Arizona Real Estate Specialists

Real Estate Investing - Phoenix Real Estate Auctions

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Sun, 08 Nov 2009 11:09:57 -0600

Real estate investing has always required a little bit of foresight and a modicum of due diligence.

The process has, over the past few decades, been made somewhat easier by the knowledge that time heals all real estate wounds

In other words- even bad deals could be fixed by cost of living adjustments and growth.

Land, being a scarce object, would increase in value because you can't make more of it.

Time is the unknown.

How much time does it take for a property to increase in value?

Now- the time factor has a warp to it.

Some properties are not increasing in value.

Some may have seen their zenith in our life time.

This is part of the new investor reality.

In the past year I've changed focus away from tried and true real estate investing rules and now work in different avenues.

One of these areas involves buying homes at foreclosure auctions- this I do in the Phoenix metro area.

Every day there are hundreds of homes with foreclosure dates.

They are auctioned off in small law or title offices or in front of the courthouse.

A reader announces a few pertinant details such as the trustee sale number, parcel number and opening bid price to a group of investors who either pass or bid.

Some days the bidding is brisk- other days not so much.

On average, one in twenty homes (an ever-changing number) recieved bids.

Many of the properties postpone ... some are cancelled... many are priced higher than the market price.

Investors at these auctions have different needs or strategies.

Some buy and rent the properties.

Others buy and flip.

A few buy for primary residence- they're looking to live in the home or have a buyer who wishes to do so.

I have a few buy-and-rent clients. Their needs are the easiest to satisy. Of the available properties, a greater percentage have enough potential margin to make a profit after satisying holding costs.

The buy and flip properties require more research. Among the items we look for are:

Is the property occupied? If so- understand the eviction process. I'm not an investor who wants occupied property.
Be sure the note that is foreclosing is "a first". Many investors have purchsed, unknowingly, 2nd & 3rd mortagages.
Are there items missing? (appliances, electrical wiriing, heating/cooling units, pool pumps, etc.)
What will be the predicted fix-up price?
Are there other pending foreclosures nearby?
What are the current listing prices?
How fast (or slow) are homes selling?
Does the home back up to commercial or busy streets?
Are there high tension power lines?

The list is longer but you get the point... the bottom line is this: are there issues that would inhibit the ability to buy the property and to sell at a profit?

Though there are thousands of homes that go to foreclosure every week in the Phoenix metro area, there are fewer than 50 a day that actually sell at the courthouse. (Current month numbers... previous months have been slightly higher or lower).

The homes that aren't purchased become real-estate-owned propeties- commonly referred as "bank owned" homes.

If you'd like to become a real estate investor who buys at auction, here are a few requirements for the Phoenix market.

Have the patience to realize that most of the properties you would like to bid on will become unavailable by postponement or being priced beyond a profitability point.
Have a $10k cashiers check. This is to be used as a down payment on the property that is purchased at auction.
Have the ability to produce the remaining funds by next business day.
Be prepared to make improvements to the property.
Allow for time in case the buyers do not have cash or a loan without "seasoning". (90 days for title change)

I hope to cover some of these details in greater depths in future blog posts.

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Chuck Willman is a real estate agent specializing in investment property in the Phoenix metro area. He can be reached at these two email addresses: chuck@AZvest.com and chuck@springboardproperties.com .

In Phoenix- the Housing Market Heats Up

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Wed, 24 Jun 2009 09:21:17 -0500

This may come as news to a few of you, but not to those who are currently in the market, but.... after a very long pause, the Phoenix metro area housing market is hot.

Make that sizzling.

Here are some of the hot points:

The inventory of homes is reducing rapidly. There used to be a one-year+ inventory of homes in the metro area. That has dwindled, county wide, to just over five months. In some cities it's even lower. For the first time in 3.5 years we are not in a "buyer's market". We are in that equilibrium phase. For buyers in the south and southeast valley it's a different story. It's turning into a seller's market.

There is a return to multiple offers. Homes that are priced lower than others in the neighborhood are often receiving multiple offers. Three of my clients in the past month have submitted full price offers that have been rejected. In each case there was a multiple offer situation with buyers encouraged to submit "highest and best" offers. The most recent offer I sent in joined a list of 13 others.

