At Home In Scottsdale | Your Guide to Scottsdale Real Estate

Thanks to John Wake over at McCormick Ranch Real Estate and Homes for sharing info about one of my listings in the Villages 5, an excellent condo community, just east of 90th Street and Mountain View.  Three pools, tennis courts, and walking paths.  A great location to enjoy the winter months in Scottsdale.

How do you think buyers are paying for their single family homes in Scottsdale this year?

Cash? Conventional financing? FHA loans? Down payment assistance programs? Seller carry?

I mistakenly assumed that we were seeing an increase in the number of buyers paying cash this year.

(Click on the chart for a larger view.)

In actuality, conventional financing has been and continues to be the primary means that home buyers are using to purchase homes in our city. Cash is consistently the second source of payment.

The other changes that you are seeing are not surprising. The number of homes purchased with FHA loans are increasing. Down payment assistance programs are declining (and have gone away).

Other payment choices used were so minimal, I did not graph, although I have included them in the chart below.

 
I know these percentages are quite different than in many other areas of the Phoenix Metropolitan area. For instance, in the first quarter of this year, 11% of the homes purchased in the metro area used FHA financing, and I would suggest that the number is even higher now.

We are going to see changes in how homes are paid for. In years, past, FHA fell out of favor as lenders created many other financing options. With a down payment requirement of only 3.5%, and most conventional programs now requiring 10-20% down, FHA is a very viable option for first-time home buyers in Scottsdale. Scottsdale home prices have decreased, and many more now qualify for FHA financing, which currently has a ceiling of $346,250, but is expected to decrease at the beginning of the year.

We shall see if the number of cash buyers increases this fall. It’s just too early to tell.  I’ll update this chart at the end of the year. It will be interesting to see how this financial chaos will impact financing options. Stay tuned.

Trulia Voices is an on-line community where people can ask questions related to real estate and other related issues, which can be especially helpful if you are considering a move across the country.

This morning I answered the following question:

HELP! Relocating to Scottsdale and want some honest parents’ input on the schools. Any recommendations?  Looking for real human comments on elementary schools and their experiences.

Since my response would be helpful to anyone considering a move to the area, I thought I’d share it here today.

I have a son who has attended six of the Scottsdale schools and would gladly share our experiences with you off-line. Also, I serve on the board of directors for the special education group above (my son is diagnosed with autism) and on the citizen’s committee providing oversight to the last year’s bond election which will fund much technology over the next seven years.

Here are a few local parent organizations which you can use to you get additional first hand contact with parents in Scottsdale many schools.

Scottsdale Parent Council

Scottsdale Supporters of the Gifted

Special Education Parents Advisory Council

 

Also, you can visit the Scottsdale school web site, scroll down to the bottom, where you will see the Schools link. When you click on that link, the list of schools will come up with their web sites. Most will have links to the PTA organization for the particular school, which may give you more parent contact information.

IMPORTANT: You need to know that the city of Scottsdale and Scottsdale Unified School district boundaries are different. Buying a home with a Scottsdale address does not guarantee that you will be in the Scottsdale school district.

Call or email if you’d like to discuss more.

Scottsdale Real Estate Update - October 2008 (Source: Altos Research)

Last week, I wrote about south Scottsdale, specifically zip code 85257.  Entry level housing in this part of town is definitely perking up, although it’s still a buyer’s market.  Also, I’ve been noticing some improvement in 85254, the Scottsdale zip code that still primarily in the City of Phoenix.  The other area that’s interesting this week, is the area around and to the north of Fashion Square mall (85250).  Listing prices are going up, and days on market are decreasing.  However, it’s still a very strong buyer’s market in this area, so home selection will be good.

Altos Research just created a new tool for displaying current Scottsdale real estate information.  I’ve created the following real time report with up-to-date home listing prices and average days on the market for each of the Scottsdale zip codes.

The chart below shows you a sample of the report and specifically what the McCormick and Gainey Ranch home listing prices are for today, September 29th.  When you click on the link above, you will get current information for the day it actually is.   A good tool to bookmark as we ride through our current market. 

You’ll notice that the average listing price is increasing, while the number of days the house has been on market is decreasing.  In entry level homes, the average days on market is running about 90 days.

I just got back from Las Vegas, where I attended the 2008 BlogWorld and New Media Expo.  All I can say is WOW!!

