Whether in your own community, your state or somewhere else in the country, a national property information database envisioned by a National Association of Realtors advisory group would be a welcome addition to the information we could provide our clients.   Accessible to varying degrees by consumers, agents, brokers, appraisers and government agencies, this system has the potential to include information on all types of properties, allowing Realtors to provide added value to their clients.  

I envision the ability to provide my buyer clients out of area information on listings that are not in my own MLS but are close enough that the general public assumes I have that information.   Armed with that information I can recommend properties to them and put them in touch with a Realtor I feel comfortable referring.   For my Seller clients, this would be an additional opportunity to get their home in front of millions of potential buyers.

In this age of information, we as agents benefit from providing as much information online as possible.   By allowing the Buyer to shop online, we are free to do what we do best--research the market and get value-added information to our buyers about neighborhoods, taxes, schools, and the history of the property they are interested in.  Contrary to popular belief, we are not giving up priority information, we are allowing our buyers to help us serve them with more efficient use of our time.

What do you think?

As the housing market continues to decline, some property owners who have not been able to sell are becoming Landlords by default.   It is estimated there are 10 million small and medium-sized residential landlords in the U.S., many of whom only have one rental property, and Arizona is no exception.  Most of these property owners became landlords because they had purchased another residence and were ready to move on, but prices were too depressed in their area to sell; or they couldn't get the price they wanted.  So to mitigate the cost of an additional home while waiting for the market to improve, they decided to rent it out.   If you've been thrust into that role, you're probably wondering if your tenant will pay the rent on time, and take care of your property.

The most important step you must take in your new role of Landlord is screening prospective tenants.   Taking these initial steps will prevent problems down the line:

Foremost on the list is proper identification. Before accepting an application, ask for a photo ID and compare faces and names. Do this for each adult who will be living in the unit.  If this sounds overly cautious, just remember it is easy to cover up poor credit or a criminal history by giving a landlord the name and Social Security number of a friend or relative with a clean record.  

By providing contact numbers for employer(s), bank(s) and personal references, applicants should understand that you will be contacting everyone directly, and that you perform a complete tenant screen with credit check.  But to make sure there are no misunderstandings, ask each applicant to sign a statement agreeing to let you check their personal and credit information. You can provide a separate form or simply include the following statement on your application above the signature line:

"I authorize the verification of the information I have included on this form, as well as verification of my credit history, as they relate to my tenancy and to future rent collections."

Once you have a completed rental application and have verified the identities of the adults who will sign your lease, your next step is to review the application. Ensure all fields are filled in and legible. If any of the information is missing, call the prospect and ask for it. Missing information is often a red flag.    When you get the credit report, verify the identification information in the application.   Check age, prior residence, birthday, etc.   If something does not match up, there a red flag.   Ask for an explanation from the applicant.

If you rely on credit agencies and other sources of information to make decisions about whom you will accept as a tenant, you need to comply with the federal Fair Credit Reporting Act (FCRA).

It is a good idea to read the Federal Trade Commission (FTC) landlord guide "Using Consumer Reports: What Landlords Need to Know" to ensure compliance with the FCRA. It provides guidance on how to use reports from credit bureaus and describes what you must do when evaluating an applicant.

Be prepared to contact former and current employers, landlords and references when screening applicants. Listen for what they say, as well as what they do not say.   Especially from the current landlord, who might want to be rid of the Tenant and will say anything to pass him/her on to the next unsuspecting Landlord.  Plan to contact a minimum of two prior landlords.

Still want to do it yourself?

Don't be embarrassed if this seems too daunting.    Enlisting the services of a professional could save you money in the long run.   You can mitigate your risk by using a Realtor® to find your tenant.  And for ongoing management, you can choose a property manager to collect rents, provide maintenance and repairs or any combination of these tasks.    See more tips on this subject and others affecting homeowners at my website: www.AudryWolff.com

8 Reasons Why NOW is a Great Time to Buy in Arizona:

#1-A BIG SELECTION - Anyone who considered buying a home a couple of years ago will remember that it was a "seller's market."  If you were lucky enough to find a home that was still available, chances are you were in a bidding war over it.    Today's market is just the opposite:  There's approximately 57,000 homes on the market in Metro Phoenix.  And that's not just in newer cookie-cutter developments.  It also includes homes on larger lots, with RV gates/parking, mature landscaping and trees, with or without homeowner associations.  There are so many more choices for today's buyer.

