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Are you looking to purchase foreclosure properties?

Search Foreclosures FREE For 7-Days!

Free access for 7 days, try it out! No strings, no contracts, no hassles and you can cancel at any time. Hurry! Foreclosures sell fast. Visit RealtyTrac.com. With virtually every Bank, Government and Institutional property you'll find your next home waiting for you

RealtyTrac, Inc., the leading online marketplace for foreclosure properties, provides all the resources that home seekers, investors and realtors need to locate, evaluate and buy properties at below market value. Founded in 1996, RealtyTrac sets a new standard for online real estate services by offering the largest database of pre-foreclosure and foreclosure properties, with more than 650,000 properties across the country, comprehensive property data, productivity tools and extensive professional resources. RealtyTrac hosts close to 2 million unique visitors monthly, and is the exclusive foreclosure data provider to AOL, Home Gain, MSN House and Home, The Wall Street Journal Real Estate Journal and Yahoo! Real Estate.





Buying a Foreclosure Property Below Market Value: Five Tips from the Pros


House hunting can be a very daunting experience, especially in today’s real estate market. Both investors and home buyers have been priced out of the market by escalating costs, and good real estate deals are increasingly difficult to find.



But there are bargains out there, for people who know where to look.




“For people willing to do some homework, the foreclosure market offers some of the best opportunities in real estate today,” explains James J. Saccacio, chief executive officer at RealtyTrac, the leading online foreclosure marketplace.



Web-based services such as RealtyTrac give consumers access to foreclosure and pre-foreclosure information that was previously available only to professional real estate brokers and investors. Today, homebuyers can use these services to assist them identify and research potential home purchases, as well as the tools and professional resources they need to help them close the deal.




With interest rates ticking up and ARMs adjusting upward, experts predict an increase in the number of foreclosure properties on the market. RealtyTrac, which provides all the foreclosure data for both MSN House and Home and Yahoo! Real Estate, has already compiled a list of over 550,000 foreclosure properties across the country.




“Foreclosure properties can be a terrific investment, or give home buyers a much more affordable option than traditional properties,” notes Saccacio. “But they’re not a way to get rich quick, and a foreclosure purchase needs to be approached in an educated, intelligent manner.”




Saccacio offers five tips to help you close a deal on a foreclosure property:




1. Learn about the different types of foreclosure properties, and the foreclosure process.



There are three basic types of foreclosure properties, representing different stages in the foreclosure process: notice-of-default (NOD) and notice of trustee sale (NTS), which are both pre-foreclosure properties; and real-estate-owned (REO), a foreclosure property which has been re-purchased by the bank.




For most consumers, buying a pre-foreclosure property from a private homeowner is the best option. It’s important that both the buyer and the seller see the situation as a win-win situation, in order to ensure a smooth process. In this case, the seller is able to get out from under a mortgage without destroying their credit rating, the lender is saved the time and expense of foreclosing on the property, and the buyer gets a below-market price on a home.



Foreclosure auction sales are typically the domain of the professional investor. These properties are formally in default, and sold to the highest bidder at an auction. Buyers are required to be physically present at the auction, and must pay 100% of the sale price in cash, on the spot. Though foreclosure auctions can offer significant savings, they are not for the feint of heart or the uninformed. Unless the buyer is already familiar with a particular property, there is usually little time to examine it. And the buyer will be competing against professional investors—and sometimes even the lender—at the auction.



Once the lender officially reclaims a home, it becomes a real-estate-owned property (REO). While REO properties typically offer more time for evaluation and a more standard bank-managed transaction, their prices are usually very close to full retail market value.




