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

The Rite Team
The Rite Knowledge
The Rite Leadership
The Rite Experience
The Rite Values

The RITE-WAY

- Tuition Reimbursement
- Every associate has a Personal Mentor available 7 days a week
- One-on-One Training
- Free New Associate Fast Start Training
- Free Signs
- Free Business Cards
- Free Lead Generating Website with free home listings
- Free Lockboxes
- Free Technology Training
- Free Marketing Resources
- Free Weekly Coaching Sessions


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/

West Valley Traffic Update

West Valley Update

What a wonderful rainy morning we had today. Having spent my childhood in Ohio on the shore of Lake Erie, I will freely admit to having days where living in the dry, rain-free desert can be somewhat depressing. I look forward to Monsoon season and the occasional wind and rain that come with it.

It always seems the eastside gets the best storms. Now I am fully aware there are many of you who hate Monsoon and the accompanying destruction but rain and wind can be such a refreshing change of pace. That is until you try to drive in it. The traffic on I-10 into Phoenix was miserable this morning. Actually, it is miserable every day but today was exceptionally bad. We get rain so infrequently that the combination of ‘weather fear’ along with the road slickness thrown in with the miserable West Valley traffic were a recipe for disaster.

The good news is what the Arizona Department of Transportation plans to do with the West Valley I-10 situation. The widening of I-10 was scheduled to begin in 2014 but the Arizona DOT has announced an accelerated fall 2007 date for Phase I of the project.

Phase I will involve the creation to two inside lanes from the existing median. This expansion will occur from the Loop 101 to Sarival Road. With the lanes being added to the existing median, the Arizona DOT does not anticipate the need for road closures.

Once Phase I is complete, the project will move to Phase II. This will add an HOV lane and another regular lane from Dysart to Sarival creating a total of 5 lanes from the Loop 101 to Sarival Road.

Hopefully this will mean I will enjoy my rain and my commute just a little more and all of us will be able to reach our destination just a little faster with a little less frustration.

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/

You don’t know what you don’t know until you know you don’t know it

You don’t know what you don’t know until you know you don’t know it

Yes, the title is a mouthful but I mean well. I recently had the opportunity to present on 1031 Exchanges to the American Society of Women Accountants. They were a great group of women from all walks of accounting. Self-employed, non-profits, small companies, retired, Fortune 500’s. You name it, it was represented.

This was an exceptionally eye-opening experience for me. At least twice a week I have the occasion to say to a client “You need to discuss this with your CPA”. That quote sums up how much interaction I have with those in the accounting profession other then dealing with my own accountant.

I made the same assumption about accountants that many make about real estate agents. I assumed all would be familiar with 1031 Exchanges and know the basics at the very least. What I learned that night was I knew very little about accountants and accounting in general. Accountants have specialties just like real estate agents. Most that I encountered had little, if any, knowledge on tax-deferred exchange.

Ironically, I began my presentation explaining the lack of education requirement for real estate agents in 1031 Exchange and how it could be very likely that the account would be the most knowledgeable individual in the transaction. What I know now is very few accountants specialize in real estate and even fewer specialize in business or investment real estate.

The point of my story is to emphasize just how important it is for the seller, the real estate agent, the accountant, and the intermediary to familiarize themselves with the level of knowledge and experience of the other parties in the transaction. You never know what you don’t know unless you ask.

If you are interested in learning about the advantages of a 1031 Exchange, please visit www.MyAZ1031.com for an overview and to request more information. If you or your organization would like a presentation on 1031 Exchange, feel free to contact me. Programs vary in length from 50 minutes to 3 hours.

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/

Smoke Alarm Batteries

Smoke Alarm Batteries

Arizona does not change their clocks for daylight savings time. I’ve never bothered to research why but I would have to guess it has something to do with Arizona having enough daylight and no need to save any. Until 3:30 this morning, I never really gave it much thought other then having to do a little extra math to determine the time in other parts of the country.

Traditionally, consumers are advised to change their smoke alarm batteries when they change their clocks for daylight savings time. Well, what if you don’t do daylight savings time? You become me. You totally forget to change your smoke alarm batteries until the smoke alarm starts chirping at 3:30 in the morning. The dog goes a little nuts and the husband has to dig the ladder out of the garage. Navigating the kitchen ‘junk’ drawer at 3:30 in the morning to find a 9-volt battery is a challenge.

All of this was a little dose of reality. Don’t become me. Enjoy your sleep. Go buy some batteries. Go check your smoke alarm. Go on. What are you waiting for?

Visit http://www.AZHomeBuyerHelp.com

Arizona Cardinals...no longer without a home

Are You Ready For Some FOOTBALL?
Pathetic. A word frequently associated with the Arizona Cardinals. Not just because of their record as a football team but because their home stadium was, to be blunt, pathetic. Sun Devil Stadium is a great stadium for a college football team. Bleacher seats, no cup holders, blazing hot sun. For a college student, it creates the perfect combination of reasons for have another adult beverage. For the Arizona Cardinals, it created another reason to call the team pathetic.

Not Anymore!

Seven days from now the Arizona Cardinals will host the Pittsburg Steelers at the new Cardinals Stadium in Glendale, Arizona. Honestly, the most highly anticipated event to happen to the West Valley and possibly all of Phoenix. The Cardinals now have a permanent home. The positive effect this has on the West Valley of Phoenix is hard to quantify. The destination retail, dining, and residential spaces planned at the Westgate City Center is nothing short of impressive. The electronic billboards and signage will represent the largest grouping of media outside of New York's Times Square. Glendale, Arizona coming in second to New York City, who would have thought?

Yesterday I visited the new stadium. The team shop is open and very impressive. I was floored by the level of customer service displayed by the staff and security. I was even able to get an interior picture of the stadium with the field in place.

This signals the next chapter for the West Valley of Phoenix. We will finally be able to compete with other major residential areas as far as shopping and amenities are concerned. This bodes well for our property values and for our futures.

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/

Creative Reasons for a 1031 Exchange

Creative Reasons to use a 1031 Exchange
Deferring capital gains tax is the primary reason most investors use a 1031 Exchange. Who can argue with that? It really is a great reason, but it is not the only reason to use a 1031 Exchange.

Maybe the investor is hoping to put their equity to work for them and desires to own multiple income producing properties. One way to achieve this is to use the equity from a single relinquished property and replace it with 2 or 3 income producing properties. Not only is there the possibility of multiple income streams but this also reduces the exposure should an issue arise (high vacancy rate, etc.) with one of the properties.

