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Click the "green" Get AZ MLS button, complete the questionnaire; I will then set you up for an automatic MLS Search Listing Update that will be emailed to you directly with all current and new or changed listings as they happen, 24/7/365.  You will see all active listings, not just mine.  Once the "Auto MLS Notice" questionnaire is completed as best you can, send it to me at AZ@PeggyWrightHomes.com, I will set you up to be notified with your specified criteria when new listings come on the market or that may change in your selected search area.   

NOTE:  There is no obligation to use the services of my company; but if you do decide to look or sell a home I would be happy to help.

                      LOST OR FOUND PETS?  VISIT WWW.PETS911.COM            YOU CAN ENTER THE RABIES ANIMAL CONTROL TAG  NUMBER TO LOCATE OWNERS PHONE NUMBER & POST INFORMATION ABOUT THE LOST OR FOUND BELOVED ANIMAL!

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Now What?

"It's Here!"

"Know what your buying"!

THE NEWLY REVISED RESIDENTIAL SELLER'S PROPERTY DISCLOSURE STATEMENT

a.k.a. "SPDS"

Ask for it when buying your next home!

Is your home inspector licensed?

As of December 31, 2002 ALL Home Inspectors are to be licensed to do business in Arizona! 

Has yours complied with State Regulations?

Real estate tip of the day

Adjustable rate mortgages

Can you afford to choose?

Deciding whether to buy or sell first is rarely easy

Deciding whether to buy or sell first is rarely easy. There are pros and cons to each strategy. If you buy a new home first, you'll eliminate the anxiety about where you'll live next. The worry is how long it will take your current home to sell. Owning two homes can be costly.

Making sure you don't overpay when buying a home

Who would have imagined that home sales would play a starring role in the U.S. economy after September 11th?  Few economists expected housing markets to remain as buoyant as they have in the months since the terrorist attacks. 

"Housing was going gangbusters throughout 2001 and is still strong in many areas," says Frank Nothaft, chief economist for Freddie Mac, a company that funds mortgages made by lenders to millions of Americans.

The secret to the continuing resilience of the housing market is relatively low mortgage interest rates, economists say.

"Prices are still going up in a lot of communities," says Karl Case, an economics professor and a partner at Case Shiller Weiss Inc., a firm that tracks home values for clients ranging from individual consumers to Wall Street investors.

Despite housing market strength, overpaying remains a risk for home shoppers, given the economy's volatility.  Headlines show that job cuts continue.  Although the consensus among economists is that a recovery should begin early this year, Case stresses that no one knows for sure.  "Economists are very bad at predicting the depth and length of a decline," he says.

No matter the outlook, buyers should do their homework on local property value trends before venturing a bid on a home they like.  Here are several pointers for buyers;

...Be particularly cautious in areas where the economy is very uncertain.  Are you planning to make an offer on a home in a community that is heavily dependent on a technology or manufacturing business where layoffs have been prevalent of late?  Then you should move with utmost care before making a bid, Case says.

...Also, he believes you should watch out for the possibility, however remote, of a short-term price slump if you're buying in an enclave of upscale homes -- those in the top 10 percent for the region as a whole.  During the late 1990s, many wealthy Americans took profits on stock gains to purchase expensive homes, pushing up prices rapidly for this segment of the market.  But the relatively weak stock market performance of the recent past has meant less demand for luxury housing, leading to a moderation in home prices in this segment.

...Use online sources as general guides to value trends.  One reliable source is the Web site run by the Office of Federal Housing Enterprise Oversight (www.ofheo.gov)  There you can find valuation changes on a quarterly basis for towns and cities across the country.  While this information does not project future home value performance, it's considered a good guide to past patterns.

...In addition, some Web sites look to the future.  For example, the Case Shiller Weiss (www.cswv.com) provides free home - price forecasts for many metropolitan areas.  Also, for a nominal fee, the firm offers consumers current price estimates on specific homes nationwide (however your REALTOR (R) will offer this to you for free).

