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To Quote Lenn Harley
* * * * HARD CORE REAL ESTATE TALK AHEAD* * * *
No day goes by that I don’t see real estate agents advertise something like, “I can short sell your home at no cost to you”. This leads many distressed sellers who are upside down on their home, or who have suffered some catastrophic financial setback to believe that they can be relieved of their mortgage obligation with no cash to the deal.
Both of these are dangerous assumptions. Nobody can make the claim there will be no cost to you before a complete pre-short sale package of forms has been prepared, and the lender has made a committment. When an agent makes these claims without several hours of discussions with you and your lender, be careful, it is a careless claim at best.
In addition, since Arizona is an anti-deficiency state, sellers are lead to believe they will have no further responibility when the lender takes a loss on the short sale. Borrowers are protected under the anti-deficiency statute ONLY under very specific conditions. The indebtedness must be for PURCHASE MONEY loans, for an OWNER OCCUPIED home of 1-4 units. Home Equity Lines of Credit do not normally qualify. Cash out refinances do not normally qualify either, unless the borrower can PROVE the funds were used to improve the property. Other restrictions also may apply.
If an agent tells you they will NEGOTIATE WITH THE LENDER, run, don’t walk away. Agents claiming to do this run the risk of prosecution for practicing law if they don’t belong to the state Bar Association. You, the SELLER, negotiate with the lender. Your agent helps you negotiate with the buyer, and helps manage and communicate the transaction, but cannot negotiate with the Lender.
More later, as this is a complex subject and cannot be explained in a brief post.
Jim Little, your Sun City Neighborhood REALTOR© I try a “Little” harder
I don’t have an invitation, but am watching the results of those who do. It will probably take a long time for the vendors to the real estate industry to get on board, but how nice to have all of the 50 to 60 pages of transaction docs in one place.
Likewise, how nice to be able to interact with a client in real time from miles away. It could save days of windshield time with buyers, and be great when representing absentee sellers at inspection time also.
If this sounds like a hint for an invite, YES! If you have one to spare, I would appreciate it.
Jim Little, Your Sun City Neighborhood REALTOR®
Jim Little, your Sun City Neighborhood REALTOR© I try a “Little” harder
Yesterday, I finally got around to evaluating the Sun City Market by housing type. ie Single Family vs Condominium. I used the last six weeks of MLS data for this. (9/1/09-10/14/09)
I have long felt that the single family home is more desirable to most of the buyers who come to Sun City, but have never done the analysis required to prove it.
As you can see from the following spreadsheet, homes sell one third faster than condos. The lesson, if you are a buyer, and want to buy a home, you must make up your mind quickly as more snowbirds will be here competing with you. If you are a seller, be patient.
The market ratio is a new metric I am using. A ratio less than 20 indicates a buyers market. A ratio of 20-30 indicates a balanced market. 30 or more is a sellers market. As you can see, the single family home segment is very close to a buyers market now, but the condominium segment is still a strong buyers market.
Jim Little, your Sun City Neighborhood REALTOR©
I try a “Little” harder
And, The Numbers For September Are:
- Active Listings as of 10/1/09 689
- Average List Price $135,500
- 79 homes sold
- Absorption Rate 9 months
- Number of Single Family Homes for Sale 357
- Number of Condos for Sale 332
- Average Days on the Market 135
The Sales prices ranged from $46,900 to $470,000 with an average of $125,484. This represents an average price per square foot of $81.98.
The Year to Date Sales Are:
- Total Number of Homes Sold 1/1/09-10/1/09 799
- Number of Single Family Homes Sold 1/1/09-10/1/09 457
- List Price/Sold Price of Single Family Homes $148,913/$138,454
- Number of Condo Style Homes Sold 1/1/09-10/1/09 342
- List Price/Sold Price of Condo Style Homes $102,448/$98,718
Overall, we have survive the summer relatively well. Buyers are now showing up at open houses. This is the beginning of our winter season and the outlook is generally hopeful.
