New Generation Real Estate Team Blog

Real Estate In Black And White (We Are All Created Equal......)

Jorge Zarate (Re/max Elite) — Tue, 23 Jun 2009 01:54:10 -0500

The Paradoxical World Of Real Estate
How You Are Sabotaging Your Business By Following Commonly Accepted Opinion.....

It's not politics, sex or religion. No! there are other topics that top producers dare not bring up within a mile radius of so called 'old-school-real-estate-agents'.

Ok, here it goes......

the topic is "Open Houses"...

There are many aspects of real estate that are pretty clear but our perception distorts it, and we sabotage our business because we can't seem to operate in a gray area (or colorful as I like to think of it). It's either black or white....

Question: Are Open Houses a Good Practice For Real Estate Agents?

There are those who say "yes I've sold multiple homes by holding open houses and love them..." and then there are those who say "Open Houses are a waste of time!".... Oh, and we are defiant.

I personally hate open houses, but I shall admit and will not regret that the first home I sold was from a buyer who I met while holding an open house. At the time I did not know anything about marketing. I was taught the 'old school' way of making a list of all the people I knew, go knock on doors and sit open houses. Honestly, I found this to be an impossible way to make a career out of real estate since most people I talked to had absolutely no interest in buying or selling. It was like trying to sell a book on abstinence to Paris Hilton's fans....

Now did you find yourself taking sides at this point on whether open houses are good or not? (If you did you're right either way, YES - open houses suck.... or NO - you just don't know). Well, welcome to the paradoxical world of real estate. I have met people who have been able to make a career out of open houses, and I'm glad it works for them. So, if you are starting out don't disqualify open houses. However, I have found that spending $100 to advertise will get me more leads than sitting four hours in a house where I get to meet the neighbors and a few other people looking for design ideas and steal your cookies, candy and bottled water (leaving you dry in 120 degree weather here in Phoenix.... How inconsiderate). And best of all, it only takes me minutes to generate the same amount of leads I would sitting an open house.

"All Real Estate Agents Are Created Equal....... With The Opportunity To Become Unequal"

We all start pretty much the same way. Take our licensing course, pass the test and off on our own to a new and exciting (more like crazy) career.

Maybe we did not expect to have to take clients out to lunch, get random phone calls at late hours of the night from a buyer who wants to know how wide is the window in the living room where the sellers should have installed wood blinds instead of curtains... Oh, and we all thought that people were nice and would never betray us by having us show them around town, only to have their friend write up the purchase contract...

C'mon, is it really necessary to ask buyers to marry us by means of a buyer's broker contract? Here's another topic for a great debate that leads to, uhh, nowhere....

Also, why do we have to convince buyers that they are not the only ones making cash offers and that offering 50% of market value is not realistic even in today's market (unless it needs major repairs of course, but we all know they want move-in ready).... If you think sellers are any better, they are not.... They want top dollar and sold today.... Oh, and add 10% above market because they spent countless hours painting the living room and decorating the kitchen which they consider improvements on the house...

Then there's short sales and bank owned listings..... My god, these are a lot of work...

There are great buyer's agents, great seller's agents, great short sale agents, REO agents, etc. These are few, and what separates them from the rest is training and a positive outlook in the future. Many of them don't see real estate as a job, but a passion (almost a hobbie). Yes, there are those of us who are actually excited to wake up early to answer all the emails and plan the greatest showing in the city. We all like cashing our checks, but only some love the work that it takes to get those checks to begin with (and typically these are the most succesful agents)

Point being is that people will always complain about whatever they are doing not wanting to admit that some things are as clear as black and white, but that our perception makes all these topics either good or bad. So my question to all of you is what kind of color are you adding to the black and white world of real estate?

Mine is positive..... short sales rock! I'm having a great year!

Have a great week!

How A Video Can Increase Your Business

Jorge Zarate (Re/max Elite) — Tue, 02 Jun 2009 20:27:41 -0500

Marketing YOUR Videos Can Be Profitable

I wanted to share this video which has actually improved my credibility in my market. Few people understand social networking and completely miss the point of social networking. There's different kinds of marketing. I classify them as

Direct Response Marketing
Branding Awareness
Communication Marketing (information marketing)

Neither one is better than the other one. They should be taken into consideration equally and pay enough attention to them. If I could start all over again and had a chance to focus on one type of marketing, it would be direct response marketing. It is the hardest one to master, but once it's running it is effective and requires little or no time. Agents who've learned how to use Direct Response marketing will not be seen holding open houses since they understand that they can get 10 times or more leads with a small ad than they can sitting 6 hours getting to know the neighbors.

Branding is expensive and unless you are a big company I wouldn't worry about it too much (yet). There are some that say branding is a waste of money and you can't trace back results like you can with direct response marketing, but how can you argue that the best franchise (McDonald's) built their business on branding?

There are lessons to be learned and this is what I call the paradox of life. People can't live in a gray area. To most, one of these methods has to be better. In some cases it is, but the problem is that the context must be taken into consideration.

Communication marketing Social networking is changing the way we do business. Some have caught up and some are still blind and overwhelmed by Facebook, MySpace, Twitter, etc.

In order to understand communication marketing, you must first understand and adopt the mentality that "you must first give without want." The purpose of communication marketing is to position yourself as an expert, that's it. If you are keeping your secrets to yourself, that's as good as having the cure for cancer and not telling anyone about it?

Let me tell you how I use social networking sites. I do a combination of all three types of marketing, but most importantly I'm putting my face out there for people to know that I exist (branding if you will).

I wrote a blog "Photography and Selling Homes" and it got such a good response that I can now use it to show potential sellers that I am an expert in my field. I have other experts agreeing with me and that's better than me bragging about myself.

Photography and Selling Homes....

Jorge Zarate (Re/max Elite) — Mon, 25 May 2009 16:33:07 -0500

How To Sell Your Home Faster
Using Photography As A Tool

Quick! There's a big one. Get close, blur the back ground - Snap!

The I-do-not-believe-in-photography listing agents are on to me again. My client requested pictures of a home that had no pictures on MLS. Doesn't it feel like they are laughing at you knowing you'll get those emails? Sometimes I feel like it's a conspiracy. They post pictureless listings and send demanding buyers your way. Ha ha, now you have to go look at the house and take pictures yourself or tell your clients that it probably is an ugly house and therefore it has no pictures. But the description doesn't say so and we are not going to lie...

Experiences like this have made me appreciate photography more. I know I'm supposed to outsource little meaningless things and non dollar-producing activities, but what if you like the activities? So what if they don't make you money, you get to enjoy life and that's what it's all about....

One thing about pictures when it comes to selling your home is that the picture itself won't sell the home. It will simply let the buyer make a decision whether or not they want to look at the house or not. The question then becomes, how many pictures to use?

The answer obviously varies depending on the house, location, price and yes your camera. I used a point-and-shoot sony camera when I first got started in real estate and it did a great job at taking pictures. My upgrade to a better camera came when I started seeing the plethora of it-is-not-about-the-pictures agents who use their mobile phone (did I really just say mobile phone instead of cell phone or camera phone?) to take pictures of the house they intend to sell. These pictures are smaller than my thumb and blurry so I don't really know what the point of uploading them really is.