What about the investor who no longer desires to be a landlord. A 1031 Exchange would provide the opportunity to exchange an apartment complex for a large parcel of raw land in a high growth area. Another benefit of a 1031 Exchange is to allow the owner of a single investment property to purchase multiple investment properties for his or her heirs avoiding a possible family eruption if a single property was to be divided among multiple individuals.

When making the decision to sell an investment property don't hesitate to ask your REALTOR for creative suggestions on the replacement purchase. If you are interested in learning about the advantages of a 1031 Exchange, please visit http://www.myaz1031.com/ for an overview and to request more information. If you or your organization would like a presentation on 1031 Exchange, feel free to contact me. Programs vary in length from 50 minutes to 3 hours.
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/

1031 Exchange Basics

1031 Exchange Basics
1031 Exchange Basics
The rules for a 1031 Exchange are complex. This is a basic overview with the understanding that each transaction is different. When assembling your 1031 Exchange team, a CPA is a must to ensure your individual situation is accurately addressed. That being said, the basic rules are always the same.
1) Only investment properties qualify for 1031 exchanges, not personal residences. 2) You have 45 days from the date of transfer of the relinquished property to identify replacement property. No exceptions. 3) The exchange must be completed within 180 days or the tax due date. For this reason, exchanges initiated after October 15 require exceptional vigilance.
Once you have decided to sell a qualified property, contact your CPA and a REALTOR with 1031 Exchange experience. Both are vital to a successful transaction. The CPA will be able to advise you of your current financial situation and help you chart a path for the future. The REALTOR will be able to assist you with the proper documentation and guide you through the steps involved. He or She can also help you select a 1031 Exchange Qualified Intermediary (QI). Replacement PropertyThere are no limits on the value or number of properties that may be relinquished in an exchange.
There are limitations on how many replacement properties may be identified. One of the following three rules must be adhered to.
Three Property Rule
A maximum of three properties may be identified without regard to the fair market value (FVM) of the replacement properties.
200 Percent Rule
Any number of properties may be identified as long as the aggregate value does not exceed 200% of the relinquished property.
95 Percent Rule
Any number of properties may be identified if, by the end of the exchange period (180 days), the aggregate market value of acquired property is at least 95% of the aggregate market value of all properties identified.
Properties for replacement must be identified in writing on or before the end of the 45 day identification period. I will discuss more about documenting your exchange and holding periods in the next post.
If you would like more information on 1031 Exchange or the current Phoenix real estate market you can contact me Tracy Thompson 623-326-0597, Tracy@TalkToTracyHomes.com or visit my website http://www.AZHomeBuyerHelp.com

What is a 1031 Exchange?

What is a 1031 Exchange
What is a 1031 Exchange?
Tax Code Section 1031 allows real estate investors to sell property that has been held for investment or productive use in trade or business and defer capital gains and depreciation recapture taxes if they acquire “like-kind” property of equal or greater value and reinvest all of their equity. The fundamental principle is to permit the property owner to continuing investing and defer taxes that would normally be due on the gain from the sale.
Advantages of a 1031 Exchange:
- Properties that have been held for an extended period of time and are “tax-locked” can be freed up.
- Deferred capital gains tax
- Money available for reinvestment instead of going toward taxes
- Heirs can receive a stepped-up tax basis equivalent to fair market value
Basic Rules of a 1031 Exchange:
- Properties must be exchanged for ‘like-kind’ property
- Property must be held for investment or productive use in trade or business
- Replacement property must be identified within 45 days
- Exchange must be completed within 180 days or the tax dues date, whichever is earlier
In the next post, I will describe the basic steps to a 1031 Exchange.

If you would like more information on 1031 Exchange or the current real estate market you can contact me Tracy Thompson 623-326-0597, Tracy@TalkToTracyHomes.com or visit my website http://www.AZHomeBuyerHelp.com

Foreclosures

Facing Foreclosure?
Foreclosures
I receive a lot of calls from people wanting to purchase foreclosure properties. For me, I cannot hear the word foreclosure without feeling a pang of sadness. Homeownership embodies the American Dream. Although the “white picket fence” is a rare find in the desert, those wishing to achieve the American dream, are not. Today we are going to take a quick look at the foreclosure process. There is no way I can possibly explore everything about foreclosures, so this will be a very brief overview.
Foreclosure is the legal process reserved by a lender to terminate the borrower's interest in a property after a loan has been defaulted. The foreclosure process in Arizona starts with the Notice of Trustee's Sale (NTS). When the process is completed, the lender may sell the property and keep the proceeds to satisfy its mortgage and any legal costs. Any excess proceeds may be used to satisfy other liens or be returned to the borrower. The Trustee shall give written notice of the time and place of sale legally describing the trust property to be sold by each of the following methods: Publication of the notice in a general circulation newspaper, posting of the notice on a conspicuous place on the property to be sold, recording of the notice with the county recorders office. By the time the NTS is advertised in the newspaper, you are already six weeks into the foreclosure process.
Prior to the actual trustee’s sale, the borrower has options to explore that could prevent the foreclosure process and potentially keep their credit from being permanently damaged. For most homeowners, facing the loss of their home is devastating and many choose to ignore the situation rather then explore the avenues available to avoid foreclosure.
Selling a home is an alternative for borrowers that are unable to reinstate the loan and face eminent foreclosure. This option allows a home owner to try to salvage his or her credit, pay off the loan, and retain any remaining equity in the home. By informing the lender of this option, the lender may delay the foreclosure proceedings in order to allow sufficient time to sell the home.
In certain cases, the lender may allow the borrower to sell the home when the proceeds from the sale are not sufficient to pay off the existing loan. This is known as a short sale. A borrower should check with his or her lender to discuss this option. Furthermore, the borrower may have to pay taxes on any loss the lender writes off from the short sale. A borrower should consult his or her tax professional before agreeing to a short sale.
If Keeping Your Home Is Not An Option -- Call Your Lender

Sale: If you can no longer afford your home, your lender will usually agree to give you a specific amount of time to find a purchaser and pay off the total amount owed. You will be expected to obtain the services of a real estate professional who can aggressively market the property.

Pre-Foreclosure Sale or Short Payoff: If the property's sales value is not enough to pay the loan in full, your lender may be able to accept less than the full amount owed. This option can also include a period of time to allow your real estate agent to market the property and find a qualified buyer. Monetary help may also be available to pay other lien holders and/or help toward paying a few moving costs.