New Home inventory is way down. Over the last few years it was possible to go into almost any new home development and pick out a home from a list of inventory homes. Now, the inventory is vastly reduced or non-existent in many areas. In such areas, buyers of new homes will do what had been done in previous years: order one to be built from the ground up.

The "low end" is hot. Homes that have hit the foreclosure market have been priced very low over the past couple years. Such homes allowed the first time home buyer and investor the opportunity to get in on deals that hadn't previously existed. Now, the prices of these homes are starting to climb. For the past three months there has been a trend reversal- home prices (on a cost per square foot basis) have been rising.

No one can predict the future.

However, for those who like to spot trends, it's undeniable. The signs one looks for are becoming easier to spot:

Homes are selling more quickly.

There are fewer to choose from.

Prices are beginning to rise.

Is it a full-bloom recovery or a momentary blip on the chart?

That's the question many are asking. As my clients are discovering- it's getting much harder to buy a home. "Low-ball" offers aren't working. Even full price offers are being rejected. So, if you're wanting to purchase a home in Arizona- it's time to jump in again. If the trend continues, it's going to be harder to find that bargain home.

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Chuck Willman is a real estate agent in the Phoenix metro area. 480.292.0600.

The Real Estate Agent's "Frenemy"

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Sun, 21 Jun 2009 16:41:45 -0500

"Frenemy" (sometimes spelled "frienemy") is a portmanteau of "friend" and "enemy" which can refer to either an enemy disguised as a friend or to a partner who is simultaneously a competitor.

Source: Oxford English Dictionary online, draft entry, December 2008 (Via Wikipedia)

I read with interest Harry D'Elia's recent blog post about buying homes on the courthouse steps. Part of the interest is that I too purchase homes at that stage between pre-foreclosure and bank ownership. So, I wanted to see if he got it right. And... I think he did... any difference between his view and mine would be of minor opinion. I was most interested, however, in the reaction to his post. Some were curious and complimentary while others were cautious or dismissive. Whenever I see a reaction which borders on emotional I try to take a step back and see what it was that caused such a reaction. There tends to be one theme: self preservation.

No agent alive wants to lose a livelihood. Where we see threats to our preservation, we have a choice. We can investigate and find out how the challenge will affect us or we can dismiss such topics as so much hooey. I prefer to research and make sure I'm on the advantageous side of such threats. Sometimes I miss the boat and sometimes I get "lucky". I guess I don't want to be the person who looks back on a situation and says "I didn't see it coming."

No doubt about it- it is very possible for the average consumer to buy and sell a home using alternatives that have not previously existed. We can view progress as an encroaching enemy or as an agent's best new friend.

Which brings me to a philosophical question: What value does the real estate agent bring to the experience?

One of the best compliments I can receive is that I helped a buyer or seller do something they couldn't have done on their own. Or, in the very least, that I shortened the process and saved them in some way. Maybe I saved them time, or money or aggravation. In the least, we should be able to off-load a burden and make a difficult matter less challenging. At best, our knowledge and experience will be valuable.

What then is the biggest threat or opportunity to a real estate agent's livelihood? I think it's information.

The home buyer and seller has more tools than ever. At its most basic, the housing market is a database. Homes are listed with all of their classifications. You can go online to find price, size, location... all of the things that used to be in the black pouch of the real estate agent. Data is pervasive and very inexpensive. So... the agent is there to filter it out. Drawing on research and experience, and study provide insight that can help the buyer find the perfect fit... or to help the seller broadcast to the best candidate.

It is the challenge to all agents to perform this service well enough to earn compensation.

There is a line in Harry's post in which he says, "It is true that there is a group of people that control the court house steps. So, they represent us in the bidding process." I'm sure he could explain this statement better than I- because it is his personal observation. It's also, integral to his value proposition. My interpretation is that there is a group of people at the courthouse steps who have something advantageous: they have access to detailed information. Further, they have access to money. They would not be able to exist unless they used both with efficiency.

In the housing market, and the current buying frenzy in Phoenix, we have one obvious fact before us. People want value. We want to live in the best possible home for the least possible money. Investors want to buy the lowest priced home to sell for the most possible profitability. It is that simple. We want more for less.