Or what about those who take pictures of a room using a standard lens and therefore you get a nice shot of two walls and the corner of a room. If this is the picture you are hoping will get the buyer to jump out of their seat, call their agent and arrange a showing, trust me you are better off to just have a picture of the front of the house. At least it builds curiosity on what the rest of the house looks like. So, unless you have a wide angle lens, I would stay away from taking pictures of small rooms and bathrooms.

What makes good photography, umm.... good? Well it's not so much about the camera, it's more about the lens and the lighting. I personally use a Nikon D60, but if you don't want to look like a tour guide (or where's waldo), and if you are not into photography then a good point-and-shoot camera should be sufficient. Keep in mind that with point and shoot cameras you don't have to worry about ISO settings, shutter speed, aperture, etc. We have enough to learn as agents to even bother....

Yeah it's nice to take good pictures, but really you don't have to go spend hundreds to promote a listing as long as you keep in mind what pictures are doing for you and how they are helping you sell the listing. It's as simple as looking at your own listing and thinking to yourself "if I were a buyer, would I want to go look at this home based on the picture(s)?". If your answer is no then you need a better picture or you are selling a home that doesn't need more than a picture of the front.

Good pictures can really help you drive traffic to your listing, but I think that more pictures and better quality should be left for higher end listings that really require more attention to detail.

Pictures are like the SAT's. If you get them right you get points towards selling a home. If you don't use them well you don't get points, but if you get it wrong, you can actually lose points. So use pictures to drive traffic and know that some pictures can actually cause you to lose traffic. (It's worth repeating)

Now get out there and sell some houses.....

Buying Short Sales Review

Jorge Zarate (Re/max Elite) — Thu, 21 May 2009 00:22:12 -0500

To Buy or Not To Buy a Short Sale.....

I have come across more knowledgeable real estate agents lately, which is good news for the industry. It seems that only those who are serious about their profession and those who are seeking education are the ones left in the industry....

There is still plenty of confusion with the whole short sale process and it really bothers me that we haven't got a good handle on it yet. I don't mean that we don't understand the process, I mean that there's no standarized way of going through with a short sale.

So, I'm going to do my best at describing the short sale process for consumers and newbies....

Some are under the misconception that a Short Sale is always a better option, but is it really? We can't let consumers think that this is their only option besides foreclosure and as professionals we must adress this and tailor a short sale to homeowner's spefic situations. If they own the house as an investment property, have a HELOC or their income is high (this is relative of course), careful consideration must be taken when doing a short sale. These are just a few things to consider and the owner should seek their own legal advice. As buyer representatives, you want to know this information as it may put a stop on the transaction two, three plus months from now. Better to find out early on to decide whether or not to submit an offer.

So let's get started....

Step 1 - Make sure that all paperwork has been gathered to complete a short sale package. For the most part it's very similar for all banks, but there are a few that do like the paperwork to be in a certain order and may have their own financial statements and/or short sale applications.

The list normally will include at a minimum:

2 most recent bank statements
2 most recent pay stubs
2 most recent W-2's
Letter of Authorization (to allow 3rd party to negotiate th short sale on behalf of the owner)
Hardship letter
Estimated Hud-1 net sheet
Listing Agreement
Signed Purchase Contract

Now... I've tried to get a short sale approved without a purchase contract, but haven't had much luck. I've found that it confuses banks when you attempt this because if you get an offer that will yield a different net amount to the bank, you'll have to send a new HUD-1..... and it seems that some banks can't handle extra paperwork. Some are pretty good, but if you can make sure the short sale package is complete before you send it out.

Step 2 - The bank gets the 'complete short sale package' and assign a negotiator. The negotiator will then do a quick review to qualify the owner for the short sale and if they do qualify they'll order a BPO or an appraisal. This is one of the most important steps of the short sale. Most short sales that I've seen fall through are because the appraiser was either from the opposite side of town, was new or just gave a bad appraisal/BPO. Luckily I haven't had one..... just heard of horror stories.

Step 3 - Once the appraisal gets back to the bank, they'll 'run the numbers' and send for approval of the short sale. This varies a little depending on whether or not the loan is conventional, FHA, etc.... This is pretty much invisible to the buyer but this is pretty much the final step.

From step one to step three, it can take anywhere from two weeks to one or two months. This is where most confusion happens. The bank may ask the owner to send in the best offer before they send for final approval. This is where it's left to the person handling the short sale what they want to do.... I tend to honor the first offer and at least give them a chance, even if I have higher offers as long as it doesn't affect the seller. Some agents will take the best offer even if the first offer has been waiting longer.

I think this is why some agents will steer buyers away from short sales. It happened to me once, where an agent took our offer, negotiated the short sale and then when it came to approval, they sent another offer into the bank without even giving us a chance to come up in price in our offer. That to me is ummm... not right (but who am I to say, right)...

Well don't be discouraged.... simply find out how the listing agent is handling the short sale and come to some sort of agreement before submitting an offer.

In arizona our short sale addendum states in lines 13-15 that "seller can accept back up offers and submitt those to the bank for consideration and they can sell only to the holder of the contract with terms and conditions most acceptable to creditors..."

So in essence.... if you can communicate with all parties and come to an agreement as far as how the short sale will be handled, then short sales are a great way to purchase properties in a down market. Before you discard all short sales, know that some agents are getting better at working with buyers and their agents.

What do you think?

****Home Featured - 297 W Libert Ln, Gilbert AZ 85233****

Nouveau Riche Real Estate Investing Tours In The Valley

Jorge Zarate (Re/max Elite) — Wed, 07 Jan 2009 12:24:39 -0600

Nouveau Riche Real Estate Drive By's

I don't know who came up with the name "Nouveau Riche Real Estate Drive By's", but coming from a mexican (me) that doesn't sound right..... Anyhow, I haven't been too active here on not-so-ActiveRain lately, not just because of the holidays, family and my clients for whom I'm staying up late to make sure their transactions are running smoothly, but because I've found a new passion - Video Blogs!

I have to admit, it is time consuming and it takes a lot of patience to do them unless they come out all sloppy.

Let me cut to the chase.....
We are doing what I like to call "Nouveau Riche Investor Tour of Homes", where we are going to homes that current real estate investors are working on or have recently closed - here in the valley - where they've earned significant amounts of money in today's rotten market!! These tours are FREE and are very informative.

Here's what it looks like

Hope you've enjoyed this.....

Tips Para Tu Blog en Español

Jorge Zarate (Re/max Elite) — Fri, 14 Nov 2008 15:12:22 -0600

Como escribir con un teclado americano el español

Tengo años que no escribo en español pero por si acaso estas escribiendo y quieres saber como se escriben ciertos caracteres en español, aqui esta una simple guía.

Simplemente presiona la tecla 'Alt' y el siguiente numero para el caracter que quieras

Alt + 160 = á
Alt + 130 = é
Alt + 161 = í
Alt + 162 = ó
Alt + 163 = ú
Alt + 129 = ü
Alt + 164 = ñ
Alt + 0191 = ¿
Alt + 0161 = ¡

Bueno pues espero que les sirva de algo.

Saludos

Como Se Vive En Gilbert AZ?

Jorge Zarate (Re/max Elite) — Fri, 14 Nov 2008 11:32:15 -0600

El estilo de vida en Gilbert AZ

No cabe duda que la ciudad a crecido bastante desde que llegamos aqui por primera vez. Nosotros compramos casa a principios del 2002 cuando aun no existia el 202. En ese entonces teniamos que manejar 10 minutos al norte para agarrar el 60 e ir a Phoenix. No habia tiendas y el Wal Mart mas cerca era el de mesa (el cual tambien era nuevo).