...Turn to your real estate agent for help in judging a home's worth.  Realtors can provide a wealth of statistics to help you learn about price patterns.  One key measure is the number of days homes linger on the market.  If that number is increasing, demand could be falling and prices could be weakening.  Another indication of a cooling market is a widening gap between list price and actual sales price.

...In addition, there is no substitute for information on recent sale prices of homes very comparable to the one you're interested in buying.  Your agent would provide you with at least three such "comps" before you bid, Case says.

...Seek anecdotal information from those who know a neighborhood well.  Statistics go only so far in telling you about property values.  Case says there's also much to learn by chatting with residents of the community where you're home shopping -- perhaps on a Saturday afternoon stroll through the neighborhood.

..."You want to get the street talk -- to get the inside information on what happened to the sale that fell through a block away," Case says.  Neighbors can tell you about oddball situations involving homes that go unsold month after month, perhaps because of a less-than-obvious defect.  However, Case contends that well over half the time, overpricing is the reason homes languish on the market.

...Recognize that a "lowball" offer is unlikely to succeed -- even in a recession.  Indeed, lowball offers are sometimes so offensive to owners that they can result in a sudden cutoff in negotiations.  Also, homeowners are increasingly savvy about the true value of their assets and will hold out for a reasonable offer.

...Link your hopes for appreciation to your expected stay in a home.  You can do extensive research to be sure you're not overpaying for the property of your choice.  But the chances of making a healthy profit on the place are much greater if you stay five years or longer, according to Nothaft.

By Ellen James Martin, distributed by Universal Press

How home sellers can find a dynamic, engaging agent

Back in 1982, Judy Cruce was an elementary schoolteacher with little knowledge of real estate.  So when it came time to sell her house, she turned to the Yellow Pages to pick a listing agent.

The selection proved regrettable.  From the outset, the agent seemed bored and indifferent about the process of marketing the gray-green stucco home.  Once Cruce and her husband signed a listing agreement, the agent seemed to disappear.  What's more, the couple received scant information on how to prepare their place for sale or on the reactions of prospective buyers who came through to see it.

"The agent took the listing and then left us.  We felt abandoned and uninformed," Cruce recalls.

The contemporary-style house did sell for a satisfactory price -- though it took much longer than the couple expected.  Cruce was left with a sour feeling about the experience -- and a clear impression that she could have done the job better.  The experience was a contributing factor to her decision two years later to become a real estate agent herself.

Cruce, who sells homes, calls her profession "a passion".  She is precisely the sort of person to seek out as a listing agent, says Robert Irwin, the author of several real estate books.

"Get a dynamo -- someone who is going to be an advocate for you," Irwin says.  He contends that extroverts -- who relish working closely with other people -- are best suited for the job of listing agent.

"Look for enthusiasm.  This should come across right away when you first meet the agent," he says.

Here are several other tips for selecting a superior listing agent:

-- Avoid agents who seem to be playing a "numbers game."  Success breeds success in real estate, as in many professions.  So it stands to reason that diligent agents get the most referrals.

However, a small minority of agents focus almost exclusively on acquiring a large number of listings, on the assumption that a percentage of them will sell with little effort on their part.  They give minimal attention to the marketing of any given listing.

A marketing plan should be comprehensive and tailored to the individual property, Irwin points out.  "You want an agent who will stand up and promote your listing -- not just someone playing a big numbers game," he says.

-- Look for someone whose primary income comes from real estate.  To be sure, there are many fine agents who also manage to hold down other jobs or who choose real estate as a part-time activity during their retirement years.  However, as a general rule, those whose work lives are focused principally on real estate are more committed to their clients, Irwin believes.

"You don't want someone who is desperate.  But you do want someone whose livelihood is tied up with real estate sales and is hungry to close transactions," he says.

-- Choose an agent with a marketing plan focused on others agents.  Real estate is a cooperative profession.  Most deal involve two agents -- one for the seller and one for the buyer.  As Irwin points out, more than 80 percent of the resale homes on the market are sold to buyers who have engaged an agent.  And agents who work with buyers are influential in deciding which properties their clients see.