CHART: Stages of the foreclosure process
Stage
Positive
Negative

Pre-foreclosure:

Notice-of-Default,

Notice-of-Trustee Sale
- Highest potential savings

- Potential win/win scenario benefits all parties

- Chance to evaluate property
- Buyer / Seller negotiations can be difficult\

- Time pressure to complete transaction before auction

Foreclosure:

Auction sale
- High potential savings

- Immediate property ownership
- 100% of the sale price required in cash

- No time to evaluate property

- Competing with professionals

Foreclosure:

Real Estate Owned (REO)
- Affords significant time to evaluate property

- Traditional bank financing

- Lender often rehabs property
- Lowest potential savings










2. Secure financing early



It’s important for a buyer to be pre-qualified before engaging in discussions with a seller. This ensures that the buyer is in a financial position to purchase the property, and is in the strongest possible position to negotiate. It’s best to work with a lender who understands the foreclosure process, and can guide the buyer through certain steps, such as ensuring that a property is FHA-compliant. Another reason to consider pre-qualification is that not all lenders finance foreclosure properties. Having approved financing in-hand makes negotiations with both the seller and the lender easier, and may even make it possible for the buyer to simply cure the default and take over the existing loan to reduce loan processing fees.



3. Engage a real estate agent as a “buyer’s representative”




Most people hire a real estate agent to sell their home. These “seller’s representatives” are charged with making the sale and negotiating the best deal for their clients. “Buyer’s representatives” have the home buyer’s interests at heart, and are charged with finding the right property and negotiating the best price for their clients. Picking the right real estate agent will make a buyer’s life much easier. There are agents who specialize in the foreclosure market, with specific experience in REO properties. Look for an agent with foreclosure transaction experience, as well as knowledge of local, regional and state laws. But it’s also important to consider the agent’s knowledge of the area; their ability to close a deal; and their access to other professionals (attorneys, lenders, mortgage and title professionals) to ensure that the buyer is in good hands.



4. Do your homework



Stocks offer higher potential returns for investors than traditional savings programs, but are also riskier. Similarly, purchasing foreclosure properties is somewhat more risky than buying traditional real estate properties, but offer much higher potential savings. With the right examination and due diligence, buyers can significantly reduce the risks. It makes sense to give any property under consideration a thorough examination. Here are eight steps for doing a professional-level exam.
CHART: Examination process steps




· Identify desirable neighborhoods – Identify specific neighborhoods where you’d like to live or own a home. This will limit your search to a manageable size for you and your real estate agent, and give your a sense of relative property values.



· Cast a wide net – There are a number of Web-based services that can put hundreds of thousands of foreclosure properties at your fingertips. Since the best savings are often found in pre-foreclosure properties, it’s important to check the percentage of pre-foreclosure (vs. REO) properties in any database before subscribing.



· Determine the property value –Look at the original purchase price, and recent comparable property sales to determine the current value of the property.



· Find out the amount in default and the remaining loan balance – In order to determine a reasonable offer price, you’ll need to know—at a minimum—how much money it will take just to satisfy the debt to the lender.

· Run a legal investing report – Before purchasing any foreclosure property, make sure it is free and clear of any bankruptcies, tax liens or other financial liabilities.

· Assess the condition of the property– If at all possible, visit the property, ask your realtor’s opinion, and review pest and structural reports to make sure that the property is in acceptable condition, or to determine how much of a rehab budget you’ll need to build in to your deal.

· Build a positive relationship with the seller – Before purchasing the property, try to make sure that you’re entering into a win-win situation with the seller, so that they’ll do what they can to make the process easier and leave the property in good condition

· Leverage your timing – Knowing when a property is going to be auctioned gives you an extra bargaining chip when negotiating with the seller or the lender.

5. Make a realistic offer

Despite what you may see on late-night cable TV, investing in foreclosure properties isn’t a sure fire “get rich quick” formula. Lenders aren’t likely to give properties away, particularly in a real estate market where prices continue to rise. And homeowners in financial distress may be difficult to deal with, particularly early in the foreclosure process. The keys to a successful foreclosure property purchase are diligence and patience.



As a rule of thumb, the best savings can be made at the pre-foreclosure stage, where home owners can avoid a foreclosure and lenders can save the time and cost involved in going through the process.

Another critical point in the process is immediately prior to the auction date, when all parties might be most open to a last-minute solution. It’s not unusual to save from 10-30% of the market value on a foreclosure property, and certain properties offer savings of 50% or even more. An educated buyer—one who knows how much is owed on the property and what its market value is—can usually come up with a realistic offer; one that offers significant savings, while meeting the requirements of the lender.

