WeKnowUrban

We Do Short Term Rentals

Sat, 21 Nov 2009 02:28:55 -0600

You asked for it so we went out and got it. Short term rentals that is. In the past we turned away many people who needed help finding cool condos in downtown Phoenix because there flat out wasn't anything available, until now. We now have access to VERY nice furnished one and two bedroom high rise condos right next to the baseball stadium downtown. These condos are available for as short as one night and for as long as six months. Each condo comes fully furnished, with complete kitchens, wi-fi, Direct TV, and even room service from a local restaurant. Enjoy the "A-Cabin" amenities including the fifth floor pool and spa, professional fitness center, sauna, roof top entertainment room and patio, attached garage, conference room and more. All this, walking distance from Phoenix Convention Center, Chase Baseball Field, US Airways Basketball Arena, three live theaters, multi-screen movie theater, shopping and tons of great restaurants and bars like: Pizzeria Bianco, Sens, Pasta Bar, Hannys, Coach and Willys, Rose and Crown, Tufts and more. Also, with a light rail stop 1000′ feet away ASU and all of Tempe are open to you.

Walk to professional baseball, basketball, great restaurants and bars. Stay in the heart of downtown Phoenix.

So if you are relocating to Phoenix and need interim housing until you buy something or if you're visiting for conventions or athletic events, give us a call and we'll hook you up with a great downtown Phoenix condo rental.

Phoenix vs San Diego Prices

Sat, 21 Nov 2009 02:26:18 -0600

Talk to Phoenix high rise developers trying to hawk their goods and they'll tell you their prices make all the sense in the world. If so, how come no one's buying? Sure the market is slow and its harder to get loans today but some people are buying but not at the brand new condominiums in midtown and downtown Phoenix. Sounds like a price issue doesn't it?

Because high rise living is so relatively new to Phoenix one way to get a perspective on values is to look at what's going on in other markets.

The San Diego high rise boom began several years before our boom in Phoenix AND the number of condos built there dwarfs what's happening here. Because of this San Diego MAY be a great indicator of where our market is heading.

The Legend is an A-Class building in downtown San Diego overlooking the Padres Ball Park. Prices are advertised at about $550 per foot plus discounted interest rates and 3 years of HOA fees. How much you want to bet that the $550 per foot is soft at that?

Now, I love Phoenix, but I don't think that the average buyer would consider downtown or midtown Phoenix to be "comparable" to San Diego. So, is it reasonable that someone pay as much to live in Phoenix as San Diego? Probably not. Century Plaza recently advertised prices in the $480 to 500 per foot range. And even though Century Plaza is a really good looking building it is not comparable to The Legend and even though Century Plaza is on the Phoenix Light Rail that is not comparable to The Legend location. Gang, IF The Legend sells at $550 per foot (again IF) then there is no way that Century Plaza is worth anywhere close to that number.

But now here's where things get really subjective. Compared to downtown San Diego what are high rise condos in midtown or downtown Phoenix worth? Ten percent less? Twenty percent less? Fifty percent less? What do you think? Should prices for a high rise condo in downtown Scottsdale be about the same as downtown San Diego? MAYBE. But wouldn't most of you take a condo in downtown San Diego over a comparable condo in Scottsdale. I would. I believe that San Diego prices should be about double what a comparable place in midtown or downtown Phoenix and maybe as much as 50% more than the same unit in downtown Scottsdale. Thoughts?

I can't imagine that anyone will think that Century Plaza prices make sense in this light. Fortunately prices at Century Plaza are about to come down; way down.

Condo Market Here in The Valley is at or Near the Bottom

Sat, 21 Nov 2009 02:21:37 -0600

It is clear that the condo market here in the valley is at or near the bottom and while many have suffered, others will make huge gains in the near future. It is unknown how much Wells and Arsenault will market the remaining units at, or even if they plan to market them now for sale. Many other condo projects and condo conversions around town have been quickly changing or reverting to rentals ever since the market fell apart. As for Bridgewater, it might be harder to lease them as problems could spark with the HOA, but either way, people with capital will have once in a lifetime opportunities all over town.

Here are some other distressed projects that have or will be sold in the near future:

Summit at Copper Square's unsold 74 units will be sold at trustee sale on October 14, 2009, unless developer David Wallach, principal of W Developments can work out a deal with the new lender, Stearns Bank of Scottsdale.