Assumption: A qualified buyer may be allowed to assume your mortgage, even if your original loan documents state that it is non-assumable.

Deed-in-lieu: Your lender may agree to allow you to voluntarily "give back" your property and forgive the debt. Although this option sounds like the easiest way out for you, generally, you must attempt to sell the home for its fair market value for at least 90 days before the lender will consider this option. Also, this option may not be available if you have other liens such as judgments of other creditors, second mortgages, and IRS or State Tax liens.

If you would like more information about foreclosures please contact Tracy Thompson 623-326-0597. 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

Before You Buy a Home in Arizona

Phoenix, West Valley, Interest Rates

I was contacted by a buyer who had expressed serious interest in purchasing one of my listings. Numerous emails and phone calls over a 10 day period assured the buyer he was making a great choice for him and his family. I had held off telling the seller there was serious interest as experience had me cautious enough to know better. The buyer made an offer. I had spoken with his loan officer the prior week and felt very comfortable with his financial situation. I was prepared to present the offer to the seller I just needed one little thing. The LSR.

Here is where the happy story falls apart. Of course, had this been the summer of 2005, the buyer would have had 10 Phoenix minutes to decide while the seller was fielding offers from five other buyers.

The Arizona LSR is a Loan Status Report. It is basically a form that gets filled out by the loan officer which states how much the buyer is qualified for and if there are things hinging on the qualification (sale of another property, for example). Most good agents won’t even drive a buyer around without one. More on why later.

I call the buyer’s loan officer and leave a message. He does not get back with me that day. The next morning comes and goes, no phone call. OK, maybe he is busy, sometimes I get really busy. I call him. He is not excited. This is about to become a sad story. Two things happened during the 2 weeks the buyer was thinking. Two Very Bad Things (good movie by the way). The buyer, excited about the prospect of moving, purchased a new car to park in his new garage, and interest rates went up. A Perfect Storm (also a good movie if you are into disasters).

Lesson number one: DO NOT buy anything when shopping for a home. Nothing. I advise all my clients of this but unfortunately this one chose to have selective hearing. Lesson number two: A home is probably the largest purchase you will make. You should take your time and make the right decision. You should also know that while you are taking your time, interest rates change everyday and one little change can be enough to keep you from qualifying for the home of your dreams. OUCH.

Why won’t I show homes to people without LSR’s? This is pretty straight forward. Until the buyer knows exactly what they are qualified for, it is unfair to both of us to look at properties. It is unfair to the buyer because they might qualify for more and could be looking at homes that are larger or that have other amenities. The buyer might also qualify for less. Few things are more depressing then driving a Porsche only to find out you can afford a used Yugo. The situation is pretty unfair to the agent also. Real Estate agents are almost never paid by the buyer and almost never get paid until a successful close of escrow. By expecting an agent to show you homes without a loan approval, you are asking them to provide their services absolutely free with little hope of ever being compensated.

The moral of my story? I have strange taste in movies. OK, that is true but not the moral. If you are planning to purchase a home speak to a loan officer first. Find out exactly where you stand financially. Don’t make any purchases or do anything strange with your credit without speaking to your loan officer first. Don’t get upset with real estate agents who won’t show you homes without a loan qualification. Most of us are independent contractors, we pay huge sums of money to our brokers and to maintain our licenses, and we do not get paid unless a transaction closes.

Contact me today for more information on loan qualifications, the Phoenix and West Valley real estate market, or to talk about bad disaster movies. Tracy Thompson 623-326-0597 tracy@talktotracyhomes.com

Phoenix Homes are Heating Up

Phoenix is starting to heat up.

Air Conditioning. In Arizona, you are hard pressed to find two more important words in the middle of August and 115 degree heat. I grew up back east and really didn’t understand why anyone would wish to live in a desert. Of course, I didn’t really understand central air conditioning either. It was not until I was 24 and living in Maryland that I first experienced the wonder of central air. Window A/C was the norm growing up and having more then 2 window units in the entire house was considered a luxury.

Air conditioning in Arizona is not a luxury, it is a necessity. No matter how many ways one can say ‘it is a dry heat’, 115 degrees is hot and fatalities occur at that temperature. When selling a property in Arizona, the A/C, heat, electric, and other systems are guaranteed to be in working condition. If during the inspection period the buyer determines these items to be non-functioning, they must be repaired by the seller.

For many, April signals the month to get ready to sell your home. If you are in the preparation stages, get your air conditioning system checked now before the heat of summer causes backups with all the local contractors. If you have a home warranty, you might want to contact them first to be sure you understand what is covered prior to having your system serviced.

You can contact me, Tracy Thompson 623-326-0597 Tracy@TalkToTracyHomes.com for a list of maintenance items to be attended to before you sell your home. If you are unsure what systems are guaranteed by the purchase contract, let me know and I will help you go over the items.

How a Little Beef Jerky can make you a Hero

I've had this on my websites for quite some time, but it bears repeating here.


Let me be upfront about this. I love my family, I love my dogs, I hate beef. Haven't touched the stuff in over 25 years. No, I'm not a vegetarian, and there is a rather lengthy boring reason but suffice it to say, I just don't eat beef. That being said, I support Beef Jerky and all it stands for and here is why...

Whatever your feelings are about our involvement in Iraq, our soldiers deserve all the support they can get. Our country has an all volunteer military made up of people who make numerous sacrifices so we can all sleep safely at night. In the interest of full disclosure, along with not liking beef, I married a man who dedicated 20 years of his life to serving in the United States Air Force so I might be a bit biased.

Our soldiers overseas love beef jerky. Love it. Devour the stuff. So I have decided to use my little corner of the Internet to get the word out that our soldiers need our help. Please click any of the links below to find out how you can help a soldier by sending a care package of magazines, gum, raisins, beef jerky, and more. If you don't have the time or the resources to send a care package, how about sending an email to show your support?

Please, be a hero, take a minute today to thank a soldier. AnySoldier.com and AmericaSupportsYou.mil are great organizations. You can also check out Operation Military Care, K9 where you can find out how to make a donation to support the brave K-9 teams who are serving in a war zone.

How my Blackberry has changed my Real Estate Business – Part 2

How my Blackberry has changed my Real Estate Business – Part 2

In part 1, I whined about my cell phone service going down. In part 2, I’ll try to stop whining and explain why it was such a big deal.