Hoy en dia todo es distinto y estamos viendo mas hispanos mudandose a Gilbert. Antes no escuchabas español por ningun lado pero ahora me da gusto toparme con alguien con quien pueda practicar mi español.

La ciudad en si es muy tranquila y tenemos uno de los niveles mas bajos en crimen. Nuestras escuelas estan dentro de las mejores en el pais. Esto hace de Gilbert una ciudad ideal para formar una familia. Tenemos un Mall nuevo 'San Tan Village Mall' el cual no esta completamente terminado pero muchas tiendas ya abrieron sus puertas. El area alrededor esta lleno de centros commerciales por lo cual se estima que Gilbert cera el centro del Este del valle.

Reciente se abrio una sucursal de Filiberto's en Gilbert, y aunque no comparo con los tacos de Hermosillo, Sonora satisfacen mi apetito por unos antojitos sin tener que ir hasta Phoenix o Mesa.

Hay varios lugares para ir a caminar, incluyendo parques para perros - El Cosmo Park.

Si tienes preguntas sobre Gilbert no dudes en contactarme y con gusto te ayudare.

Six Pack Abs and Real Estate

Jorge Zarate (Re/max Elite) — Thu, 13 Nov 2008 13:21:56 -0600

Uncover what's always been there for you!!

The secret to success in just about anything is that you need to have the I-am-going-to-do-it-no-matter-what attitude. This is usually fueled by a reason of WHY you want to get it done. Very easy to talk about it, but for some reason we just don't implement this. Most of us have heard of the law of attraction and the Secret or psycho cybernetics, etc.

I had taken a few weeks off from the gym and decided this week I was going to go back. Good thing I'm young and follow a healthy diet, but I still lost 5 lbs in 3 weeks from not working out. Yes, I lose weight when I stop going to the gym. More specifically, I lose muscle. You see muscle is what increases your metabolism and acts like a fat burner much like putting butter on a hot skillet and watching it disappear. The more muscle (the hotter the skillet), the faster fat burns (the faster butter melts). One thing about abs, is that they've been there our entire life.... only they are covered by this yucky layer of junk - a result of our obsession with pizza, beer (guys), french fries, and ice cream (girls).... Yes sis, we'll count gelato as ice cream... We know that the fat around our belly buttons is the hardest one to get rid of, and it seems that nothing we do works. No bowflex or Amanda's secret work-your-entire-abs gym ball you see on late night TV works. Oh and forget about the make-celery-your-dessert diet books. This can really bring us down, especially if you live in a place (beach) where it is a sin to have any body fat. We know that muscle is the best way to burn fat, yet we don't commit ourselves to building that muscle to uncover our true physique - Hmm, I wonder if my abs are crooked? Abs are like our long lost friends from High School whom we haven't seen in years... they are there, we just don't take the time to look for them.

Real Estate is really no different when it comes to achieving a goal. If you do the research you'll find that if you set a goal of selling 30 homes a year - Ok maybe 300 can be more of a dream (achievable)- but let's not be greedy and stick to 30. Where I live we sell about 330-380 homes a month. In a year that's roughly 4200+. If I include the sorrounding cities (less than 30 minutes total drive) I can find we sell about 17,000+ homes a year!! If I want to sell about 30 homes a year, that's like .2% of total market share. Heck, let's be greedy and sell 300 homes a year, that's still less than 2% of total market share in the sorrounding area!! In other words, like your abs who have been there the entire time, the transactions in today's real estate market to achieve your goals are there - and they abound. You just have to go out and find the business. Advertising your business is like building muscle for your body. You know it can be tough, but it works, and many don't take the time or commit to doing it.

One last thing, it's not about looking good, it's about being healthy and feeling good...

Ok, enough said.... I'm loading up Survivor's "Eye of the tiger" on my iPod and on my way to hit the gym... where's the phone to my local newspaper - It's time to increase my marketing.... gotta go!

Gilbert AZ Real Estate Market Update

Jorge Zarate (Re/max Elite) — Thu, 13 Nov 2008 08:36:06 -0600

Gilbert AZ Real Estate Market Update

Here's an update on the Real Estate market in Gilbert AZ.

Our inventory is at 2005 active listings (down from 2500+ in November of 2007). Over the last few months I've been waiting for prices to be stabilizing around $260K - $275K. This month's average home sale price was $281K.

Trees, Block Fences, and the Real Estate Market - It's been quite a month with everything going on, but I'm glad to say that the opportunities are out there for anyone ready to take advantage of this market. I was not alive during the great depression but it's been said that more millionaires were created during that period than any other time in history. I dusted off my history book from my freshman year in college (no booze involved this time)... Granted I hated that class, but it's interesting to see how history is repeating itself.

We have an anti-utility-bill-shade tree on the side of our house next to a block fence. For months we've seen a crack stair stepping all the way from the top to the bottom of the fence....no big deal. One morning I woke up and saw the crack grow bigger and the fence started to tilt. (Uh oh, Time to take action.) I geared up like Jason with my dusty Chainsaw - after I changed the you-never-use-me-black colored oil - and started trimming down the tree. Knocked down a couple of branches about 80 lbs each. It has been a while since I've climbed trees and standing 10-15 feet above ground is no longer fun - I loved trees as a kid. I should have never let this tree grow so big, the roots are now pushing on the fence threatening our privacy and our bank account..... The tree is too tall so I now have to call in for help and pay the price.

Real Estate is very similar, we often see things coming but we don't take action until it is too late and we end up paying the price for it. This is an ever changing market and we need to get up to date information so we can make an educated decision.

Question from a Client: What type of loan do I need to buy a foreclosure?

A: The answer to this question varies depending on the stage of the foreclosure. Many people don't understand the process to foreclosure, but to make this simple we'll say that there's the pre-foreclosure, the auction, and post-foreclosure (i.e. bank owned). When you're dealing with the auction, you normally want to have cash since the timelines to pay for the house after you win the bid at the auction doesn't give lenders enough time to process the loan. Hard money loans can be an option, but make sure you know what you're doing. Pre-foreclosure and bank owned are very similar, they just vary in what the bank is willing to do for you. If the house is a total mess you can look for an FHA (203)k streamlined, which finances the repairs, since the bank won't do any. If you plan on using 100% financing or ask for help with closing costs, some banks will not work with you.

F.Y.I. There are still some zero down payment loan programs

Gilbert AZ-   A new home ownership program allows qualified buyers to buy a home with absolutely no down payment.
    You may have owned a home before and are presently renting, or maybe you are a first time homebuyer and need a way to break into the housing market but are holding back because you think you require $10,000, $20,000 or even more for a down payment.
     Well regardless of your present situation, if you want to get into, or re-enter the housing market without having to make a cash downpayment, then this new program may be just what you're looking for. Why pay your landlord's mortgage when you can be building your own equity.
     Industry insiders have prepared a new special report entitled "How to Buy a Home With Zero Down" which reveals how this new and innovative program can get you into the housing market immediately and with absolutely no down payment.
     To hear a brief recorded message about how to order your FREE copy of this report call
1-888-675-4461 and enter ID# 2004. Call anytime, 24 hours a day and 7 days a week and discover how you can get into the housing market NOW and with ABSOLUTELY NO DOWN PAYMENT.