Now go out and familiarize yourself with the resources and tools available to take advantage of the opportunities offered by this formerly-hidden real estate market. With the experts pointing toward significant growth in available foreclosure properties, there’s never been a better time to line up your resources and get informed.

I've moved

Well just like anyone who has property, sometimes you have to make a move. My blog is now Sonoran City News. Come on over and stay awhile.

Arizona Cardinals on Monday Night Football

Arizona Cardinals on Monday Night Football
I’ve done some posts on the new Cardinals Stadium and what it means to the West Valley of Phoenix. The Cardinals are not having the banner season we were hoping for but the impact the team and stadium is having on the West Valley is significant.

Luke Air Force Base is near my home as is the Goodyear Airport. Jets don’t fly directly overhead but a little air noise is not unusual. Today I heard something new which caused me to rush out and take a look. It was the Goodyear Blimp. A sure sign of Monday Night Football.
I’ll keep my fingers crossed that the Cardinals will win tomorrow. After this season, the glow and novelty will wear off and a winning team will be necessary to keep interest in the new stadium and surrounding areas. I’m grateful for the new homes, new shopping, new jobs, and the subsequent explosion of property values. I would just hate to see a downturn as a result of fielding a team which despite its’ best efforts continues to lose.

Thank a Hero Today

Your Chance to Thank a Hero

There is a real estate class in Southern California next month I want to attend. Normally I fly to Southern California but because of the recent changes in travel regulations I have decided it will probably be faster to drive. Which started me thinking about how many others are making the same decision? When I fly I often use my frequent flyer miles but now that I have chosen to drive, i won't be using them. I have to wonder how many others also have a few extra miles not being used.

So here is yet another chance to be a hero.

Please take a moment to visit Fisher House and Hero Miles and consider donating your unused air miles to a military family in need. Many of our injured soldiers would greatly benefit from a visit with loved ones if only they had the means to make the trip.

However you feel about our nation's currently military activities you have to appreciate the dedication to our freedom and safety displayed by the brave members of our military. It takes just a few minutes to help an injured soldier and make a powerful impact on the life of one of our heroes.

As the holidays approach, please think about our military members overseas. many would greatly appreciate a card, email, snacks, deodorant....the list is endless. Few things are more difficult then being separated from family during the holiday months. A care package to a soldier serving overseas will be remembered for years to come. My husband still talks of a care package he received while in serving in Korea almost 20 years ago.

Please, take a moment today to thank a hero.

How the Media Impacts the Market

How the Media Impacts the Market
Earlier this week I wrote about the Economic Outlook 2007 conference I attended. Two highly respected authorities on the economy and real estate in Phoenix, Arizona spoke to the fact that the current state of the market is more “normal” and the past few years of boom were an anomaly. I felt rather positive after leaving the conference and spent the next few days telling many the message I learned.

Then I turned on the evening news.

Two local stations were both doing stories on the poor state of the housing market. One did a
feature on desperate sellers who were resorting to auctioning their home. Another story featured a local seller who was offering a new motorcycle with the sale.

The next morning a national news program ran a story on challenging an agent to sell a house in one week. Each day they check in with her to see how things are going and speculate on how successful she might be.

Rarely can I have a conversation without someone asking me how I am handling the ‘bad real estate market’. I can quote positive sales figures until I’m blue in the face and it won’t matter. Inevitably the person I am speaking with will tell me I must be wrong because they heard on the news or read in the paper that the housing market is bad, the bubble is burst, and people are losing money.

Yes, the market has slowed and the rate of appreciation has certainly decreased from the past few years but all is not lost. How do we go about educating the consumer that things are not as bad as they hear on the evening news?

What is a Normal Real Estate Market?

What is a Normal Real Estate Market?

Last Thursday I attended the Economic Outlook 2007 conference at the Arizona Biltmore. There was a wealth of information provided. I was most interested in the views of Elliott D. Pollack on the future of the Phoenix economy and RL Brown’s opinion of the future of the Phoenix housing market.

