Some of Arizona’s most Successful Agents call John Hall & Associates home.
Monthly Archives: August 2009
Real Estate Training: Learning opportunities ahead!
Diane Flannigan, Director of Career Development, has put together an inspiring series of real estate education classes that will rock your world – and hopefully your business! The diverse training schedule has been created in the Back to School spirit. Only this school is way better than regular school because there are no boring pre-requisites before getting to the good classes. We’re going to start with dessert!
- Your broker, Jim Sexton, is going to be teaching Sell by the Numbers. He’s going to work through the Cromford Reports and teach you how to use the available statistics effectively.
- Jason Smith (American Mortgage Specialists) and Alex Jovicich (John Hall Agent) are going to share with you how to get your clients the revitalization money that is available for homebuyers right here in our local Phoenix neighborhoods.
- Mark Taylor (Originator of the Certified Distressed Property Specialist designation) is going to teach the ins and outs of selling and listing distressed property without going broker or getting sued! (Lawyer’s Title Insurance has sponsored this class.)
- And then there are the technology classes that I (Phil Sexton) will be teaching. I’m really no good at talking about myself. I can’t tell you they are _____, because obviously I’m biased. But if you find the information I share on our blog and office meetings informative, you’ll enjoy these classes. I’m going to drill down into more specifics and show you how to do the things I talk about. My classes will be covering a variety of topics including getting more website traffic, using Facebook effectively, and the technical side of using the Cromford Reports.
So get your calendars out, decide which of these classes you want to attend (or pick D – all of the above) and get ready to rock this year with more closed business than you know what to do with. If all goes as planned you may want Diane to teach a class on building a team just to handle the increased workload!
September 2, 2009 1:30-3:30 Kiva Room, PV Office
Mark Taylor – Introduction to Distressed Properties
September 9, 2009 1:30-3:30 Kiva Room, PV Office
Jason Smith and Alex Jovicich – How to get your clients the Neighborhood Revitalization Money
September 10, 2009 10-12 Kiva Room, PV Office
Phil Sexton – Using and Navigating Facebook
Septmber 15, 2009 1:30-3:30 Kiva Room, PV Office
Mark Taylor – Introduction to Distressed Properties
September 17, 2009 10-12 Kiva Room, PV Office
Phil Sexton – Using and Publishing Cromford Reports
September 22, 2009 1-3 Kiva Room, PV Office
Phil Sexton – Driving traffic to your websites
October 21, 2009 1:30-3:30 Kiva Room, PV Office
Jim Sexton – Selling by the Numbers
October 28, 2009 1:30-3:30 Stewart Room, Scotts Office
Jim Sexton – Selling by the Numbers
Please make sure and let Diane know you’re coming – RSVP to 602.953.4043 x 2310
ARMLS YTD Market Analysis
As we head into September, let’s review ARMLS Closed numbers Year to Date (YTD) and compare them to 2008 to identify trends.
Here are the numbers for 2008 and 2009 as the FBS system reports as of 8/27/2009.
So what are some noteworthy trends?
#1 we have closed more transactions in 2009 in 8 months than we did for all of 2008. That’s a significant increase! Where did the increases come from?
REO’s have spent most of the year up almost double from last years percentages; 34% for all of 2008, currently 61% YTD 2009, but Pendings show that % coming down (42%).
Short Sales (SS) have increased dramatically also and continue to be increasing. 2008 had only 2% of closings as SS. Currently 12% of 2009 YTD closings are SS, with Pendings totaling 28%. This doesn’t even account for the +5000 SS that are in AWC statuses.
Vacant properties continue to account for a large % of all closings; up 9% from 2008′s 76%. Pendings show Vacants dropping which is good news for sellers living in their houses as well as builders, whose buyers are waiting for their houses to sell.
Reviewing the prices figures shows a drop of 32% for the average sales price and a 35% drop for the median. Again this is comparing all of 2008 to YTD 2009. 2008 started the year @ $313,000 as the Average for January and ended with $192,900 in December. These just happened to be the high and the low months, with the average for the year coming in at $248,000. 2009 started @ $180,000 in January with August MTD @ $169,000. The range is $159,000 to 180,000 with the average @ $168,000.