We'll encounter demanding clients who will want premium service for little compensation. We'll have clients who need some hand holding. And... we'll also find a few opportunities for which we are handsomely rewarded at a price that would appear to be beyond our contribution of energy. We'll also, quite often, work for free.

I realize that most of my readers are fellow agents. So, maybe I'm just blogging to a bunch of insiders here. Regardless... I want to finish with this- To my fellow agents: May you find success as a result of the many hours you spend becoming a more informed agent. And... with such diligence employed, may you see the process from the side of the persons who employ you. Finally... may you both find merit in that association.

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Chuck Willman is a real estate agent based in the Phoenix metro area. 480.292.0600 - Chuck@AZvest.com

The Phoenix Market is in Turnaround- So... I'm Flipping Properties

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Mon, 01 Jun 2009 13:57:32 -0500

I've received a few emails... and even a call or two, asking me what I've been up to lately.

I'm happy to report that, though my blogging output has been sparse, I'm doing very well and staying quite busy through a vastly improved real estate market here in the Phoenix metro area.

Here's the latest:

The market has "lost" several months of inventory. Last year the market had over 12 months of inventory- now there's just over five months. Whether this is a momentary blip, or the new trend, remains to be seen. However... if the trend holds, we no longer have a "buyer's market". We would be at equilibrium. If the inventory shrinks by a month, we'd actually have a "seller's market" for the first time in 3.5 years.

Homes are selling more quickly and more homes are finding buyers. The "days on market" rate is vastly reduced.

Multiple offers are back. I wondered when I'd ever see bidding wars again... well- they're here again.

Fix-n-Flips are possible. I've been involved in quite a few lately.

Cash Flow properties are much easier to find. It's perhaps the easiest thing to do these days- find low priced homes that can be rented with a significant spread between costs and rental income. The harder part is finding cash flow properties with a great deal of equity... but it can be done. This is our main focus.

Though homes are selling more quickly and inventory is greatly reduced, prices are still pretty flat. We can not call our current situation a "recovery" until prices begin to rise significantly.

These trends are all good things for the traditional real estate agent- especially one who works with investors.

What has kept me most busy though- is finding homes at the courthouse steps and flipping them. I've been working with a few groups who specialize in finding pre-foreclosure homes and selling them at wholesale prices. Very often, their pricing beats the bank. It's not uncommon to be able to purchase homes at $10k below the lowest bank owned home in the neighborhood.

Most of the properties we find have at least $20k in potential equity... that means they could be re-sold at prices well below the lowest cost home in a subdivision. For instance, we bought one home last Thursday that we're selling for $109k. It could be sold for $149k and would still be the lowest priced home in the neighborhood.

One may ask, why sell for so low? We have found that it's better to turn the properties quickly than to hold on to them... it's a time-value-of-money equation in which one computes the cost of money vs. buying and holding. Plus- we don't rent the properties... we only flip or fix-n-flip.

Most of our clients are looking for rental properties; others want to fix and flip... and a few want a primary residence. We tend to be able to find something to suit each of these needs.

In the past few months, we've been buying at a rate of one home per week... but last week we picked up two. Since such homes are usually bought at auction, we are unable to sell them via FHA. The FHA has imposed a "seasoning" rule- such homes can not be insured through FHA for 91 days. This is informally called the "anti-flipping rule." However, those who have cash, conventional or VA loans can close quickly. It's doubtful that any of the homes would be available for longer than a month- let alone three. Most are in contract within a week.

If you'd like to know more, feel free to contact me.

Chuck Willman - AZvest - 480.292.0600.

"Bad Bank" - Radio Program's Compelling Explanation of the Bank Collapse

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Sun, 08 Mar 2009 12:18:16 -0500

As if we haven't heard enough about the banking crisis, I'm wanting to tell you there's one more article to explore.

Ok... it's not really an article but a program.

It's not on television- it was on the radio.

I've been having conversations with people and decided it would be better just to let people know where to find it.

National Public Radio's program "This American Life" stepped outside the box and tackled a financial story.

...a story we've heard from just about every angle.

The crew explains the collapse of the U.S. banking system & the toxic asset cleanup system in 59 minutes.

