Arizona Real Estate Specialists

When we were younger we knew one thing for sure.

If you wanted grandma's attention, you didn't go to her house when the Cubs or the Bears were playing.

It's not that she was rude about it; she was just completely engrossed.

With time, her focus on the game was even more intense.

Age had claimed most of her eyesight and much of her hearing.

By then, she had moved from Illinois to Arizona and had added the Diamondbacks and Cardinals to her list.

And what a fan she was.

When my brother was honored to throw out the opening pitch to a Diamondbacks home game; for the occasion, we were privileged with a stadium suite.

From the front of the suite we could see him hurl the ball toward home plate.

Behind us was grandma.

She was at the back of the suite- standing on a chair- a few inches from the TV set.

This would be her preferred distance... as it was the only way to catch a fuzzy version of the action.

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A couple years ago Grandma was in a unique situation.

Her beloved Bears were headed to the Superbowl.

She was recovering from a sudden illness that had become life-threatening.

She told us she would be watching the game.

The doctors publicly admired her resolve; behind the scenes they let us know time was not on her side.

Her condition worsening, the hospital could do little for her; it became time to transfer her to a hospice.

With the Superbowl several days off we rooted for one more thing.

... that being time.

Time to say our last goodbyes.

Time to wait for her lucid moments where she could recall her childhood with remarkable clarity.

In those last hours grandma opened up a treasure trove of memories for us to experience.

And she spoke of the Bears and their big game that was coming up.

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It was remarkable that she made it to Sunday.

She spent most of the day in the final throes... she would retreat to a deep slumber and then would awake and ask, "Is the game on yet?" ... We'd tell her, "not yet" and she'd slip ever closer to destiny.

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Grandma made it to the game.

Unable to see it, she could hear it.

Is this really the final scene you'd pick for your elders?

Sitting by a bed- with a football game blasting?

Yet it seemed so right.

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We took turns holding her hand... and providing game updates.

The Bears didn't win the championship.

And grandma left us that evening.

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"It's only a game" they say.

And, for many, that may be true.

But they don't know my grandma.

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If ever I feel an obligation too large, or a task that feels impossible, I will forever think of her...

...and how, in her final days, she defied the odds... and lived for the Bears.

Were it not for the game we'd have missed many days of memories.

A few more hugs.

And her winning smile.

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There's a game on soon Grandma... I don't know if you have special viewing arrangements... but this time it's the Cardinals... I'll be thinking of you.

In Arizona, it's not uncommon to find many homes priced in the low $100's.

Such homes will have monthly mortgage payments just above or below $1,000/month - depending on the loan.

When comparing homes, the buyer will normally be able to add the other monthly responsibilities:

• Telephone
• Water
• Electric
• Cable
• Transportation

Normally the Telephone and cable bills are very easy to compute. The water bill is not difficult either... they tend not to vary to much from location to location. Transportation costs are a function of location- so this is not difficult math either.

The area most overlooked, in my view, is electric. Note these things, when looking for the home:

• Is it energy efficient?
• How are the windows?
• How is the insulation?
• Which is the power company?
• What is the internal volume of the home?
• Which electric company provides service?
• What is the age of the home?
• Is there a pool?

When someone is on a budget, the heating, and especially cooling costs can add significantly to the monthly payment. Pools can add a couple hundred or more. Some older homes can cost twice as much to heat or cool.

So... when purchasing, be sure to add the utilities to your monthly preparation list.

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Chuck Willman is a real estate agent based in Arizona

Photo Credit: "Electric Meter 1" by Kenn Kiser

On 9/12/2007 I posted what I thought would be very cool news.

The post was titled, "The Housing Giants Sortable List of Builders"

The post included a link to a list that HousingZone.com has been keeping ... a list of the top builders in the nation.

The best feature is this: you can sort by revenues or closings.

I used to work quite heavily in the new homes arena. It became important for me to know how the builders were doing.

Though I still keep track of new homes, I don't concentrate on that segment as much as I used to.

This is evidenced by my dismantling of the website that I set up for that purpose.

As it turns out, there are other areas of the market that piqued my clients' interest.

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It's such a hard time to be a new home builder.