The Median for 2008 started @ $220,000 and ended @ $150,000 – which was also the range. The Median for 2008 was $189,500. 2009 started @ 130,000, bottomed in April @ $115,500-and is currently at $122,500 YTD.
So what does all this mean? It would appear that supply and demand have arrived in the Valley and are not being ignored. However there is still a ‘tale of 2 markets’ with the price break around $400,000. The supply of properties is less than 6 months under $400,000 and climbs well over 6 months above. Properties need to be priced well to sell and appraise.
2009 will probably be the 3rd highest year for closings this decade, behind only 2004′s 98,900 and 2005′s 104,700. Yes read that one again! The Average Sales price and the Median may be the lowest of the decade. Right now-2009 is tracking with 2001 and 2002 figures.
Short Sales are trending up and REO’s are trending down. However, there are still 47,000 properties currently in Foreclosure and that number did ‘shoot up’ for the first 4 months this year. 2008 saw a +16000 increase in ‘Pending’ Foreclosures (from 15,000 to 31,000) and 2009 matched that increase through the end of July. The number of Bank Owned properties has actually decreased by 3000 (33000 sold versus 30000 foreclosed) through July in 2009.
Freddie Mac Bulletin: Real Estate Commissions for Short Sales
We’d like to pass along the latest Freddie Mac Bulletin that addresses real estate broker commission negotiations. The language we’d like you to be aware is at the bottom of page 3 and reads…
Negotiation of Broker Real Estate Commissions on a Short Payoff
Chapter B65, Workout Options, has been updated to provide Servicers further guidance regarding the negotiation of broker real estate commissions on a short payoff.
Unless a real estate broker’s sales commission exceeds 6% of the property sales price, Servicers must not, as a condition of the Servicer’s acceptance of an offer, renegotiate the real estate broker’s sales commission to an amount that is lower than the amount that was originally agreed upon between the broker and the Borrower. In the event the sales commission exceeds 6%, the Servicer must renegotiate the commission to limit it to 6% of the property sales price.
Servicers must continue obtaining all applicable third party approvals and ensuring that the transaction is arms-length in accordance with the requirements specified in Section B65.37.
Section B65.37 has been revised to reflect this change.
Here’s the bulletin in it’s entirety – just in case you need to bring it to anyone’s attention.
Technology Upgrade at all our Real Estate Offices
Image of John Hall agents jumping with glee - AGAIN
I really like bringing good news to the successful real estate agents with John Hall & Associates – especially when that good news is going to make REALTOR® life just a little bit easier here at John Hall. Just last month, I got to break the news that office bills are now emailable. Today more good news, all John Hall & Associates offices will be getting new toys! Wait, wait, that was a techno-typo, I meant new TOOLS! Our offices are getting new tools. I get the two of them confused sometimes. These new tools are not toys, they are printing, scanning, faxing, copying, emailing, powerhouses that will replace the current copy machines.
I don’t feel I need to explain the features that our current machines are capable of. Wireless printing, high-speed copying, et cetera are things we’ve had for years. I also don’t think I need to explain how a fax machine works. What I do want to mention about faxing though is that the current options are not going away. If you are a fan of our full service offices, our friendly live office staff will still be glad to send faxes for you. And just like it has been, there will be a per page charge to have them assist you. However, with these new self-serving machines, if you’d like to fax your document yourself, there is no per page charge for assistance. What this also means is that the staff does not have to be present for you to send a fax. You can now send as many free faxes as you’d like at any hour of the day.
We’ve been asked several times about when we were going to install scanners in our offices. Consider it done. You don’t even need a computer for this. You can walk up to these powerhouse machines, scan the documents and have the file sent to an email address – directly from the machine. The best way I know how to explain this – it’s like sending a fax (but with better quality) to an email address.
Let me share with you the schedule of installation and 2 reasons why you may be affected by this upgrade.