Did you miss it? Want to hear it?

It's really easy, because you can click a link or download the podcast.

It's very thought provoking and visits such topics as:

Who is the bad guy in all this? (hint- it's all of us).

Are the largest banks insolvent or just in a bind that will fix itself?

What does GDP and personal spending have to do with the mess we're in?

I hope I didn't lose you on that last one... it's one of the most compelling parts.

And it's all explained in language that the average person will find understandable.

It's the best coverage I've heard in a very long time.

Download or web stream the podcast: "Bad Bank MP3"

Download the transcript: "Bad Bank PDF"

This American Life Official Website

Photo Credit: by "Business Piggybank 3" Kamil Dratwa

Is the "Mega-Listings" REO Agent on the Verge of Extinction?

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Tue, 10 Feb 2009 13:49:46 -0600

In cities where foreclosures are on the increase you'll find agents clamoring to become an REO listing agent.

They envision the possibilities: Offers galore and multiple pendings.

However, how does one break into the business?

The reality is this: There are very few agents handling the vast majority of bank owned listings.

And their responsibility is not completely rosy.

Among the issues these agents face are these:

They may be required to pay for power, water, plus light maintenance and fix-up.

They will need to do a great deal of due diligence to price, submit, re-price, counter, etc.

Keeping all the properties processed quickly is a must... slip up and you lose your listings.

Say hello to long hours and mounds of paperwork.

Other agents may complain about you and call you a monopolist.

I realize many agents may see the above list and say, "I'll gladly accept that challenge. Sign me up."

Around the country, especially in the high-foreclosure cities, there's a rumor mill. The rumor is this:

"Pre-approved short sales are on the way."

Currently agents will short sale a home if the owner owes more than the home is worth and is unable to keep up with the payments. Market forces dictate this. If the house meets the criteria, the agent and seller fill out the required paperwork, list the property and forward offers to the lender. The lender, if motivated, will send someone to do some due diligence. This third party will let the bank know their opinion about the home's value.

This process is cumbersome.

The longer the bank waits, the more likely the buyer will lose interest or the home could lose value.

In short- the short sale system is broken.

Banks are searching for a better way.

In my opinion (and I'm not alone) it would be better for the bank to decide a price. Then the listing can be treated much like a bank owned property. The buyer will have a better chance of purchasing the home if there are more clear indications from the selling party.

If, or when, banks decide to move to pre-approved short sales, the market should be one step closer to equilibrium. Home values will be easier to predict and fewer homes will go to foreclosure.

It's baffling to me why the banks haven't already gone ahead with this plan.

Who wins?

The buyer. They'll be able to feel more comfortable about their offer in terms of timing and price.
The home seller. Fewer will go to foreclosure- thus shaving considerable time off their credit restoration.
The short sale listing agent. They'll be able to provide more firm/less nebulous advice.
The bank. They should be able to cut the depth and length of their loss due to foreclosure.

Who loses?

The mega-lister. They'll have fewer listings.
The middle man who negotiates loan mods, investment cash deals and data exchange packages.

What's your opinion?

Are we inching toward pre-approved short sales?

Are you for or against it?

I have nothing against the mega-lister... as long as they are able to shoulder the load in a professional manner.

However, I feel we'd all be better off if the short sales process were fine-tuned.

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Chuck Willman is an Arizona based real estate agent specializing in bargain properties. www.AZvest.com.

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Photo Credit: Tyranosaur by Sophie

Do I Qualify for the Presidents Plan? Here's Where You Go to Find Out

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Thu, 05 Mar 2009 09:55:22 -0600

In the wake of the announcement that President Obama would be presenting a plan to help struggling homeowners, many are asking this question:

"Do I qualify?"

There's an easy way to find out.

There's a goverment website called FinancialStability.gov that walks you through the process.

I reccomend that you click on that link to see the overview... it's brief.

Or, if you'd like, you can go directly to the link Find Out if You Are Eligible.

From there, you'll be asked a simple series of questions. Depending on the answers, you'll be directed to the section that applies to your situation.