While I could write volumes on all of the information, it all boiled down to the real estate market in Phoenix is normal. Yep, normal. OK, maybe the definition of normal is a little broad but basically the 2003-2005 years were abnormal. An anomaly.

The general consensus is the builders over-built, interest rates rose, housing prices increased creating a ‘perfect storm’. Between in increase in prices and the increase in interest rates, affordability went down leaving fewer qualified buyers. The builders over built (approximately 20,000 units over) because the speculators were buying homes faster then they could be built. Builders also increased prices because supply and demand led them to believe they could. At a certain point, it had to stop.

Today we find the Phoenix market saturated with inventory. Builders are offering insane incentives to unload the home they over built. Sellers of existing properties are still over pricing their homes because they cannot adjust to a normal appreciation rate. REALTORS are abundant and clamoring for clients.

What does it all mean? Yes, days on market are significantly longer then that of 2003-2005. Yes, there is a back log of inventory available (currently about 7 months). Yes, it is harder for the average person to afford a home. However, there are still over 130,000 people a year moving to the Valley. These people need homes. We just need to adjust our thinking. Adjust our way of doing business. Learn to appreciate how great the market was and accept the reality of what the market is now.

A little Slice of Heaven in the Desert

A Little Slice of Heaven in the Desert

I’ll admit a few might find that headline a bit inflammatory but what can I say? The Cleveland Indians are coming to Goodyear! The Indians are close to signing a deal with Goodyear to move their spring training from Florida to Arizona’s Cactus League.

Goodyear has been working for some time now to snag at least one team. This is yet another major development for the West Valley. Current proposal for the facility is a site located near Yuma and Estrella Parkway near the Goodyear City Center. Should Goodyear sign the Indians to this agreement there is an excellent chance that another team will also sign so as not to leave the Cactus League with an odd number of teams.

Once the Indians sign the proposal will need approval from the Tourism and Sports Authority to help provide funds. If all moves ahead, development on the $77.5 million facility should be complete by February 2009. Also proposed for the site is a mixed-used open-air style shopping area.

Any news of a spring training team in Goodyear would have thrilled me. Having been born and raised in Cleveland, I’m just a little partial to the Cleveland Indians and am looking forward to attending many spring training games in the future.

Breaking the Law, Bending the Rules

Breaking the Law, Bending the Rules

This has been one of those really strange weeks. I received a call early in the week about a property I have listed. It is a large parcel of land listed for over one million dollars. The caller asked “do you plan on using a 1031 Exchange once the property is sold?” Well, based on the way the question was phrased, I was hesitant to answer. Anyone who knows their way around a 1031 Exchange knows you have to initiate the exchange prior to close-of-escrow. Of course, I was also considering that it was just a case of bad semantics but either way, I was not going to compromise the client by answering the question.

So I replied the best way I knew how, I asked “why do you ask?” Big mistake, huge. I should have gone with my gut instinct and gotten off the phone as fast as I could.

The caller then launched into his pitch on TIC’s. I tried to stop him. The first thing out of my mouth was “I do not have a securities license and therefore I do not involve myself in TIC’s”. He was not to be stopped. He then felt the need to wash me of my ignorance and show me the TIC light. By the time I got off the phone, not only was I frustrated, I knew I did not want to do business with him in the future.

I am a 1031 Exchange fanatic. If I was 10 years old again, I would replace the Andy Gibb poster hanging over my bed with a 1031 Exchange poster (pathetic, huh?). 1031 Exchanges are splendid when done correctly. As a result of my worship for the 1031, I have spent countless hours becoming educated on all aspects. Including the use a 1031 Exchange into a TIC.

The SEC views most TIC’s as securities although the IRS views all TIC’s as real estate. The National Association of Realtors estimates 10 percent of TIC’s are structured as real estate and not securities. This means 90 percent are securities, which I am not licensed to sell. Ninety percent is a huge chunk of the market. Large enough that I choose to direct my 1031 Exchange clients who are interested in TIC’s to the proper licensed individuals to assist them with their needs. Why? I value my license and I take the REALTOR Code of Ethics seriously.