During the late 1970’s Atari introduced a wildly popular video game system which my parent’s blessed my sister and me with. Pong was awesome. Shortly thereafter, Atari introduced a home computer, the Atari 400. It was an 8k system which hooked up to the TV and used cassette tapes for storage. No 11” floppies for Atari, nope, they used cassette tapes which were frequently mangled by the tape deck. Again, this was awesome. I subscribed to ‘Compute’ magazine and spent hours and hours typing their programs into my Atari so I could have something magical appear on my TV screen. Frequently, the magical thing would turn out to be a colored square that would flash changing colors. It was revolutionary. That flashing square would change many lives, mine included.

I was drunk with power. A teenager from Lakewood, Ohio was able to make a flashing colored square on her TV screen, what would they think of next? My Atari led me to the Radio Shack TRS-80, affectionately referred to as a ‘Trash 80’. IBM was developing home PC’s and word processors were somewhat affordable for the home user.

Fast-forward to the early 1990’s. Bill Gates, Compuserve, Apple PC’s. All would have a massive impact on the world. Home PC’s finally became within reach for the home user. That is, if you had a spare $3000 for the basic PC which might even include a printer. I jumped on board the home PC bandwagon, learned as much as I could about Windows (version 3.something) and never looked back.

All of his just basically established me as a huge geek. My name is Tracy and I am a huge geek. So let me just skip over the next decade and get to the point. I really do love my career. Real Estate fascinates me. All of the various nuances, the ebbs and flows of the market and the unpredictability of it all make for exciting work.

Real Estate has also allowed me to leverage my geek side by creating venues where technology allows me better serve my clients. I maintain 2 major websites (www.TalkToTracyHomes.com and www.AZHomeBuyerHelp.com) and 4 small sites. All of which combine different technologies to assist me in getting information to the masses.

I’ve had a lot of success building my business online and using the Internet to provide the best service possible to my current clients. Then I purchased a BlackBerry.

I really did spend a long time researching PDA’s. I even bought a Dell AXIM handheld. The Dell AXIM was useful, fun, and worked as expected. Where it failed for me is in not being a phone and having spotty network connections. I needed to be able to access my email 24 hours a day.

I was pushed into getting the BlackBerry when I dropped my phone for the 937th time and it decided it had had enough. The BlackBerry waved to me from the corner of the phone store and the rest is history. When I realized I could store pictures of my listing on my phone to show to prospective buyers at a moments notice, I was sold.

How I functioned before I’ll never know. Before BlackBerry, a day of appointments meant a day without email (even with my laptop, getting a wireless connection while out of the office is a roll of the dice). Now, I can schedule a day at the doctor or a trip out of town and not miss a beat. I can ever receive faxed offers on my listings on my Blackberry. One day, a few months ago, I was at a Phoenix Suns game when I was emailed by an old client who wanted to list a property. By halftime, we had worked out the details. All in email. The best part was the man sitting next to me (not my husband but the stranger on the other side of me) asked me what I was doing and when I explained to him I was listing a property for a client he became very interested. He asked for the details on the property and while he decided he didn’t want that particular home, he still has me searching for one for him.

So you can see how I panicked when my cell service failed last week. The Phoenix real estate market is flush with real estate agents. Being a step ahead of my fellow agents gives me a competitive advantage when it is time to negotiate the best deal for my clients.

If you would like more information on how to use technology to best help you buy or sell your next home, contact me today. Tracy Thompson 623-326-0597

How my Blackberry has changed my Real Estate Business – part 1

How my Blackberry has changed my Real Estate Business – part 1

This past Wednesday, my cell phone service stopped. I tried to call a client and after 4 rings got one of those fast busy signals. My first thought was there was something wrong with my client’s phone. I went so far as to email him telling him he had phone issues. Oh, was I wrong. Soon thereafter my land line starts to ring. I can tell by the caller ID it is my husband and I prepare to give him a hard time for not calling my cell (we have one of those free calls to those on the same service plans) and he informs me my phone is not working and the message says my number is not in service. This causes me to immediately panic. How many clients are going to freak when they get a message my phone is no longer in service? How can I function without my cell phone? How will I go on breathing without life support???

After a quick search, I locate a phone number for customer service and use the land line to contact them. At this point, I could easily spend the next 15 paragraphs telling you about my 2 hours on the phone with customer service resulting in them telling me my Blackberry was faulty and directing me to the nearest store for a new SIM chip. Needless to say, I am basically pulling my hair out. I am convinced I will need to enter a 12-step program if I don’t get my cell phone fix soon.

I trot down to the local store and am shocked to see it is packed. At least 15 people, all with the same panicked facial expression I am currently sporting. Oddly, most of them are just standing around, frozen in place, staring at their phones. It is as if Tom Cruise just ran through town announcing the arrival of the aliens.

I find my way to a customer service person and explain my issues with my faulty Blackberry. You can tell she is holding back a laugh. She takes a step back from her protective counter, thus creating more distance between us, and slowly says “Ma’am, when you were on the phone with customer service, didn’t they tell you one of our cell phone towers was down and nobody has service?” It is at this moment the room starts to spin and I wonder if I am about to lose consciousness.

“So there is nothing wrong with my Blackberry?”
“Nope”

In the interest of maintaining a PG-13 site, I will leave out the next hour of my day and just let you imagine what was going through my head. Eventually I returned to my office and composed email to everyone I thought might call me letting them know I was without my life support system. Using my land line, I was still able to do business and function but I just felt so lost.

Why am I sharing this? Well I guess if I wanted to defame my cell provider, I could name them here for the entire world to see, but we all have bad days and it just happened to be a bad day for them. Everyone makes mistakes and has circumstances beyond their control. I’m quite satisfied with my service and usually go for months at a time without having to contact my provider. Could they educate their customer service people to check to see if service is out in a specific area before troubleshooting the phone? Absolutely. In fact, I emailed the company, not to complain, but to suggest that this step was possibly missed during my phone call. The support person who handled my call was new. She will probably handle the next call differently.

I’m sharing this because it really hit me how dependant I am on technology and just how much of my business is cultivated because of that technology. We will get into that in part 2.

Phoenix Real Estate Pre-Qualification and Pre-Approval

One of the most important steps in the Phoenix home buying process is receiving pre-approval for a home loan. Many buyers apply for a loan and obtain approval before they find the home they want to buy. Why? The pre-approval step takes only a few hours and will save you a tremendous amount of time looking at homes that may be below what you qualify for or above what you can qualify for. Taking this step also affords you the opportunity to get to know your lender and the process he or she will take to assist you in your home purchase. To get the process started, I have added numerous loan calculators to my web site. Just plug in some simple information and you can get a snap shot of what you qualify for.