Century Plaza developer Equus Development recently filed Chapter 11 Bankrupty protection, most likely to avoid foreclosure on a unpaid loan balance of $23 million with M&I Bank. The original construction loan, in the amount of $42 million was for a conversion of an office tower into 145 luxury condominiums. To date, only 14 units have been sold, and the property is assessed at $19 million. Someone will come in and buy nearly 90% of the tower for an extremely low price, but it might not be in the near future as bankruptcy can elongate the process far more than a 90-day notice of trustees sale.

Tempe Brownstone For Rent

Sat, 21 Nov 2009 02:16:59 -0600

This is a We Know Urban Realty exclusive opportunity (meaning no other realtor has access to it yet). This one bedroom plus loft (or two bedroom depending on how you use it) is top notch. Its super clean, heavily upgraded and located just a half mile from Mill Avenue in the very popular Brownstones at Tempe community. You gotta see this to really appreciate it. Oh, and its the only town home currently for rent at Brownstones at Tempe. Rents for $1850 per month. Contact We Know Urban Realty for more details or for a showing

Is it Time to Buy?

Sat, 21 Nov 2009 02:14:36 -0600

It is our opinion that there are great deals out there for those who know where to look AND who meet certain other criteria. If interest rates do go up, and I strongly believe they will, then you might want to take advantage of today's low rates, take advantage of the many sellers who really do need to sell (at lower prices), and get yourself a great urban condo now rather than later. Don't be one of those folks who years from now say "boy I really wish I had bought when I had the chance." Call us at We Know Urban Realty and get our help. We don't sugar coat stuff and we know where the deals are and can show you why they are good deals.

An Anonymous and Somewhat Derogatory Email

Sat, 21 Nov 2009 02:11:28 -0600

I got an anonymous and somewhat derogatory email from a person who was pretty indignant about my previous blog post. One of his or her many points was "In my entire career, I've never seen a real estate firm post a "negative" about a building. The article states that removing the lock boxes will cause home values to decline. No, what will cause it to decline is a negative blog posting that will never be removed from the internet once it's indexed in all the browsers."

I'd like to respond.

First of all, I believe that we real estate agents have a responsibility to speak objectively. Those agents who "sugar coat" things or never write a "negative" about a building aren't doing themselves or the buildings any favors. The public is looking for reliable information. The public also knows that there are several sides to every story. If an agent only paints a pretty picture then his or her opinion will not be trusted. Or at least that is my opinion. I instead write things the way I see them. If I really like something I say so. If I think something doesn't make sense, I write that too. Because of this people value my opinion and often hire me as their agent.

Secondly, I hardly see how a blog post about lock box policies can hurt condo values more than the actual policy itself. Gang, if you believe that in order to get the highest price possible for your condominium it is better to show it to 50 prospects than 5 prospects then you should understand my point that interfering with agent showings of the condos is bad for values. Is it possible for agents to show the condos if they have to make appointments with every single listing agent? Of course. Does it hamper and impede showings? Absolutely.

Let's put this on a personal level. Let's say I'm showing properties to a client who lives out of state. I show them Camelview Village, I show them Galleries at Turney, I show them Scottsdale Waterfront, and I want to show your condo for sale at Biltmore Towers. Unfortunately, for some reason your agent is not available to meet with us to show us the condo at a time that works for my clients. Well, guess what? We won't see your condo. That's reality.

Here's another example of what I mean. Let's say you want to buy a car and you visit a car lot that has a unique new concept that allows individual car owners to sell their cars on that lot "on consignment." In this case, the lot manager doesn't own the cars and doesn't have keys to the vehicles and for security purposes locks each car up in its own private garage. For a prospective buyer to see a car he or she has to schedule an appointment with the individual owner. If the buyer wants to see multiple cars on the lot he or she has to schedule multiple appointments. Pretty cumbersome huh? Can I imagine cars actually selling? Sure. But who is most likely to sell thier car first and for the highest price? Probably the seller who is most available to show his or her car at any given moment. In contrast, the car owner who is the least available to show his or her car will have a much harder time getting it sold. In fact, I would argue that the car owner who is least available to show his or her car will ultimately have to lower the price in order to entice buyers to work around the seller's schedule.

I'm sure you would agree that a car lot like my make believe example wouldn't work very well and yet that is the environment what the HOA at Biltmore Towers is creating by outlawing lock boxes. Again, I understand the importance of security. But for heaven's sake, lock boxes are used across this country and they are secure. Certainly, there is a better solution for a modern high rise building than to ban lock boxes. Other buildings have figured out solutions that offer a higher level of security for their residents AND a reasonable level of access for real estate agents.