Some Conditions Apply Not intended to solicit buyers or sellers signed to contract. This report is courtesy of Jorge Zarate Re/Max Elite
©2008 New Generation Real Estate Team Re/Max Elite

Cracking the Code on all the Make Money Sites

Jorge Zarate (Re/max Elite) — Fri, 07 Nov 2008 12:26:14 -0600

The "new" trend of our economy is Home Based Businesses

Ok, so I admit that I get curious when someone posts an ad offering $250K income potential or some other 6 figure income biz. I'm sure you've peeked at some of these sites and wondered what's the catch?

I love reading some of those sites that sound like they are selling medicine by asking questions like - would you like more cash? Is the economy affecting you? - This valium like business will solve those problems. Consult your doctor if this is right for you. Common side effects include bankruptcy and more stress.

Anyways, here's what's behind all these sites. Some are just straight up scams and you can only make money if you recruit half the continent - So called MLM programs. Others are legit programs, but they are still businesses and like any other business you need to run it like one.

The model

When you visit these sites they'll direct you to some meeting or a phone call where they explain the business. They are direct sales companies and your job as an entrepreneur is to move their products. This is no different than Wal-Mart buying a ton of cereal for $2 dollars and selling it to you for $3 and make a profit (they are moving products.) Your job when you join these programs is to move their products which vary from personal development books to seminars or wholesale vacation packages. They leverage their business by having you purchase the product and have you pass on the first 1-6 sales (depending on the company) meaning you don't make money on those sales. That's all that they are. Anything after that you keep all the profits.

Here's the thing with these businesses. Even if you buy the product, you won't make money unless you advertise. It's no different than running this real estate business. I often hear agents say that the only agents having success are the ones that spend thousands of dollars on advertising.... well no kidding, how else can you get so many people to talk to you?

This is how you should see advertising. Think about what you tell people when you know they are looking to buy a home? example - 'would you like a list of the 10 best buys in ________ (area)'? I'm sure any agent who knows their area can come up with such a list and keep the promise.

Now instead of you going out to the mall or the store to ask 100 people this very same question, why not write it down, and post an ad where you know that people who are looking to buy homes go? (e.g. newpaper, online, etc.) You can get as many leads, but the difference is that it only takes 15 minutes to talk to the newspaper rep and it takes an entire day to talk to the people yourself.... this is called leverage.

You see most people don't understand this simple concept or many times are afraid to spend the money and think they are just wasting the money, and it's why many of these home based businesses fail.

Well hopefully I just saved you some time or at least eased your curiosity for what these programs are and if they work. My answer is 'Yes', but only if you run it like a business. I won't endorse any specific company, but I did join one because many people are turning to home businesses as they are losing their jobs and need to find a way to keep food on the table. I'm doing it part time and it seems it may outperform my current real estate business (and I'm doing pretty well). Ok I'm off, I got a closing to take care of.

How to Buy a Home With Absolutely No Money Down

Jorge Zarate (Re/max Elite) — Fri, 07 Nov 2008 11:30:44 -0600

Buy a Home With Little or No Cash Down

If you think a downpayment is keeping you from buying a home and take advantage of today's home prices, think again. Not every bank or mortgage broker offers these programs,

Here are three programs you may not know about:

100% Down Payment Assistance program - How does it work?
Seller contributes 10% towards the deal
-3% goes toward down payment
-1% goes toward non-profit agency fee
-6% covers interest expense and closing costs
-Buyer usually comes out of pocket about 1% (Earnest Money Deposit)

*Note - many think that this program went completely away with ameridream or nehemiah, but there are other options out there.

Rural Housing
Finance 102% of Value, no Cost. This means buyer can finance closing costs.
-2% USDA Funding Fee is charged
-Queen Creek, Casa Grande and rural areas included
-There are income limitations that vary and depends on geographical location

1% Down
-1% Customer Down Payment
-2% Seller gift (AZ Housing Program)
-5% 2nd Mortgage
-92% 1st Mortgage

You can get more information by visiting www.BuyZeroDownHouses.com or by contacting me.

Also, make sure that your Realtor knows how to structure the offer correctly when using these financing methods to avoid having to write addendums or counteroffers and have a smoother transaction.

If you are a Realtor and want to learn more about these programs to help grow your business feel free to contact me via e-mail and I'll respond (time permitting).

If you have any questions, feel free to post a comment and I'll either comment back or write a blog about it.

Do You Lack Financial Literacy?

Jorge Zarate (Re/max Elite) — Thu, 23 Oct 2008 18:41:32 -0500

"Why people are losing their homes and pretty much everything they've got..."

I've noticed something very similar between all my friends who are having a hard time and working very hard just to make ends meet. They have a lot of bad debt.
I'm amazed at how badly these people use money and how they think about it. I know money doesn't buy happiness, but it does buy food, shelter and water..... so unless you plan on not having any of this, then I suggest you start thinking about how you use your money.

I was at a car dealership trying to buy a truck. I asked if they were doing any zero percent financing and here's where I got upset.... and what triggered the need to write this blog. The guy ran my credit and came back with financing options. He showed me a paper with a payment plan and said, oh you have great credit and I can get you very low monthly payments...the first thing I saw was the APR - 13.9%!!!!!! Are you out of your mind? I pay less than 5% on my credit card.... But the sad thing here is that, people actually buy cars, paying these interest rates. I mean, the guy showed me the paper as if it was normal to pay that much interest - and it probably is.

So here's where I want to hopefully make a difference in this world. See if you can identify with this.

How most people think about money......

One of my best friends said to me - "I want to buy a car, probably the new mustang although something more luxurious would be cool".... "oh and I need to buy a flat screen tv for my room...."

Another friend said - "When I buy things, it's just a matter of numbers... if I see that I can afford a $300 payment, I'm buying the jet skis..."

You're spending your money on the wrong things!!! - Both of them gave me the deer-in-the-headlights look....

What do I mean?

You need to think of every dollar you own, as an employee.
I for example know that for every roughly $500 I spend on my business, I get a closed transaction which results in an avg $6k commission. So now, I think.... should I buy that new car or invest those $16K into my business and make a lot more money and then buy the car? (or re-invest and then buy the car.... etc.) I also own properties and total cashflow is about $545 a month. I don't think I can get that at McDonald's working full time, but hopefully you get the point. I'm now starting a second business.... Hey, who said there was a limit in how much money you can make, right?

How do I know I get that much?

Here's what separates the successful from the not so successful. You write out a detailed business plan. This includes an economic model that should describe marketing, operating expenses, and everything else. Starting a business is a lot of mental work and if you've never done it before, I suggest you get help. And yes it is going to cost you if you want to do it right from the beginning, but believe me - it's cheaper than if you don't get the education....

It's time to take responsibility for your own finances... Oh and for Lyn Sims or bitter people like her - I'm not saying that everyone lacks financial literacy, I'm trying to help those who don't get it... I know there's a lot of good people who depend on retirement accounts and are seeing all that disappear. I know some are having misfortunes due to things that are beyond their control. Whatever the case, it's never late to get the proper education so pass this one on

Recommended reading

Robert Kiyosaki - Rich dad poor dad
Michael Gerber - The E-Myth

Are You Unethical?

Jorge Zarate (Re/max Elite) — Tue, 07 Oct 2008 19:17:14 -0500

Is This Market Making You Unethical?