When purchasing a home in Arizona there are a variety of loan programs that are available. These different loan programs offer different rates, terms, and down payments. Many loan programs require no money down. Many individuals do not own a home simply because they don't know how easy it can be. Often times you can own a home for less than you pay in rent.

Pre-qualifying will help you in the following ways: Generally, interest rates are locked in for a set period of time. You will know in advance exactly what your payments will be on offers you choose to make and you won’t waste time considering homes you cannot afford. Pre-approval will help you in the following ways: A seller may choose to make concessions if they know that your financing is secured and you can select the best loan package without being under pressure.

Sometimes similar sounding terms can have vastly different meanings. For instance, the difference between buyers who are pre-qualified and those who are pre-approved can make a huge difference in the length of time it may take your home sale to close.

A buyer who is pre-qualified is one whose lender has determined how much he/she can borrow based only on information they have provided to the lender. Nothing has been verified to determine the buyer's true creditworthiness. The buyer must fill out a loan application and go through the lender's approval process at a later date.

When a buyer has been pre-approved, the lender has already done a credit check and verification of employment and deposit. The lender's pre-approval is actually a commitment to loan the buyer up to a certain pre-determined amount. The only thing missing is the lender's appraisal of your home to confirm its value. When seeking a pre-approval, it's important to not misrepresent the facts on your application. If a lender learns later that you've misrepresented or omitted information on your application, your pre-approval may be rescinded.

An offer from a pre-approved buyer can save days or even weeks off the closing process. In Arizona a purchase contract must be accompanied by a Loan Status Report which states at which stage of the loan process the buyer is currently.

Please keep this in mind when you are ready to make your next home purchase. There is really never a good reason not to represented by a licensed Realtor®. Copyright 2004-2006. 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. Sign up for Tracy’s free weekly newsletter at www.TalkToTracyHomes.com/newsletter

Dogs

I know, this has absolutely nothing to do with the Phoenix real estate market but it's my blog and I want to talk about dogs today.

Unlike my dogs, I have that whole opposable thumbs thing going which means they have always depended on me for some basic hygiene assistance. I'll be honest, I firmly believe the dogs wager on how much they can make me look like a total idiot when I try to brush their teeth or clean their ears. Let's not even discuss trimming their nails.

Chuck (the Wiener) was pretty good about the whole grooming thing. He would put up a small fight with teeth and ears but as least he would let me do it. When Jackson (the Boxer) entered the picture, he decided it would be a lot more fun to see how much toothpaste could end up on me rather then on his teeth. Ear cleaning is out of the question and I have had 2 groomers refuse to ever do his nails again. Jackson is a true Boxer at heart and has no problem demonstrating his boxing ability when confronted with nail clippers.

All I have to do is open the drawer containing the nail clippers and toothbrush and it sends Jack in a complete frenzy. He runs around the house, jumps on the furniture, plays keep away all the while quietly laughing at my idiotic behavior while I chase him around the sofa. The general calamity causes Chuck to make a howling noise reminiscent of an Otter being crushed by a Grizzly Bear.

My desire to regain some dignity in front of my dogs has sent me on an exhaustive search for doggie dental products. Greenies were out of the question after reading about the dogs that died after using them. Both the traditional toothbrush and the rubber finger-tip brush proved to be more painful then useful. Yes, I could take them in for a proper cleaning from the vet but I was looking for daily or at least weekly care.

I found it. Yee-haw. So I’m taking time away from my chosen career to tell you about the Easy Brush. There are 2 sizes the Large Dog Toothbrush and the Small/Medium Dog Toothbrush.

It is awesome. It looks like a dog bone with a bristle end. Jack and Chuck fight over it. They behave as though I gave them a t-bone steak. Absolutely amazing. I don’t know if it is the way the toothpaste tastes or what, but they love it. Just give it to your dog for about 2 minutes every other day and they brush their own teeth. Very cool. One caveat; the first few times both dogs had bleeding gums. The package instructions warn of this and tell you to keep a close eye on the pup when he is chewing.

The worst part of the toothbrush is trying to get it away from the dogs at the end of the 2 minute brushing. Both Chuck and Jack grab the bone and let me chase them around the house. Possibly this is their way of ensuring I still lose my dignity when taking care of doggie hygiene.

I’ve dedicated a section of my website to pets. Check it out. I have tips for moving and reducing the stress on your pet. There is also a section where you can submit a picture of your pet to be posted on my site. I also post sale and discount offers from major retailers so you can keep up with the latest pet trends.

If you would like to see your pet online, email me or visit my website http://www.AZHomeBuyerHelp.com for more information.

Do You Need a Home Inspection?

Before You Buy Phoenix Real Estate

Do you really need to have a home inspection before buying? In a word, yes. Most homebuyers take into consideration what the cost of paying the home’s mortgage, taxes and utilities will be, but fail to factor in home repairs and maintenance. A home with many defects that is selling for a low price may be a great value for a homebuyer who is very handy and has the time and money to make the needed improvements.

On the other hand, buying a home that requires a lot of repairs may be a big problem. Do you have the ability, the finances, and the resources to make repairs? Are you prepared to spend from a few hours to what might be weeks without air conditioning or even plumbing? A proper home inspection can help warn you of potential problems before they happen.


Your REALTOR should explain the purchase process, make and negotiate the offer and prepare contracts. Once the contract has been accepted your Realtor will assist you in making arrangements for your home inspection. In Arizona, most contracts only allow 10 days for you to obtain all necessary inspections. Plan on attending the inspection and ask question while it is going on. Don’t be afraid to speak up if you don’t understand something. This will soon be your new home and you should feel good about your purchase.

Some of the things the inspector will be looking for include; Foundations: Look for cracks or water seepage, Insulation: Look for condition, adequate rating for climate, Doors and Windows: Look for loose or tight fits, condition of locks, condition of weather stripping, Roof: Look for age, conditions of flashing, pooling water, buckled shingles, or loose gutters and downspouts, Ceilings, walls, and moldings: Look for loose pieces, drywall that is pulling away, Electrical: Look for condition of fuse box/circuit breakers, number of outlets in each room, Plumbing: Look for poor water pressure, banging pipes, rust spots or corrosion that indicate leaks, sufficient insulation, Water Heater: Look for age, size adequate for house, speed of recovery, energy rating.