Superior listing agents recognize that their best avenue for marketing a home is usually through networking with other agents in the same community, Irwin says.  "The whole idea is to get other agents focused on your property," he says.

Agents should promote their listings to other agents through several means -- by email, through sales meetings and by holding special "broker" open houses."

"You want an agent who will be an advocate for your place with other agents.  You don't want someone who is just going to sit in the corner," Irwin says.

It may sound obvious, but he says the best way to determine whether an agent will be proactive on your behalf is to ask direct questions: "What are you going to do for me?  What is your plan for selling my property?"

-- Seek an agent who pursues continuing education.  Those who excel in the real estate profession typically go well beyond the mandatory classes they need to obtain and keep their license.  They need to do this, Cruce says, because property transactions are becoming ever more complex.  Regulations, including many involving required seller disclosures about a home, are on the increase.  Standard sales contract forms continue to evolve.  And buyers are becoming more assertive and demanding.

However remote, there's always the potential risk of a lawsuit, should a buyer suffer remorse after a purchase -- and seek to take the sellers and their agent to court.  One strong protection against such a nightmarish outcome is to have a knowledgeable agent from the outset, Cruce contends.

Recognizing that real estate is a demanding profession, Cruce says listing agents should keep abreast of changes in the field.  Superior agents also keep meticulous records, reflecting a conscientious approach to their work.

It's not hard to determine if an agent is diligent, according to Cruce.  "Just ask him, "Is this merely a job for you or is it your career?"

By Ellen James Martin, Smart Moves

Preparation key to selling house

East Valley homeowners preparing to sell their home should do just that - prepare.

Valley real estate agents say sellers need to take some important steps if they hope to sell their homes quickly.  Much of their advice boils down to some simple changes that can have a big impact on buyers.

East Valley homes last year took between 38 days and 108 days to sell, according to Multiple Listing Service data.  Home price and location are the major factors that affect how quickly a home sells.  But all sellers, no matter what price range or geographic area, can do some basic things that will make the property more attractive.

Before posting a for-sale sign, sellers should plan their own moving timeline, said John Foltz.

"So many people sell their homes and then regret it because they have no place to go," he said.

Once sellers have heir own buying plan, they are encouraged to hire a real estate agent using referrals from friends and family, Foltz said.

"Have someone with a fresh set of eyes walk through your home," he said.  "Buyers don't go out to buy a home.  They go out to look at five and eliminate four."

Real estate agents can look at homes as a buyer, said Elaine Grill.  You have to look at it that way and not be emotional about it."

Cleaning is an important task that makes a huge difference to the home's appearance, Grill said.

That includes:  Dusting ceiling fans and light covers.  Storing small appliances in cabinets.  Packing knickknacks and family photos.  Removing stacks of papers and personal items.  And removing magnets and notes from the refrigerator.

George Klein, one of Grill's sellers, learned how much de-cluttering helps when his mother's home sold in two weeks.  The Indiana resident was selling his mother's home in Scottsdale and packed 30 to 40 file boxes of books and small furniture until he could sort through them.

"The things I packed would have had to be packed to move anyway," Klein said.  "It produced a much cleaner, bigger look to the house."

"A house is furnished and decorated two ways:  A way we live in it and a way to sell it," Foltz said.

He said most homes have double the furniture needed and 10 times the knickknacks, which can be distracting to home buyers.  That's why most new homes are generically decorated so the home buyer can envision their own stuff in the home, Foltz said.

Grill and other agents hire a home inspector who provide a checklist of what needs to be fixed.  Minor repairs should be done up front so it won't delay the sale or lower the price once there is an offer, she said.

Aesthetic improvements can be found by standing 5 feet inside the home and looking at all the details, Foltz said.  "That's the place people buy a house or eliminate it."

Another place to critically assess your home is from a neighbor's yard.  Foltz suggests setting up a lawn chair from across the street and looking for at least 30 minutes at where the paint is peeling or where planted flowers would help.