With so much turmoil going on in our markets, I guess it's not surprising to see people become unethical. They call it survival....

Everywhere you turn you hear the word "economy". People are actually paying attention to how much money they spend, but we're still far, far away from financial literacy and understanding our economy (just the thought puts many people to sleep). I guess XBOX 360 is more fun than understanding the FED, or the relationship between crude oil and sugar production in Brazil. Who cares, right? (it doesn't affect you..... or so you think)

At least, this is what I get from fellow Real Estate Agents who think that this market sucks. It's funny they think that because I'm showing more agents leaving the business (more business for me), and even if they stayed, we are selling more homes than the average in the past couple of years (even more business for me). I mean, I wasn't an agent back in 2004 but I checked the data for the average homes sold in 2004 and 2005 and it was about 380 homes a month, which is the same amount we're selling in today's market (closer to 360). Gilbert Real Estate market

So with that I'd like to say to you mr./mrs. poor-me-this-market-sucks, it's not the market it's YOU!!. Ok, ok, a little harsh, I know, but it's the truth and it's the reason why I'm about to share with you what happened recently.

The Story

I have a client who bought a house in May and was alright until he found out his employer was going to downsize and went into panic mode (understandable, most people are afraid, yet they won't take the time to learn how to build a business or invest - the only way for financial security). His house has maintained it's value, but since he went in with 97% financing he'd have to pay commissions out of pocket if he wants to sell (he still has his job, but the idea of an employer downsizing will make anyone uncomfortable). He stumbled accross the idea of moving into a smaller home to lower his payments, so he went into an open house and the Real Estate agent he talked to proposed "The greatest idea to recession proof your investment in today's market".

The Proposal -

Why don't you trade your $345K home (which is in a great neighborhood), for this beautiful bank owned home going for $280K (in a not as great neighborhood, oh and it needs about $10K in repairs). Better yet, let's short sale your current home to sell it fast (I think this was an oxymoron), and then you can lower your payments by buying this one.

Yikes! is this person really that much of an idiot? telling people to take specific action only spells one word, LAWSUIT. Well luckily, my client has put enough trust in me and called me to ask what I thought about this proposal. Obviously a short sale on your credit report won't help him buy a house. I'm surprised the agent didn't tell him to stop making payments to make sure the bank would consider the short sale.

Here's why I wrote this.

Are you that desperate for business that you're telling people these kinds of things just to get a transaction and make money? If there is a reason Real Estate Agents are sometimes seen as Used Car Salesmen is because of people like this. I know of many agents (average people) who were in business in 2004-2005 and were having $30k-$40K months. What did these people do with their money? bought bigger homes, replaced entire sets of furniture, cars, vacations. All these luxury items without investing money back into their business. These are the same people returning to their jobs.

Please help us clean our industry by getting educated and teaching others. Protect your clients against unethical Real Estate agents. And if you're one of these agents, do yourself a favor and take a look at these simple books you can read(you are literate, right?):

Rich Dad Poor Dad by Robert Kiyosaki
The E-Myth by Michael Gerber
The Millionaire Real Estate Agent by Gary Keller

Trust me, the business is out there.... you just need to learn how to get it. If you can't do that, then you might want to consider a different career (lion tamer, parachute packing, maybe taco bell?)...... Ok I'm off my soapbox

Remember to be positive in today's negative society.

Luxury Homes For Sale In Gilbert AZ

Jorge Zarate (Re/max Elite) — Thu, 02 Oct 2008 17:22:21 -0500

Gilbert AZ Real Estate Market Update

Here's an update on the Real Estate market in Gilbert AZ.

Our inventory is now down to 1993 active listings (down from 2500+ in November of 2007). Prices overall seem to be stabilizing around $260K - $275K.

My opinion,- It's been tough maintaining objectivity with all the panic going on out there, but the numbers don't lie. In January of this year we were at the absolute worst real estate market with 19.84 months of inventory!!! We are now at 8.9 months of inventory. (this is for the maricopa county area)

Q: Why would anyone want to buy in this market?

A: I have no idea, but the world is not coming to an end. People are relocating, getting married and want to start a family, some are finding success in their business and buying. There is no generalization for why people are buying, everyone has their own reason. If there is a generalization it would be that prices are back to normal. That's not saying that our economy is getting better or worse or predicting that home prices are going to start going up nor that they will continue to fall. I don't know, period. But here's what I do know:

In Gilbert AZ, there were 351 homes sold which is 79% more than we did last year this month (September). Home sellers got 98% of asking price compared to 96% last year this month.
In Queen Creek AZ, there were 382 homes sold which is 183% more than we did last year this month. Home sellers got 103% of asking price compared to 96% last year this month.

Our biggest problem is not liquidity but rather the tightening lending guidelines that are keeping people from buying real estate while it's on sale. Most programs are now requiring 25% down to avoid Private Mortgage Insurance which can be the difference between affording to buy a house or not.

It has been quite an interesting year with all the bank failures, and the elections coming up. I think that with the right candidate we'll have 2009 be the consolidation year leading us into one of the greatest economic booms in the history of the US. Either way, recession or not I'll prepare myself to survive. After all, do we have any other choices?

Below is our featured listing for the Luxury real estate in Gilbert.

This 4,597 Sq Ft Semi-Custom Home is Listed at $690,000. It features a Resort Style Backyard with it's heated diving pool and spa. This has been one of our favorite listings. You can view more about this listing HERE

Recession? What recession?

Jorge Zarate (Re/max Elite) — Sun, 21 Sep 2008 12:06:54 -0500

You Become What You Sorround Yourself With!!

We recently hosted a real estate education seminar in Scottsdale AZ and I had an eye opener that I'd like to share with you. One of our speakers brought a bunch a newspapers from accross the country and started reading the headlines. "AIG Bailout", "Job Losses", "Merrill Lynch","Lehman Brothers" all negative and really depressing. This is what people are reading out there and it's no different on TV.

I've been lucky to have built my business around a solid foundation with a predictable and measurable marketing campaign. I know that for every $1,000 I spend on marketing I get more leads than I can handle for a couple of months and stay in business. People - Wake up, this is possible....

The number of agents leaving the office is increasing and it's sad to see that they who preach so much about this being the best time to invest in Real Estate are not doing anything about it. Why? They have no money.

I think it's more about lack of knowledge and fear.

Banks keep getting tougher on their loans and now people can't take advantage of all the deals out there because banks won't lend money as easy. In this market cash is king. Who benefits? most people will say the wealthy and there goes the mantra (the rich get richer while the poor get poorer). This is just not true.

You can invest in real estate using self directed IRA's (not necessarily your own). There is more money out there in retirement accounts than there is in our banking system. Many of these retirement accounts are getting on average 3-6% ROI and is very easy to get 20-25% in real estate with the right structured deals.

People wake up, get educated - there's a goldmine out there waiting to be tapped and all you need is to take action. Take action to get educated and take advantage of all the opportunities out there.

Yes we hear the economy is not doing so great and we're about halfway through this whole financial mess, but none of my business partners are being affected. On the contrary we're gaining market share and are going to create so much wealth in the next 5-10 years you'll wish you would of listen to me.

I really hope I broke your bubble of reality, but in my reality I'm going to write my future and take control of my finances - hopefully you listen to me and do the same....