- Paradise Valley Office and Executive Suites – Monday from 12-5
- Scottsdale Office – Tuesday from 12-5
- Tempe Office – Wednesday from 12-5
- Arrowhead Office – Thursday from 12-5
This is may affect you for two reasons. One, the computer rooms will be closed during installation and two, if you print wirelessly from your laptop, you will need to install a new printer driver for it to work. Please plan accordingly.
Toni Row and Bill Evans are to be thanked for their hard work in negotiating the replacement of our machines. They have met with the vendor several times figuring out the best way to bring these features to the offices. Hopefully the new benefits of being able to fax at all hours of the night and scan documents will help make your REALTOR® world a little bit easier.
Blackberry and Supra eKEY Deal
Have you heard blackberry buyers can receive a GE eKEY starter kit for free? Here’s a link for more info – including FAQ’s.
Just an FYI this offer for BB’s purchased between July 28th, 2009 and August 31st, 2009.
(h/t Shawn Hertzog)
Green Property Features – Flexmls Feature Friday
Welcome to the latest edition of… f-cubed! It feels good to be back in the saddle again. Today’s article is about new options in flexmls designed to promote environmentally friendly features of homes. Here is the breakdown of the upgrades along with where to find out what all these things are.
Chances are you know about the Energy Features field, it’s been around for a while. It’s the field that had 7 options including Ceiling Fans, Multi-Pane Windows, and Sunscreens. The reason I bring it up? It got a name change and 11 new options. It’s now called the Energy/Green Features field. Green is the new yellow, or blue, whatever.
The 11 new options are the ones checked in the photo. I believe in full-disclosure. I had no idea what the HERS Rating, Solar PV Panels, R-Value Upgrades or Gray Water Systems were. In the event you’re in the same boat, check out this PDF that ARMLS put together – it’s got definitions at the bottom. But…
Before moving on to more newness, let me quickly comment on the solar options since I know there is going to be some confusion. What’s the difference between Solar Panels and Solar PV Panels? No idea, so I called the experts at American Solar Electric and asked them. Helpful Sales Guy informed me that the Solar PV Panels referred to electricity generating solar panels, and when people referred to Solar Panels (sans PV) they were usually talking about the same thing. However, he said it could refer to solar panels that didn’t produce electricity, such as solar panels used to heat water for the house or pool. Well, since Solar Pool Equipment and Solar Hot Water are already options, I went to the source. God bless ARMLS, they weren’t sure either. My perspective, the option Solar Panels should be used in conjunction with Solar PV Panels, Solar Hot Water, and/or Solar Pool Equipment until we get a better answer from someone more in the know – cough (comment section) cough. If I were a guessing man, I’d say ‘Solar Panels’ days are numbered.
Let’s continue with the newness. The Flooring field got a new addition – Sustainable. The Technology field got a new addition – Smart Home System. Wait, pump the brakes. Sustainable floor??? Smart Home System??? Again check the ARMLS PDF for definitions. I did find some good information on Smart Home Systems here – bottomline, I want one.
Last but not least, the birth of two completely new fields, Green/Energy Certification and Green/Energy Certification Year. Use of these fields are even more valuable when you attach the verification documentation.
Happy Friday!
AAR and Tom Farley Updates Arizona REALTORS®
In the latest email from Tom Farley, he gave us an update that we added to our post on SB 1271 the anti-deficiency bill. The email also included these 3 other notes, all important information for Arizona REALTORS® to be aware of.
Foreclosure Notification Legislation
Other legislation that has been inserted into a budget bill includes partial language from HB 2269 which effects the notification of tenants in foreclosed properties. Originally, HB 2269 put the onus of notifying the tenant onto the property owners (who are going through foreclosure) but also onto the landlords or management companies even thought they are not the legal owner of the property and nor are they likely to ever receive the Notice of Foreclosure mailed by the Trustee. The new language in the budget reconciliation bills (HB 2008 and SB 1024) requires the Trustee to also notify the tenant that the property is in foreclosure by mailing a copy of the Notice of Foreclosure to the property.