It's all about building community.

Being a Realtor, a good one, requires that I keep up on the latest trends, not only in the real estate market, but also in business.  These days, businesses are discovering the value of connecting to their clients through blogs and other social media tools, like Twitter and Flicker.  It’s a way of communicating that is changing in our society.

You will find that when you work with me, that much of our communication is by email (or texting, if you choose).   I am a very early riser, and try to get my blogging and email completed then, before I head out for the day. 

For example, this morning, I emailed a client in Europe to discuss her inspection report and the repairs that she wants the seller to perform.  Another local buyer emailed me with an addendum that needed to be signed and returned to meet her lender’s requirements.  I responded to another inquiry from a buyer on the East Coast and was able to quickly answer her question before she headed to the office.   I still phone my clients, when it’s appropriate.  However, many of my clients prefer using email also, as it allows them to control their time better.

Now for the next evolution. 

Blogging and new media are the reasons I went to BlogWorld.  I like to write, it something I’ve done for years, and with blogging, I finally have a venue to share.  I also like to take photos, and now with a digital camera, I can take lots of photos, so that I have better pictures to share.  And, I guess I really do love to communicate, because twittering suits me just fine. 

So, what did I learn in Vegas, that you might really care about?

I learned about running my business better:

• by creating systems to manage my Internet-based work flow more effectively
• by renaming and tagging my photos consistently so you can find them easier
• and by writing with passion and transparancy, so that you can get to know a little bit about me before we decide to work together. 

I connected with a whole new level of communicators from many other fields of business, and from around the world. 

And what does that mean to you, as a potential buyer or seller of real estate? 

It means that you are working with a Realtor who likes to stay on top of the real estate market, and incorporate time-saving and forward looking business practices.  I like to sell real estate and love to do it well.  My job is much more than listing or showing homes, and more than writing contracts.  It’s really about connecting with my clients, the buyers and sellers of homes, so that I can give you correct, current information about the real estate market in a manner that you understand, so you can make smart choices in this sometimes, complicated world.

I like to share and interact, so if you’d like to contact me for more information about real estate, or blogging, or something about Scottsdale, in general, just do it.  Drop me a line via the contact form in the right hand column, or come see me at Twitter, Flickr, or Linked In.

Finally, I’d like to give credit to some of the presentors that graciously shared knowledge and expertise this past weekend.

Thank you to Mariana Wagner, Teresa Boardman, Pat Kitano, Todd Carpenter, Jeff Turner, and Kelly Kohler - I was so jazzed that I wrote this note on the flight back to Phoenix.

Thank you for RE BlogWorld

photo credit: wadem

As human beings, we have two sides to our brain.  Simplistically, I call them the thinking and feeling sides.  One side we use to crunch numbers, and the other we use to enjoy an aesthetically pleasing (or not) piece of art. 

When I work with home buyers, I remind them to use both sides of their brain when purchasing a home. 

To purchase a home, there’s a lot of number crunching that goes on.  Especially in this market, where a home buyer wants to be sure they are paying a price that will hold up in our changing economy and real estate prices are impacted both directly and indirectly by many factors.  Sometimes, it’s easy to get caught up in the decision making process on which home is the best buy, considering location, price, financing terms, and much, much more.

On the other hand, home buyers actually have to live in the property they purchase, so it’s really important  that they like (or love) the home they are purchasing.  After all, it’s where they are going to be waking up most mornings!

Several years ago, I was working with a younger first-time home buyer.  Her mother had flown out to assist her in her selection.  We all worked well together and narrowed the possibilities down to two condos in the same complex. 

At decision times like this, it can be very overwhelming for a buyer.  They are often often asking (many) others for opinions and recommendations.  The noise is their head can get very loud, making it tough to know what is right for them. 

The buyer and I met again to write a contract, and she was still torn as to which condo to purchase.  In this particular case, I asked her one simple question, “Which house did you imagine waking up in this morning?”  She smiled, and gave me her immediate response.  It was not the one her advisers had been giving her, but it was the one that was right for her.

In the past two weeks, I’ve written a number of contracts for buyers.  In two cases, there was one particular room in the home, that each buyer walked into, and connected with. You could see it in each of these buyers’ eyes.  And, it wasn’t anything that we could necessarily search for in the MLS system.  It wasn’t the fact that it had a great view, or an open kitchen.  It was that each of these buyers could see themselves in the home of their choice.  Plain and simple, they were looking for a space to live in, to accomplish their goals, to feel fulfilled.