I'm sorry that I ticked some of you off but in the long run I think you'll be grateful if posts like this motivates the HOA to find a more flexible and secure solution.

Worth saying again .

Sat, 21 Nov 2009 01:57:37 -0600

We're not posting all the details on the web but if you are looking for a live/work town home in Scottsdale then call us right away.

There are a handful of 3 story, 3 bedroom, 4 bathroom, 3,000+ square foot town homes zoned for both light commercial and residential use located minutes from downtown Scottsdale about to go to auction. The official "public" announcement won't go out until Wednesday so if you want the jump on everyone else then contact us now.

Short Sales So Darn Difficult To Close?

Sat, 21 Nov 2009 01:43:04 -0600

A "short sale" occurs when an Owner of a property has to sell it for less money than is owed to the Lender(s). It is sold "short" of the amount that is owed. Quite often the Owner of the property is experiencing financial difficulties and no longer making the mortgage payment and elects to sell the property short rather than allow it to go into foreclosure. Unfortunately, despite the best efforts of thousands of great real estate agents, short sales prove to be extremely frustrating and more often than not fruitless endeavors.

Why? After all, one would think that all parties concerned have a truly vested interest in finding a reasonable solution. The Owner certainly wants to get out from under a mortgage that they can no longer afford, the Lender should want resolution to the matter since it is not receiving a monthly mortgage payment and certainly the real estate agents involved want to sell the asset and earn the commission.

So why are short sales so darn difficult to close?

One of the problems is a lack of communication. In sales, we want to talk to decision makers. We know that if we talk to anyone but decision makers that we are wasting our time. And one of the real problems with short sales is that one rarely talks to a true decision maker.

It is true that the Owner of the property legally is the decision maker as to whether or not he or she sells the property. However, in the case of a short sale the Owner has to get permission from his or her Lender to sell the property for less money than is owed. Often times there is not only a Primary Lender but also a Secondary Lender from whom permission must be obtained. To further complicate matters many times the Lenders are no longer the decision makers because they sold the loan to an Institutional Investor (e.g. a school teacher retirement fund in Norway - hereafter referred to as Investor). So, whomever manages that fund has to agree to allow the Owner of the property to sell it for less money than is owed the fund.

Another problem of course is trust. Why should the Lender or Investor believe that the offer on the table represents the highest and best price possible for the property? After all, the Owner will lose any equity that he or she may have had in the property and they are losing the property itself. It is easy to understand why a Owner "just wants out" of the problem and will sell it to the first buyer who comes along, regardless of how low the offer price might be. A higher price really just benefits the Lender or Investor and doesn't really benefit the Owner (except for any consequential tax ramifications which we will not address here). Also, in most cases the Lender/Investor has very little knowledge of the property specifically or the condition of the surrounding real estate market in general and has little reason if any to trust that a proposed short sale is in its best interest. For all the Lender/Investor knows it might be best to deny the short sale and force the property into foreclosure.

Finally, in a normal market there is a more equal balance of Buyers and Owners than exists today. In a more normal market both parties stand to benefit to a reasonably comparable degree. The Owner gets to sell his or her home for a profit and the Buyer buys a home that they like with the anticipation that prices will go up (so the sooner they buy the better). Both parties benefit. In today's market, Owners are losing money to sell their homes and Buyers are trying to buy properties below their market value. A Lender/Investor can easily wonder if now is the best time to take their loss and allow the short sale or is it better to hang onto the asset until the market moves to a more balanced condition.

So there you have it, short sales are extremely hard to put together because 1) the true decision makers, Buyer and Lender/Investor never communicate 2) Owner's just want out and are willing to "sell" the property for less than market value 3) the Lender/Investor is largely uninformed of the condition of the property and specific market conditions of the immediate area 4) the Lender/Investor has very little to gain from a short sale and MIGHT instead benefit from taking the property back via foreclosure 4) Buyers, rightfully so, are looking for great deals and are hesitant to pay "fair market value" assuming that fair market value can even be ascertained in today's fluctuating market.

Gang, we strongly suggest that Buyers look at properties that have already been foreclosed upon OR even better, traditional sales (i.e. an Owner selling without being under financial duress) instead of spending time viewing and making offers on short sales. With a foreclosure or a traditional sale you actually know what you are getting into and you can reasonably expect to close the deal AND get a good price. Why go through the brain damage and the emotional trauma of "buying" a short sale when there are equally good or better options? Call the agents at We Know Urban Realty for help finding a great deal that can actually close.

