Jill & Terry's Blog

Important Short Sale Advise

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Thu, 26 Mar 2009 10:17:49 -0500

So I was doing renewal hours so that I can renew my license at the end of the month and I was sitting in a Short Sale class. In the class we discussed the basics around short sales and had an open discussion regarding how the banks operate or don't operate. But I heard something that made my SKIN CRAWL!

First let me make a disclaimer, I can only speak in regards of transactions that occur in Arizona, and you should always have your clients speak with a Real Estate Attorney and/or Tax Attorney to see how a short sale will effect them long term.

As I was sitting in my class, another Realtor spoke up regarding her recommendation to her client during the transaction. She had advised her client to take a $50K promissory note...that's right $50K. The loan was not a Home Equity Line of Credit (which is not covered under the Arizona Anti-Deficiencies Statutes, but can be negotiated and removed during the negotiations with the banks), but rather a second mortgage. So by advising her client to do this, she has allowed him to waive his rights' under the Arizona Anti-Deficiencies Statutes and he has now taken on a $50K credit card bill where he is probably paying around $800-$1000 a month.

So here is the solution, when the agreement letter is sent to the listing agent, there is going to be verbiage in the letter that creates a loop hole for the bank to pursue your client at a later date. This verbiage is almost always in the agreement letter and the agreement letter is usually a form letter. What you need to do as the listing broker, is call your contacts at the respected bank/s and let them know that under AZ Statutes they need to REMOVE THE VERBIAGE. By doing this step, you are protecting the interest of your client. A little negotiation goes along ways. If you are having problems with the bank not wanting to remove the verbiage, move of the chain of command at the bank (this can be fun sometimes, play a game to see how far you can go, I have made it to the Regional President of one bank and I know people who have made it to CEO's of some of the largest banks in America). If you are not making head way at the $10 and hour employee and they won't transfer you, hang up and dial the same number, you will get someone new.

It is scarey to see what some Realtors are advising clients to do. My wife and I only take clients who have talked with a Real Estate Attorney. It usually cost the clients $250-$500 for a consultation, but everyone of our clients come back with a detailed picture of what they getting into. Plus, we now have released a good portion of liability. Lastly, read the bank documents before having clients sign them, and don't let your clients sign a promissory note, but rather work harder and threaten the bank that the deal will fall apart if the verbiage isn't removed from the letter. The bank will remove it, you just need to tell them that this is Arizona and your client is protected under the Arizona Anti-Deficiencies Statutes.

Please protect your clients, if you are not comfortable with short sales, we can help and we do pay referrals on short sales (we have a referral scale that we use do to the extensive work required, please call for details). Our goal is to help over 100 famlies avoid foreclosure this year. Best of luck to you all..

Short Sales are not that SCAREY

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Tue, 03 Mar 2009 16:30:57 -0600

So I had to laugh the other day when I heard yet another Realtor say "I will not show a Short Sale". Come on people, we are all professionals aren't we? (I believe, that if your a professional, then you adapt with the ever changing environment.)

So here is the insight, with more and more banks being pressured to work with the homeowners and the public outrage that comes with a foreclosure by a bank who has received tax payer money, the real estate market, especially the Phoenix Metro area is changing and we are seeing a surge in short sales and a minor decrease in the REO market. If things continue, banks are going to slow the foreclosure process but increase the short sale and modification processes. So if you are not showing a short sale, WHY NOT? You are doing your clients a dis-service as most short sales are still in decent condition and you are not doing yourself justice. I will say, that there are agents out there that have no business listing short sales for numerous reasons. For example, we just closed a short sale where we represented the buyer and it took 6 months to close, with us having to step in and negotiate with the bank because the other agent was unsure of what he was doing.

Well, to keep this short....Show a short sale (say that five times really fast), it will most likely be the largest supply of homes in the Phoenix market real soon.

It is finally over.... Prop 201 Defeated- Prop 100 Passed

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Wed, 05 Nov 2008 10:30:59 -0600

Well, the election is finally over and know all those signs get to come down on every corner of Phoenix. Well, I am not going to talk about the presidental election as that is out of my realm, but I did want to congradulate the citizens of Arizona for pulling the rug out from under the unions by defeating Prop 201 (the so-called Homeowner Bill of Rights). I was pleased to see the Arizonians still stand for values and fairness and don't believe that you should be able to file a lawsuit just because you want too.

