Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

Your home value suffers:  According to the Center for Responsible Lending, foreclosures in your area can hurt your property value. In fact, for every home that goes into foreclosure in your neighborhood, your property value drops by about 1 percent.  So, if you have five foreclosed properties in your neighborhood, your home will fall about 5 percent. And it will stay depressed for at least two years, Click here to find the link to (Link #8) see foreclosures are in your area,

Harder to re-finance:  The foreclosures are pushing many lenders to the edge and that is causing a ripple effect in the housing economy.  The existing lenders are tightening the terms and avoiding medium to high-risk loans all together.  How does that affect you directly?  If your ARM dates are approaching, then it might be harder to refinance as the lenders tighten the terms - you will be most vulnerable if your credit score is not good or if you do not have enough equity in the home.

As always, you may call me to find out if re-financing will be required now.  I can offer a FREE - NO OBLIGATION assessment of your current mortgage and ARM terms and discuss your options. 

Do not stay in the ignorance.  It pays to consult a professional - not any professional, but a knowledgeable one!

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

Maintain healthy credit:  It is much harder to get mortgage today than a month ago.  It is more important than ever to maintain a good credit rating if you intend to purchase OR re-finance.  With the mortgage meltdown that is gaining momentum, it could be harder to refinance if you do not have spotless credit.

Who is NOT impacted? 

• One who has good credit score (620+ FICO)
• One applying for a loan to value of 90 % or better

This applies to both re-financing and a new transaction.

KNOW your terms:  Once you get a loan, it is very critical to keep up with the terms and due dates.  With the Adjustable Rate Mortgages maturing, you do not want to be surprised with a new rate that kicks-in after the low teaser rate expires.

Do not be the one of the three homeowners who does not know what kind of mortgage they have.  So, even if you are staying put, dig out those closing documents. Find out when exactly your rate will reset. You will find this on the Adjustable Rate Rider which is one of the first few pages in your documents.

You'll want to find out...

• how often you're rate will increase
• what caps there are 
• How much that increase can be?

If you can't find these documents, call your lender and ask.

As always, you may call me to find out if re-financing will be required now.  I can offer a FREE - NO OBLIGATION assessment of your current mortgage and ARM terms and discuss your options. 

Do not stay in the ignorance.  It pays to consult a professional.

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

I get asked this question a lot - "How late can I cancel the contract without losing my deposit"?

In general, you can't just terminate a contract. There must be some reason for the termination, and that justification must have some basis under the purchase contract or under a statute.

BACKGROUND:  All offers to purchase will need some "earnest money" OR "good faith deposit".  The main purpose is to show the seller that the buyer is genuinely interested in the property.  Once the contract is accepted, earnest deposit is disbursed based on the terms of the contract. (Typically to title company for re-sale homes OR to the builder for new homes)

For RE-SALE HOMES, the inspection period (standard is 10 days).  This time period is also referred in real estate industry as "due diligence".  The buyer has the right within this time period to research about the property itself and surroundings.  It is a common practice to hire a professional home inspector; research on the internet for schools info, proximity to frequently visiting places, etc.,  Buyer has the right to change his mind within this time period without losing the deposit, unless noted explicitly in the contract.  Past the inspection period, seller would generally have the right to keep the deposit as damages.  There are some exceptions to this - example:  Financing issues where no lender is approving the loan OR seller did not fix all the items that were agrees during inspection period.  Therefore, it is very critical to have a knowledgeable and professional agent representing you to cross-check and ensure your interests are protected.

For NEW HOMES, it is more difficult to say since you need to review the contract and determine the terms of the contract.  The buyer needs to get a copy of the PUBLIC report and will have 24 hrs from that point of time to change his mind and get his $ back. There are other terms that builders put into the contract.  Example:  Refund if there is an employment transfer more than 100 miles from the current residence; Death of a spouse, etc., certainly, if the builder can't get a certificate of occupancy due to construction problems, you should not have to close on the purchase of the home.  For some NEW builders, there is a CONDITIONAL PUBLIC REPORT (the PUBLIC REPORT that has not yet been approved by the Arizona Department of Real Estate).  With a conditional public report, the buyer has the longest window - since he can wait until he sees the final and approved public report. 

The above comments are generic and there may be multiple legal ramifications - you should consult with a real estate attorney, who can look over the documents you signed, and discuss about all options you may have.

The recommendation is not to sign an offer to purchase in a hurry. 

Think it through and that saves a lot of hassle and time.   