Camelback Corridor Was a Long Way

Sun, 15 Nov 2009 15:39:25 -0600

The Camelback Corridor to us runs from approximately 44th Street, west along Camelback Road, to about 12th Street. It also runs north and south from Camelback Road from about Bethany Home Road to about Osborn or so. Some of the condo communities to the right do not fit exactly within these parameters but they fit better in Camelback Corridor than any other geographic category. Camelback Corridor is largely defined by Biltmore Fashion Park and the intersection of 24th Street and Camelback. The area thrives with high rise condo buildings like Esplanade Place, 2211 Camelback, and Optima Biltmore as well as equally intriguing but less obvious developments like Galleries at Turney, the future Aura at Camelback, and George Lofts.

Condos in Phoenix

Sun, 15 Nov 2009 15:37:05 -0600

For decades high rise condos in Phoenix were rare. In fact until 1990 there were only four high rise condo buildings in the entire Valley, all located in the Phoenix Midtown area. And those four towers, constructed in the 1950's and 1960's, were built as rental apartments and only later converted to condominiums.

In 1990 construction began on Crystal Point, the first high rise condos in Phoenix. Unfortunately that was the same time that the Savings and Loan crisis hit the country and sales of these Phoenix condominiums were slow for almost a decade.

It wasn't for another ten years that the next high rise condominium, Esplanade Place, was built. Sales were robust and made headlines. This marked the start of what became the Phoenix high rise boom.

Urban living in Phoenix is diverse, exciting and convenient. From Phoenix high rise towers in Phoenix Downtown, Phoenix Midtown and the Biltmore to architecturally interesting lofts and condos in small established neighborhoods. Most are close to hip and cool restaurants, coffee shops, boutiques, premium shopping, entertainment, and in some cases the light rail. Urban enthusiasts enjoy convenience, a sense of community and seem to have more time to do what they enjoy. All three of which are in short supply in today's world.

We loosely define various areas througout town to help us when discussing options with our buyers.

Rocky Point Life Style!

Sun, 15 Nov 2009 15:34:40 -0600

Two bedroom two bath condo in Las Palomas' newest and nicest building. This 7th floor condominium has fantatic views of the beach, four swimming pools, the lazy river, downtown Rocky Point and the old port (the best "city light" views in this sleepy town).

This 1700 square foot condo has a big open great room feel with the living, dining, and kitchen looking out onto a 45' long 500+/- square foot balcony. Contemporary decor with dark woods, chocolate leathers, platform beds, designer bedding, custom window coverings and modern lighting. Amenities include three flat screen tv's, three dvd players, desktop computer with high speed internet connection FREE, unlimited calls to and from USA FREE, HD Satellite tv with premium BASEBALLL and FOOTBALL packagess in master bedroom and living room FREE, XM satellite radio in living room and balcony FREE, full sized washer and dryer, side by side fridge with ice maker, and more.

Additional Info on the Optima Purchase of Orchid Tree

Tue, 10 Nov 2009 20:28:47 -0600

My previous post on the topic stated the purchase price as being $15M. The actual amount was closer to $16M. Optima reportedly purchased the 278 unit apartment complex with the intent to tear it down and build upscale luxury condominiums on the 8.54 acre site. I am very curious to know what the proposed time frame is. It is my guess that we are years (maybe even five years) away from enjoying a real estate market strong enough to support new construction of mid-rise luxury condominiums. We will see.....

Put the power of the WeKnowUrban.com website to work for you

Tue, 10 Nov 2009 20:26:25 -0600

Hire We Know Urban Realty and rent your high rise, loft, or urban condo fast.

Put the power of the WeKnowUrban.com website to work for you. With 5,000 visitors every week and one hundred twenty rental inquiries every month we are THE agents to rent out your urban property right away.

In 2009 alone we will help over one hundred landloards and tenants with their high rise and urban property rental needs. So far this year we have helped over 82 people buy, rent, sell or rent out their urban properties. No other real estate company in the Vally works with as many urban property owners or urban enthusiast as We Know Urban Realty.

Every week, every month, that your urban condo sits empty costs you big. Stop the bleeding now and contact We Know Urban Realty today. You'll be glad you did.

