I think I said in the column that most real estate agents are honest decent people. But I've dealt with enough of them over 30 years to learn that there are some very bad apples out there. I personally have been burned several times by these folks. The problem is, you can't tell which is which until after the damage has been done.
Like all parts of the financial services industry, the rules you are supposed to abide by have been bought and paid for by the industry. There is very little meaningful, effective consumer protection on the books to deal with these bad actors. "Self-regulation" - urging real estate agents to adhere to a lofty, industry-generated Code of Ethics - is all well and good. But there's very little enforcement. The only remedy is a civil suit, which is costly to the buyer and wouldn't be necessary if the broker was honest in the first place.
I'm not just talking about those absurd, flowery listings that stretch the truth and waste everyone's time. I'm talking about serious misrepresentations (aka lies) by brokers to close a sale. As I said, I've experienced this first hand more the once.
The first step to fixing a problem is acknowledging that you have one. Unfortunately - judging from the response to the column - you guys aren't there yet.
After reading this article http://www.msnbc.msn.com/id/32939476/ns/business-personal_finance// I felt the need to write to Mr. Schoen.
Dear Mr. Schoen,
I read with interest your analysis on real estate agents and their motives. I have been a real estate agent now for over 23 years and certainly can see the logic in your argument. Real estate agents are indeed commission based, the higher the price and the sooner they buy the argument goes the better it is for this breed of unscrupulous and greedy folk. Clearly the real estate mess we are in today must largely be the responsibility of this group.
Unfortunately, as with so many articles written by journalist experts, it appears that the easy populist slant reflects a lack of understanding. It would be my expectation that someone in your professional capacity, as an educator of the public, would have dug a little deeper. In my business as an independent contractor and a business man, I rely on my clients for their referrals and repeat business, I have in other words a vested interest in taking my responsibilities to them seriously. Their satisfaction with me feeds my children!
There are individuals who take the easy road to make a buck today (or sell an article now) and the Wall Street money managers have a few examples. Perhaps, instead of venting spleen on an industry whose participants for the most part were caught up in a storm not of their making you may want to look to the money managers who knew what they were doing and did not care.
I have a high regard for the "Fourth Estate" as a protector of our society. Clearly you failed us with Iraq! It would be interesting to read an article investigating why the banks appear to be so reluctant to work out mortgages for those who are loosing their homes. Is there profit in foreclosure? Check it out (hint talk to some realtors) and maybe you can save people from loosing their homes. I know in my market there are over 47,000 people who would thank you!
"Existing Home Sales Jump to Two Year High" today's Bloomberg News proclaims and in the Arizona Republic there was the headline; " After 27-month slide, Valley home prices holding steady" affirming that our market is also stabilizing. The National Association of Realtors reports today that sales of existing homes jumped 7.2% in July the highest gain on record. Statistics that I have been keeping echo the headlines - in July there were 8,093 resale homes sold and currently there are 18,854 homes that have received an accepted offer pending closing. Multiple Listing inventory (all categories of homes) is down to 31,352 homes.
To better understand what this means it would be helpful to place the numbers in context. At the start of this last boom/bust cycle, in 2003, inventories in the Multiple Listing service were running approximately 30-35,000 homes. In June 2005 those numbers had dropped to 5,000 homes for sale but by December, 2005 they were back up to 25,000 listings. Sales were clipping along at a rate of 11-12,000 per month with new home sales adding an additional 3-4,000 per month. Gradually through 06 and 07 sales dipped and inventory jumped to over 57,000 listings
What changed?
Bank foreclosures, price drops and a national perception that we had averted the worst! As banks saw prices dropping and their inventory of foreclosed (REO) homes growing they shifted their tactics. No longer were REO homes coming on the market and dropping their prices every 30 days. Instead they were listing them well below market values to stay ahead of the curve. As affordability rose buyers came out of the woodwork. In January of 2009 we had 47,000 listings and sales had started to climb. In January of this year there were 4,238 homes sold - in July there were over 8,000 closings!
Now what?