Happy shopping.

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

I have a client who is ready to sign for a CALEX home, but wanted to get some feedback / testimonials.  Can you please help? 

Do you have an experience with CALEX Homes that you can share?

Here is a query from my client "How is the builder? Do you have any clients that can give feedback? I checked on internet and no one talks about C. Not sure if it is a good builder or not. Especially when the house (at the end with options) is running into 500K, we would like to see some good feedback on the builder."

My sole CALEX client is unreachable too :-(

Thanks for your attention & time.

Authored by Kiran & Kiran,
http://www.homesandloansphx.com/
602-550-4842
coolkirans@hotmail.com

BEAUTIFUL HOME with OUTSTANDING VALUE in SUN GROVES (Lindsay and Riggs).  Seller is motivated.

Check out more details here

RENT DECREASED QUICK MOVE-IN ($ 1,150) or SELL ($ 310 K)

• Looks better than a MODEL - check the pictures
• Open floor plan.
• Kitchen has Granite counter tops
• Under mounted sink
• Cherry-wood cabinets (with crown moldings)
  
• Home furnished with R/O system, water softener, refrigerator, washer and drier
• Master bath has walk-in shower and tub.
• Large tile in all living areas and carpet in bedrooms.

• Premium corner lot with a huge 9400 sq ft backyard (landscaped green+concrete);
• Desert in front. Home has a security system too.
• Quiet Neighborhood walking distance to schools.

Floor Plan

Thanks for your attention.

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

What do these number mean? 

Summary:  An absorption rate of < 4 is considered a seller's market and obviously all the cities in the valley are not in a "seller's market".  The higher the absorption value, the buyers are at an advantage

Read my article on the snapshot analysis of the data in my other article.

Thanks for your attention.

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

Authored by Kiran & Kiran
http://www.homesandloansphx.com/
602-550-4842

I have talked about Absorption rate in my previous article.  (representation of supply and demand).  Now, I have attempted put the concept into use by pulling some data from the Phoenix metropolitan area and compiling it.

The metric is used to compare and see which area is most affected by the real estate slow down in the Phoenix metro. 

The raw data is from Arizona Regional MLS.

Thanks for your attention. 

Authored by Kiran & Kiran,
http://www.homesandloansphx.com/
602-550-4842
coolkirans@hotmail.com

Authored by Kiran & Kiran, Call Realty
http://www.homesandloansphx.com/
602-550-4842

In today's article, I want to cover the meaning of ABSORPTION rate.  This is one of the plethora of indicators available to gauge the health of the real estate market - especially the local market.

What is ABSORPTION RATE?   
Number of available homes available for sale / Number of homes sold in the previous month. 

It is a ...

• correlation between supply and demand
• representation of the number of months it might take, at that same market pace, to sell the entire inventory of homes
• flexible metric that can be used for a zip code OR a particular area code

Example:

• Chandler, AZ has 2393 homes currently on the market, as of Aug 3^rd 2007
• In the past month, 290 homes were sold
• 2393 / 290 = 8.26
• This shows that we are clearly in a Buyer's Market
• What does this mean for a seller in Chandler?  It might take as long as 8 months to sell a home in Chandler with the current conditions. a Buyer's Market

Even though the metric sounds simple, the buyer/sellers need to take other local factors to determine the right price for a home.  

With buyer's market upon us, good marketing and pricing right are the keys for selling, and offering the right price is crucial for buying.

Consult a knowledgeable real estate professional who is experienced in taking the holistic approach with the transaction.

Thanks for your attention. 
Authored by Kiran & Kiran, Call Realty
http://www.homesandloansphx.com/
coolkirans@hotmail.com

Authored by Kirans
http://www.HomesAndLoansPHX.com/
OR http://www.AZDesiAgent.com/
Moving plans in the "Valley of SUN"?
We can make it EASY and FUN!

The intention of this article is simple - to make customers aware of what to expect from an OLD HOME. 

(Disclaimer:  I am equally enthused by an OLD or a NEW home and I DO NOT intend to sway or recommend a NEW versus OLD home.)

Timing could not be better to buy a dream home.

WHY?  It is a Buyer's Market - means there is an ample supply of homes on the market for the number of buyers.  Homes take longer to sell and sellers get desperate.