Also, if you'd like to speak to a live person, there's free assistance here:

Homeowner’s HOPE™ Hotline: (888) 995-HOPE

REBarCamp Phoenix - Mark Your Calendar

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Fri, 06 Mar 2009 20:07:45 -0600

There are people that know, it seems, everything there is to know about social networking.

Then there are those who want to know more.

If you fit in either category... and kind find your way to Scottsdale Arizona in late April then this would be the place to be. Read what Calie Waterhouse has to say about it.

Via Calie Waterhouse - Chandler AZ Homes (John Hall & Assoc):

April 23, 2009 Scottsdale Stadium

RE Bar Camp is an ad-hoc gathering born from the desire for people to share and learn in an open environment. It is an intense event with discussions, demos, and interaction from attendees. While we don't quite have a "firm" location, we do have a date. So, consider this post your invitation - kinda of a "Save The Date" announcement.

Jay Thompson, The Phoenix Real Estate Guy, explains “It’s an “unconference” with no set agenda. The agenda is built that day and often morphs through the camp as people gather, talk and share. It’s actually difficult to explain and really needs to be experienced. REALLY. The event is FREE to attend - You’ll even get a t-shirt and lunch. Better yet, you’ll walk away with your head stuffed full of ideas and your rolodex stuffed full of contacts to help you make your business better.”

Wondering what to do next?

* Check out our cool site

* RSVP for the event

* Follow @REBCPhx on Twitter

* Sign Up or Suggest a Sponsor

* Volunteer! email me or leave a comment below

Got Questions? Just ask! Have a topic suggestion? We're all ears!

The REBarCamp - Phoenix is sure to be an awesome time! I've even heard rumors that Beer with Bloggers (an evening get-together) is also in the works. Hope to see you there!

P.S. If you're planning on coming to REBarCamp-Phoenix on 4/23, plan on coming to the ARMLS Tech-Faire one day earlier on 4/22 - taking place at the Mesa Convention Center.

The Many Lakes Near Phoenix

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Tue, 03 Mar 2009 07:29:59 -0600

Panoramic photo of Canyon Lake (Arizona). Photo by Greg Folley, January, 2007

When you think of Arizona, what comes to mind?

When I've asked this questions, I've received many responses- such as:

Professional Sports (Suns, Diamondbacks, Cardinals, Coyotes)
Golf (Professional Tournaments and Recreational)
The Desert (Cactus, Scenic Drives)
Growth (Massive Poulation Influx, Retirement Destination)
Lakes (What?!)

That last one is, perhaps, the most surprising... but it's true- Phoenix has many lakes nearby.

Some have claimed (falsely I might add) that the area has the hightest boat ownership per capita.

Though it's not true, it is conveivable ... it seems you see vehicles towing boats year round.

Where are they headed?

Well... they could be destined for the state's largest lakes: Lake Powell and Lake Mead.

Or they could be travelling closer to home. These are the lakes closest to Phoenix:

Lakes Near Phoenix	Distance from	Direction	Nearest City
Lake Pleasant	45 minutes	NW	Sun City
Saguaro Lake	40 minutes	NE	Scottsdale/Mesa
Canyon Lake	40 minutes	NE	Mesa/Apache Junction
Apache Lake	60 minutes	NE	Mesa/Apache Junction
Roosevelt Lake	75 minutes	NE	Mesa/Apache Junction

So... if you're into Fishing, Water-Skiing, Jet-Skiing, Swimming, Boating and Sight Seeing, come to Arizona.

The lakes are in great shape right now... despite the long term drought, some of the resevoirs are near capacity.

Best yet, with temperatures in the 80's recently, it's becoming boating season again.

OK- in Arizona, it's almost always boating season.

Saying Good-bye to Paul

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Sun, 01 Mar 2009 09:53:32 -0600

There was a summer where my mom took up part time employment. She made a deal with me: I'd make five dollars a day if I had the younger kids clean their rooms while I straightened up the other rooms and fed them lunch. After that we'd go to the city pool for a couple hours.

It was a great opportunity. I made a hundred dollars a month and didn't have to beg to go to the pool every day. I also, for the first time, developed a work routine. I found that I could do major cleaning (mopping, bathroom scrubbing, laundry) on alternative days and, by so doing, it made the 'tween day fix-ups much easier.