The biggest factors are foreclosures, new construction and the economy. There are 47,000 homes in the Phoenix metro area with a notice of Trustees Sale. Does that mean we are in for another fall? Not necessarily, a growing number of trustee sales are being cancelled and we are seeing a consistent 4,000 homes per month being foreclosed on with an absorption rate double that. New home builders have been decimated by bankruptcy etc - the good news is very little new home inventory is being added forcing buyers to focus on resales. Fed Chairman Ben Bernanke today echoed what many economic gurus are saying -we are on the verge of a recovery. And aging baby boomers still look to our climate, golf and shopping for their golden years. Add to this the various stimulous/incentive packages for home buyers including the $8,000.00 tax credit and you get what I am seeing in the trenches - multiple offers competing on the same house. Evidence perhaps of a growing confidence?
Are prices going to go up?
Excess inventory at the fringes of the market are being sold off and the median resale prices for homes has increased from $126,00 in January to $129,000 in July. As long as low interest rates, low prices, incentives and economic factors improve, these historically low prices will gradually disappear. An increase to the prices reached in 06 however may be a ways down the road.
I am now a Certified Mortgage Protection Specialist (CMPS) and as such I can provide buyers and sellers with the HELP program. This program provides job loss protection so that for the first two years after a home is purchased this program will pay up to six months of mortgage payments (up to $1,800.00/month) if the homeowner unexpectedly loses their job.
So, if you were thinking about buying a home but were concerned that an unexpected job loss would then put your homeownership in jeopardy, knowing that for the first two years you will be covered for up to six months of mortgage payments can help to ease your worries.
If you were thinking about selling your home and you wanted a way to stand-out above the crowd offering this plan is going to do just that.
Given the tax credit, the financial incentives for buying foreclosed homes and now a plan to put worries of job loss aside this is a great time to be buying a home. If you would like more information or if you would like to start looking for a home give me a call at 602 763-6363 or e-mail me at David@OnlineArizonaHomes.com.
Time is running out for taking advantage of the First Time Homebuyer Tax Credit. To get this credit you must close on a home before December 1, 2009. Don't wait or you might lose out.
Home prices are historically low and there is a lot of competition for them. If you have any questions or if you would like to start looking for your new home give me a call at 602 763-6363 or e-mail me at David@OnlineArizonaHomes.com.
Where is the largest fountain in the world located? While some might answer that it is Le Jet d'Eau in Geneva, Switzerland many would be surprised to hear that it is actually in Fountain Hills, Arizona. At 560' high it is 100' higher than its rival in Switzerland as noted in the Guinness Book of World Records.
The beauty of Fountain Hills is unrivaled with its pristine lake and fountain surrounded by mountain views both near and far. The hills are alive with natural vegetation and of course the signature saguaros stand tall.
Fountain Hills, while blessed with much beauty is a fantastic place to live - so much so that it was voted the #1 place to live in the greater metropolitan Phoenix area in 2006.
Residents and visitors enjoy the many community events throughout the year. On St. Patty's Day the fountain turns green and the streets are aglow in December for Luminarias. In February there is the Fountain Hills Great Fair featuring the Hot Air Balloon Rally and in November the Fountain Festival of Arts is a great place to get started on holiday shopping.
If we are talking about Arizona we must be talking golf, and in Fountain Hills with 4 golf courses open to the public there are opportunities for golfers of all levels.
Fountain Hills welcomes one with its unique beauty and small town feel. It is truly a diamond in the desert - a great place to live and visit as well.
Ahwatukee - it is quite a mouthful. A word from the Crow Indians meaning the "house of my dreams". Very appropriate for an area which houses many beautiful neighborhoods and outstanding custom estates.
Wrapping around the eastern and southern edge of South Mountain, Ahwatukee and the Ahwatukee Foothills are both technically located in south east Phoenix. The mountain however, forms a barrier that gives the impression that they are a distinct entity. This barrier - South Mountain - is also the largest city park in the nation. Residents not only can open their backdoor to enjoy all that nature has to offer in the form of hiking, jogging, mountain biking, and picnicking, but can also relax and feast their eyes on the spectacular views. Spring time is a wonderful time to visit South Mountain Park to enjoy the beautiful desert wild flowers that bloom on the hills.