Here are other tips agents offered to help sellers prepare their homes:  Instead of putting in a pool to spruce up the home, add fertilizer to the lawn.  Neutralize unusual and bold colors on the walls and carpet.  Instead of remodeling the kitchen, which is expensive, replace the cabinet knobs or paint dated cabinets white.  The same goes for dated bathroom cabinets.  Add an automatic garage door opener, which costs about $350.  Fence swimming pools.  Touch up scratches on the wall and fill in holes where pictures hung.  Clean the front door. 

"It's little things that make a big difference in people's perception," said Michael Novotny.

When sellers' homes have pet odors, they shouldn't mask the problem with deodorizer, Novotny said.  Deodorizers can't rid smells that have seeped into the carpet and pad below.

"They should bite the bullet and replace the carpet," he said.  "Anything short of that and you're kidding yourself.  It's like mixing cheap perfume with cigarette smoke."

Kate Rose said making the house more accessible also will speed up the sale.  She suggests:  Holding open houses.  Putting a lock-box on the door.  Price the home correctly based on comparable sales.  Don't disclose all the amenities and specifics of the home in a brochure.  You want to lure buyers into the home to see for themselves.

Michelle Swafford, Tribune

Broker agreement puts horse ahead of cart

Buyers smart move is to hire an exclusive broker to represent you;

it can avoid a lot of problems!

Research shows that about 85 percent of buyers and sellers go online to browse prior to contacting a real estate broker.  It is clear to me that this is the main reason consumers are becoming savvier regarding real estate purchases and sales.  (I delude myself into believing my column is moving the needle, too.)

Seriously, whether you are a real estate practitioner or consumer, as a reader you should expect this column to provide helpful information:  tips that can be used to make the deal go better.  In that spirit, I would like to explain some of the many benefits of entering into what we lovingly refer to as a Buyer-Broker Exclusive Employment Agreement.  Around the office, we call it a Buyer-Broker Agreement, or B.B.A., which is made after you have decided whom you want to represent your real estate purchase interests.

Such an agreement is not new to the real estate business.  Some agents have used a B.B.A. for years; most who do can be identified by the Accredited Buyer Representative (A.B.R.) designation on their business card.  A B.B.A. employs a broker exclusively to locate property for a client during a specific time period, which will vary according to each client and broker.

This National Association of Realtors designation requires many hours of classroom study, with a tough test required for completion.  (That said, an agent could represent a client and enter into a B.B.A. without having the A.B.R.)

What is the advantage of this exclusive agreement?  The biggest advantage of employing just one broker or agent to represent you is the orderly fashion in which the search for property takes place.  This saves you time and trouble.

What is expected of the broker?  It's up to you!  You can customize the agreement using the blank lines on Page 2 labeled, "Additional Terms."  For one, you should expect your broker to spend considerable face-time with you to determine your housing needs, the area in which you wish to relocate, and the price you are willing to pay.  (Tip:  The buyer's responsibility is outlined in the B.B.A.  It should be considered carefully and understood before committing to it.)

If you cannot pay cash and need to borrow (as do most people), your broker will have a lender determine how much you can borrow and the amount of down payment needed.  Some loan programs require nothing down, although the payments would be higher.

Following a lenders conditional loan approval of a buyer, a seller can determine with more certainty if they want to accept his offer.  Pre-approval always puts a buyer ahead in the negotiations.

Conversely, buyers who go out looking on their own, find something they like, and then call an agent to write the offer for them, are hurting themselves; unwittingly.  They are attempting to buy without having a clear understanding of what they qualify for or even exactly what they want.

In other words, they have done it backwards.  These could be the ramifications:  The seller accepts the offer, escrow is opened and the loan process begins.  After a period of time, it is determined the buyer cannot qualify for the loan, and the transaction is cancelled.  More than likely the sellers have gone out and signed papers on another home that they cannot actually buy until escrow closes on their current home.