Summit at Copper Square

Tue, 10 Nov 2009 20:21:50 -0600

November 9, 2009 - 12:02 amOctober 5, 2009 - 1:34 pm

For years residents at Summit at Copper Square have had to turn a deaf ear to train horns blowing night and day just to the south of the high rise. Even though the street intersecting the tracks is very lightly used, Federal regulations required that the train conductors blow their horns as they approached the area. Some of the conductors were cool about it and only gave the horn a short tap during the wee hours of the night while other conductors really blasted it.

David Wallach, the developer of Summit at Copper Square, has been pursuing a exception to the horn regulations so that the intersection would be treated as a "quiet zone" by the conductors. It appears that his tenacity is finally paying off. Below is a copy of an email that Wallach shared with me written by the man who has been helping him wth this issue:

"The 21 day notification letter was mailed on September 15th. From what Chris Becker has told us in the past it is often 2-3 weeks after the 21 days have lapsed that the horns actually go silent so I would not promise residents that it will be quiet on October 6th. There are also 2 minor sign issues which hopefully does not delay things with UP. We removed two signs from the drawings because of property owner concerns. UP has been very challenging to work with and I am crossing my fingers that they do not balk at the change. Jen can you send this out to the tenants please.

Dan Klocke
Director of Planning and Economic Development
Downtown Phoenix Partnership
101 North 1st Avenue, 14th Floor
Phoenix, AZ 85003″

Call or email us at We Know Urban Realty if you have any questions concerning this matter or if you are considering renting or buying a high rise condo at Summit at Copper Square

We Know Urban Realty exclusive !

Tue, 10 Nov 2009 20:18:55 -0600

October 5, 2009 - 8:39 pm

Change last week, will have an adverse affect on property values.

Tue, 10 Nov 2009 20:13:01 -0600

We just heard that Optima Biltmore Towers (OBT) management made a major policy change last week that we believe will have an adverse affect on property values there.

Real estate agent lock boxes are no longer allowed on the property! This means that agents looking to show OBT to prospective buyers or renters will have to make appointments with the various listing agents to do so. Can you imagine trying to coordinate a client's schedule with three or four or more Realtor' schedules? This policy will discourage agents from showing the building.

It is true that some other high rise buildings prohibit lock boxes. However, those buildings have doormen or other on-site personnel who make it easy to show the property. OBT is one of the only buildings, perhaps the only building, in the valley which doesn't have a doorman or on-site personnel but outlaws lock boxes. In contrast, some buildings have actually spent money to make it easier for agents to show their condos. For example the Home Owner Associations at Third Avenue Lofts and Biltmore Square installed metal bars in central locations so that all Realtor lock boxes can be hung in one, easy to find and secure area. Doing so eliminated the "clutter" of lock boxes being hung in random places around the property and it makes it super easy for an agent to show multiple properties. I can tell you from personal experience that before Biltmore Square installed the bars I HATED showing the community and rarely did. Now that the HOA installed the lock box bar it is super easy to show properties there. It seems to me that Third Avenue Lofts and Biltmore Square are encouraging agents to show their condos. In light of the current economic mess that sure seems like the right attitude to me. Optima Biltmore, how 'bout making it easier to show condos there, NOT harder!

I understand and appreciate the value of security. Great security is one of the reasons that I live in a high rise. But there are better solutions that banning lock boxes. This is a big mistake and believe me this policy will hurt property values in the building. If Realtors find it very difficult to show a building then guess what? They won't show it. If people stop showing the building then values will go down. If you are an owner of a condo at Optima Biltmore Towers then I strongly encourage you to contact your management company and insist that they come up with a better solution.

I'd like to respond.

Tue, 10 Nov 2009 20:09:51 -0600

I'd like to respond.

I'm sorry that I ticked some of you off but in the long run I think you'll be grateful if posts like this motivates the HOA to find a more flexible and secure solution.

Scottsdale Live/Work Space Going to Auction

Tue, 10 Nov 2009 20:07:38 -0600

We're not posting all the details on the web but if you are looking for a live/work town home in Scottsdale then call us right away.

We are real estate agents

Tue, 10 Nov 2009 20:04:31 -0600

We are real estate agents who specialize in cool architecture like High Rise Condos, Lofts, Brownstones, Row Houses and more. No matter what your needs, do not hire an agent who only dabbles in condos. In today's market you must hire an agent who specializes in the urban high rise and loft real estate market. To do anything less is financial suicide. We know the high rise and loft condo market better than anyone in this town and we have the "numbers" to prove it.

