-related questions will be addressed to provide residents practical tips to “green” their homes and their neighborhood during a free summit. The free summit will be at the North Gateway Transfer Station, 30205 N. Black Canyon Freeway from 8 a.m. to noon Saturday, Feb. 21, 2009.

Other items that will be reviewed include recycling, household waste, urban forestry, water conservation and energy conservation. The summit is coordinated by the Neighborhood Services Department, with staff participation from the Public Works, Parks and Recreation and Water Services departments and Office of Environmental Programs.

For more information or to register for the summit, call 602-495-0873.

Fulton Homes, one of the largest and reputable home builders in Arizona has filed Chapter 11 Reorganization Bankruptcy last Monday, January 26, 2009. I learned about it through the Realtor association while attending a continuing education class. News like this travel fast, almost instantly, in the Realtor world. Fulton Homes has currently 21 developments in the Phoenix Metropolitan area including 2 communities in Cobblestone Farms, Maricopa, and 3 communities in Villago, Casa Grande. The most expensive project they have is Fulton Ranch in Chandler, Arizona; million dollar track homes and custom homes in ½ acre lot. Fulton Homes is not going out of business; they need to file Chapter 11 to continue in business.

I purchased a Fulton Home in Cobblestone Farms in the City of Maricopa and had a great experience from ground breaking to the Final Walk-Through. I think the Chapter 11 Reorganization will help them out of this current housing market. They just have too many expensive projects like Fulton Ranch in Chandler, Arizona. They build quality homes compare to other Phoenix Builders. My personal building standard is pretty high, blame it to my engineering background; Fulton Homes was able to meet my standard by providing construction options and upgrades. Some of the upgrades included 2×6 framing, All Copper plumbing, 14 SEER AC; blow in Insulation, and other energy efficient stuff. When I did my frame walk-through, the super corrected all my request including adjusting some light fixtures and reinforcing some 2×6 studs. I had a chance to meet Ira Fulton when he visited Cobblestone Farms in Maricopa, he cares about their communities.

Here’s the Q and A with Doug Fulton, President of Fulton Homes, from ABC15.

Q and A with Fulton Homes CEO Doug Fulton
Douglas Fulton Addresses Fulton Homes Corporation’s Chapter 11 Reorganization

Q. I’ve heard that Fulton Homes has filed for bankruptcy. Are you going out of business?
A. Quite the contrary. We filed chapter 11 reorganization in order to continue operating without tremendous bank interference. Financially, we are in better shape now than before the filing.

Q. Which parts of Fulton Homes have filed?
A. Fulton Homes is made up two distinct corporations. Fulton Homes Corporation, the arm of Fulton Homes which buys and develops land, has filed for Chapter 11 protection. Fulton Homes Sales Corporation, which sells and warranties all of our homes, did not file.

Q. How about the warranty on my home?
A. The warranty on your home will continue without any lapse in coverage. Fulton Homes Sales Corporation, which sells and warranties all our homes did not file for Chapter 11 protection. Our warranty department remains staffed and committed to helping our customers.

Q. Why did the land development part of the business have to file?
A. The homebuilding business has been difficult, not only here in Phoenix, but throughout the entire country for over three years. Specifically, land prices have fallen sharply. With over 30 years of experience, Fulton Homes is confident in the housing recovery and the long term strength of the Phoenix housing market. Even in these tough times, Fulton Homes continues to sell homes, pay subcontractors and service our debt obligations. Of the many lenders we use to finance land acquisition and development, a distinct minority has taken action against Fulton Homes due principally to the current valuation of our land holdings. By filing for Chapter 11, Fulton Homes can protect our business, retain our value and continue to properly service our customers.

Q. What about the Fulton Homes’ donations and charitable contributions?
A. Those will continue, although not to the extent they were before the housing market weakened. To us, Arizona is not simply a marketplace, but it is the place we call home. Fulton Homes and the Fulton Family Foundation continue to be committed to the Arizona community. Giving back will always be part of our core philosophy.