But the fun doesn't end there!  This chain reaction could go on and on.  The demise of the first deal starts the dominoes falling until all are down.  Actions like this cause a lot of irritation and pain.  I hope you see the benefits of hiring an exclusive broker to represent you; it can avoid a lot of problems.

But who pays for a broker to represent you?  Usually the seller pays a listing broker to market their property, and it includes enough to pay a buyer's broker.  Your B.B.A. covers the broker's compensation thoroughly with no cost to a buyer.  Your broker can then extend time and energy confidently in a project for which he or she will be properly compensated.  It's just good business.

TIP and question:  If a seller gets an offer, with a conditional loan approval to follow, how can they make an informed decision on accepting the offer?

My advice:  Include it with the offer.

By Bob Stephens

Tribune Advertising

Guardian of credit-score formulas shares secrets

Firm to teach consumers how to boost ubiquitous number

Coming Soon

REFINANCING SCAMS

Tips to AVOID refinancing scams.  Many unscrupulous companies prey on people in distress. Here are twelve tips to help you steer clear of frauds:

Be wary of anyone who contacts you about refinancing or loan consolidation, particularly if the solicitation does not come from an established financial institution in your community.  Be skeptical of any solicitation from a finance company, even if the company has helped you out before.  Well-known finance companies have engaged in serious frauds.

Definitely avoid anyone who solicits loans via a "door-to'door" visit.  It is very expensive to market anything door to door, and odds are someone coming to the house to help bail you out of trouble is really coming to get you in deeper.

When in doubt, check out the lender.

If you have any reason to suspect someone you are considering doing business with, check with your state's attorney general, banking commission or consumer complaint hotline.

Never sign documents without knowing what is in them.

If you own a home, you should be especially wary, because odds are any deal to "help" you will involve a mortgage or other rights to your home.

Avoid any offer that you sell your home, with an option to buy it back.

This will always be the quickest way to lose your home and any equity you have built up.  Any sale of your home means that you no longer have the rights of an owner.

Be careful of advertised schemes to save home from foreclosure or personal solicitations to help you avoid foreclosure.

"For profit" foreclosure assistance has a very poor track record, many financially strapped consumers pay money for short-term help or no help at all.  Nonprofit counseling or bankruptcy assistance is usually a better alternative.

If your regular banker or credit union cannot help you, odds are lenders and brokers who advertise cannot get you a good deal either (however, request a good faith estimate and a conditional loan approval to be sure).

Most loan brokers and some lenders advertise as offering help to people who are credit risks.  These advertisements will usually get you involved with people who are known as "hard money lenders" and who will almost always make your situation worse.  Brokers are often expensive to use.  Many will shop for a loan, which includes a big commission to them, rather than the best terms for you.

Beware of anyone who wants to consolidate all of your debts into one loan.

This never makes sense.  The solicitation shows that the person suggesting the loan consolidation is not out to help you, but to fleece you.

Do not send an "application or processing fee" to a lender who advertises "Bad Credit, No Problem" and then asks you to call an 800 or 900 number.

This may just be a scam to make off with the fee.  Any "900" number call will also cost you money which is very hard to get back.

Do not refinance repeatedly with the same lender.

Encouragements to refinance regularly can only mean that the lender is looking to make a large profit at your expense by taking advantage of hidden costs of frequent refinancing.

Do not refinance to take advantage of offers of small amounts of cash or to get a gift.

These deals are almost always designed by lenders to be very costly to you.  Cash or a gift is offered in order to convince you to make a deal which has no real financial advantage for you.

"If it is too good to be true, it is not true!"

TWELVE SIMPLE REFINANCING RULES

When in Doubt, DO NOT refinance or Consolidate debts.  Refinancing deals almost always come with significant costs.  These costs will usually just make matters worse in the long term.

Do not let debt collectors pressure YOU into refinancing.

Debt collectors may try to scare you into refinancing because they have no other way to get their money.

Never (or almost never) refinance unsecured debt into secured debt.