A major part of the routine was making lunch while listening to Paul Harvey's news and comments. Later, I discovered his "rest of the story" program. In this broadcast he'd tease you with a story told in a way that no one else could duplicate. In the end, you'd find out who he was talking about... and it would almost always be a surprise.

Paul Harvey passed away yesterday at the grand age of 90. He lived across town. Though I never met him, his influence in my life is significant. I can still see the surroundings of the kitchen and feel the pleasure that was mine as he joined me on my daily schedule.

Also, I have read each of his books... they're great, uplifting entertainment... each chapter is brief enough that you can feel enriched in a few moments or... more likely... feel unable to stop yourself until you've finished the book with haste.

Thank you Paul Harvey for bringing us the rest of the story for so very long.

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Microphone Illustration by Peter Suneson

A Billion Dollars Says You'd Like to Rock Phoenix

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Mon, 02 Mar 2009 18:24:26 -0600

Why is it that new devolpments in the Phoenix metro area appear to cost a billion dollars?

That's the price tag that Gaylord Entertainment wants to spend in building a hotel and convention center in Phoenix's east valley city of Queen Creek.

That's also the price tag that has been floated for a Rock-n-Roll theme park near downtown Phoenix.

The park is said to be considered for a 22 acre section of land around Celebrity Theatre.

If you don't know, Celebrity Theatre, it's a local landmark that is known for its intimate setting. No seat is further than 75 feet from the stage.

It's also "in the round" meaning the stage rotates... so no one is stuck watching the performance from a permanent side or back view.

Details are sketchy so far... Channel 15's site states that this will be a multi-use venue that could include hotels, restaurants and housing and office space.

Also- Phoenix's mayor, Paul Johnson appears to be very willing to make this happen.

So... if anyone makes the statement, "I hear Phoenix knows how to Rock-n-roll" ... they may have a billion reasons to agree.

I'll keep you posted about this one.

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When not blogging about real estate development projects in Arizona, Chuck Willman performs real estate in and around the Phoenix metro area. www.AZvest.com.

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Illustration Credit: "Band Silhouette 8" by Ben Smith.

Upgrading beyond market value

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Mon, 23 Feb 2009 15:47:31 -0600

I'm writing this post near Phoenix Arizona and toward the end of February of 2009.

The reason I say this is because sometimes people find a blog post that speaks authoritatively about a topic- providing a helpful rule of thumb that would appear to apply generally.

This post might be one of those- however, I must clarify; the current conditions make this phenomena stand out.

What am I addressing? Simple- the benefit of upgrades... are they worth it?

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Many feel that their home will have more value if they upgrade. In general this is true.

However- we seldom see a case where the cost of the upgrade actually increases the value of a home by more than the money spent on the upgrade.

This is true now more than ever.

I've shown two homes in the area in the past few days that illustrate this point.

One home has a pool, spa, sports court, media room, track, outdoor play room and upgrades throughout. The upgrades cost in the neighborhood (I'm estimating) of $180k. Problem... there are homes in the neighborhood that cost that much (yes... the competing homes cost less than the cost of the upgrades alone.) This is a home that will be of great personal value to whomever buys it... it's just not a home that will appraise for the amount the seller is seeking.

These days, at least in Phoenix, upgrades add very little to the value of a home.

The second home was gutted and remodeled by an expert. The owner's raw costs exceeded $50k. His time/labor costs would have been more than twice that. He's in the business... his materials were discounted and his labor costs were $0. Everything is new and deluxe. There's an outdoor barbecue, outdoor fireplace and pizza oven. There's also a cabana and solid decorative walls with decorative lighting within the masonry. Inside is just as impressive. Everything has been redone. Every inch of the place has a new finish (stone, tile, wood, paper or paint). The refrigerator alone is six feet wide... it cost as much as a good used car. The home is selling (via shortsale) for $175k. That's also the neighborhood comp price. His upgrades are worth, essentially, nothing. I know- it sounds hard to believe... but that's what the bank is saying.

In both cases, these homes will be worth more more sentimentally then they do on paper. The new owners will be landing a "steal" ... but not according to appraisal. Each home has a market value close to any other home in the neighborhood that has just sold... even if the home sold at drastic foreclosure rate.

