The Scott's Sell Scottsdale

Gary Scott, Realtor®, GRI  -  -  Claudia Scott, Realtor®, GRI , e-PRO
Call Toll Free at
866-464-2140        
or
e-mail -Garyandclaudia@cox.net
www.AZ-real-estate-sales.com

 The current Buyers Market conditions provide the perfect opportunity for the qualified first time home buyer to be able to get a foot hold in property ownership. The inventory is higher than ‘normal’, the interest rates remain low and sellers are willing to negotiate! Even though the lending standards may have tightened, first-time buyers can now qualify for a loan and handle the monthly mortgage payment.

She first researched the type of loan that allow her qualify to purchase. Once she qualified for an FHA loan that currently requires only 3% down but will increase to 3.5% after the first of the year, we began our search. With the loan in place, we then determined the maximum amount she wanted to pay per month including principal, interest, taxes, insurance, mortgage insurance (if required) and HOA fees. Then we narrowed down the communities that had properties meeting her requirements in the areas that she wanted to live in. We toured the subdivisions that met our criteria and compared the options between units within each community as well as the other like communities. We found a great condo that met all of her requirements. Even though the unit was not a short sale or foreclosure, the seller was anxious to sell and willing to reduce her unit to sell at the average sales price per square foot in today’s market place. The unit had been well maintained and we were able reap the benefits of the upgrades that the current owner had completed. The unit was freshly painted and most of the kitchen appliances had been replaced, as well as the washer & dryer and carpet! Is it perfect?? No. Are there are some additional updates/upgrades that my first time home buyer is anxious to incorporate as she makes the property ‘hers’? Sure, but for now she can move in and complete these projects as she has the time and money. She is thrilled to NOT be throwing her monthly rental payments to a lease. Her new mortgage payment is not much higher than her current lease payment and with the additional tax benefit, her payment is actually less than her lease. What a satisfying experience to help someone find their dream home!!!

Are you confused??   What exactly is the difference between a ‘short sale’, ‘foreclosure’ and ‘Real Estate Owned Property (REO)’? How do the banks/lenders handle each type of scenario?  

• · The  Short Sale: involves buying a house for less than the amount the seller owes the lender. To qualify for a short sale, the property must be the seller’s primary residence and he must apply with the lender proving hardship. The buyer is actually negotiating with the band/lender. Do not assume that the property is a bargain. With some due diligence research comparable houses are selling for, check to see whether a foreclosure notice has been filed for the property and who owns the loan or loans, and how much is owed. The home is often sold ‘as is’ as neither the seller or bank are willing to make repairs or provide any warranties. However, the buyer should have a home inspection to understand what the condition of the property is. Only a small percentage offers on these homes actually get approved. The process can be time-consuming and frustrating for all parties involved.

• · The Foreclosure: is the legal process by which a mortgage company can obtain legal ownership of a property.  The home owner is relinquished from any right to the property and evicted from the premises. Foreclosure can begin a soon as a home owner is late with the mortgage payment. In Arizona, the lender appoints a trustee to handle the paperwork, The trustee first records a ‘Notice of Trustee Sale’ - the home is to be sold no sooner than 90 days from the recording date of the notice. If the home is not reinstated by the owner during this time, the trustee will conduct a sale of the property. The home is sold to the highest bidder (which can also be the mortgage company). Again, understand what you are purchasing, a home inspection is a good idea before you make any bids. If the bidder successfully wins, he until 5:00 p.m. of the following day (assuming that it is not Saturday or a legal holiday) to pay the remaining balance in cash or other acceptable forms of payment as determined by the trustee. Title is conveyed to the winning bidder by a trustee's deed. The auction is not a place for the feint hearted.

• · The Real Estate Owned (REO): refers to a property that has gone back to the bank, or the mortgage company, after an unsuccessful foreclosure auction. A bank-owned property is typically restored to a salable condition. Appliances are often included with an REO purchase. All liens against the property or any unpaid taxes or fees are settled once the property becomes an REO.

The Office of Federal Housing Enterprise Oversight (OFHEO) is an excellent source of real estate consumer information. Here you can research Mortgage Basics,  Mortgage and Housing Fraud, Foreclosure Avoidance, view the latest Housing Price Index across the US, research and compare many of the major metro areas on a quarterly price index and much more.  Check out your state/city.

Another source of valuable for real estate information and resources is the National Association of Realtors (NAR).  Research the latest news affecting the real estate industry or review their guides to Home Buying or Selling. 

The Arizona Association of Realtors (AAR) offers a “Buyers Advisory” (pdf file) detailing many  of the issues of purchasing property here in Arizona. Including Common Documents a Buyer Should Review; Common Physical Conditions in the Property a Buyer Should Investigate;  Conditions Affecting the Area Surrounding the Property the Buyer Should Investigate; Additional Methods to Obtain Information About a Property as well as Information about Fair Housing and Disability Laws.  The AAR also provides a “Home Buyers Checklist” (pdf file) answering questions you may have while searching for your home.

It is important to be an educated buyer when making an important purchase such as real estate.  Select a Realtor who knows the local real estate market and one who will strive to ensure that you are an informed and satisfied buyer.The Buyers Toolbox on our web site offers additional useful information related to the process of purchasing a property.

When looking to buy and/or sell, or know of anyone that is, feel free to contact us.

Gary and Claudia Scott, REALTOR®, GRI
Call Toll Free at 866-464-2140
or
e-mail - Garyandclaudia@cox.net
www.AZ-real-estate-sales.com