Residential Landlord & Tenant Act Pamphlets
The Secretary of State’s Public Services Division has always published (printed) copies of the Landlord Tenant Act and provided that copy free of charge to those requesting the statutes. The department has decided to go paper free and will no longer provide hard print copies of the Act. It will be available in electronic format online along with their other publications. Copies of the pamphlet will be available until reserves are exhausted. After that, no more copies will be available from the Secretary of State. To view the online publication or print a copy please Click Here.
The Latest on the HVCC
As you know, the Home Valuation Code of Conduct (HVCC) establishing standards for solicitation, selection, compensation, conflicts of interest and appraiser independence became effective on May 1 for any mortgage that will be sold to Fannie Mae or Freddie Mac. Today, NAR President Charles McMillan sent a letter discussing the unintended consequences of the new standards to James B. Lockhart III, Director of the Federal Housing Finance Authority, and to Andrew Cuomo, New York’s Attorney General, in response to the FHFA guidance notice. To read NAR’s response please Click Here.
ARMLS Real Estate Market Review for July 2009
July’s closings are settling in at +9000, which is good but less than June’s 9327. That ends the 5 consecutive months of increases, but the ‘same month’ Year over Year increase grows to 14. That’s right-July 09 makes 14 months in a row where the month’s number of closings has outperformed the same month previous year-since 6/08.
Experts are analyzing the data to explain what’s happening and predict what’s to come. Let me give some numbers and my version of their meaning. Active listings continue to drop-31, 357 at the time of this writing. 4730 of the Actives are REO’s and 7429 are Short Sales (“SS”). Those percentages are 15% and 24% respectively. REO’s are at a 30-day supply figure. SS listings are continuing to increase.
Pendings are ‘down’ below 12,000 for the first time in 4 months. ‘Down’ is relative term in this instance since the number is ‘down’ from an all-time high. 5339 are REO’s-45%, with SS totaling 3145-26%.
Closings for July are 9077 with an Average Sales Price (“ASP”) of $175,700. ASP is up for the 4th month in a row. 4748 of July’s Closings are Bank-Owned with 1499 in the SS category. Those percentages are 53% and 17%. The % of REO closings is decreasing while SS are increasing.
My favorite category to watch is what’s happening on the ‘Vacant’ front. If the house is Vacant when it sells, there’s no seller to buyer conversion. I think this category is impacting the New Home market as well as the ‘move up’ market. 16,975 of Active listings are Vacant-54%. 8982 of Pending listings are Vacant-75%. 7259 of July’s Closed sales were Vacant-80%.
So overall-How’s the Market? There’s a lot to consider as we look forward. As we enter August, our market usually has completed the ‘high sales months’, or in other words has a ‘seasonal’ slow down. This year we have to account for the $8000 1st Home Buyer stimulus available until 11/30/09. What impact will that have on the market? What about Banks and the number of Foreclosures in the ‘pipeline’? These are all factors to observe as we go forward.
Hope your summer was great, as we enter our ‘back to school’ phase of the year.
JS
Terry Goddard Warns Consumers to Beware of Bogus Property Tax Offer
Attorney General Terry Goddard is warning Arizona homeowners to be wary of official-looking advertisements claiming that a homeowner’s property qualifies for a “property tax reduction review.” This solicitation appears to be an attempt to scam homeowners who are looking to reduce their property tax bill.
The solicitation, which requests a $189 processing fee, is not affiliated with any government entity. The document attempts to appear official and contains a “notice number” and deadline for prompt processing. Click here to view solicitation.
Assessed valuations for 2009 cannot be changed since the appeals process for 2009 has ended. In addition, there is no fee required to file a property valuation appeal with county treasurers’ or assessors’ offices in Arizona.
If you believe you have been a victim of consumer fraud, please contact the Attorney General’s Office in Phoenix at 602.542.5763, in Tucson at 520.628.6504, or outside the Phoenix and Tucson metro areas at 1.800.352.8431. Consumers can also file complaints online by visiting the Attorney General’s Web site.
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