Jim Little, your Sun City Neighborhood REALTOR
Who do you know that is looking to buy or sell real estate in the next 6 months? Contact me and I can either help them locally or refer them to a competent real estate agent through my extensive network of agents nationwide.
Jim Little, Your Sun City REALTOR
It is always a big thing in Sun City when Fall comes. Up in the northern areas of the country, you probably mark the day you first see geese heading south. Here in Sun City, we count the first Minnesota license plate sighted. It is a better measure of the season than the weather, which still is in the 100 degree range. The nights are much cooler now, and the days are a little bit shorter.
Welcome back winter friends.
Jim Little, Your Sun City Neighborhood REALTOR®
Sun City AZ was Del Webb’s first and premier age qualified community. Mr. Webb envisioned a community dedicated to the wants and needs of persons who were retired, or soon to retire. He knew these buyers were active and wanted to remain so.
Sun City was built with a recreation center , (now 7) a golf course, (now 7 + 3 country clubs) and stores all completed by the first day of sales. With the addition of Boswell Hospital, Sun City became a virtually self-sufficient community, unique then and still unique and desirable today.
The following are 5 of the many reasons people move to Sun City AZ:
Climate. Without a doubt, this is the foremost reason people move to Sun City. The Arizona economy used to be based upon the “4 C’s:” Climate, Cattle, Copper, and Citrus. Of these, only Climate and Cattle remain important. Unfortunately, Cattle is becoming less so. Our climate provides warm, sunny winters with minimal rain, almost no snow (you can visit it in less than 2 hours if you wish).
Cost. Homes in Sun City today, 9/2009, range from a $40,000 1 bedroom condo to $450,000 semi-custom homes on a golf course or a lake. (Yes Virginia, we have lakes) There is a home in Sun City to suit the needs, wants and budget of almost everyone.
Convenience. Sun City AZ has the benefit of being part of the Phoenix metropolitan area, with fine dining, museums, hospitals, parks, theatre, symphony and universities, and professional sports teams like the Diamondbacks, Cardinals and Coyotes.
Health. This has historically been a major reason why people move here. The climate has long been known to be beneficial to arthritis sufferers. Sun City is home to Banner/Sun Health and Boswell Hospital, leaders in the treatment and research of age-related problems.
Recreation. This is a subject too big to be covered adequately by any one post. I’ll write more on this soon. For the time being, did you know there are 120+ clubs sponsored by the Sun City Recreation Association? There is something here for anyone. Yes, we have shuffleboard, but also softball, recreational and competitive swimming, bocce and lawn bowling, fine arts and crafts, in short, if you cannot find a club to share your interests, maybe you have no interests.
   
Jim Little, Your Sun City Neighborhood REALTOR®
This just in! The Arizona Legislature is hoping to sell and lease back the state capitol building and othe state buildings. I’m an agent, hey House of Clowns, can I have the listing? The proposed price is $105 million.
Jim Little, YOUR SUN CITY REALTOR
It has been an interesting year. The first quarter was somewhat disappointing, but the second quarter is showing signs of improvement, at least in the areas of inventory and buyer activity. The following graph shows the Phoenix metro area as a whole.
Sun City itself remains stable, with just slightly over 6 months of inventory overall, reflecting a balanced market. When we look at single family detached homes vs condominiums, the picture is quite different.
There are 250 condos for sale in Sun City, the average list price is $101,200. Price per square foot is averaging $89. The average days on the market…200.
There are 302 single family homes for sale in Sun City, The average list price is $177613. Price per square foot is $107. The average days on the market is…134. In other words, houses are selling 1/3 quicker, and for 20% more on a dollars per square foot basis.
Jim Little, your Sun City Neighborhood REALTOR© I try a “Little” harder
Sun City Condo For Sale.
Just listed, this is a 2 bedroom, 1.75 bath garden apartment in Sun City.
Close to all of the Sun City amenities and conveniences, this is a perfect home for the winter visitor or the year-round resident.
To see a virtual tour, click here.
Jim Little, your Sun City Neighborhood REALTOR© I try a “Little” harder
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