They're competing against foreclosures... sometimes within their new home community.

They're also competing on price. I'm convinced some builders are selling below cost.

This is a recipe for disaster.

New home builders have been hurting. Several are limping along- while others have failed.

Tonight brings the news that one of Arizona's premiere builders, Fulton Homes, has filed for Chapter 11.

They're the latest, but I would expect, they're not the last.

Some builders used to have several divisions... large builders such as Shea, Pulte & D.R. Horton.

Each of them are now single divisions- overseen by a smaller management crew.

In the process, VPs have become sales managers... managers have become sales agents... and many people have lost their jobs as sales continue to dwindle.

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So. What are we to make of this?

On a personal note, it's sad to see so many good, hard working people lose their livelihood.

On a practical note- this is how markets work. When you increase the supply you can expect, at some level, a decrease in demand. The natural result is a drop in price. Eventually the inputs to the formula no longer produce a positive output.

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I still track the new homes market. However, I have to do so with greater scrutiny. It's lamentable that I have to try to determine who can offer optimal service over the long-haul... I'd rather they all succeed. However, it's the duty of the agent to be informed- even if we don't like the bad news.

I expect other builders to fail. It's only a matter of time. Maybe some will be able to consolidate... such as Taylor Woodrow and Morrison homes... who now function as Taylor Morrison. I saw Fulton's news coming and stopped taking buyers there months ago. I also saw Engle and Element heading in that direction as well. It's regrettable... some of the floor plans these builders offered were very good. Others I didn't predict. You can't pick them all, I guess.

There are builders who are differentiating themselves by offering something that is not available.... but they face very challenging times. I hope their innovation is rewarded.

If I'm unfamiliar with something I want someone to give me a hand.

Or at least a few rules of thumb.

Such tips can be helpful as a guideline until one acquires enough familiarity to draw larger conclusions.

Right now Arizona has quite a few bank owned properties on the market.

These are homes that have been through foreclosure. Now the bank owns them.

They have their own peculiarities... they are sold "as is"; What you see is what you get.

They will most likely be priced lower than the other homes in the neighborhood.

People may tell you that these are the bargain homes and that you can make low-ball offers and the bank is very willing to unload them at rock-bottom prices.

I'm an agent. I'll make the offer you want to make... but there are a few trends, at least with regard to Arizona, that can serve as a guide to making offers on bank owned properties.

Here is what I've been seeing in the past few months.

1. If the home is a fresh listing the bank will want to see a full price offer. So... if the home has been on the market for fewer than ten days, and is in reasonably good condition... the bank will be unlikely to jump on your low price offer. If you offer full price, you have a very good chance of having your offer accepted- unless someone else offers slightly over full price. I know... sounds crazy... but it's happening quite a bit right now. It's my opinion that the banks have begun to offer better pricing suggestions to their listing agents. These prices are based on appraisals and other due-diligence items. Of course- this is not a hard and fast rule... it's just one that I've seen a lot these days.
   
2. Every 30 days the banks tend to be a little bit less choosy on price. After a home has been on the market for 30 days you can most likely offer less. Not a great deal less... it depends on the property. If the home has been listed for 120 or 150 days you can become more aggressive- offering perhaps 70 cents on the dollar. This is not a solid rule... it's just a trend I've been noticing.
   
3. Every bank is different. Some banks will request that you give them an opportunity to finance through them. The rationale is this: they've lost the loan from the previous owner. They'd like to recoup this loss by making a loan with you. Banks may also require you to sign additional addendums... in some cases, their addendums are lengthier than your purchase contract.
4. Some bank owned homes are being listed by people who have many listings. It's not uncommon for certain listing agents to know very little about the property they are listing. So... we can't always expect to know much more about the property than what we can see and glean from the listing information. I like to verify the tax records to see if there are any discrepancies between the listing information and the public record. Sometimes each contain errors.
5. Purchasing a bank owned property is not for everyone... especially those that are risk averse. You'll want to pay for an inspection. This way you'll have a better understanding of potenital problems with the property. Some properties are diamonds in the rough and others are money pits. You'll want to do all you can to avoid the latter.