#2-INTEREST RATES -You can still get a great rate.   It's true, sub-prime loans are a thing of the past, but rate are still historically very low and not expected to rise anytime soon.  Seek out a mortgage professional (I will gladly suggest a reputable loan officer to work with you) and find out how much you'll qualify for.   If you need to work on your credit rating or save some money for a down payment, start now.  Don't wait until you've found the perfect house. 

#3-BOND PROGRAMS-Some great government sponsored bond programs are available in Maricopa and Pinal Counties.  These programs are geared toward first-time buyers struggling to purchase their first home and will cover from 3-10% of your down payment and closing costs.   And FHA loans have made a comeback.   There's even some special programs for teachers, firefighters and police officers.

#4-INCENTIVES-From closing costs assistance to cars, home theatre equipment, and vacations, home sellers are anxious to win your business, and will sweeten the deal by including one or more of these incentives for you to buy.   Nowhere is this more apparent than in the sale of new and spec. homes.

#5-LIVE WHERE YOU WORK-What a concept!  During the boom, you often heard "drive till you qualify".    Today, you can find reasonably priced homes in close-in locations so you don't have to spend 3 hours of your day on the road.

#6-LESS COMPETITION-The investors have moved on.  Although they left behind an inflated market, many rental homes, and in certain areas many vacant homes, you will no longer have to compete with investors for available homes.   Today, smart buyers no longer offer more than the home is worth or waive the appraisal just to be the successful bidder.   With that said, in today's market home sellers are happy to make minor repairs recommended by a home inspector.

#7-TAKE YOUR TIME-In today's market you don't have to feel rushed into a decision.   Once you find the perfect home, you have time to think it over without fear of another buyer snatching it from under your nose.   You can spend some time on due diligence and check out the neighborhood at various times of day to make sure it's the right home for you.

#8-BOTTOM OF THE MARKET?-Any economist will tell you, the best way to tell when the market hits bottom is when prices start rising.   And guess what?  By then, it's no longer the bottom!

A Short Sale occurs when a mortgage lender agrees to take less than the actual loan payoff to accommodate the sale of a home that could otherwise not be sold in today's market.  Why is this happening so frequently today?  Many homeowners took advantage of low interest rates over the past few years to refinance, or get second loans and home-equity lines of credit (HELOC's) using equity from their home to pay off bills, buy a car, start a college fund, etc.   When interest rates started to climb and home sales started to slow, these homeowners realized they had over-leveraged their home, and had no way out. 

Short Sales are one of the initial steps in the Foreclosure process. If the property can be sold with a Short Sale, the homeowner will not incur as much expense and will be relieved from debt much sooner than a Foreclosure.  And the Lender will most like cut its losses by eliminating court costs and fees paid to attorneys and trustees.  

In a Short Sale process the Lender must first agree to payoff the loan for less than what is owed.  A homeowner with the help of a Realtor, needs to demonstrate that the home cannot be sold for a sufficient price to pay off the full amount of the loan(s).   It must be actively marketed for several months prior to applying for a short sale.   Each lender has its own short sale application process, but it usually involves documentation similar to a loan application, involving current income and debt of the homeowner, and a demonstration of the homeowner's inability to keep up with the payments. W-2's, pay stubs, tax returns are just a few of the items needed by the Lender.

CAUTION:  If you are a homeowner contemplating a Short Sale, you should contact your CPA.  The amount of debt that the Lender forgives may be taxable by the IRS. 

There are many opportunities in the Phoenix/Mesa metro area right now for purchasing Short Sales.  A Realtor who knows how to search for Short Sales can to give you a list to choose from.  But remember, when purchasing a home subject to a short sale the most important aspect is timing.    Since the Lender is has the final say on any offers, you might need to wait up to 6 weeks for a response to your offer.  You must be flexible enough to wait for their response.   But unlike foreclosures which are typically suffering from months, even years, of deferred maintenance and abuse; short sale properties are typically in better condition.  And, although the homeowner might not be able to afford any repairs you might request as part of the negotiation, you can still have the home thoroughly checked out by an inspector before you commit to purchase.

If this kind of investment appeals to you, I can help.   For a current list of homes subject to Short Sale in Mesa and Gilbert, Arizona, send your request to Audry@Century21.com

The Phoenix/Mesa market has seen a dramatic increase in the number of foreclosures this year.  As a result, many homebuyers think they will get a better deal purchasing a Foreclosure...but beware, buying a foreclosure is not for the beginner. 