Q. How do I know you will be around when I get ready to close on my house, or if I have a customer service issue?
A. Fulton Homes has built over 30,000 homes in the Phoenix area, since 1976. We continue to be committed to building great communities and homes. Our senior management staff are veterans of the industry who have a great deal of knowledge about the Phoenix housing market. We are still the largest family owned homebuilder in Arizona, and will continue to build homes that You’re Proud to Own.

Q. Does bankruptcy mean that you can no longer build homes, pay subcontractors or hire warranty service professionals?
A. Quite the contrary. Only the land development division of Fulton Homes has filed Chapter 11. In truth, we filed for Chapter 11 protection specifically so we could continue to build homes, pay subcontractors and service our warranties.

Q. What will the long-term impacts be to my Fulton home or community?
A. Honestly, not much. During Chapter 11 reorganization, Fulton Homes will continue to build homes, pay subcontractors, service our warranties and keep our communities looking great. The main impact will be to the length of time it takes us to develop future communities.

Q. How long will you be in Chapter 11?
A. That is difficult to say. We have six months to formulate a plan that would be acceptable to a creditor’s committee. As these proceedings are dictated by the courts, the timetable is uncertain. What is certain is that we look forward to emerging from Chapter 11 a stronger company.

Q. What about Homeowner’s Associations that you still control?
A. All of our HOA’s will continue to be fully funded. The appearance of our communities and homes is vitally important to us, as is our HOA’s long term financial stability.

The City of Maricopa and the ADOT (Arizona Department of Transportation) will be making improvements to the Smith-Enke (238) and John Wayne Parkway (347) intersection. The road construction will begin on Monday, February 2, 9 p.m.

Improvements will include the striping of dual left turn lanes on SR 347;  striping for access to CVS off Smith-Enke eastbound; new signals and signage. The intersection will remain open throughout the project and traffic controls will be in place. Drivers are reminded to proceed with caution and to expect delays. The project is estimated to be completed by 5 a.m., Thursday, February 5. For questions on this project, contact the City of Maricopa Transportation Division, (520)568-9098.

Road Work schedule:
February 2: 9 p.m. - 5 a.m.
February 3: 9 a.m. - 5 p.m.
February 4: 9 p.m. - 5 a.m.

Last week, Luxury home builder Toll Brothers began mortgage incentives; they’re offering a 3.99% fixed-rate 30-year home mortgage up to $417,000 with no points. Conforming loans are mortgage loans up to $417,000. This rate is well below the national average of slightly less than 5 percent and lowers than most other builders are offering.

Centex, Lennar and DR Horton have similar deals but they’re not luxury custom home builders. Centex and Lennar have bought down mortgages, offering buyers 3.5 percent for the first two years on their ready move-in spec homes. The rate then locks in at 4.5 percent. Toll Brother’s loan incentive is fixed 3.99% for 30 years.

That’s too bad because there’s no Toll Brother’s single family home community in the Phoenix area that’s below $417K, only condominiums. They build mostly in Scottsdale and their prices there starts in the $600K. Toll Brother’s development in Litchfield Park, Arizona is their cheapest single family home community in the area and its starting price is in the upper $400K. So, this loan incentive pertains only to their condominiums. 

See my previous posts on Builder Spec Homes.

Phoenix Area Home Mortgage loan rates are extremely low, a 50 year low to be exact. This is the best time to refinance or buy a home in the Phoenix Area. Even if home prices come down a little more, your mortgage payment will be higher if the mortgage interest rate increase. Those scenarios could be quite different as particular inflationary factors will likely come to light heading into summer of 2009. As we approach the summer driving season, gas prices may go up, some of the economic stimulus might begin to fall into place, corporate cost-cutting measures could start to take effect, and possibly the Fed will no longer be a buyer of Mortgage Bonds. These are all big players in the game that could very easily result in significantly higher interest rates this summer… so if you have been thinking about acting on buying a home or home loan refinance, do not delay. Please contact Michael Mumman at prestige Mortgage, LLC.