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Chuck Willman performs real estate in the Phoenix metro area- www.azVest.com

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Photo Credit: "Hand Count Ten" by Gary McCord

A couple years ago, I asked my broker if he knew any good property managers to recommend.

He said, "that's one of those questions that's hard to answer. I don't know if there is a good one... it's sort of like asking if you know any good landscapers."

Clearly, my broker had issues with landscapers and property managers.

I asked a few other agents who ranked on their "hardest to find" list.

One said 'auto-mechanic', another claimed 'family doctor', a third interjected 'cosmetic surgeon'.

The last one I put in the "too much information" category.

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Well... the longer I live the more I've begun to think my old broker was right.

Though I've discovered a couple good landscapers, I haven't found too many great property managers.

I know they are out there- but I realize their job is quite difficult. It's one of those professions that is pretty thankless- if the property manager performs well 99 times, they're great. Mess up once and prepare to feel the wrath.

What do property managers do for the real estate investor? They find the good tenants. They evict the bad ones. They make sure everyone is paying on time or bill extra to those who don't. They're hard working, seldom appreciated and underpaid. Beyond this, they perform many other essential services the client doesn't see.

I wouldn't want to be a property manager.

But a few people do. And now they work for my brokerage.

If you're needing a good property manager in the Phoenix metropolitan area, let me know.

We have several agents that are new to our brokerage, but not new to the business.

They've handled hundreds of clients in their day. And they're willing to handle hundreds more.

If you're interested, drop me an email.

How's the home search going?

This post is for those who stumble across my blog.

I'm an Arizona based real estate agent.

In short- I help people find homes or properties.

And... I also help people sell their homes.

Most people, these days, want to find a great home at a great price. I'm on board with that goal... it's what I try to do every day of the week- find great homes at great prices.

I also have resources that help you do the same thing.

If you'd like to search the listings, I can set you up with a free search site.

You can set your criteria quite easily.

You'll receive a "live" list of everything that's currently available... you'll be surprised at how much information there is.

You can also receive updates- making you among the first to know about the newest listings.

I have several clients in the past weeks who have been delighted to be so "in the know".

We've managed to beat the pack to a few listings that received multiple offers.

That's the funny thing about this market.

Homes priced low sell very quickly- especially when they're in very good shape.

If you'd like to be able to search the local listings and set up listing alerts let me know.

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Chuck Willman is an Arizona based real estate agent who specializes in nicely priced properties. chuck@azvest.com

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Photo Credit: "Traveler" by Asif Akbar

President Obama has selected Janet Napolitano to head the department of Homeland Security.

And... the US Senate has confirmed it.

That left Arizona without a Governor.

But not for long- within hours, Jan Brewer, the Secretary of State, was elevated to the state's highest office.

Would you like to know more about her?

Here's the official Website: AZGovernor.gov.

Along with links to information about Arizona, there's a handy link which will allow you to download her Inaugural address.

I wish her well as she faces the challenges and opportunities that face our state.

My dog needs a job.

I'm serious.

She's an outdoor dog and she seems, I dunno, fairly happy.

She's got a half acre to roam, a small collection of toys, and birds to chase.

But there's something missing. I can sense it.

Anytime I approach the back door she jumps to attention. She's eager to do something. Anything.

And I'm at a loss for what to do.

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I wonder if animals have dreams of doing more in life.

Does my dog dream of Lassie-like adventures?

We don't have a nearby mine-shaft... so she has no one to rescue.

My dog clearly wants a job. And...

Until I figure out what that job can be I'm looking for clues.

And I now have something to show her.

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America's cities are cash strapped. That's no secret.

America's cities have landscaping issues... these include keeping our roadsides beautiful. Weeds grow... it's something they do very well. We can pull them; that's labor intensive. We can spray them; that can be bad for the environment. Another problem- some weeds grow in those hard to reach places.

Facing this challenge, the City of Mesa has hired goats. That's right- goats are the new weed depletion crew.

They'll work for food.

And, humble employees that they are, they don't stand by the roadside with a sign, advertising the fact.