*** Also read my article "Why buy a NEW home?"  ***

Advantages of an OLD Home

• Negotiating power:  In these days of "Buyer's Market", there are a lot of sellers who are ready to get out of the home and sell for less.  That means this is the time to get a killer price.  A skillful agent with negotiating skill is pivotal, along with his/her ability to look for some clues.  I have found that a combination of CDOM (cumulative days on market), key words in the listings like "Seller to look at all offers" or "Motivated Seller" OR explicit request to send an offer are welcome signs that the seller is open offer some clues.  A well qualified buyer has better negotiating power.  An experienced agent can prepare a reasonable offer and can handle the negotiation with skill and care.  You should be careful not to get too greedy and lose a dream home.  Negotiate and get what you want.
• Move-in ready:  Most of the OLD homes come with established landscaping, wall coverings and stable maintenance schedules.  Buyer can save lot of time and cost associated with these home accessories.  As always, buyer can replace the accessories at a later convenient time, if needed.  (It can actually be a lot of fun doing some home renovation projects yourself.  I find then to be fulfilling too!)
• WYSIWYG (What You See Is What You Get):  Buyer can actually see the completed product - touch and feel it and expectations get very clear.  The buyer also has the benefit of driving around and get a real feel of driving around the neighborhood, unlike a brand new neighborhood
• Warranty coverage:  Most sellers offer 1-year warranty.  It is important that your agent makes sure this a FULL COVERAGE is added to the contract.  Verify the exact coverage and avoid disappointments.

It is critical that a professional home inspection is ordered before proceeding to buy.  Remember that as a buyer, it does not cost buyer a penny to engage professional REALTOR's help.  Do not go into a contract unrepresented.  Protect yourself and have a real estate professional represent you.  Feel free to browse my website for some other Buyer's tips

Also read our article on choosing the right location

Also read our article on Why Buy a NEW Home

Authored by Kirans
http://www.HomesAndLoansPHX.com/
OR http://www.AZDesiAgent.com/
Moving plans in the "Valley of SUN"?
We can make it EASY and FUN!

Authored by Kiran & Kiran,  Call Realty
http://www.homesandloansphx.com/ OR
http://www.AZDesiAgent.com/
602-550-4842 / coolkirans@hotmail.com

The intention of this article is simple - to make customers aware of what to expect from a NEW HOME. 

(Disclaimer:  I am equally enthused by an OLD or a NEW home and I DO NOT intend to sway or recommend a NEW versus OLD home.)

Timing could not be better to buy a dream home.  WHY?  It is a Buyer's Market - means there is an ample supply of homes on the market for the number of buyers.  Homes take longer to sell and sellers get desperate.

*** Also read my article "Why buy an OLD home?"  Coming Soon ***

Advantages of a NEW Home

• Incentives:  In the days of "Buyer's Market", builders are offering HUGE incentives - especially on  spec/inventory homes (but, you need to be ready to move-in fairly quickly)
• Warranty coverage:  Most builders offer 10 years structural warranty & 1-year bumper-2-bumper warranty (aka wall to wall warranty)
• Options:  The buyer has the choice to pick among the choice of available lots, have desired upgrades - especially structural modifications.  No need to worry about replacing the old carpet or counter-tops
• Energy Efficiency:  Latest construction techniques help with the  energy efficiency of the home.  Better windows, more efficient heating and cooling equipment, better control of air infiltration and greater use of insulation
• Healthy:  Asbestos, lead and other hazardous materials have been eliminated from home building products.
• Low Maintenance Costs:  Less expensive to maintain than older homes. A new home can be operated for 20-30% less than a home built two decades ago
• HOA helps protect value:  Most new builders have a Home Owner's Association rules (also referred to as CCnRs - Conditions, Covenants and Restrictions) that help keep up the neighborhood's beauty and value. 
• Up-to-date style, plumbing, wiring and fixtures
• Most of all, it is ALL NEW  - and also comes the new smell!

All new builders need your REALTOR on your first visit. 
Remember that it does not cost buyer a penny to engage professional help. 
Do not go into a contract unrepresented.
Protect yourself and have a real estate professional represent you.

If you are into buying a new HOME in Phoenix metropolitan area, you may call me and I can meet you directly at the builder's office.  

• Also read Buyer's tips
• Also read my blog on choosing the location
• Also read my blog on Buy OLD Home (Coming soon)

- Kirans
Authored by Kiran & Kiran,  Call Realty
http://www.homesandloansphx.com/ OR http://www.AZDesiAgent.com/
602-550-4842 / coolkirans@hotmail.com

Moving plans in the "Valley of SUN"?
We can make it EASY and FUN!