But the greatest news is that Prop 100 passed which prohibits the state from taxing us once again when we decide to sell our home. Afterall, we pay yearly property taxes already. So congradulations Arizona. There is a long way to go still, but we have set out on the right foot so far.

Election Day less than 2 weeks... Vote YES on Prop. 100

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Fri, 24 Oct 2008 12:32:07 -0500

What is a Real Estate Transfer Tax?

A real estate transfer tax (RETT) is a state or local government imposed tax that is collected when you transfer ownership of your home, land or commercial real estate. Typically, once the tax is initiated, the rate can be increased by the state, county or city at any time.

Why are Transfer Taxes Proposed?

Too often, this form of taxation serves as a new source of revenue to balance a government's bloated budget caused by overspending. Once this type of tax is put in place, not matter how low the tax rate is in the beginning, it always ends up being raised.

What are the Problems with a Transfer Tax

IT'S DOUBLE TAXATION!

Governments already collect taxes on your property based on the property's value. This new tax would unfairly cause a second tax to impact your home or property.

DAMAGES YOUR EQUITY!

Since the tax is assessed against the total value including the amount you owe on your mortgage(s), the overall equity earned by the seller is decreased.

SLOWS AN ALREADY SLOW MARKET!

In the current slow market, a transfer tax would make it more difficult for people to buy or sell homes. Once a transfer tax is put in place, it can be raised at any time. This costs people buying or selling their homes even more money.

PUNISHES THE HOME OWNER!

A home is often the biggest and most important asset a person has in life. A transfer tax reduces the equity people have worked hard building. People already pay multiple taxes and fees on their homes. This tax will layer on one more significant closing cost you will have to pay.

IMPACTS LOWER INCOME THE MOST!

This tax imposes the higher tax burden on lower income households that typically spend a larger percentage of their income on their home.

Vote YES to PROTECT YOUR HOME on November 4^th!

Lates Market condition

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Mon, 20 Oct 2008 16:26:30 -0500

Here is the latest market updates from Sept. 2008. It appears that we are trending to a better market for sellers, but make no mistake, it is still going to be a while, hopefully 6-9 months.

	New Listings	Active Listings	Sold Listings	Months Inventory
Sep/2008	14,247	54,933	6,159	8.92
Aug/2008	13,588	55,174	5,615	9.83
Jul/2008	13,528	55,831	5,898	9.47
Jun/2008	13,558	57,216	5,692	10.05
May/2008	13,062	59,067	5,596	10.56
Apr/2008	13,827	60,140	4,810	12.50
Mar/2008	13,521	59,868	4,256	14.07
Feb/2008	13,068	59,412	3,422	17.36
Jan/2008	16,059	56,924	2,872	19.82
Dec/2007	8,976	58,569	3,342	17.53
Nov/2007	11,670	60,583	3,315	18.28
Oct/2007	14,262	60,506	3,422	17.68
Sep/2007	12,921	59,574	3,377	17.64
Aug/2007	14,844	58,823	4,308	13.65
Jul/2007	13,890	57,565	4,686	12.28
Jun/2007	14,335	57,506	5,401	10.65
May/2007	14,820	56,672	5,772	9.82
Apr/2007	15,269	54,993	5,475	10.04
Mar/2007	16,606	52,328	5,906	8.86
Feb/2007	13,707	50,123	4,884	10.26
Jan/2007	15,944	47,277	4,352	10.86
Dec/2006	8,649	48,129	5,325	9.04
Nov/2006	11,416	50,640	5,323	9.51
Oct/2006	13,822	51,295	5,548	9.25

Information deemed reliable but not guaranteed. Data provided by ARMLS.

Are you thriving in today's market...

