D. Patrick’s Scottsdale Real Estate Blog

A couple weeks ago 24/7 Wall St wrote an article entitled The Ten Ways Twitter Will Permanently Change American Business, the article centers on how Twitter benefits hyper-local marketing efforts and how it helps eliminate the need for some large scale media advertising for some businesses. It is a fascinating article and I highly recommend reading it.

As I was reading this article I began to think about how Twitter has changed my business.  Well, not being a prolific writer I came up with 5 Ways Twitter has changed my business.  Here they are:

1) Twitter has given me the opportunity to connect easily and more often with people that are local.  Not to mention the ability to actually meet and connect with people IRL (in real life) via tweetups, etc.

2) When I need product suggestions or some minor technical help, I have found myself using Twitter before Google. Reason being is that the help and/or suggestions I receive on Twitter are generally from people I know and have engaged with or met IRL. That means that I put more trust and confidence in the suggestions I get from Twitter. This is also probably the reason Google has been so interested in Twitter.

3) I have learned to be more succinct with my communication skills. Twitter does not give you the opportunity to be long winded, therefore it forces you to articulate your point in 140 characters or less.

4) Collaborating with other like minded business professionals to exchange ideas, foster innovation and support one another has been invaluable, especially during an economic downturn when it is easy to lose focus.

5) Finally, Twitter has given me another channel to connect and engage my potential and existing clients.  Which gives me a chance to learn more about them so that I can better meet their needs.

So I ask, how has Twitter changed your business?

Tagged as: 24/7 Wall Street, Twitter

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Let’s face it: college isn’t getting any cheaper.

Every spring, when high school graduation rolls around, parents and high school seniors alike start actively making plans for the big transition to college.

There are many advantages to living on campus for that first year of college, but many parents and students choose to have their newly-minted-high-school-graduate live off campus for whatever reason.

And if you find yourself in this situation, where you are planning on living off campus, there is something simple that you can do to help take the financial bite out of college: buy a home with the FHA kiddie condo loan. The FHA kiddie condo program is really just a regular FHA loan with a nickname - mainly because it is used for these college-aged-kids living situations.

FHA Kiddie Condo Loan Highlights:

The FHA Kiddie condo loan allows non-occupant co-borrowers — which means that  parents can purchase a condo using their credit and their income but are not required to live in the property - only the co-borrower is required to live in the property.

The property is not considered to be a second home or an investment property. Because the property is not an investment property, interest rates for the program are the same as regular FHA interest rates –currently in the low 5% range. An additional benefit of the Kiddie Condo loan is that it allows the occupant to charge rent to roommates!

Right here by ASU, with interest rates low, property values down and the government giving an 8000 tax credit to first time homebuyers… it can take just a little bit of the financial bite out of going to college.

Scottsdale Mortgage Rates for May 8 2009

Tagged as: FHA Kiddie Condo

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As you all may or may not know there is a new $8,000 tax credit being offered to first time home buyers that is truly a tax credit as opposed to the previous version of the tax credit which actually had to be repaid.

However, there are restrictions on this tax credit as well. For instance, did you know that if you don’t own the home as your primary residence for at least 3 years you will have to repay the $8000 tax credit?  I didn’t think so.

As a way to test your knowledge about the tax credit and a way to learn something new, NAR has set up a short 12 question quiz for anyone to take.  You can take it here.

I scored 11 out of 12, how did you do?

Tagged as: $8000, First Time Home Buyer, NAR, REALTOR, Tax Credit

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Everyone who knows me knows that I am not exactly the sharpest knife in the drawer. I am not exactly sure if it was a nature or nurture problem, but somehow I have always seemed to be a little late to the good-ideas-parties that other people have.

Until now.

I stumbled on something this week that I suspect I am not too late on - and so being the suddenly-enlightened-genious that I am, I thought I would share.

Did you know that there are unbelievable deals out there on Phoenix area homes?

Sure, you read about it in the paper - or maybe you have heard of someone who is making money by investing in real estate now… but for whatever reason, you have been on the sidelines.

It might be time to get into the game.

Case in point:

This home was bank owned. The investor bought it for $24,000 in cash directly from the lender.

The investor then hired a Phoenix trashout company to remove all of the debris and do some remodeling so that the property is move-in-ready.

Total cost for the remodeling and trashout?

Somewhere around around $6,000.

$24,000 + $6,000 = $30,000. Let’s say that he decides to get a mortgage for the $30,000. His total PITI payment for a $30,000 mortgage assuming a higher than normal rate and estimating high for taxes is around $350.

Think you can rent out a 3 bedroom 2 bath house for more than $350 in Phoenix, Arizona?

I know you can.

The biggest decision you might have to make at that point is whether you want to rent it out or sell it for more than $30,000.

Phoenix Mortgage Rates for May 1 2009

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As the number of bank-owned properties here in Arizona continues to grow, so does the number of homes that Fannie Mae owns. As you can imagine, with any significant pool of homes that are owned by a lender, there are some homes that are immaculate and move-in ready and there are some homes that are in need of “a little work” before they are liveable.

The good news is that if you are in the market for a home and want to get a *smoking* deal on a house, Fannie Mae has designed two loan programs for homes that are currently owned by Fannie Mae and the loan programs are f-a-n-t-a-s-t-i-c.

One loan program is designed for homes that are currently owned by Fannie Mae and are move-in ready. The other loan program is designed for homes that are currently owned by Fannie Mae and in need of repair. The official name of the two loan programs are the Fannie Mae HomePath Mortgage and the Fannie Mae HomePath Renovation Mortgage.