I'm sorry seller, it's not my fault home prices are declining

Jorge Zarate (Re/max Elite) — Thu, 18 Sep 2008 23:48:19 -0500

Why is my home not worth as much?

I wrote a blog a couple of days ago titled "being positive in a negative society". It's actually helped me quite a bit to cope with some of the unusual situations we are facing in our current real estate market.

I was doing my follow up phone calls and came across this person (we'll name it Sally to protect their identity) who had requested a home evaluation. I sent out a CMA and called later that day. The conversation started very good, very polite. Unfortunately Sally was unable to open the attachment which showed all the homes that had sold. No harm, but then Sally started to drill me.

Normally I'm the one who asks the questions but this time I got rocked over the phone!! She asked me what I thought she could list the house for. Obviously I hadn't seen the house inside so I said, "I'd be glad to give you a good estimate when can I stop by to take a look at the house?"
She responded, "well just give me a ball park number."
I said, "I can't estimate unless I've seen the house, but if you want I'll tell you what other homes have sold for." Fair enough. By the way, us guys just can't say 'I don't know'.....

So I opened the CMA and read the first one that was similar to hers and said "This one sold for $177K" (there was another one that sold for $159K and one for $180K) but I didn't get a chance to read them out loud because Sally was apparently offended that I had quoted her house too low!! Then all hell broke loose.....

Apparently the home accross from hers sold for $191K (I don't even show a house that sold for that price so who knows when that happened?) and it was a foreclosure. Apparently I shouldn't be using foreclosures as comps. Uhmmm, last I heard we are going through a financial crisis with banks going bankrupt and the fed bailing out everyone they perceive to be too big to fail. I think most homes being sold are bank owned or short sales....

Well I'm sorry seller, but it's not my fault that home prices are declining, thank you for your understanding..... NEXT

San Tan Ranch Home Values

Jorge Zarate (Re/max Elite) — Wed, 17 Sep 2008 15:53:11 -0500

San Tan Ranch Real Estate Market

If you are thinking about selling your San Tan Ranch Home, here's what you can expect.

Since July of 08, there has been 31 homes sold ranging from $159K-$309K.
We currently have 17 pending home sales and 43 active listings. The average days on Market for homes in San Tan Ranch is about 65-80. Average sales price is about $113 sq/ft.

What keeps attracting buyers to San Tan Ranch is location. Only minutes away you can find shopping, dining, golf and hospitals. Within less than 3 miles you can find stores like Costco, Wal Mart, Fry's, Sprouts, and San Tan Village Shopping Center.

Nearby you'll find plenty of recreational activites, from the trails whithin the communities, to parks like the Discovery District Park and famous Cosmo Dog Park. Our newest addition to the city is the Polar Ice skating ring located in Gilbert's Crossroads Park.

Don't forget about your clients!!

Jorge Zarate (Re/max Elite) — Tue, 16 Sep 2008 19:45:40 -0500

Building a Referral Network

When I started Real Estate, I promised myself that I wasn't going to treat my clients like they were just a one night stand.... I had to call them back days, weeks, months, years after they'd buy from me.

I was showing properties this morning in Gilbert AZ and drove by the very first house I ever sold and well I had to call my very first client to see how he was doing. Turns out his brother is looking to buy a house and had I not called him he would've forgot to refer his brother to me. Hey it's only fair, if I forget about my clients why should they remember me?

I have now set time aside to do something to stay in touch with my clients, whether it's email, phone, or even txt messaging. I actually created a MySpace specifically for my business for anyone to stay in touch with me.

By the way, I'm accepting friends for a limited time so feel free to check it out at:

http://www.myspace.com/newgenerationrealestate

Quote of the Day

"Obstacles are those frightful
things you see when you take
your eyes off your goal"

- Henry Ford

Being Positive in a Negative Society

Jorge Zarate (Re/max Elite) — Mon, 15 Sep 2008 19:55:25 -0500

"I Want to Make Sure You Didn't Misunderstand me..... Because You're About to Miss Out On Something Huge...."

I recently did a little experiment on my way of thinking. The results were extremely surprising and I want to share it with you.

I woke up one day and I sat around thinking to myself "If the US economy collapses, are we going to die?"...... I mean look around, when the Fed started cutting rates back in 2007 we knew our cost of living was going to go up. Gas prices soared, $100 worth of groceries now costs 3 times as much, people are losing jobs, home prices keep declining and our inventory is still pretty high. Now we've got Fears of Merrill Lynch going up for sale, Lehman Brothers bankruptcy and on and on.

Well, I'll confess that back in December I was terrified and I started looking for a job to supplement my Real Estate Business just in case something bad happened.

How a change in attitude can make a difference.

Before I accepted any job offers, I closed a transaction that kept me on my feet, and then another one, and then another one. A couple of weeks ago, I felt scared once again but this time, I had no financial worries yet I felt scared about the economy.

I don't know how all markets are but in Gilbert AZ, we have been sellin well over 350 homes a month. The average is about 260 to 280. We are selling as many homes as we were back in 2004 when the market was hot. So the business is out there, yet I was scared as were many people.

There's an old adage among stock trader's, "If you don't know who you are, the market is a very expensive place to find out"....

I spent a day reading news about the economy and the housing market. I came accross a couple conspiracy theories of how the international banks are taking over America and much more negativity. Later that evening, I wrote down my state of mind and I found myself not wanting to go on. I didn't want to keep spending money on marketing if the world is coming to an end. Simply I wanted to quit.

The very next day (I woke up tired and didn't want to do anything) I did the exact opposite and did nothing but listen to motivational tapes and books. I went over all the material I had from Anthony Robbis, Michael Gerber, Robert Kyosaki and many more. I wrote down how I felt at the end of the day and I did not even want to go to sleep. I realized that all along, I've had a great lifestyle and I have more business than I can handle. I mean just between yesterday and today I got 5 leads. I wake up at 5:30 every morning and stay up until 11:00. I enjoy what I do and "I'll tell you - We are in one of the greatest Real Estate Markets ever"

The secret?

You must remain positive and avoid any negativity. If all you do is listen to negative things you'll feel down and it's harder to keep going. If you remain positive then the world is full of Opportunities
If I ever start feeling down I watch these videos and many more, but I'll share a couple of my favorites...

Enjoy!

Gilbert Real Estate Market - September 2008

Jorge Zarate (Re/max Elite) — Mon, 08 Sep 2008 11:47:35 -0500

Gilbert AZ Housing Market

How's the Real Estate Business?
Attention has been shifted to the elections as it should since the housing market is going to greatly depend on it. Yet this question is still one of the top ones I hear.

Simple answer: Bad

Bad because we still have quite a bit of inventory to clear and because prices are BACK TO NORMAL. It's only bad because if you owned a home before 2003-2004 and you didn't sell in 2005 you missed out on the opportunity to sell at a high price - one you won't see for another 10 or 15 years.

Whether price increases or goes down, if the volume of transactions decreases then trade is not being facilitated.

Our worst month was January. We have had a higher than the average number of homes being sold each month since March. If that keeps up, then 2009 should be our correction year. Well below are graphs to show what prices are doing in Gilbert AZ and sorrounding areas

Here are the numbers for the month of August.

We have 2001 active listings (our all time high was 2500+ in November of 2007) There were 358 homes sold and we currently have 370 pending home sales (avg is about 260) The average home in Gilbert sold for $265,000.