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Wed, 15 Oct 2008 23:27:59 -0500

So the stock market fell by more than 700 points today and I was quite encourage about the outlook for the real estate market. You must think that I am crazy, but let me explain before you judge me. As I was driving to the office this morning I was listening to talk radio and heard a story that made me laugh. See in the North part of Phoenix there is a new development/shopping center that is opening up and needs around 260 people, so they held a job fair and had 700+ people show up. 40% of the people were from the real estate industry. This is appaling. What that number tells me is that a huge part of our industry needs to either get out of the house and go to work on their business or just get out all together.

So let me ask you this if you are still a dedicated REALTOR, are you shifting and getting your unfair share of the market? Has you shifted you business to compete in today's market? Is your office supporting you, or are they waiting for you to quit?

If you are struggling but are dedicated to surviving this market, I would highly recommend reading the book SHIFT by Gary Keller. It is a great book that details the 12 things all agents need to do right now to survive this market. Also, if you are interested Gary Keller is coming to Phoenix on Nov. 11, 2008 to present the concepts in person, so if you would like to go let me know and I will let you know how to registrar. The tour cost $20, but that also includes the book and it is open to ANY agent wanting to improve their business.

Prop 201- What a Joke....

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Wed, 15 Oct 2008 00:39:04 -0500

So I recently read an article at azcentral.com titled 'Home buyers, builders split on Prop. 201" and basically the article goes on to talk about how homeowners who bought new homes have no rights or warranties. But lets first take a step back and analyze who is proposing this Prop. and what the expected outcome is. Prop 201 is sponsored by Arizona AFL-CIO, that's right the Unions. But you ask yourself, "I thought that Arizona doesn't have unions"? Well, you are partially right. Arizona is a "Right to work state" and what that means is that an employer can hire and fire as needed and they don't have to bow down to the unions and pay higher wages for those who refuse to give 100% ALL THE TIME. ( Disclaimer: I am not saying people who are members of a union don't give 100%, what I am saying is that to many unions reward workers for sub-standard work, which has lead to a decline in manufacturing, just look at the economic condition of Detroit. Enough said!)

So why is the Arizona AFL-CIO sponsering a propisition that is related to home building? Well, and I say this from personal experience as I built homes for a number of years, the union is trying to use the promise of FALSE HOPES to persuade you the consumers that you have been taken advantage of by the builders and that your home is falling apart as we speak. There for, by changing the laws, if we bought a new home and after ten years (which is the current builder structural warranty) if anything is not to your liking, you can sue the builder for what ever you want. This is silly, just think about it for a minute, if passed builders are going to have to warranty normal wear and tear for ten years. So who is going to pay for that? After all, after ten years, I believe that the homeowner is responsible for replacing the worn carpet, not the builder..

Okay, so back to why is the unions sponsoring this proposition? For years and years, the unions have been protesting every builder and putting those annoying door hangers on your garage door (that in itself is annoying) saying that your home builder used sub-standard contractors and that your home needs immediate repair. What I find funny about that is those same subcontractors that are being protested against are the same contractors that the union members are trying to get a job with. By creating a false fear, unions are hoping that the uninformed consumer won't pay any attention and just blame the easiest person which in this case is the builder.

To sum things up. Homeowners are already protected by the AZ Register of Contractors and if Prop. 201 is passed, unions will destroy Arizona in just the same way that they did in Michigan. Oh by the way, it is ironic that all those residents who lost their jobs in Michigan because the cost of manufacturing made it impossible for Ford, Chrysler and General Motors to compete in a changing economy, are moving to Arizona. But these people are against the unions as they have had to move because the unions destroyed what they had for jobs. If passed, Arizona residents will pay astronomical increases for new homes as labor cost will spike. Do yourself a favor and Vote NO on Nov. 4. One last thing, the Arizona AFL-CIO is also in support for a real estate transfer tax, meaning when you sell your home you will pay a tax to transfer to the new owner, nothing like lossing more equity in a market where most people are already upside down on what they owe.

Okay, to make this arugument clear, he is the actual Prop and key points are highlighted.

http://stoplawsuitabuseaz.com/images/comments.pdf

AZ Prop 100- VOTE YES and PROTECT YOUR HOME

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Tue, 14 Oct 2008 23:12:29 -0500

While, Arizona currently does not have a real estate transfer tax, there is nothing that prevents a tax from being enacted at any time.

