The owners had a spectacular view lot and they wanted the home to take advantage of the views and beautiful Arizona sky.  The ceilings are 17 feet high in the living room, family room and kitchen.  This was done to capture the outdoors through large windows facing out to the gorgeous view.  In order to make sure that the home felt cozy, the wall colors are warm yellows.  The chandelier in the living room is large and hung at a normal ceiling height.  This creates the feel of a lower ceiling.  However the owners still wanted to feel the soaring nature of the home, so the fireplaces go all the way to the ceiling and natural light floods in from the doors and clearestory windows. 

The kitchen features a double island, ideal for entertaining.  The kitchen cabinets were designed to hold your eye at normal height.  The wet bar was incoporated into the kitchen so it would not be obtrusive into any given space.  The opening in the kitchen at the wet bar allows people to view the symmetry of the spaces.

The dining room features a warm wood panel ceiling that creates a warm glow to any dinners that the owner may want.

1.  First and foremost, if you are thinking about remodeling, there is something with the house that you want to change and every day you wait is another day of putting up with something you don't like.  This is not making your life easier.  Your home should be a pleasant refuge from all of the other stuff in our life and when you enjoy your time there, it is amazing how much less stressful your life can be.  This may sound like a lot of hot air but it is true.  If the kitchen doesn't allow you to cook the way you like or the cabinets and counters are out of date and showing wear, it is not as much fun to be there as it could be.  And as we all know, the kitchen is the heart of the home.  Make it be that again, a fun place to meet with family and friends, a place that is light, interesting and practical.  The same thing is true for baths.  There are lots of new things to put in a bath that make the bathing (or showering) experience more fun.  Changing the design of a bath to fit your needs rather than the needs of the builder can make all the difference in the world.  Changes in televisions and other electrical gear mean that lots of us are not properly displaying or using that equipment.  It is time to hide the wiring and adapt the old TV niche to the new TV.

2.  Some things just wear out and it can be time to refresh them.  Flooring and paint are perfect examples of this.  That old stained carpet doesn't give you a lift, it can bring you down.  It may be time to repaint as well and as long as you are at it, think about using bolder colors.

3.  There is no better time than now to get this work done.  Pricing is competitive and you can get high quality work done on time.  But there are lots of things that need to be coordinated in a remodel project and you will want to make sure that the scope of work and the quality of materials to be used is thoroughly understood by the contractor and yourself.  This way, you can avoid unpleasant experiences during the job. 

Three motivations will illustrate what you can do.

Organize!.  Clean out your closets and drawers and organize them using closet and drawer storage systems.  You can buy these and install them yourself or you can hire a firm that can do it for you.  You will be amazed at how much storage space you can come up with and how much more enjoyable things are when you can actually find what you are looking for.  While your at it, look at the garage.  Adding shelves, bike holders or cabinets can make a big difference in the appearance of your garage.

Maintain!  It is important to maintain your home.  Paint the walls and trim, check the condition of your exterior paint and roof.  If you have a flat roof inspect it for bubbles or tears in the surface and have them fixed by a licensed roofer.  You will save yourself a ton of grief when it rains.  If you have worn out carpet, replace it.  Over time, you should spend about one percent of your homes value each year on maintenance and replacement to keep your home in top shape.  If you have trees next to the home, make sure that you don't have branches and leaves on the roof.  These will trap water and can cause significant damage.  Look for termite tubes around the foundation.

Remodel!  Maybe it is time to remodel those tired kitchens and baths and make them more useful for you.  A qualified design build firm can help you update these areas and make them much more enjoyable.  While this work costs more, the benefit to you and your family can be huge.

The first thing to look at are simple fixes that can make a difference over time.  Check for leaks around windows and doors by holding a candle to the edges.  If you see the candle flame bend, you have a leak that can be repaired by installing more weather stripping, foam sealant or caulk.  Check the temperature on your water heater; if it is over 120 degrees, it can be turned down.  If you have access to your HVAC air ducts, check them for leaks and seal them.  Have a professional turn up your HVAC system.  This should be done at least once a year.  By the way, change the air filters once a month.  This will improve air flow and efficiency.

If your home is older, check into installing a new, more energy efficient air conditioner.  One with a two speed compressor will save even more money.  While your at it, install a prorgrammable thermostat.

If you have windows that get lots of sun in the summer, plant some trees that will block the sun.  The largest heat gainer in a home are windows.  Your home will be cooler, and the trees will add to your enjoyment in the yard.  If you don't want to block the view, install window film or screens that will cut down on the amount of sunlight that comes in. 