If you'd like to see what a specific neighborhood is doing let me know and I'll be glad to post something about it. Much like these cities are acting slightly different, neighborhoods within a city are different (some retain better value than others)

Understanding the housing mess

Jorge Zarate (Re/max Elite) — Thu, 14 Aug 2008 16:35:25 -0500

Real Estate Market

A common question I keep hearing is "Why do Short Sales take so long if you have buyers ready to buy such properties?"
Well to understand this whole mess it's better to take a look at the big picture and then focus on the little details. First let me set the foundation of this blog to see what happened in the Real Estate Market in the past 8 years.(based on Gilbert AZ real estate market - *Source ARMLS)

I drew a line to help visualize a steady 3% increase in home prices over the years. But I want to talk about Point A which is where the up trend started. The number of homes being sold increased dramatically in the summer of 2003.

What happened in the Real Estate Market in '03?

We were still trying to get out of the recession caused by the dot com bubble and banks were trying to bring liquidity back into the system much like we're trying to do today. It's weird to think that many people don't stop to think about where does money come from and who is really lending all the money being used to buy properties, boats, cars, credit cards, etc. Until you understand this you won't know why we're close to a recession (or in one already depending on your definition of a recession)

Money comes from investors buying credit (Mortgage backed securities, bonds, etc.) or depositing money in banks. Or sometimes it's created out of thin air when the Federal Reserve lowers the discount window. So, here's a simplified version of how you as a consumer are able to obtain loan for a home.

Again this is a simplified version, but basically let's say we have 3 consumers (A, B, C) looking for a loan and they go to a mortgage broker to obtain a loan. The Broker will look at the financial situation of the buyer (Hopefully) and determine what loan to give out based on what other banks (1, 2, 3, 4) are already offering. The mortgage broker is simply putting together the consumer and the bank and collect a small fee (if they are not greedy). So the lender gives out the loan but the thing to keep in mind is that these loans are pre-made and ready to be sold in the secondary market. These loans are grouped together and sold as a Mortgage Backed Security. And so that's where the money comes in to lend to home buyers.

So prior to 2003 there was little money in the market and banks came up with the great idea of using the sub prime mortgage to increase the money supply.

How this works.
As you see the interest rates that you pay the banks is slightly above the interest being paid to the investor who buys these Mortgage Backed Securities. So an investor would buy say $1,000,000 worth of securities and they are offering 5.5% interest rates. That means the investors would get about 4.2% ROI (Return On Investment) for their 1 Million dollars. For an investor, that's a relatively small number.

So they came up with ARM mortgages which start out at small interest rates and after 2 years would go up to 9-12%
That gave investors a higher Return On Investment and then the mess started. Investors saw the higher ROI and started buying Mortgage Backed Securities like it was the new iPhone. Next thing you know we had more money to lend than there were consumers and a bubble started.

In 2004-2005 you basically needed to prove that you could breathe and you were qualified for a loan. To further complicate things the banks offered what's called a CDO (Collateral Debt Obligation) meaning they basically guaranteed these loans to the investors. This was great leverage for investors since they paid about $150K for these CDO's and got about $10,000,000 insured!!!! At first it was OK because home prices were going up and mortgages were safe, but when the trend stopped....ay, yay, yay..... banks were out of luck!

SO now what?

This is why short sales are taking forever to close. You see it's not just a matter of the bank saying "Yes let's discount this loan, scratch the bad debt and move on". They have to take into consideration whether or not the investors who bought these loans on the secondary market bought CDO to protect their investment. If the bank scratches the bad loan they have to pay these investors.

We're back to step one, and again I ask, where does the money come from?

Well this case it's coming partly from us just like in 2000-2003. When the Federal Reserve lowers the discount window they print more money which means that our money is worth less.

So if the banks have to repay say $20 billion dollars and they only have $15 billions, then the solution they are opting for is to make $25 billion dollars out of $15 billions by printing more money. The problem is that when you print more money it is worth less.

So the Fed decides to print more money - Great now $200 dollars is really worth $100 dollars.

Now you see why the dollar is weak? You see why you went from spending $100 a week on groceries to $200? We're essentially paying a tax only it's in a subtle way.

So short sales.

As you can see it's not just a matter of negotiating with the banks. The banks have to see how they are going to have to pay the investors who bought Mortgage Backed Securities and CDO's.

Normally a loan was given as an 80/20.

If the house was worth $200,000 you would have

1st loan = $160,000
2nd loan = $40,000

Property prices fell about 30% from the peak of the market. I actually like saying that prices are coming back to normal, not so much falling but either way the point is that this property that was bought for $200,000 is now worth $160,000.

So what happens if it goes to foreclosure?

Well, the first person to get paid is always Uncle Sam (Property taxes and other assesments)
Then, any mechanic liens followed by the First lien holder (Primary Bank which lend 80% of the loan) and then the junior lien holder which was the secondary bank that lend the other 20%.

As you can see if the house sells at market value (probably not) the First lien holder would get

$160,000 - Taxes - Mechanic's liens (if any) - lawyers fees and other foreclosure related costs (usually around $40,000) = $110,000 roughly

This is a bad asset which keeps the bank from lending any more money, and let's clarify that banks make money by lending money and not by selling homes so it's not in their best interest to foreclose on the home.

This is where the potential to profit from these deals comes in, but it's a little more complicated than this. Each bank has it's own way to deal with short sales but here's a simplified way of the process.

The home owner (seller) submits a short sale package to bank(s) requesting permission to sell the home for less than it's owed. This is done at the Loss and Mitigation department.

It's important to point out that there's not enough people trained to handle these packages and therefore files keep piling up in this department and not taken care of..... (About 60% of homes that went into foreclosure did so because there wasn't enough people working this department).

When this package does get processed the loss mitigation department has to get 2 approvals:

From the investor who holds the mortgage backed security (who can be anywhere from Hawaii to Japan so figure out how easy it is to get a hold of him/her)
From the bank (who might have to worry about paying the investor for the Mortgage Backed Securty if the investor bought a CDO)

Sounds easy enough but here's the other factors that affect a short sale. The person making the decisions on behalf of the banks are usually not in the same state where the properties are at, so the person crunching the numbers and making the decision at the bank has to rely on the appraisal or the Real Estate Agent giving the Broker's Price Opinion (BPO).

Many times these agents giving the BPO's don't know the area very well and end up over pricing the property. Sometimes they do come at market value but by the time the approval comes in it's been a month or two and home prices have fallen another 3-4% by then. The buyers usually walk away and the process has to start over with a new (and Lower) offer.

If you do stick around long enough and get a good BPO you can however buy properties for cents on the dollar (based on today's market value), but this requires patience and true commitment to a house.

Many people ask why not let these banks fail which they should and are, but that has a negative effect. If there are no banks, there are no loans and that's crucial for business to grow and/or operate. If we take business loans away then businesses start to fail and there would be no employers it could collapse our economy, but this is a whole other topic. And that's pretty much why this is a mess.

Getting to Know Power Ranch Gilbert AZ

Jorge Zarate (Re/max Elite) — Thu, 07 Aug 2008 14:55:11 -0500

Power Ranch - Gilbert's Most Popular Community

I'm constantly asked about Power Ranch and it's no wonder since it has been one of the most popular communities in Gilbert ever since it started in 2000. One of the things that has impressed me is how well the community has maintained it's common areas and has maintained a high demand by home buyers looking to move to Gilbert. I was out on a ride on my bike and decided to stop by Power Ranch and take some pictures for those of you who don't live near the area and want more information on Power Ranch.