With our current slow economy and budget crisis, it won't be long before cities, counties, and the state start looking for new sources of revenue.

Enacting a real estate transfer tax is gaining momentum in Arizona. Just last year a bill was introduced in the state legislature proposing such a tax. Countless citizens' commissions and county reports mention a transfer tax as a possible source of revenue for the state.

With the momentum for a real estate transfer tax growing, we must act now to put an end to this debate before it is too late!

Join us in passing a constitutional protection that will stop real estate transfer taxes. Click here to get involved today.

Vote YES to PROTECT YOUR HOME on November 4^th!

Interest Rates Rising

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Tue, 14 Oct 2008 22:46:14 -0500

Well, the Wall Street may have found bottom, or at least that is what is in the news nowadays. So why are interest rates on the rise?

The answer is simple, mortgages for the most part are not tied to stocks but bonds. Since investors believe that Wall Street has lost enough and there are so many bargain investments out there, Lenders are predicting a decline in the bond market and raising the rates. Today in Arizona, (which has a slightly higher rate than most of the country due to having one of the highest foreclosure rates) the interest rate fluctuate between 6.75% and 6.85%. It is expected to reach 7% by the end of the week.

So what does that mean if you are looking to buy a house? Well, your buying power is greatly reduced. Regardless of declining home values, it is better to buy now while interest rates are still historically low but time is running out and with more and more investors buying up bargain stocks, we can still expect to see mortgage rates rise.

New Listing- Great Investment- Papago Area

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Thu, 09 Oct 2008 17:01:02 -0500

Jill and Terry Rother | Keller Williams Realty East Valley | terry.rother@hotmail.com | (480) 330-4602

10410 N Cave Creed Rd, Phoenix, AZ

2BR/2BA Condo

offered at $157,900

Year Built	1997
Sq Footage	1,082
Bedrooms	2
Bathrooms	2 full, 0 partial
Floors	1
Parking	Unspecified
Lot Size	118 sqft
HOA/Maint	$201 per month

DESCRIPTION

Wow, waht a great deal! This is one of the best deals at the Pointe. this condo is a newer built unit, upstairs with 9ft plus ceilings in great condition with neautral carpet, refrigerator, washer and dryer included, great master bedroom and huge master bath with shower/roman tub, plus check out the the master closet w/a ton of space, separate exit off master to large, oversized balcony! This is a great unit back end of complex, quiet, north/south exposure, great gated community! HOA fees pay for water, sewer, trash and cable. Location is awesome, enxt to Piestewa Peak mountain. Great hiking adventures. Don't miss it. 2-4 minutes form 51 Freeway, 8-10 from downtown Phoenix & ballpark. Best buy for the newer condos at the Pointe.

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Fireplace
Walk-in closet	Living room	Dining room
Refrigerator	Washer	Dryer
Laundry area - inside

COMMUNITY FEATURES

Covered parking	Guest parking	Clubhouse
Fitness center	Swimming pool(s)	Gated property

ADDITIONAL PHOTOS

Seller contact info:

Jill and Terry Rother

Keller Williams Realty East Valley

terry.rother@hotmail.com

(480) 330-4602

For sale by agent/broker

Equal Opportunity Housing

Posted: Sep 12, 2008, 8:12am PDT

Mill Avenue is one of the best streets in the nation.....

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Thu, 09 Oct 2008 13:25:21 -0500

Tempe's Mill Avenue has been named one of 10 Great Streets for 2008 in the American Planning Association's Great Places in America program.

This is great news as it starts to bring more attention and business to a community that has finally stepped out of the "norm". Tempe for the longest time has remained a small, family orientated community. It has only been in the last 10 years or so that Tempe has embraced urban living and high-rises. With dozen of future projects in the works, Tempe is setting the standard for Arizona and most of the West.