In 2009 we have already represented:

5 Foreclosure Sales
1 Alta Modern Flat in downtown Phoenix
1 Residences at 2211 Camelback
3 4020 Lofts
1 Artisan Lofts on Central
1 Artisan Lofts on Osborn
3 Artisan Parkview Condos
4 Artisan Village Condos
2 Century Plaza High Rise Condos
1 Executive Towers
2 Fairway Lodge Condo
1 Fontenelle Condo
1 Hayden Square Condo in Tempe
1 Landmark on Central
3 The Mark Condominium
3 Meridian Condominium
3 Merrion Square
1 Miscelaneous urban property
1 Northshore Condominium
6 Optima Biltmore Towers Condos
6 Optima Camelview Condos
4 Orpheum Lofts
1 Palmaire Condominium
2 Portland 38 Lofts
3 Portland Place Lofts and Brownstones
1 PRD 845 Loft
18 Summit at Copper Square High Rise Condos
3 The Vale Loft
1 Valencia Town Homes in uptown Phoenix

That's 83 high rise and loft condo clients and it's only September 24th!

Everyday we talk to developers, other real estate agents, investors, broke people, rich people, good guys, bad guys, scoundrels, scalawags, and anyone and everyone we can find who knows or thinks they know anything about high rise and loft condo living in the valley. We know what is going on.

We are THE experts on condos in town. Don't believe us? Check out the site. You will not find a more comprehensive source of information on this specific market niche anywhere.

BUYERS - We know which are the best high rise and loft communities in town.

We know where the great condo deals are
We know where the foreclosures are
We know which condo buildings are in trouble
We know the secrets because we study the loft and high rise market 7 days a week

SELLERS - Prices in most high rise and loft communities have dropped significantly. If you bought a 'boom' high rise or loft you may now have a property worth less than you paid.

Do you have a strategy for your high rise condo or loft?
Does renting it out make the most sense?
Should you sell it as a 'short sale'?
What is your condo REALLY worth?

Every building and every part of town is different; so you better know the facts. We can help. We've been selling high rise and loft condos for over eleven years, long before high rise condos were 'in' in Phoenix.

LANDLORDS - We can help you too. We do A LOT of rentals. In 2008 we represented:

4 renters and 2 landlords at Optima Biltmore Towers High Rise Condos
2 renters at Biltmore Square Condos
3 renters at Optima Camelview Village Condos
4 renters and 2 landlords at Summit at Copper Square High Rise Condos
1 renter at Landmark on Central High Rise Condos
2 renters at Artisan Lofts on Central
1 renter at Artisan Lofts on Osborn
2 renters and 1 landlord at Orpheum Lofts
1 renter at Dolce Villagio Townhomes
1 renter at Artisan Commons Townhomes
1 landlord at Bridgeview at Hayden Ferry Lakeside High Rise Condos
1 renter at 2211 Camelback High Rise Condos
1 renter at The Mark Condominiums
1 renter at an infill condo project.

That's 30 high rise and loft rental clients! If you're having trouble leasing out your high rise or loft condo, give

"Save" thousands with "Bi-weekly" mortgage payments ?

Mon, 02 Nov 2009 14:26:54 -0600

just came across something that is NOT a scam but is potentially misleading and in my opinion NOT in the consumers best interest.

I received a letter in the mail from my mortgage lender, National City Mortgage, inviting me to sign up for its "bi-weekly" mortgage payment program which would save me thousands of dollars over the course of my mortgage AND would reduce the payoff period of my loan.

The concept is legit and makes a lot of sense. The idea is that if you make a smaller payment (approximately 1/2 of your normal monthly payment) every two weeks then because the mortgage company gets its money sooner there is less accrued interest so you end up saving money. Also, because there are 52 weeks in a year you actually make 26 x 1/2 payments vs. 12 full payments (one per month) equalling two extra 1/2 payments per year thereby adding to the interest savings and contributing to a quicker pay off. The savings can amount to tens of thousands of dollars over the life of the loan AND a quicker pay off of 5 years or more. This in a great way to save a lot of money over the life of the loan without struggling too much financially to do so.

Well, I thought that was what I was signing up for. But instead it turns out the National City Mortgage has contracted with a third party company (i.e. Western Union Paymap hereafter referred to as WUP) because National City Mortgage is not set up to calculate OR receive mortgage payments on a bi-weekly basis. In other words they are offering a bi-weekly payment option but they can't really accept bi-weekly payments. Instead WUP collects payments every two weeks but makes the mortgage payment ONCE A MONTH just like I currently am. So I DON'T SAVE any interest expenses for making 1/2 of my mortgage payment early each month and even worse WKU keeps the interest it earns on my money during that two week period!!!