This makes sense to me. My husband is an aerospace engineer. I have on occasion read some of his airplane engineer magazines (engrossing stuff). This does not qualify me to work on aircraft. My knowledge of 1031 Exchanges and TIC’s still does not qualify me to sell securities.

Back to my phone call…

The caller insisted to me that he could pay me a ‘referral’ fee for sending my TIC clients his way. My ulcer started to act up just a bit when he said this. He also was exceptionally persistent in letting me know how little I understood about 1031 Exchanges. He told me he could structure things in a way I would be comfortable. He told me not to worry he would make sure everything was legal. He told me how he could make me ‘painfully wealthy’ (his words, not mine) in the future. I hung up.

He was correct about one thing, I did have pain. Then I had some Maalox and went back to work.

Great Arcadia Home

Check out HomeInArcadia.com

This is a beautiful home in a great neighborhood. It features a lush yard which is perfect for entertaining. This one is not to be missed.

Rite-Way Realty is looking for new agents

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The Rite Knowledge
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The RITE-WAY

- Tuition Reimbursement
- Every associate has a Personal Mentor available 7 days a week
- One-on-One Training
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We are a Learning-Based company where we help you start a career not just a job. Our focus is to help you develop your business. Due to our unique mentor program only a limited number of candidates will be accepted.

We are proud to offer a recruiting bonus of up to $1500 for each new associate you refer to Rite-Way Realty.

Call today for a confidential interview.
Tracy Thompson 623-326-0597 Director of Career Development and Training

http://www.AgentFastStart.com

Development Opportunity Available

Development parcel available near the Cardinals new stadium in Glendale. Fantastic opportunity for a luxury townhome development.

Photos and details:

7111N83rdAve.azhomebuyerhelp.com

Closing Cost Assistance Available

New Home Closing Cost Assistance

We are excited to announce our Closing Cost Assistance Program Rite-Way Realty is excited to announce our Buyer's Closing Cost Assistance Program.

We will contribute up to 2% of the purchase price of your new home toward your closing costs. For example: Purchase a $500,000 home and Rite-Way will contribute up to $10,000 toward your closing costs. Purchase a $800,000 home and Rite-Way will contribute up to $16,000 toward your closing costs.

What is the catch? This offer is only valid with certain new home builders and certain existing homes. The list of builders changes constantly. All you need to do is email or call today for an updated list of builders and communities. Some lenders place restrictions on the amount we can contribute.
Fairly simple rules to save a huge amount of money.
What are you waiting for? visit http://NewHomes.AZHomeBuyerHelp.com Rite-Way Realty, 2200 N. Central Ave. Phoenix 623-326-0597 Tracy Thompson http://www.AZHomeBuyerHelp.com

Tartesso Buckeye Update

Although this master-planned development's name is derived from an ancient Phoenician cultural center, Tartesso aspires to be among the most modern of communities. The sprawling 12,000-acre development has been approved for 40,000 homes.

The first phase, located at Sun Valley Parkway and Tartesso Parkway (Indian School Road), will include sites for 17 elementary schools and three high schools. Open space will be abundant in Tartesso, with plans for 26 parks in the works. The largest of these parks will feature full-size baseball fields, lighted basketball courts, facilities for smaller children, and picnic areas. A Tartesso golf course has not been planned. Commercial or mixed-use sites in Tartesso potentially could encompass 717 acres, or more than 10 million square feet. Tartesso will be accessible from Interstate 10 by two existing interchanges at Sun Valley Parkway and Miller Road. Three additional interchanges eventually will be installed at Johnson Road, Bruner Road, and Wilson Avenue.

Tartesso's main thoroughfare will be Sun Valley Parkway, which historically has been called the "Road to Nowhere" after development dreams turned sour in the 1980s. Developers are ready to fill the 160 square miles of desert with 300,000 new homes in one of the last large pieces of undeveloped land in the metro area. Buckeye's Sun Valley area will be metro Phoenix's next big growth corridor. Planners are projecting that 500,000 to nearly 1 million people will move to the area in the next 40 years.