Quite a few of these foreclosed homes have fallen victim to the sub-prime implosion this year.  The owner paid too much or owed too much and allowed the lender to foreclose rather than come to the closing with a check for the payoff.   Banks would, of course, like to get as close to the mortgage balance as possible. But that balance may already be unrealistically high. By the time a Notice of Default is filed, the lender is already owed a substantial amount of interest and late fees.   And by the sale date the amount of money spent by the lender increases dramatically with attorney's fees, court costs and trustee's fees added to the total.   Hoping to recoup the money they have laid out during this process, these costs are reflected in the minimum bid set by the Lender.   If no one bids on the property, it becomes the property of the Lender, and must then be marketed to get best possible price.   A Realtor is hired and it is treated like any other home in the MLS.  

The REO (foreclosed property) is listed at a market rate comparable to any other home in the neighborhood...so where's the deal in that?   Now is when you need a good Realtor who can negotiate on your behalf.   Many REO's have months if not years of deferred maintenance, and have been abused by homeowners, or renters, who lost their home.   It is not unusual for the home to be stripped of all appliances and other items of value.  The bank will sell the home "as-is" with no warranty.  Funny thing is, they always want the same price as the house down the street which is in much better condition.  If the Lender is not willing to take what the home is actually worth, your Realtor can show you other homes in the area.   You might even be able to negotiate a better price on a non-foreclosure.

Buying a foreclosure is not for beginners.   There is a small group of seasoned investors who make their living buying foreclosures.  They know neighborhoods, home values and potential.  They can quickly estimate the cost to rehab a foreclosure.  If you do decide to play the foreclosure game, you need to be very familiar with the process.   Homes are sold to the highest bidder on the sale date.  The sale is final and not subject to the normal inspections during a due diligence process.   So be very sure the home is what you want.  You need to have substantial cash on hand.  Bidders must register with the trustee who is calling the sale and surrender a $10,000 certified check before the sale.   The successful bidder will need to pay the balance due within 24 hours.    

Another option many investors are considering these days is the Short Sale.  Read my blog on Short Sales to learn more.

A world-class whitewater river in Mesa?!   That's right, there's a new water sports facility on the drawing board for the Mesa Riverview area, and it will include a man-made whitewater river worthy of national and world competitions.   According to the USA Canoe/Kayak Association (USACK), natural rivers are too unpredictable for competitive events.   USACK is seeking venues with manmade rivers to hold world-class competition and training.  The US National Whitewater Center (USNWC) in Charlotte, North Carolina opened earlier this year and serves as a model for the whitewater river element of The Waveyard.   Already USACK has booked some world-class competitions at their facility.

But Waveyard is much more.   "It's essentially a retail resort built around an outdoor adventure lifestyle," says Scott Shipley (the engineer behind USNWC)  said of the Waveyard proposal calling for a 320-room hotel, 150 villas, a 30,000-square-foot conference center, 150,000 square feet of retail, 30,000 square feet of office space, numerous restaurants, an amphitheater and multiple residential communities. "The whitewater park will be similar, but there are other elements."

Coincidently, Riverview sits on a natural well which provides all the water necessary to feed this man-made recycling "river" as well as the rest of the complex where activities like kayaking, paddling, surfing, wave riding, scuba and snorkeling will take place.   Developers have studied water sources in the area and tell us this facility will use no more water than an 18-hole golf course.  In fact, the water table has risen considerably in the past couple of years since agriculture was halted on this land.  Due to this unique feature, and the parcel's proximity to Hwys. 101 and 202, it is an ideal location for this giant water-sports theme park.      

Although the baseball fields will need to be moved to another location somewhere in the City, and Riverview Golf Course will be eliminated; proponents are counting on a projected annual $5 million in revenue to the City as a result of this development, and tout the thousands of construction and permanent jobs it would create.   The increased revenue adds up to about 100 times what the City receives with the current use of this property.

Don't like the idea of giving the developer incentives?   Nobody likes the idea, except the developer of course.  But this time around, the City has taken precautions to ensure the incentive package does not kick in until certain milestones are met.  If the developer doesn't start work within a reasonable amount of time, the land goes back to the city. And the developer is not entitled to any further incentives unless key components of the project are operating: the surfing wave pool, whitewater rafting, kayaking and paddling course, scuba dive and snorkeling lagoon, retail shops and a resort hotel.   Overall, it sounds like a winner for Mesa.   Just the economic booster shot this City needs. Remember to vote November 6th - Yes for Waveyard