What's worse is that WUP charges a service fee of approximately $117 per year to boot.

This doesn't make any sense at all. It's wiser for me to continue paying the way I am but make one extra payment each year. I'll pay off the mortgage just as fast and save the same amount of interest PLUS make a little bit of interest on my money AND save the service fee.

There are normal bi-weekly payment programs offered by some lenders and again I think they make a lot of sense. Just be sure to know what you're agreeing to first as some of the programs are real squirrely.

Whats Up In Urban Living ?

Mon, 02 Nov 2009 14:16:50 -0600

Tempe - The City of Tempe reports having the best quarter for building activity ever for the fiscal year. This is mostly due to the new permits drawn for student housing and other construction projects along Apache Boulevard.

This week WeKnowUrban added a new link on its Tempe page that shows all foreclosure, short sale, and bank owned high rise and loft properties in Tempe.

Borders Books on Tempe Mill Avenue is about to close but Dunkin' Donuts, several yogurt shops, a Vietnamese restaurant and Campus Scooters all recently openend on Mill.

Construction of the Hyatt Regency Hotel in the Hayden Ferry Lakeside multi use project at Mill Avenue and Tempe Town Lake has been postponed until 2010.

The City of Tempe is considering adding streetcars to the city's transportation system to link South Tempe and Chandler to the new light rail system. The idea right now is to run streetcars down Mill Avenue to Southern, and then east to Chandler. The City of Chandler is looking into ways to find funding to tie into any line and extend it to Chandler Mall. Since the federal government requires a two year study of all options before it will consider contributing funds to any such project, expect the possibility of many changes to the plan as it stands today.

Phoenix - Metro light rail will run trains later than normal hours to accomodate Phoenix Sun's fans leaving tonight's game which starts at 8:30 pm.

Nothing scientific but I truly believe that there are significantly more people walking around downtown Phoenix since the light rail opened. Also, we are getting more phone calls from folks wanting to buy or rent along the light rail. I have long said that the light rail will provide a focal point for the investment of time, money and energy. I believe that we are beginning to see this come to fruition.

Check out China Chile Restaurant at 3rd Street just south of Osborn Road. It has very tasty food at great prices.

CityNorth suffers potential major blow when an appeals court judge ruled that a $94 million subsidy from the City of Phoenix is unconsitutional. CityNorth, located at 56th Street just north of the 101 (south side of Desert Ridge) is a huge mixed use project opening at an absolutely horrible time. Given the horrible market we wonder what losing the $94 million truly means?

Scottsdale - Completion of X (Ten) Wine Lofts on Osborn Road just west of Scottsdale Road has been stalled. The lender, Mortgages Ltd, and the developer, Grace Communities, are fighting http://www.azcentral.com/realestate/articles/2008/12/26/20081226biz-sr-realestate1227.html. The article reports that deposits for 64 condos have been returned to the buyers. In light of the current market we would expect the fight to drag on and on. After all, wouldn't you rather finish a building and sell it in a couple years rather than today?

Looking for high rise and loft condo foreclosures, short sales and bank owned properties in Scottsdale? Go to the new MLS filter on the Scottsdale page of WeKnowUrban. There are some great deals but the best go fast so check back often or call WeKnowUrban.

Light Rail in Phoenix

Mon, 02 Nov 2009 14:12:36 -0600

I've been intrigued by the popularity of the light rail.

Recently thirteen of us boarded a train at about 10:00 am and rode it to various high rise and loft condo buildings along the route. During the three plus hours we toured we got on and off the train four times. And I kid you not every single train during the three hours was full; standing room only.

I took the opportunity to ask my twelve tour partners why they thought the light rail was so much more popular than the bus. After all, buses in Phoenix are notoriously empty. Here are some of the answers I got:

City buses suffer a stigma that the light rail doesn't share.
The light rail is easy to use while buses require knowledge of routes and connections.
Light rails stop more frequently and consistently which may make taking a train bearable even during the summer (we'll see about that).
All thirteen of us wants to live on the rail and think that condo values will appreciate better than non-rail condos.

There have been a tremendous number of naysayers but I don't think anyone would argue that at least for now the light rail popularity is remarkable.