Install dimmers on lights that are commonly used.  You don't need the light on full all the time and you will find that you create a whole new mood in the home when you control the lighting.

Make sure to do a full load of clothes or dishes.  Not only will this save energy, but it saves water.  Let the dishes air dry. 

Make sure your pool pump is only running as needed to keep the pool clean.  And run the pump at night when the rates are cheaper.

Mold exists everywhere.  In the dirt we walk on, in the air we breathe.  The problem comes up when it is in our homes.  The products that we use to build our homes consist of many carbohydrates.  Most commonly, we think of wood or paper.  But many of the products we use now are made of "green" materials or we process the wood in a "green" fashion.  For example, we use particle board, OSB and other engineered products that are made out of wood or bamboo or even grass.  These are processed and in that process, just like corn flakes, we make the carbohydrates more available to mold.  Add a little water from leaks or water vapor from showers, kitchen stoves etc. and you have a recipe for disaster.

What is a homeowner to do?  Make sure you have adequately protected your home from water intrusion.  There are to many steps to discuss in a quick blog, but leave it be said that your contractor should go over all of the water mitigation programs that he is using.  These include house wrap properly used to make sure that water does not come in to the wall cavities from the outside; drywall in showers are protected from moisture penetration by using waterproof coatings and glass covered drywall.  Cabinet boxes need proper ventilation if they are made from certain materials. 

You can also help by turning on the fan when showering or bathing, turn on the fan when cooking and leave these fans on for several minutes to make sure the moisture is safely removed from the room.  If you experience a leak in your home, get it repaired immediately and make sure to check wall cavities cabinets and any other items for mold.  It can be easily treated and removed if caught early.

First.  Are you mentally prepared to take on the job?  Many jobs look easy on TV or in a magazine, but when it comes down to it, most remodel projects take longer and have more steps involved in order to do the job right.  The steps that are involved can be very specific, and can require experience to get right.  If you are doing it the first time, you may have to repeat the step to get it right.  Remember the old addage "measure twice and cut once".  An experienced contractor can do this, it may take you three or four times.  If you don't have the aptitude, you probably shouldn't attempt the job.

Second.  Do you have the proper tools?  And are they in proper condition?  Using the wrong tool can make a job much more difficult.  Using the right tool that is not properly maintained can be dangerous.  If you need to buy or rent tools, make sure you factor their cost into the overall cost of the job. 

Third.  Can you do the job safely?  One of the major causes of accidents in the home is people doing remodeling projects without regard to safety.  A trip to the hospital or losing time at work can cost more than the savings that you think you might achieve. 

Now that we know what to look for, and where and we know you can purchase it, it is time to start looking. There are three different kinds of homes being marketed today

Short sales:
These are sales that the seller owes more than the house market value. These all require the approval of the lender or lenders involved, because they are the ones that are going to lose money in the transaction. These sales can take a very long time to process, especially if there is more than one lender involved. Waiting times can be as much as six months before you will know if your deal is acceptable. In the meantime, things may change for you, for the seller and of course during that time the seller is accepting offers that compete with yours (including raising the price, which is what the lender wants). A lender may go along with a short sale if the percentage of price reduction is manageable against the cost of foreclosure. As a buyer of a short sale, you need tremendous patience. Nothing will move fast, unless the bank has preapproved the amount of the short sale.

Foreclosures:
Homes that are owned by the bank are called REOs or Real Estate owned. These are liabilities on the banks balance sheet and they are motivated to sell them but terms can be somewhat daunting.

• The home will be sold “AS IS” no repairs or replacement will be done. This does not mean that you are not entitled to an inspection or full disclosure, it just means that the bank is not going to do any repairs whatsoever. You must make sure you have a clear idea of the condition of the property.
• The home will be sold with a limited deed meaning that the bank is not responsible for liens that may have not been cleared through the foreclosure.
• The bank will require a sales addendum (among other things) that allows them to market the property until closing and if they get a higher offer, they have the right to accept that offer and cancel yours.

Regular sellers:
These are the people that have decided to sell their home and there is no financial problems requiring a bank to be involved. These owners want to sell but sometimes have a higher assessment of the market value for their home. The secret to working with them is to make sure you have competent representation on your side to show them what the actual value should be. If the owner is realistic in his pricing, this is the easiest purchase to make.