The City of Mesa, according to a Fox News report, has a six month contract with Arizona Herdsman Eco Goats. Up to 80 goats will patrol retention basins and thin out the thick vegetation that is so challenging.

"Utilities Department Water Division Director Bill Haney says the design of the retention pounds and the amount of vegetation at the site make it difficult to use machines and to keep down the weeds. Officials hope the goats can do a better job, saying in a statement they'll "eat just about anything resembling a plant." Besides, Haney says goats are a "more sustainable and environmentally responsible form of weed control.""

Here is a summary of benefits, according to the Mesa Tribune:

• Unlike landscape machinery, goats don't pollute (unless you want to count methane)
• They like to eat (and don't request overtime)
  
• They can get to those hard to reach places (Click on that link- it's an awesome picture)
  
• They're a pesticide/chemical free solution

If ever you're in Mesa and want to see the goats at work, travel the red mountain portion of the 202 until you're near the eastern portion of the 101. You'll find them on the south side of the road.

I may strap the dog into a seat belt, show her what they're up to and see if she has any creative ideas.

Until then, she's been polishing her resume.

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When not giving career advice to family pets, Chuck Willman performs real estate in the Phoenix Metro area.

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Photo Credits: "After an Exhausting Day of Work by Mario Alberto Magallanes Trejo & "Smiling Goat" by Jens0815

NOTE: The dog featured above is not mine... it's stock photography. You may have noticed the dilemma... my dog is female and I couldn't find any photos depicting a feminine canine in smart/business casual. So... dog-wearing-a-tie was the best I could do.

This past week I received several calls from my investors. Each wanted to know who had the best interest rates and lowest down payment requirements. These questions are on the minds of many and they hearken, in an uncomfortable way, to the days when everyone was offering stated income loans and other mortgage products with little money down. As an agent I am quick to warn that every investment needs to have a modicum of potential equity and a minimum of risk.

Still... it's a good question. Which lender offers the best deal? Surprisingly- the answer could be the Bank of You. More about that in a minute.

If someone has a great credit score, available cash and little debt- it's only natural to want to find the vehicle that offers low rates and little down. The investors that have been asking me this have something in common. They're looking for an investment vehicle which will outperform their stocks and mutual funds. They're looking at real estate and are concluding that homes that cash flow now will help pay for themselves more quickly than those that don't. Such properties should also provide an equity jump when the market improves. Since cash is king- the buyers would like to preserve as much of it as they can and use other people's money- especially if the financing is advantageous.

Fortunately, such investors don't need to commit their liquid cash. Instead, they may want to look at funding with a self-directed IRA. This plan is not for everyone... it's best for those who have a good handle on a) the market and b) the investment(s) that the IRA will fund. In essence, they will be using their IRA as a lending vehicle ... and their investment property will be set up like a trust. This offers the investor a trustworthy source of funds (one's self), and the power to impact the value of the personal investment portfolio. Before embarking on this possibility, the investor will want to make sure the trust is set up correctly and that no rules are broken that would turn the tax-deferred investment into a non-retirement asset.

To make this happen, I work with licensed individuals who are able to assist people in transferring their investments to real estate property portfolios. Again let me reiterate- these are retirement accounts and, as with any investment- proper due diligence is essential to being able to ensure that the process is done in a manner that the IRS will be able to deem acceptable.

If you're interested, please call (480.292.0600) or email: chuck@azVest.com. I can help you find the properties- my colleagues will help you protect and enrich your retirement funds.

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Photo Credit: "Chasing the Markets" by T. Al Nakib

I spent so little time in the place of my birth that I had almost no chance of getting to know many of my predecessors. So, when a distant relative once produced a box of photographs, I remember peering at the slightly familiar faces. 

We have this human custom... we expect people to smile and look at the camera. I don't know if my grandparents and their cousins were given flawed instructions, but their visages were stoic and unflinching.

One face in particular stood out. She was a beautiful woman with piercing eyes. The photo was colorless and so were her eyes. I asked my dad, "Who is she?"

"She's my favorite aunt." he replied.

"Why is that?" I asked.

"She was a bit eccentric... maybe a bit mean... but I thought she was great... and she always liked me." he responded.