Michael Mumman
Prestige Mortgage, L.L.C.
mike@prestigemortgagellc.com
480-628-6789(c)
480-664-7336(office)
480-704-6100(fax)

I wanted to let you all know that I have a new mortgage product available for Phoenix metro home buyers who are looking to either purchase a single family residence property that is in need of repair, rehab, or upgrade. It is basically a home improvement loan done all in one transaction. This loan is perfect for homes that are possibly bank owned foreclosures that have been left gutted, need rehabilitation, or home owners who just want to upgrade an existing home. The maximum total cost for repairs is limited to about $31,000 and the maximum loan amount can not exceed $271,000.

Please call me anytime if you should have any questions on this product.

I wish you all the best in 2009.

Michael Mumman
Prestige Mortgage, L.L.C.
mike@prestigemortgagellc.com
480-664-7336

The maximum security deposit a Residential Property Managers in Phoenix can demand from the renter is one and one-half (1.5) of the monthly rent, as spelled out in the Arizona Landlord Tenant Act Section 33-1321. It does not prevent the Property Manager from collecting more if the tenant volunteers to give more security deposit; it has to be voluntarily given by the renter. The one and one-half of the monthly rent maximum is often misunderstood by rental owners, they often demand extras like pet fee, cleaning fee, pre paid rents, etc; the maximum deposits include all these extras. All non-refundable deposit (such as pet fee) must be in writing or it is by default refundable.

In the current residential rental market, demanding the maximum security deposit may lead to a higher vacancy rate; the property managers of the comparable rentals are only requiring one month rent security deposits. Luxury apartments in the Phoenix area are requiring only half of the monthly rent for their security deposit and they are giving rent discounts. So, marketing the rental home with the maximum security deposit may not get any renter inquiries. You have to generate interest first in your rental home; if the prospective tenant is interest enough to rent, they may offer the maximum deposit. We were able to collect the maximum security deposit on our rental in Chandler because the prospective tenant loves the home. It has many desirable features and it shows well, the potential tenant did not want to pass it up and they signed the lease contract, we only had this rental a week in the market and we were able to get higher rent than the rental owner estimated. To learn more about our Property Management Service in Phoenix, please visit our main site.

Centex Homes released more spec today at their Bridle Crossing at Trailside Point Community located in Laveen (Phoenix), Arizona. Centex also have new pricing on these quick-close spec homes, prices reduced by another $10,000!
 
Centex bought another chunk of the FHA loans with temporary rate of 3.5% in years one and two, and then fixed rate of 4.5% for the remaining life of the loan (years 3 - 30). 
 
Centex will also pay for 3% of closing costs.

Bandera, lot 3149, $135,305
3BR 2BA, 1,403 sq ft
Payments in years 1 - 2: $763/mo
Payments in years 3 - 30: $840/mo
 
Saddlewood, lot 4165, $144,900
3BR 2BA, 1,627sq ft
Payments in years 1 - 2: $813/mo
Payments in years 3 - 30: $895/mo

Cimarron, lot 4166, $159,900
3BR + master BR retreat, 2BA, 1,916 sq ft
Payments in years 1 - 2: $894/mo
Payments in years 3 - 30: $985/mo
 
Sendero, lot 3150, $169,900
4BR 2.5BA, 2,220 sq ft
Payments in years 1 - 2: $947/mo
Payments in years 3 - 30: $1,043/mo
 
Payment examples above are PITI and assume 3.5% down payment.
Let me know, if you’re interested in buying a new home.
Here’s a link to our Phoenix Real Estate Buyer Resources.

Phoenix home buyers today are asking for more green features as a means of lowering costs, becoming more environmentally friendly, and adopting a healthier lifestyle. After Price and Location, Green features are becoming one of the top three priorities.

Green features focus on energy efficiency, water efficiency, resource efficiency, and indoor air quality and include such elements as Energy Star appliances, low-flow shower heads, carpets and paint with low volatile organic compounds, and building materials procured from local suppliers.

The average green buyer will shell out $12,400–on average–for green features, according to the NAR (National Association of REALTORS). National Association of Home Builders green-building standards program manager Kevin Morrow expects the market share of green-certified homes to rise to 20 percent in 2010 from about 10 percent in 2009 and 2 percent in 2006.