If you have never been to Tempe and Mill Ave. I recommend you check out the website Mill Avenue District it is full of useful information. And if you are interested in Urban Living get in touch with me at my website The Phoenix Team

North American Real Estate Update

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Tue, 07 Oct 2008 19:24:54 -0500

Our Newest Listing

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Tue, 07 Oct 2008 18:01:00 -0500

Jill and Terry Rother | Keller Williams Realty East Valley | (480) 330-4602

5217 W Shumway Farm Rd, Laveen, AZ

3BR/2BA Single Family House

offered at $129,900

Year Built	2005
Sq Footage	1,488
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	1
Parking	2 Car garage
Lot Size	4,950 sqft
HOA/Maint	$48 per month

DESCRIPTION

This is one of the nicest homes in Laveen for the PRICE! This Pulte home is loaded with upgrades like flat panel cherry cabinets, upgraded corian ctops, black GE appliances with upgraded refrigerator WHICH STAYS WITH THE HOME. The home is beautifully decorated with two-tone neutral paint, 9ft. ceilings, all rooms have ceiling fans, upgraded carpet and diagonal 17' tile, security system, pre-wired for surround sound, laundry cabinets, and WASHER & DRYER TO STAY WITH HOME, bay window in master bedroom, dual sinks in master and 2nd bath, garage has 4ft. extension & a service door to side of home. The home is very energy efficient built with EFL (www.eflhome.com, just ask the listing agent to explain. This is a fantastic house. SHORT SALE. LENDER APPROVAL REQUIRED. PLEASE WRITE UP OFFERS.

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Walk-in closet
Family room	Breakfast nook	Dishwasher
Refrigerator	Stove/Oven	Microwave
Washer	Dryer	Laundry area - inside
Yard

COMMUNITY FEATURES

Playground

ADDITIONAL PHOTOS

Seller contact info:

Jill and Terry Rother

Keller Williams Realty East Valley

(480) 330-4602

For sale by agent/broker

Equal Opportunity Housing

Posted: Oct 9, 2008, 12:55pm PDT

The Money Is Out There..Go Get It!!!

Jill & Terry Rother (The Phoenix Team- Keller Williams Realty) — Tue, 07 Oct 2008 17:43:04 -0500

FHA, VA , FANNIE MAE AND FREDDIE MAC are all open for business, thank you. Mortgage money is abundant and it is cheap. Stop listening to talk radio and the doomsayers on television. FHA and VA's underwriting guidelines have been modified for the better (except for the "buy and bail" but you knew that was coming). Low credit scores? FHA and VA are still underwriting "make sense" mortgages. The Department of Agriculture will do 100% loans in some areas of Maricopa and Pinal counties. (Just the name "Agriculture" should be your clue that these are not for properties in downtown Phoenix). Fannie Mae and Freddie Mac, now government entities, have plenty of money in their vaults --- for loan amounts up to $417,000 with 5% down,

We should all be excited, very excited about the $7,500 tax credit! This is a once in a lifetime opportunity that brings real cash to our first time home buyers (or those who have not owned a home in the past three years). For example, if your married client buys a home, and is already getting a $500 tax refund, come January, they could get back $8,000!!!! That is a more than the 3% down payment requirement for a $225,000 sales price!

FYI: Okay kids, pay attention. Loan limits in Arizona may change December 31^st. FHA, Fannie and Freddie loan limits may go down. Also, FHA will require 3.5% down payment from 3% sometime between now and the end of the year. So kick your buyers off that fence and into a home!

The last time housing prices were this low interest rates were over 7%. What a great time to buy a home!

Jill & Terry's Blog

Important Short Sale Advise

Short Sales are not that SCAREY

It is finally over.... Prop 201 Defeated- Prop 100 Passed

Election Day less than 2 weeks... Vote YES on Prop. 100

Vote YES to PROTECT YOUR HOME on November 4th!

Lates Market condition

Are you thriving in today's market...

Prop 201- What a Joke....

AZ Prop 100- VOTE YES and PROTECT YOUR HOME

Vote YES to PROTECT YOUR HOME on November 4th!

Interest Rates Rising

New Listing- Great Investment- Papago Area

Mill Avenue is one of the best streets in the nation.....

North American Real Estate Update

Our Newest Listing

The Money Is Out There..Go Get It!!!

Vote YES to PROTECT YOUR HOME on November 4^th!

Vote YES to PROTECT YOUR HOME on November 4^th!