More development along the Sun Valley Parkway is on the way. Stardust Development is partnering with Sterling Centre Corp. to build Tartesso Town Center, a 3.5 million-square-foot project planned for the entrance to the community. Developer El Dorado Holdings is partnering with Sonoran West Properties to develop Douglas Ranch, the state's biggest planned development. Douglas Ranch will cover 35,000 acres, more than twice the size of Manhattan. Douglas Ranch will eventually have 84,000 homes, 250,000 residents, four freeway interchanges, and dozens of office parks and malls.

Pulte bought or bought options on several parcels of land totaling about 4,100 acres east of the Sun Valley Parkway between Missouri and Northern avenues. The new community will be part of the Sun Valley area of Buckeye. Pulte will build one of its signature all-ages Anthem communities there. Pulte is building Sun City Festival in the northern part of the Sun Valley area. Pulte also is developing property in Tartesso.

I took a trip out to Tartesso in Buckeye, AZ this weekend to update my photos and get an update on progress. I was able to preview homes with 4 builders. Trend Homes is not open on Sundays. Keep this in mind when planning to visit the community.

Unlike the past few years, builders were happy to have a REALTOR visit and were very friendly and helpful. If you are planning on visiting any new home community, you really can and should have a real estate agent with you. Builders will not give you a discount because you don't use an agent. It will NOT cost you extra if you use one and it might just save you money if you do as many builders are offering incentives to REALTORS which might not be advertised to the general public. You are also protecting your best interests by having an agent act as your fiduciary.

Back to Tartesso....
As evidenced by the photos on my site, there are a lot of homes already built and many under construction. Parks are in place as well as tennis courts. Almost every subdivision has a playground area with grass and jungle gym. There is signage for future schools.

The biggest negative was the lack of a central sales center. Recent master-planned communities like Verrado and Estrella Mountain Ranch have a central area with a map of the entire community and directions to individual builders. A feature such as this would be extremely helpful at Tartesso as I found some of the signage and round-abouts confusing.
Contact me today if you would like more information on builders, floor plans and pricing available at Tartesso. Copyright 2006. Tracy Thompson is a member of the National Association of Realtors, The Arizona Association of Realtors and the Glendale Board of Realtors. To find out more about home buying and selling, contact Tracy at 623-326-0597 or email Tracy@TalkToTracyHomes.com http://www.azhomebuyerhelp.com/

West Valley Phoenix Growth

West Valley Phoenix Happenings

According to the City of Avondale, the widening of McDowell road is to be complete by mid-September. Yesterday I was surprised to find the lanes on the west side of Avondale Blvd. open. There are still cones everywhere, testing my skills at serpentine driving but, at least there is now a road with pavement. Progress is being made.

Let’s travel down the road to Gateway Crossing at 99th Ave. and McDowell. Although there were still barriers and cones and those yellow flashy light things all over the place, pavement spans almost the entire width of McDowell Road and there is substantial development on the south-side of McDowell at 99th Ave. Claim Jumper already has their sign up and is advertising a September 25 opening date on their web site. If you have never eaten at Claim Jumpers, just a tip, the portions are HUGE.

Signage at Gateway Crossing indicates the Best Buy, Hobby Lobby, and Old Navy stores are all underway. Also in that same area will be an Islands Fine Burgers & Drinks, Rack Room Shoes (anticipated opening October 2006), Paradise Bakery, and more.

Recently I had an interesting conversation with a client about the lack of shopping and dining alternatives in the South West Valley. We both had a good laugh about having to choose between JCPenney and Kohl’s when faced with a shopping emergency. It is nice to see some new choices on the horizon.

Copyright 2006. Tracy Thompson is a member of the National Association of Realtors, The Arizona Association of Realtors and the Glendale Board of Realtors. To find out more about home buying and selling, contact Tracy at 623-326-0597 or email Tracy@TalkToTracyHomes.com http://www.azhomebuyerhelp.com/