Tax credits and other financial incentives, coupled with green certifications, makes it easier for buyers, builders, and real estate professionals to go green.

Source: Realtor.com

The Mortgage interest’s rates fell to new record lows, according to Freddie Mac, making it their 11th straight weekly decline. The 30-year Mortgage Interest rates (30-year fixed rate mortgages) averaged 4.96% this week, down from a previous week’s 5.01%. Home mortgage refinancing increased because of the record low rate helping cash-strapped home owners who are able to refinance if they are not up-side-down, you still need an 80% loan to value. Mortgage rates have continued to drop ever since the Federal Reserve announced a plan in December to buy up $500 billion of mortgage securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae—the government-sponsored enterprises.

“The fact that interest rates have dropped to a record low is an important development since more affordable home financing could help bring buyers back to the market and prevent some of these foreclosures,” says Lawrence White, professor of economics at New York University’s Stern School of Business.

Average Mortgage Interest Rates for the week:

30 year fixed rates: averaged 4.96 percent, down from 5.01 percent.
15 year fixed rates: averaged 4.65 percent, up from 4.62 percent.
5/1 ARMs: averaged 5.25 percent compared with 5.49 percent last week.

Freddie Mac started recording mortgages in 1971.

Source: Reuters

CNBC just reported the National foreclosures activities from RealtyTrac for the month of December 2009; 303,410 Homes received Notice of Foreclosures, that’s up 17% from November 2009 and up 41% from a year ago. RealtyTrac also put up the 2008 Foreclosure Filling Totals which is about 2.3 Million from 2008, 81% from the 2007 total and 225% from Boom Peak in 2006. California, Florida, and Arizona are among the highest foreclosures activities in 2008; California had 523,624, Florida had 385,309, and Arizona had 116,911 Total foreclosures filings in 2008. The foreclosures fillings are Notice of Trustee Sales, CNBC did not report the actual number of homes that foreclosed, bank owed. I have to look up the actuals and read the article from their source, RealtyTrac. I’ll look up total forclosures in Maricopa County. Some of the Foreclosures fillings get resolve with loan modifications, short-sales, or the property owner agreed on a payment plan to catch up.

The ADRE (Arizona Department of Real Estate) 2008 Annual Report is now available. It’s a very detailed information about ADRE and what they been up to last year, it highlights all accomplishments and changes. The current commissioner, Sam Wercinski, is very proactive since appointed in his position; he implemented a lot of efficiency and improvements in the department. I had a chance to meet him when I served in the Technology Work Group in 2007. He did a great job and it’s too bad that he is leaving his office. Since our Governor will be leaving to be in the cabinet of President Obama, we’re going to have a new governor this month. Sam Wercinski already emailed us his resignation just in case the new governor appoints another Commissioner.

Some stuff in the report:
There are 69,090 Active Real Estate Agents and 10,580 Real Estate Companies in the state of Arizona by the end of 2008; these are the agents and companies the Arizona Department of Real Estate Regulates (Page 14 of the Report).

Public Outreach and Education (Page 8), the commissioner scheduled public work shop across Arizona to engage with Brokers, the industry, and the public. It’s a great way to keep up with the Department’s current and future goals. It was interesting to learn these goals during Q and A session when I attended last summer.

You can download the 2008 ADRE Annual Report.

 “If a man is talking in the middle of the forest and there’s no woman in the area, is he still wrong?”

That’s from “The Peak”, Phoenix local radio station, I forgot his name but their spokes person is Mr. Peterman from Seinfeld.

It’s Monday, 2nd week of the year 2009, and I’m ready to start the week continuing my New Year resolutions.

Great news this morning, I receive 2 inquiries on the Chandler rental listing that I posted Saturday; it was shown by a realtor from Phoenician Properties already, just one day in the market. I sent him a rental application. The other inquiry is from a family relocating to Phoenix from New York; somehow he found my website in Yahoo.