The greenbelts in Power Ranch have had outstanding maintenance and remain as green as they've always been. It's nice to see that families in the community get to enjoy taking walks, run or bike around through the trails throughout Power Ranch.

Other Things to know about Power Ranch: The master planned community is being built on over 2,000 Acres of land. A population of about 15,000-20,000 is expected when the project is complete. The community has over 200 Acres of open space & greenbelts as well as 26+ miles of trails connected throught the community. Some of the top reasons why more families choose to live in Power Ranch are the schools.

Power Ranch K-8 Elementary School
Cortina Elementary School
Higley High School
Williams Field High School
Chandler-Gilbert Community College at Williams Gateway
ASU (Polytechnic Campus)

Last, homes for sale have remained stable in power ranch compared to the overall market in Gilbert AZ.

If you would like more information on homes please feel free to contact me with no obligation.

Gilbert Real Estate Market Update - July 2008

Jorge Zarate (Re/max Elite) — Wed, 06 Aug 2008 19:35:40 -0500

Gilbert AZ Housing Market

One of the things you need to consider when selling your home is what is the market doing and set a strategy to sell the house based on what the market is doing today. As you'll see from reading some of my past blogs, I don't try to predict the market but rather try to read what the market is doing based on the information it provides me. One of the best examples is the information the market gave us in 2005 when volume dropped from 628 transactions in June to 230 in March of 2006. The fact that the number of buyers was decreasing was telling us that the trend to the upside was coming to an end.

Below I'm just comparing the month of July for the past 5 years.

One of the things to look at is home prices in 2003-2004. Late in 2003 was the begining of the housing bubble. If we are to follow the steady trend of home prices we can say that we are just coming back to normal. I calculate it around $250,000 but the market will do whatever it wants to do.

Months of inventory is another chart that I look at to gauge the activity going on today. If you knew the Real Estate Market, you would make sense of this chart and have a better idea of what's really going on. I personally don't listen to the news. I know we are in a declining market, but the truth is, we've had a very healthy number of transactions in the past 3-4 months.

On June 2005 we had the highest number of transactions of around 628 homes sold in Gilbert. From there we just started decreasing in number of transactions. If we do the math, any home buyer that bought in June 2005 using an ARM loan, their loans reset in June of 2007. It takes 90 days for a bank to take a home into foreclosure. In theory we should have seen the peak of inventory in September 2007. The peak was actually in January of 2008. My guess is maybe that's the time it took to sell if they listed in September which is about 120 days and matches the avg days on market for that month. The other is that some short sales took a while to close. I don't know, but the point here is that I'm not exactly calling a bottom but in order for us to go back to a bad month as it was January we would have to increase our inventory significantly or we'd have to decrease the number of homes being sold. There are many things that can affect that. The new housing bill is going to have an effect. There is no way to know if it will be positive or negative. The downpayment assistance program is supposed to go away and that in my opinion can be a negative thing. On the other hand it's supposed to help reduce the inventory which is a positive thing. For now it's looking like the worst is over. You'll hear people say that we still have another 15% to go. Just beware when listening to these people. There were many people who said that homes were still going to go up in 2006. There were people who predicted that crude oil was going to reach $200 per barrel and we just saw that it stalled at $147. Let me emphasize that this is not a prediction to call a bottom of the market, but all I can do is watch how the market develops and make my decisions based on that.

French Country Homes for Sale in Gilbert AZ?

Jorge Zarate (Re/max Elite) — Mon, 04 Aug 2008 17:52:14 -0500

French Country Style Real Estate in Gilbert AZ

Despite the new changes in the Real Estate Market, we still have an increased activity in home sales in Gilbert AZ. One of the things I enjoy about working with buyers is that I get to see all sorts of decorations and interior designs. Lately, I've come across a few homes which have opted for the French Country Style. Being that I'm young I like the contemporary style, but after seeing a few homes who have mixed the French country with today's demand for stainless steel appliances and granite countertops I've learned to appreciate this style.

What impressed me the most about these homes was the simplicity of the designs and the easy maintenance materials used. The mixture of rustic woods and treated wood gives the home a warm feel with a bit of style.

So what exactly is French Country?

French country is inspired by the mix of a romantic, relaxed, elegant, and rustic decoration look. The idea is to give the house a rough or aged feel. Some of the most popular colors are yellow with a golden or orangey tone as long as it's not too bright. To give it the rustic look you can try textured paint or a color wash effect by using a wet rag to texturize the paint.

Styles of French Country can vary from the old fashioned look mixing yellows with whites, blues, and rustic wood to a more contemporary feel using other rich colors such as red and laying off the white a little bit. When using reds, dark wood furniture is used instead of the white washed wood color .

These decorations are often colorful and mix other rich colors such as red, salmon pink, green, blue, oranges, or rusts.

When choosing pictures or paintings for the walls you can take the typical rooster to get the most authentic French Country style interior design look. If you are like me, you can opt for artwork depicting the french country side like Van Gogh's paintings or other paintings by famous french artists, such as Monet.

I couldn't leave these homes without noticing the very relaxing smell of fresh lavender which make you feel like you're walking the wonderful fields of Southern France.

As if the exquisite smell of lavender wasn't enough, the bright colors add to the house by placing vases and/or jugs of fresh lavender.

One of the things that you'll definitely enjoy with this style is the relaxing nights enjoying a glass of wine and French bread.

Well hopefully this was informative to learn about the different styles of decoration and can help you decide what style you want for your next home.

Do you know of other styles or trends that seem to be emerging in Gilbert AZ?

I will be out on a mission to find the best eats out in Gilbert, AZ. If you know of any places let me know.

Hope you enjoyed this!!

Sell Fast and For Top Dollar - Gilbert AZ Real Estate Market

Jorge Zarate (Re/max Elite) — Tue, 29 Jul 2008 15:54:43 -0500

Gilbert Real Estate

*Bonus: How to get maximum exposure for your listing (scroll down to see video)

When you start looking for Real Estate Agents in Gilbert AZ you want to make sure that their marketing efforts are going to get your home sold in today's tough market. (Note: Not all real estate agents are Reators®).

First let's start with a reality check..... What have prices done in the last few years(2000-2008)?

This is not to show any trends or make any predictions, but rather to show how prices are coming back to their would be "Normal Price" from a long term perspective. The reality is that we are selling on average 390+ homes a month. That was about the average in 2004-2005 when prices soared.

The Difference?

Back in 2004-2005 there were hardly any listings out in the market, which was the reason why people bid up the prices and we all know the end result (the housing bubble).
Today's market your home has to compete with the other 2000+ listings available here in Gilbert.

So here's how we are helping home sellers sell in today's tough market.

The Secret: Maximum exposure........

What's impressive about this is the fact that Google is hands down the #1 Search Engine World Wide. Notice that I'm number 3 out of 150,000 on the Organic Search Results. (The top 3 results are Sponsored links known as paid for advertising, I'm usually in #1-#3 spot on those ones). Getting exposure is crucial in today's market, but there are far more important factors that will determine whether or not your home will sell or not.

Getting your home ready for sale
Pricing Your Home the right way

I will write more about these steps in the near future..... As always, I welcome any comments or questions you may have regarding real estate. Have a nice day.

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