That’s not even half the list, but I think you get my point. A home inspection is a crucial component of the home buying process. Now you can complete your home purchase with confidence about the condition of the property and all its equipment and systems. From the inspection, you will have learned many things about your new home, and will want to keep that information for future reference.

To find out more about home buying and selling and Phoenix real estate, contact Tracy Thompson at 623-326-0597 or email Tracy@TalkToTracyHomes.com. http://www.TalkToTracyHomes.com or http://www.TalkToTracyHomes.com

Are there available Investment Properties in Phoenix?

The Phoenix Real Estate Investment Market

Last summer I could count on at least one phone call per day from an out-of-state investor who either found me online or had been referred to me from another investor. Almost all of the calls had the same theme: Do you have any occupied investment properties? Do you have any new builds? Easy questions to answer one year ago: No, and No. For good measure I would also let the caller know about the difficulty in finding a tenant and even if one could be found, don’t even think about cash flow.

What a difference a year makes. Today on the Arizona Multiple Listing Service there are multi-unit properties available, most are correctly priced and with a little effort should cash flow nicely. I am able to find numerous tenant occupied properties which might not exactly cash flow but with steady appreciation are positioned to be solid investments. As a matter of fact, there are enough investment properties in Phoenix, El Mirage, Glendale, and Avondale that I can send a daily email to interested clients with new listings. If you would like to receive this list, visit my website or email me Tracy@TalkToTracyHomes.com.

New Builds are an interesting market at the moment. I’ve always been a proponent of builders putting restrictions on non-owner occupants. There were some developments with over half of the homes available for rent last year. Situations such as this caused almost all of the Phoenix new home builders to put one and two year owner-occupied only restrictions on their sub-divisions. Investors were outraged and agents were frustrated but in the end decisions such as these usually prove to be prudent.

This year we are looking at a different market. Phoenix area builders have started to again offer co-broke fees to agents and rebates and incentives to buyers. This has created a double-positive situation for the buyer. Buyer’s can once again bring their REALTOR with them to purchase a new build giving the buyer the protection they deserve. Last year many of the builders removed any compensation for buyer’s agents causing the buyer to be unrepresented or creating a situation where a kindly REALTOR was expected to work for free. While I love my chosen profession, not receiving compensation for services rendered can be a bitter pill to swallow.

Arizona new home builders are also offering some very attractive rebates and incentives for buyers. Pools, patios, upgraded flooring, and landscaping packages are just a few of the promotions hitting my email this week. I keep a list of upcoming developments and the incentives being offered. Feel free to sign-up on my site, call 623-326-0597, or email me to receive updates.

Some Phoenix new home builders are even allowing a limited number of out-of-state buyers. I have found the list of builder changes daily with supply and demand but it is possible to buy a new build home as an investment property. Visit the section on investment properties at my web site http://www.AZHomeBuyerHelp.com for more information.

Phoenix, West Valley Commercial Growth

West Valley Commercial Growth

Having lived in the West Valley of Phoenix for the past eight years, I am easily excited whenever I see any construction having the potential of being a future restaurant or shop. Not that I wasn’t fond of the neighborhood dairy or egg ranch. Actually, I miss having a working farm just down the street where I could purchase fresh produce. I’m just a little relieved at the prospect of quality dining and shopping without having to drive to Scottsdale.

The Southwest corner of 99th Ave and McDowell is to be the new home of Gateway Crossing. Prospective tenants include Claim Jumper, Islands Fine Burgers and Drinks, Paradise Bakery & Café, Best Buy, Chipotle, Rumbi Island Grill, and more. The first phase is to be completed in early 2007.

At Dysart and McDowell ground has broken on Pei Wei, NYPD Pizza and (I cannot wait) Sprouts. I cannot hold my breath much longer waiting for AJ’s to set up shop in the Far West Valley so I will have to be satisfied with Sprouts. Across the street on the northwest corner, a Buffalo Wild Wings Grill & Bar is set to be built. Over the years, I enjoyed many a wing at BW3 in Ohio and am really looking forward to having one close to home.

As I hear (and can confirm) of more shopping/dining opportunities, I’ll post them here and on my website at AZHomeBuyerHelp.com. If you know of a new development in the area, drop me an email and let me know.

Phoenix Real Estate Market Review

According to the experts the bubble is popping, or the bubble popped, or there is no bubble, or the bubble is going to pop next week. My head is spinning and about to pop. So much speculation, so little hard facts.

I did some digging. I wanted actual facts and statistics. Days on market, houses sold, price. Just some basics so I could get a better idea of what is really going on.

First let's look at the past 3 years;

January 2004 - 5103 homes sold - $253,139 average list price
January 2005 - 6584 homes sold - $307,705 average list price
January 2006 - 5245 homes sold - $409, 109 average list price

February 2004 - 6099 homes sold - $244,717 average list price
February 2005 - 7720 homes sold - $321,777 average list price
February 2006 - 5883 homes sold - Not yet available


These figures are for the Phoenix Metro Area. I have a full analysis of the Arizona Regional Multiple Listing Service (ARMLS) figures for the Glendale/West Maricopa Board of REALTORS available on my web site.

The Phoenix Housing Market Letter Publisher RL Brown, released February's issue stating "Resale "freefall" may be imminent for owners who wait too long to sell", "Over-expectations by sellers are contributing to the booming rehab market," and, "Market times will continue to move up until sellers reposition their pricing to market."

I don't think there can be too much emphasis on "Over-expectations by sellers". Last summer was the exception, not the norm. In many ways, this year is looking like 2003, a normal, stable real estate market. Almost every seller I encounter is struggling with selling because they might lose on another $100,000 in equity if they hang on another few months.

Crystal Balls have not been found to be spot on in their ability to analyze the real estate market. Even if I had one, it would not do me much good. All I can do is take the information I gather and use it the best way possible.

I have not had the time to pull all the figures but I have to assume there is a direct relation between the increase in homes for sale with the population and an increase in home being built. I'm looking forward to analyzing the percentages to get a better picture of what this really means.

If you are planning to sell, I do believe sooner is better then later. For buyers, prices will continue to rise though not at the rate we saw in 2005. That being said, sooner is better then later for you too.

To receive all the market report data or to sign up for the West Valley Real Estate Digest, visit my websites www.AZHomeBuyerHelp.com and www.TalkToTracyHomes.com

Need Remodeling Help?