So, when you are searching for a home on-line, know that this is just the starting point.  Unless you are an investor, who is looking totally at cash flow and the bottom line, you will want to find a house that works for you, both financially and aesthetically.  Even if the home is a fixer-upper, but has great bones, seeing yourself living there is a critical part of the process when selecting your next home.

Dream a little, work the numbers, and then decide.

This past weekend, I spent time with one of my clients who is purchasing a home in Raintree Ranch in Chandler.  When the home inspection was completed, I slipped upstairs to get a photo of this great view from the master bedroom balcony.

We do have a number of communities in Scottsdale and Chandler are built around lakes, providing water frontage and excellent lake views, and as of this morning, 80 homes with lake frontage are for sale in these two Phoenix area cities. Here are the communities that currently have homes with lake frontage listed in our local MLS. I’ve included the minimum listing price for each community also.

Chandler
The Springs, starting at $239,000
Lagos Vistoso, $299,999
Pineridge, $309,000
Ocotillo Lakes, $339,900
Silverlake, $389,000
Stillwater Cove, $408,000
Oakwood Lakes, $409,900
McQueen Lakes, $425,000
Ocotillo East, $430,000
The Peninsula in Ocotillo, $436,900
Estates at Ocotilla, $459,900
Pinelake Estates, $525,000
Harbour Club at Ocotillo, $535,000
Monterey Bay at Ocotillo, $572,500
Enclave in Ocotillo Lakes, $634,900
Alicante at Valencia, $637,000
Laguna Cove at Ocotillo, $675,000
Catalina Shores At Ocotillo, $679,900
Balboa Point, $949,000
Watermark at Ocotilla, $950,000
Embarcadero at Ocotilla, $969,000
Vistas at Ocotilla, $999,000
Santorini Shores at Ocotilla, $1,050,000
The Island at Fulton Ranch, $2,150,000
Oakwood Hills, $2,500,000
Crown Point at Ocotilla, $3,499,000

Scottsdale
Scottsdale Country Club, starting at $635,000
Island at Scottsdale Ranch, $999,999
Vista del Lago, $1,075,000
Island at McCormick Ranch, $1,190,000
Landings at Scottsdale Ranch, $1,550,000
Gainey Ranch Enclave, $1,800,000
Palo Viento in McCormick Ranch, $1,850,000
Bayview Drive in Scottsdale Ranch, $1,850,000
Desert Mountain, $3,750,000

Everyone is looking for a change in the local real estate market.  Yesterday, I got a call from a TV reporter asking if I was taking buyers to look at homes in the afternoon, as she would like to interview us.  The gist of the interview of the buyer was to be, “Why are you buying now?”, and the catalyst for the subject was the latest ASU real estate research. 

I was not able to meet with the reporter since I was already committed to a board-related meeting, but the phone call reminded me that I have been challenged finding a home for one of my buyer clients.  Either the home is wrecked and overpriced, or it’s priced well and under contract before we can get to see it.  A slight exaggeration, but definitely a view of both ends of the spectrum.

Yesterday’s call did prompt me to email my database of potential home sellers in South Scottsdale.  For the most part, homes that are in my client’s price range will be in the zip code 85257, but there are a few in both 85251 and 85250.  I’ve done all sorts of searches, being as creative as possible, to make sure my client has seen what is available in Scottsdale’s real estate market.  So, I sent this email went to home owners in this area, seeing if we could find someone who’s been sitting on the fence, or maybe just found out they are being transferred to another part of the country.

I’ve been working with a well qualified, first-time home buyer, who is looking for a 3+ bedroom home in Scottsdale. Pool is optional, but a nice backyard is important. She can do a little fix-up, like paint and carpet. The kitchen layout is really important to her, as she wants to be able to cook, while still being able to converse with her guests.

Her preferred price range is $175,000 to $200,000.

In the past, you’ve contacted me to do a quick home valuation. Looking through my records, I see that your home might be a possibility, and am contacting you for that reason.

Please call or email me, if you might consider selling at this time and your home is in a condition that matches my client’s preferences.

We’ll see if I get any responses.  If you have a home that you’ve been thinking about selling, or know someone who does, and it matches my client’s needs, could you call or email me?

Thanks!