My father is not one to elaborate. If you press him, though- he will. When I asked about her eccentricities, he explained that people had memories of her... and who she might have become had she not taken a tumble down the stairs as a child. The fall had changed her. If the temper weren't enough to chase the suitors, her other foibles would set her fate. My father's aunt would never marry. She had, what we now call, early-onset Alzheimer’s and she spent the bulk of her adulthood in a nursing home. When others would arrive she could hardly recognize them. But with my father she would beam.

And she would remember him.

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I'm convinced there is a tender reservoir within our souls that collects these memories. Like a shoebox of photographs of long forgotten people, it can be brought out- if we so choose.

These emotions are stirred by the subtlest things... the smell of campfire... a cool evening breeze... the lilt of a song we haven't heard in a very long while... or hearing an old expression rescued from a bygone day. We have the capacity, as if from nowhere, to feel something powerful and familiar.

We have memory- and, even among those who are ravaged by a disease that robs them of that very capability... there are those lucid moments when long forgotten stories present themselves from the recesses to the forefront.

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I realize that I've been rambling... but a insist, I have a purpose in bringing this up.

I became a real estate agent for a reason…. and it is this:

There is something hallowed about the word "home".

I'm not talking about the materials that create edifices in various sizes and shapes.

I'm referring to the place in which we create memories.

In my life, I have called more than three dozen places “home”. This is not uncommon for those from military families. We would pack up and leave at a moment’s notice. Sometimes it was an adventure and other times a hardship.

I created a secret tradition back then.

I'd always leave something behind.

In California it was my lucky feather that I tucked underneath a loose floorboard. In Tennessee- a valuable baseball card that I buried beneath the surface root of a large tree. In Texas there's a buried hardbound copy of "Hoop Crazy" - a book that I wanted to finish but felt a need to treasure up. The list is longer, but you get the picture.

With each intentionally discarded keepsake I left behind in my childhood, I had every intention of coming back some day to retrieve each one.

Much later I discovered that they held more significance by their remaining behind.

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These days I spend a great deal of time looking at homes that have been lost to foreclosure.

I see the treasures left behind... many of them, I'm certain, unintended.

It saddens me to see the forgotten artwork in the closet... where a young one drew a stick figure girl and her pink dog. I see the garden in disarray- mostly a collection weeds. These are the lost treasures of a residence- once a home, but now a house.

Then I put it all in perspective.

We are all of pioneer stock...

…Descendants of persons who sacrificed.

Many of those who came before us brought with them a paltry sum with which to start anew. They scraped together what they could for passage to America.

My predecessors came from Sweden and the British Isles. They removed the rocks and trees from the cold Illinois soil to plant anything that could take root. Through the toil of their labor they built homes and raised families.

It is true, as well, of your forbears. Each of them found a new home in which success was never guaranteed… but they had optimism that their efforts would be rewarded.

A few thrived and a few had set-backs.

Those stoic faces- captured so long ago from camera lens to paper, only to be stowed away on a shelf, spring to my thoughts when I see the empty homes that once held memories.

Yet... I know this much: home is wherever we choose to make it.

It can be in the rental home that fits the current income... or in the apartment near the park. Along the path of my career, I've seen people move upward- into residences that give them more space. I've seen people move laterally... albeit from another part of the country- to a new environment. I've also seen those who are downsizing. For many of them, they see this change not as a setback... but as a positive challenge... a time to re-trench or to prove to themselves that they will make the best of the situation.

If I've learned anything through all my moving it is this: We can always start over.

Everywhere we go we can find opportunity- and people who will have an affirmative impact on our lives.

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As an agent, I am privileged to see the strength and resolve of those who are equal to the challenge of a shifting economy… and it makes me proud to be associated with those whose spirits cannot be broken.

So- here's to the memories- from the distant reminiscences that are trapped in the recesses of our fading recollection... to the fresher ones which are at the kernel of creation.

We are, each day, building memories… and I feel it a pleasure to serve those who allow me to be a part of helping them find their new home.

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Chuck Willman is a real estate agent who, for the past twenty seven years, has been proud to call Arizona home.

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Image “Old Family Photos” by Jean Scheijen