For example, do not take out a mortgage on your home to pay off credit card or medical bills.  Unsecured creditors rarely can do anything to seriously hurt you if you fail to pay.  By trading in unsecured debt for a mortgage loan, you face loss of your home if you continue to have financial problems.  Do not refinance unsecured debt into secured debt even if this allows you to lower the interest rate you are paying.

Do not refinance utility debts.

Most utility companies have flexible repayment plans and you can usually work something out with them instead of paying off utility debts through refinancing.  Even if you cannot work out a payment plan, it will almost always be cheaper to get the utility turned back on then it will be to pay the refinanced debt.

If you have an existing debt with a finance company or high rate second mortgage company, DO NOT refinance that debt with the same company.

Ask the company to agree to lower payments on the existing loan, but do not allow the creditor to refinance that loan,  which may involve prepayment penalties, new closing costs, and perhaps even a higher interest rate.  Never allow the company to add new security-such as your home.

Do not turn your car loan into a second mortgage unless you would rather lose your home than your car.

If you are in danger of losing your car, you may be tempted to pay off your car loan by taking out a second mortgage on your home.  You may save your car temporarily this way, but you are putting your home in danger.  Although repossession is bad, foreclosure is worse.

Do not refinance a loan with household goods collateral into a second mortgage loan.

Not only is your home worth more than your household goods, but it is very hard for a lender to repossess your household goods.

Do not refinance low-interest debts with higher interest loans.

You should always evaluate the interest rate on the new debt and look for a lower rate than on the old debts.  Furthermore, the "APR" (annual Percentage Rate) of the new loan must be lower than the stated interest rate of the old loan, or you will be losing money.  You have already paid for certain up-front fees in the old loan, and you must make sure that a new lower rate is actually lower after both the old and new fees are accounted for.  Also remember that the interest rate is not the only consideration when evaluating a loan.  Other fees, charges, and expenses, which are not considered interest, may make a loan, which looks cheaper into one, which is actually more expensive.

Do not include your long-term first mortgage in a refinancing package.

Do not let second mortgage lenders pay off your first mortgage and give you a new mortgage equal to the first mortgage plus the new loan amount.  The only exception is if the new mortgage is for the equivalent length of time and the interest rate is significantly lower than the old first mortgage-to offset prepayment penalties, fees and charges.

Do not refinance loans when you have valid legal reasons not to pay that debt.

If you have a legal defense to repayment of a debt, you can raise that defense in court.  If you refinance with a new lender, the defense will not be available against the new creditor.  You should get legal defense to see if you have a valid defense before entering the refinancing deal.

Watch out for scam refinancing companies (as mentioned above).

Refinancing involves great potential for hidden costs, fees, and other unfair loan terms.  Even some reputable lenders make unfair refinancing deals.  When in doubt, get help in reviewing the loan before you sign anything, you can walk anyway from a bad deal even at the last minute.  A lender that is unwilling to let you get outside help should not be trusted.  Another way to avoid scams is to never let a contractor or salesperson arrange financing for you and be wary of mortgage brokers.  Unfortunately many brokers find refinancing deals which involve big commissions for them rather than good loans in your best interest.

You can cancel any refinancing deal that involves a mortgage on your home.

In most refinancing in which you give the lender a mortgage, federal law gives you the right to cancel for any reason for three days from the date you sign the papers.  Make sure you cancel in writing before the deadline, you can, but need not, use the cancellation form provided by the lender.

(Information is taken from the book "SURVIVING DEBT" a Guide for Consumers Third Edition from the National Consumer Law Center, America's Consumer Law Experts)

Types of Loans

The "typical" mortgage, if there is such a thing, is a 30-year loan at a fixed interest rate, with equal payments made monthly. This type of loan offers the security of a fixed payment amount that you can factor into your budget. The amount of the payment is allocated between interest and principal based on the declining balance of the loan; in the earlier years a larger part of the payment goes toward interest. (Your lender might calculate the interest using either the "30/360" method, in which it is assumed that a year consists of 12 equal 30-day months, or the "actual number of days" method, in which interest is calculated more precisely based on how many days are in each month and exactly when your payment is received.)

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