With a population topping 85,000 Ahwatukee has come a long way from that first house built in 1921 for a wealthy dentist. The area has grown exponentially in part because of its beauty, in part for its proximity to Phoenix and the growing employment centers in neighboring Chandler, and in part due to the excelling schools provided by the Kyrene school district and Tempe Union High school. All this growth has brought a wide range of shops and restaurants making it unnecessary for residents to use the freeway system that connects Ahwatukee to the rest of the Valley. Residents have no reason to wander far from the "home of their dreams"
Ahwatukee - it is quite a mouthful. A word from the Crow Indians meaning the "house of my dreams". Very appropriate for an area which houses many beautiful neighborhoods and outstanding custom estates.
Wrapping around the eastern and southern edge of South Mountain, Ahwatukee and the Ahwatukee Foothills are both technically located in south east Phoenix. The mountain however, forms a barrier that gives the impression that they are a distinct entity. This barrier - South Mountain - is also the largest city park in the nation. Residents not only can open their backdoor to enjoy all that nature has to offer in the form of hiking, jogging, mountain biking, and picnicking, but can also relax and feast their eyes on the spectacular views. Spring time is a wonderful time to visit South Mountain Park to enjoy the beautiful desert wild flowers that bloom on the hills.
With a population topping 85,000 Ahwatukee has come a long way from that first house built in 1921 for a wealthy dentist. The area has grown exponentially in part because of its beauty, in part for its proximity to Phoenix and the growing employment centers in neighboring Chandler, and in part due to the excelling schools provided by the Kyrene school district and Tempe Union High school. All this growth has brought a wide range of shops and restaurants making it unnecessary for residents to use the freeway system that connects Ahwatukee to the rest of the Valley. Residents have no reason to wander far from the "home of their dreams"
Named after the curious southwestern desert plant Fouquira Splendens, also known as Flamingsword, Jacob's Staff or Coachwhip, Ocotillo the plant and the master planned community share a few things in common.
Ocotillo the plant looks for most of the year like an arrangement of large, spiny dead sticks, but add water and a miracle occurs. The dead sticks suddenly turn a lush green as they become covered with small leaves and out of the tips grow a shooting flame of orange flowers.
Ocotillo the community grew out of the desert of south Chandler in 1986 and was fed by reclaimed water. Covering 1,900 acres it now boasts 167 acres of pristine lakes, cascading waterfalls and 33 miles of shoreline. Ocotillo's internationally acclaimed golf course features more water hazards than any other. For non-golfers there are lush green parks and walking trails.
With a combination of luxury mansions bordering the water, single family detached homes, condominiums and even a retirement community, Ocotillo offers something for everyone. Restaurants, upscale shopping, great schools and employment including Orbital, Intel, Wells Fargo gives you everything you need right at home. If you have to travel, a network of freeways extend to the rest of the valley.
Designated as one of the best places to live in the Valley by the Arizona Republic, Ocotillo is both a power house and a crown jewel flaming like a beacon over the rest of the valley
March 16, 1878 at the Portland Arms Hotel in Troon, on the rocky, windswept and scrub strewn coastline of western Scotland, a group of determined golfers met to form what would become the Royal Troon Golf Club. Meanwhile, in the territory of Arizona in the foothills of the McDowell Mountains, a stagecoach stop was serving equally determined travelers at Reata Pass. Why should such wildly different yet oddly similar places share the same name?
While the differences may be obvious, the cold Scottish coastline versus the Southwest desert, there are similarities as well. Certainly, their names Scottsdale and Scotland are obvious. And then there are their terrains. Both have ruggedly beautiful landscapes, strewn with granite boulders, both contain rolling vistas, although one has ocean views while the other is of soaring mountains. And last but not least, both contain internationally acclaimed golf courses.
Remnants of the Old West still remain as the restaurant at Reata Pass continues to serve up steaks and cool drinks. Time has brought many changes though as now just around the corner you find the acclaimed Four Seasons Hotel, luxury multi-million dollar mansions, more affordable homes, condos and yes - golf. Desert Highlands, a private residential golf community with a Jack Nicklaus designed golf course, Estancia, Troon and Troon North, both Tom Weiskopf designed courses are centerpieces of this magnificent area.
So how did Troon Scottsdale get its name? Suffice it to say that Tom Weiskopf, the designer of the original Troon course, won the 1976 British Open and incorporated many design similarities from the Scottish course.
However it was named, the lush high desert, the restaurants, the proximity to shopping, the views and the golf make living in Troon a destination that is unparalleled.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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