Here is a step by step guide to help you hire a quality home improvement contractor.

Before talking to any contractors the first thing to do is create a budget for the project. Without a budget you will be flying blind and may end up over spending. Having a tight budget will also help you make decisions about what kind of fixtures, and materials to purchase. Most products have a wide price range and having a budget will help keep you in line when making buying decisions.

After you have your budget dialed in get three written estimates from three different contractors. Be sure the estimate is complete; getting a “written” estimate on the back of a business card is not a sign of a good contractor. Getting three estimates will enable you to compare prices from different contractors. Reliableremodeler.com is a great service that will help you get free estimates from quality contractors for free.

Take the time to talk with each contractor and get a feel for which one you will be most comfortable working with and having in your home. Be sure and pay attention to things like who shows up on time and who is prepared to talk about your project. If a contractor shows up late to your appointment chances are they will show up late when working on your project.

While you are in the process of selecting a contractor it is a good idea to make sure they have the proper license, insurance, and bonding. All three of these items are in place to protect homeowners. Working with a contractor who isn’t licensed or doesn’t have the proper insurance might come back to haunt you. A good contractor will show you copies of these documents when they present your written estimate.

The next step is to check the references of the contractor you are leaning towards selecting. Be sure to ask specific questions about their experience with the contractor. “Did the contractor show up on time?” “Did the contractor clean up after themselves?” If you want to be more aggressive you can ask the contractor for the names and numbers of their last three jobs and call those instead of their handpicked references. This will provide a more realistic overview of the contractors daily work habits and skills.

The last step is to select your contractor and have them provide you a timeline for the completion of the project. Having a timeline will help ensure your project is completed in a timely manner.

For more tips on preparing your home for sale, visit Tracy Thompson online at TalkToTracyHomes.com or AZHomeBuyerHelp.com

Do You Have an Extra $5 Million?

The sale of a DC Ranch home for $9.5 million ranks as the third highest ever in the Valley. The almost 11,000 square foot home is located on a 2 acre parcel in Silverleaf. The two top home sales in the Valley were a 2001 house for $10.5 million and a 2005 estate for $11.4 million. Both properties are located in Paradise Valley,

The MLS currently lists 113 properties priced $5 million and above. The most expensive being a $19.9 million estate located on 10 acres with approximately 25,000 square feet of living space. I have posted the listing on my site just in case you are interested in making a record-breaking home purchase.

Now if you find yourself not being able to afford much over say $6 million rest assured. There are 41 homes available today in the $5-$6 million range. There are even a few over 10,000 square feet. Many of these properties are still in various stages of the construction process allowing the buyer to make customizations. All of these properties are able to be viewed by qualified buyers.

Investment Opportunities

I currently have 3 properties that are great investment opportunities


2 West Phoenix 4-plexes
New Roof, New A/C, Fresh Paint. Own 8 units for residential financing. Fully rented. See also 3135 W. Almeria. To be sold together. Parking lot and landscaping in progress.
More Information http://www.InvestorRentals.com

Glendale Town House
Spacious 3 bedroom home is located in a great looking complex shaded with Pecan trees. The community features a playground and community pool. Within walking distance of schools shopping and transportation. New flooring, appliances and hot water heater. Don't pass up this great property. More Photos http://www.AZHomeBuyerHelp.com

Buckeye is positioned for greatness.

I had the opportunity to visit Tartesso this past weekend. Tartesso is the first of the ‘Road to Nowhere’ sub divisions. All I can say is WOW. I was so impressed with the amount of infrastructure already in place. Many roads are in and the entrance looks to be close to completion. Houses in Tartesso will start at $225,000. The average price for a new home in metro Phoenix was nearly $250,000 in January, according to R.L. Brown, who publishes the Phoenix Housing Market Letter. Tartesso, sitting west of the White Tank Mountains on 12,000 acres, has been approved for 40,000 homes.

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. Pulte will build one of its 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’ve posted pictures and information on builders and floor plans on my website.

Thinking about selling in 2006?

If you are thinking of selling your home this year, the time to start planning is now. I'm not one to sugar coat reality. The Phoenix real estate market has changed. What was insanity during the summer of 2005 has returned to something more normal in 2006. This is a good thing. We are starting to see things level. I no longer have to write an offer on a property in the driveway so I can compete with 20 other buyer's. I firmly believe buying a home is not something one should do on impulse.

Days on market have tuned to weeks and pricing has actually dropped slightly. In the Phoenix area, the median price of an existing Valley home fell January to $257,000 from $260,000 in December. While a record high of 10,700 homes sold in August, 5,260 existing Valley homes changed hands in January.

What does this mean if you are planning to sell? The inflated prices we saw last summer are gone. Sellers who insist on over-pricing their homes will become frustrated while they sit on the market unsold. Last summer, because a house could sell in just days not weeks, most REALTORS left marketing by the wayside. Now, in order to sell a property, good agents have returned to their marketing plans to help sell a home.

All of this requires planning. Preparing your home for sale, knowing what repairs should be made, staging your property, ordering marketing materials, and more. These are all things your REALTOR can help advise you. In fact, talking to an agent a few months before you plan to sell is a great idea. He or she can walk through your home letting you know what, of anything, you can do to increase the value of your property. The REALTOR can also help you devise a timeline to prepare you for what should be done when.

Now is also the time to keep your finger on the pulse of your neighborhood. Pay attention to the prices of houses as they go on the market, how long they stay on the market, and what they actually sold for. You can be the best informed seller in your neighborhood. Just click here, if you live in Maricopa county, and I will set you up to receive an email when homes in your neighborhood are listed for sale or sell.

West Valley Update

Live in the West Valley

I decided today I would check into the status of the new Cardinals Stadium, Glendale Arena, Westgate, Zanjero, and everything else going on in that part of the valley. I used to live less then 1 mile from where the arena now stands. When I lived there, it was farm land. Over the years that farm has sustained a running joke between my husband and me about drowsiness that I will not bore you with here. I was quite fond of that farm.

Well the farm is no more. A peek at the Cardinals web site had provided me with some of the information I was looking for. Stadium progress has been quite impressive. Just driving past the stadium one gets the feeling that this is going to be like something never seen before. The Cardinals have provided virtual tours and progress photos on their web site. The season ticket selection process is underway and there seems to be a big push for new ticket holders for coming season. It is hard to believe the first game is just a few months away.