Detailed look at Home Owner Associoation fees

Mon, 02 Nov 2009 14:02:12 -0600

We just took a detailed look at Home Owner Association fees at all Phoenix high rise condo buildings for the last five years. For the most part you will see a gradual increase in the older established buildings while increases were somewhat extreme in the newer buildings. A cynic might believe that the reason the newer building HOA fees jumped so much was because the developers underestimated operating costs in order to promote sales of its condos. Of course an optimist might explain that HOA fees and operating expenses are very difficult to predict for a building that does not already exist. I'll leave it to you to decide what makes the most sense to you.

Please know that I pulled the numbers from the MLS. HOA numbers on the MLS are compiled by real estate agents prior to their listing individual condominiums for sale. So the data, although pretty accurate may not be exact. Minor discrepancies may be statistical errors or anomalies. However, the numbers should be reasonably accurate to determine trends and general costs.

Here's the data stated in dollars per square foot per month:

Buildings with a "-" did not exist during the time period.

Rent vs Buy, a Local Study

Mon, 02 Nov 2009 13:58:00 -0600

I heard recently that historically Americans pay 26% more to own property than to rent it. As I didn't know whether this was true or not I did a little digging and found a site called www.economicpolicyjournal.com with the following:

"After two years of rapid home-price depreciation, the relationship between the cost of rental payments versus after-tax mortgage payments is tilting toward ownership in a number of metropolitan areas.

Over the past 18 years, after-tax mortgage payments have averaged 26% more than rent payments, according to Green Street Advisors, a real-estate consultancy based in Newport Beach, Calif. In 2006, at the height of the housing bubble, mortgage payments reached as high as 66% more than rent payments. But by the end of 2008, average monthly rent for the largest 50 metropolitan areas was $1,045, compared with after-tax mortgage payments of $1,300, assuming a rate of 5.5% on a 30-year fixed mortgage. That means mortgage payments averaged just 24% more than rent payments, the narrowest gap since 2001.

In more than half of the top 50 U.S. housing markets - including Los Angeles, northern Virginia and Las Vegas - the ratio is now below its 18-year average. In Los Angeles, for example, mortgage payments averaged 60% more than rent payments between 1990 and 2008. Now, those payments average 30% more than rent...

A separate report by Moody's Economy.com also finds that home prices relative to rents are more in line with their historical relationship...The report notes that home prices relative to rents remain well above historical levels in 30 markets, including Philadelphia; Portland, Ore.; and Virginia Beach, Va."

OK, so of course I had to check this out in relation to high rise condos in Phoenix. I spent a large part of the day first trying to figure out how to pull relevant data from the MLS and then how to build it into a useable format. I picked Optima Biltmore Towers because it was definitely a product of the boom, it has a lot of rentals, and it has enough sales to provide adequate data for the study. A number of complications presented themselves. For example in 2006 property taxes hadn't been established so I used the numbers from 2007 instead. Also, since I relied on MLS data that means that my numbers are only as good as the data that was inputted into MLS by all the various agents. In some cases agents did not list the square footage of their condo listings so I had to drop those properties, in other cases they did not include the HOA fees so I had to drop those. Also, for two different quarters there weren't any sales at Optima Biltmore Towers so there is no data point for those periods. And finally, the article above mentioned that the rent vs. own difference was based on after tax dollars. I adjusted the principal and interest "mortgage" amount by 20% to adjust for taxes. Argue with me all you want about it; I just needed a number and I figure 20% is conservative. And after all I'm just trying to see a trend not have a bullet proof statistical analysis.

In the first quarter of 2006 we see that purchases ran about 61% more per month (after any tax benefits of owning) than comparable rentals just like the article mentions. But we see that the gap grew larger throughout the rest of 2006. I'm not surprised by this. Investors went really crazy for high rise condos largely because they liked the extended build time, thinking that they would "ride the appreciation" that much longer for extra profits. Because of this sales prices of high rise condos probably "boomed" more than other market segments and will probably "bust" harder as well.

Eventually I'll get around to posting more of the data but for now, know that the gap for the first quarter of 2009 is at approximately 25%, slightly better than "historical norms." And again, this number may be artifically high as I only used a 20% factor for the tax benefit. Regardless, it seems that the gap between buying and renting condos at Optima Biltmore Towers is starting to make sense again and may warrant further looking into a purchase.

Need help finding cool condos?

Mon, 02 Nov 2009 13:52:06 -0600

Walk to professional baseball, basketball, great restaurants and bars. Stay in the heart of downtown Phoenix.