Fannie Mae HomePath Mortgage Loan Highlights

The Fannie Mae HomePath mortgage loan is designed for people who are planning on making the property their primary residence and want to buy a home that is owned by Fannie Mae and found on the HomePath website.

HomePath mortgage loan benefits include:

• Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
• You may qualify even if your credit is less than perfect
• Available to both owner occupiers and investors
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
• No mortgage insurance
• No appraisal fees
• No declining markets policy
• No more than 10 financed properties
• No prepayment penalties

For those homes that are in need of a few repairs, Fannie Mae has the HomePath renovation mortgage.

HomePath renovation mortgages have these benefits:

• Financing to fund both your purchase and light renovation
• Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
• No mortgage insurance

If you are considering buying a home that is currently owned by Fannie Mae, be sure to look into the HomePath mortgage financing program.  In an effort to lower the inventory of houses they currently own, some of the best deals in a long time can now be had — whether the home is move-in ready or is in need of “just a little work”!

Phoenix Mortgage Rates April 17 2009

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Many times when I am working with people and talking about their mortgage payment, we get into the details of escrow accounts, taxes, insurance, mortgage insurance - etc. Generally, the discussion starts by someone asking a question like:

How much will my mortgage payment be for a $200,000 loan?

And because I can’t immediately say $1,834.43 for a 30 year fixed rate loan… that is where the discussion starts.

What Makes Up My Mortgage Payment?

The official mortgage-speak term for the numbers that make up your mortgage payment are PITI. PITI stands for Principal, Interest, Taxes and Insurance. PITI is broken down nicely on your Good Faith Estimate (you should always get one of these from your loan officer) down in the bottom right hand corner. It will look something like this:

Principal and Interest - The principal and interest are calculated based on your loan amount and whatever the interest rate is.

Taxes - Your taxes are set by the government for the community you live in. This number is easily found at the Maricopa County Assessors office and can also be disputed if you think the assessed value of your home is too high.

Insurance (Hazard) - This is the amount that you pay each month for your homeowners insurance. Normal people call it “homeowners insurance” - mortgage people call it “hazard insurnace”. These are the same thing. One of the quickest, easiest ways to save money on your mortgage each month is to check the homeowners insurance rates that you are paying and make sure that they are “in the ballpark” of what other companies are charging.

Insurance (Mortgage) - Mortgage insurance is the amount that you pay to a private mortgage insurance company if needed. For government loans, it will be paid to FHA, for conventional loans requiring mortgage insurance, it will be paid to a private mortgage insurance company. Mortgage insurance is not for your benefit - it is for the benefit of the lender.

Once you know what numbers make up PITI - you now can break down the different ways to save money on your mortgage payment. Get the lowest interest rate possible with the lowest loan amount. Shop around for hazard insurance. Dispute your assessed value for tax purposes. Try to avoid mortgage insurance.

Do all of these things, and you will save money — and you might be surprised how much money I see people save just by shopping around a little bit.

Arizona Mortgage Rates for April 10 2009

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The sweet smell of citrus in the air, beautiful weather, Spring Training games and wild flowers blooming.  All of these are indicators that Spring has arrived in Scottsdale.

These are a glimpse at the Sea of Wild Daisies that are in my front yard.

As I listen to some of my friends and family back east complain about how they wish for warm weather. I am reminded of why Arizona and particularly the Scottsdale area are great places to live.  By the way, the average temperature this time of year is approximately 70 degrees.

Tagged as: Daisies, Flowers, scottsdale, Spring

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According to a recent survey done by the National Association of REALTORS® the percentage of first time home buyers rose in 2008 to 41%, up from 39% in 2007 and 36% in 2006.

The median age of the first time home buyer went down from 31 in 2007 to 30 in 2008.  With the median down payment up to 4% in 2008 from 2% in 2007.  The average price of the home purchased was $165,000.

In fact, this survey has gotten some national attention, imagine that, from the Wall Street Journal.  Which states that

“The housing bust is creating a new group of winners: first-time home buyers. People who sat on the sidelines — often watching wistfully as their friends became homeowners — are suddenly in a position to grab some great deals.”

What does all of this mean?

It means that with a large inventory of homes under $165,000 in the Phoenix area, and approx. 33% of the in city population, according to Wikipedia, is between the age of 25-44, the largest demographic.  There is great opportunity for first time home Buyers to become first time home Owners.

Tagged as: First Time Home Buyer, REALTOR, Wall Street Journal, Wikipedia

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As we have all heard by now, the Obama Stimulus Plan has been approved by the House and the Senate and will be signed into law.  Here is the Bill text: A & B which is all 1091 pages of legislation or you can read the Joint Explanatory Statement: A & B which is only 421 pages, all for your reading pleasure.

Preliminarily, this is what I know:

• The loan limits are being raised to $727,000 in high cost areas, not sure how that will affect us here, in Arizona.
• The home buyer tax credit will be raised to $8,000 with no payback, a true credit.
• Fannie Mae has agreed to lift the cap of 4 investment properties eligible for loans and raised it to 10.
• The $15,000 tax credit was eliminated from the bill.

I will take some time to read over the bill in the next few days and post my thoughts on the real estate related portions of the bill later this week.  In the meantime, I found a great article by The Washington Post about their take on how the stimulus bill will affect Americans.

Tagged as: Obama, Stimulus Bill, Washington Post

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