Welcome to the new retail. Upgrades hold little weight in the appraisal because there are so many other homes in inventory. The best way to know which house is best for you is to tour them. You're bound to find a few that are a much better deal... afterall- you're the one who is going to live there- not the bank... and not the appraiser.

Yes... these are strange times indeed. I wonder what these homes will be worth when the rate of foreclosure diminishes. As inventory returns to normal levels, these upgrades will begin to show more worth on paper.

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Photo Credit: "Money Issues" by Dani Simmonds

Zillow's been talking about me

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Mon, 09 Feb 2009 20:32:25 -0600

My neighbor approached me the other day and remarked, "Did you notice what zillow said about us?"

I wasn't aware he was on speaking terms with Zillow... or that my name had somehow been brought up in conversation... so I played along, "No... what's Zillow been saying?"

"Zillow says your house is worth $41k less ever since the bank accepted the offer on that corner house. They say my house is worth $38k less."

OK.

I don't really have a bone to pick with Zillow... but my neighbor is not too happy with them right now.

Knowing I'm an agent, my neighbor wanted my opinion. These are the things I shared:

It's difficult to know exactly what any home is worth right now. In some neighborhoods there are so many bank owned properties that the "new retail" value is the price of the latest sold property... even if it's bank owned.

Zillow provides an approximation of value. They aren't as accurate as a licensed appraiser who will be able to take into account all factors. Sometimes their figures are high... sometimes they are low. Often they won't have some essential information, such as how many beds and baths a home has. However, they are a pretty good gage for a "ball park" figure. They aren't pulling prices out of thin air... they have a methodology and a formula- but a consumer will want "someone in the business" to give them richer information to help judge values.

The values are never written in stone. They change each day... especially as new data arrives. Every sale changes the comparisons.

Has Zillow been talking about you? What do you have to say about them?

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Chuck Willman is an Arizona based real estate agent. www.AZvest.com

Monument to the Unelected- The Celebration of 2nd Place

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Tue, 24 Feb 2009 15:14:38 -0600

There is a home in Scottsdale that caught my attention.

It would be hard to miss.

It's on Thomas Road, just east of the 101 freeway.

Someone has a yard full of political signs.

These aren't just any signs.

These are signs dedicated to the second place finishers.

Among them is one that explains it all.

It reads, "Monument to the Unelected."

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It reminds me of a book by Pat Conroy.

He's famous for books such as "The Great Santini", "The Prince of Tides" and "The Lords of Discipline".

The lesser known book is "My Losing Season". It's autobiographical.

In it he recalls being on a basketball team at the Citadel. Though they won a few games, they lost even more.

In sports, we all find out, coming in second can be a lonely experience.

Here's a quote from the book:

"Winning makes you think you'll always get the girl, land the job, deposit the million-dollar check, win the promotion, and grow accustomed to a life of answered prayers. Loss is fiercer, a more uncompromising teacher, coldhearted but clear-eyed in its understanding that life is more dilemma than game and more trial than free pass."

I suppose you could look at most industries and say we're finding fewer winning opportunities.

Now is the time to see life with more clarity. It's a gift.

So... I'm glad there's a person out there who is showing the love to those who came close. They didn't reach the summit... but got close. Very often the journey is better than the destination. For each of these, I hope that has proved to be true.

And for the present and future second place finishers I hope, in this age of character building, we're polishing a few diamonds.

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Chuck Willman is an Arizona based real estate agent. www.AZvest.com

Photo courtesy of my camera phone.

It's Official- Baseball's Second Season is Here - Arizona Cactus League

Chuck Willman, Arizona Realtor® 480.292.0600 (Gentry Realty) — Mon, 23 Feb 2009 17:01:35 -0600

There's just nothing quite like baseball.

Wouldn't it be great if you had a wide selection of teams to watch... not just those nearby?

And... wouldn't it be better if it didn't cost so much?

Well... we're spoiled here in Arizona.

We have fourteen teams to choose from.

Same rosters- a whole lot less money.

Plus... the weather is perfect!

This is the time of year that we get to brag about.

It's fun to take the whole family to enjoy a laid-back major league baseball experience.

If you'd like to know more, check out the official site of the Cactus League.