Real progress can be seen at the Westgate site. This is great news not only for those living in the area but also for the city of Glendale who is relying on the tax revenue to offset some of the cost associated with this project. The webcam is a nice way to view the progress. The addition of Lowe’s 20 screen Cineplex and Yard House restaurant will finally create a reason to be in the area other then arena events.

Zanjero has announced the addition of a 160,000-square-foot Cabela's outdoor-outfitters megastore. We can also expect two 100-room hotels, a Hampton Inn and Homewood Suites, will take its place. The hotels will join a 100-room Marriott Residence Inn, bringing the total number of rooms at the project to 300. I wish I could dig up more information on this site but so far, not much.

The Glendale Arena has been the recipient of numerous awards since it opened and managed to weather the NHL strike well. The arena has hosted everyone from the Rolling Stones to Britney Spears. If you have not taken in an Arizona Sting Lacrosse game, now is the time. Ticket prices are very reasonable and can provide a fun family evening.

If you would like more information on the growing West Valley, visit TalkToTracyHomes or AZHomeBuyerHelp. Or call Tracy Thompson at: 623-326-0597

Before You Visit a New Home Community

Do Not Visit A New Home Community
Until you have consulted a REALTOR!
Are you finally ready to realize your dream of having a new home built? Have you been reading the weekend newspaper salivating at the builder ads? In your mind, do you already have the prefect Travertine tile selected to match the custom counter-tops in your fantasy kitchen? Have you spoken with a Realtor® to ensure YOU are going to have representation when you make your new home purchase?
If you answered yes to all of the above questions except the last one, you might want to reconsider making what will probably be the largest purchase of your life. The largest purchase of your life. I cannot say that enough. If you plan on strolling into the sales office at a new home development without a Realtor®, you are giving up your rights to representation. The agent working in a new home development represents the seller (in most cases the builder) not you. You are not saving any money by not using a Realtor®.
Let me clear up a common misperception. Many people believe the buyer pays the brokerage fee (commission) to a Realtor®. In almost all cases, including the purchase of a new home, the Brokerage fee is paid by the seller. The buyer does not pay anything to the Realtor® for the work done. I say in most cases because there are occasional times when the buyer might elect to purchase a “for sale by owner” home where there is no fee offered to the buyer’s agent. On these occasions, the buyer will typically pay a brokerage fee to their agent for representing them in the transaction.
Basically, what this boils down to is, as a buyer you have at your disposal a Realtor® who acts in your best interests, helps locate properties, drives you around to view those properties, consults with you on the best choices, writes the contract, arranges escrow and inspections, remains in constant contact with the seller’s agent, the loan office, the title company, and you, ensures all of the required documents are in order, and coordinates your closing. At no cost to you, the buyer. Yep, at no cost to the buyer.
In what other arena can you transact business using a trained professional who is acting in your best interests and pay nothing for that service? Realtors® do not get paid until the transaction closes. So if you purchase a new home, wisely having a Realtor® represent you, not only do you have someone looking out for your best interests, but the Realtor® is happy to do so knowing that until your transaction is complete (it can now take 9-12 months of more for a new home to be built) that Realtor® is not going to be paid a single cent. If you purchase a new home without a Realtor®, you are doing so without being represented in the transaction. There is no one looking out for only your best interests.
Please, keep this in mind when you are ready to make your next home purchase. There is really never a good reason not to represented by a licensed Realtor®. Copyright 2004-2006. 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. Sign up for Tracy’s free weekly newsletter at http://www.TalkToTracyHomes.com/ or AZHomeBuyerHelp

So you want to invest in Real Estate

So you want to be a Real Estate Investor….
Standing in the aisle of my favorite bookstore, I was overwhelmed by all of the titles that promise “Real Estate Riches Overnight”, ”Make Millions with NO Money Down”, “Even a Total Idiot Can Get Rich in Real Estate”. OK, I’m thinking we need to define rich and probably define idiot too. Can it really be that easy? Are idiots becoming millionaires overnight? What am I missing?

If you’ve lived in the Valley of the Sun for the past 12 months you have probably noticed the change in the Real Estate market. Insane, Crazy, Extreme. Wild stories of builders raising prices in new subdivisions over $50,000 during the first six months. Your neighbor down the street making a $100,000 profit on a home she has owned less then three years. You can’t help but wonder if it is ever going to end and how can you get your piece of the pie.

First, invest in you. If you do not already own your own home, start there. It makes no sense to rent an apartment while buying properties for other people to live in and lease from you. Your home is the most important purchase the average person will make in their lifetime.

Once you have taken care of your living situation, it is now time to start making decisions about the type of real estate investor you wish to be. Do you want to own single-family homes, condominiums, or even multi-unit properties? How do you feel about raw land? Commercial buildings? What about a parking structure or a business opportunity? You see, the world of real estate is filled with many choices. Most of those choices will be dictated by your current situation. How much time you have to devote to your properties and how much money you have to spend.

Answering the above questions will probably not be easy. You need to form a team of people to help you with your decisions. I strongly urge all of my clients to consult a good accountant and/or tax attorney before making any real estate purchases. Accounting has never been my strong suit and while I can execute a 1031 tax-deferred exchange, I am not qualified to give advice on the tax benefit. That is when we call in the CPA’s.

The rest of your team should consist of a mortgage broker, home inspector, insurance agent, real estate appraiser, escrow officer, and the most important piece of this puzzle a licensed Realtor. I say your Realtor is your most important piece because not only will they help you identify and locate investment properties, but they are the member of your team who helps you coordinate the other members while maintaining contact with the seller and protecting your best interests all at the same time.

Seriously - What do you think of Bubbles?

Maybe I should have kept my mouth shut.

While drinking my morning coffee, I foolishly asked my husband what information he was given by the military when he had to change bases. Had I known what I was getting myself into, I would have just done some research online.

The reason I asked was I have noticed lately a surge in home searching coming from bases in other states. This made me wonder what, if anything, the military did for a service member who was relocating. I know it has been many years since my husband was active duty but I assumed any information was better than nothing. Somehow asking this caused us to get into a housing bubble discussion.

"The Bubble". When I hear about the bubble I automatically picture "The Blob" or maybe "Attack of the Killer Tomatoes". There is such an ominous tone that come with "The Bubble".

My Husband has a much different view of "The Bubble" then I do. This caused me to think of some recent conversations with clients many of whom are concerned about 'The Bubble" but not positive what they need to be concerned about.

So I've decided to ask you.......What does "The Bubble" mean to you and how concerned are you?