There are other things to watch for. The ads for auctions make them sound like you are going to get the deal of a life time. But in reality, now that the market has shifted, the auction is a place to create enthusiasm among uneducated buyers and get the price up. If you have ever been to an auction, you know what I am talking about. The pitch becomes quite fevered and before you know it, you have bought something you don’t want for more money than you want to pay. Definitely not the way to buy a home you intend to live in.

In negotiations that involve banks, you a dealing with people that do not have an emotional commitment to the home, but they do care about the money. Don’t think that you will be able to out negotiate them. They are working on perhaps thousands of deals and you are only working on one. They have heard it all before.

With a regular owner seller, terms can become an acceptable way to get what all parties want. A fair deal. A seller may be more inclined to providing interim financing, or willing to offer a lease purchase, or maybe pay closing costs. The higher up the price scale, the more creative the deal can become.

Well, that kind of sums up the market. This is an incredible opportunity to buy a property that will suit your needs for a price that is better than you expected. It is a time to not be afraid. And working with a competent team to help you realize your dream is the best way to get it done.

How can we help you move forward?

So, if you are in this position, what should you do? First sit down and honestly assess your financial situation and develop a plan of action. Stop any impulse buying, cut back on any unnecessary expenses. Quit using credit cards as piggy banks and develop a plan to pay off the most expensive balances on the credit cards first, then when the card is paid off, add that money to the next credit card so you can accelerate the payoffs. See if you can sell any cars that have loan or lease payments that are excessive. Exchanging your current car for a cheaper one can save money on payments and insurance. Pay off anything you can, but remember that you need to keep cash for a rainy day as well. Do not keep money in a bank where you have credit cards or loans. Try to work out payment plans with anyone you can. If you are sincere, lenders will work with you rather than lose all of the money.

You need a place to live. If you can continue making payments on your home, do so. But if you are in a “hardship” situation, meaning you have lost your job, fallen into ill health or are trying to sell your home but you owe substantially more than it will sell for, talk to your lender about a loan modification or short sale. Make sure you talk to the person who can help you get a decision. Banks are not in business to assume a loss on your behalf, but in cases that demonstrate an actual hardship, you can get relief. Loan modifications usually result in lower payments for a longer term, or an adjustment to the principal balance to help bring payments in line with what you can afford (not what you would like to pay).

There are significant risks to you concerning short sales. You should seek the advise of an attorney before you sign any documents. You need to make sure that you stay in control of the process. For instance, did you know that in a short sale, you can still be held liable for the difference between what the bank gets and what you owe? The bank has five years to exercise their claim. Do you want that hanging over your head? It may be better to actually go through a foreclosure rather than the short sale. While a foreclosure hurts your credit rating, it clears you of responsibility for any remaining debt if the home has been occupied. Plus, negotiating a short sale is difficult at best, especially if you have more than one lender.

Keep in mind that we are all taught that not paying our debts is a bad thing, but when circumstances will not allow you to manage a plan to get out of debt, there are credit counseling groups that can help. Make sure you choose a reputable one, non profits are usually the best. Talking with an attorney about bankruptcy is another option.  One thing is certain, you won’t be able to get on track if you can’t get off the treadmill. Millions are in your position, and getting out of it should be your highest priority. If you feel trapped because you made the mistake of getting over your head, or the circumstances of today’s economy have put you too far behind, do what you need to do to get out of that trap and on with your life.

How can we help you? Call us to see if we can offer practical advice.

If we look at long term sales rates for the metro area since 2001 it becomes readily apparent that the average resale rate in the valley is about 100,000 sales per year except in 04 and 05.  That is when everything really spiked.  Then if you look at what happened after, sales dramatically slowed until this year when the sales rate picks up.  The important thing to note is that if you put the peak in the valley, our 100,000 sales per year would have happened.  To me, this means that the market is returning to normal. Prices follow the same trend.  Today, the median price matches up to the median price in about 2004.  As the overall market and economy reaches equilibrium, we will see prices increase at a rate consistent with inflation.  This means that if you bought prior to 2004 and did not borrow additional funds on the home, you are probably in pretty good shape on the pricing of your home.  If you bought during the boom, or took out a loan on the extended value of the home, you are probably underwater.

There are differences in what is going on.  In general, the lower price ranges are performing better than higher.  And the higher you go, the lower the performance.  This is a natural trend because the people who can react the fastest and move into homes are renters.  That allows the person who sold the home to the renter to move up to the next home and so on, so there always has been a lag.  This time there is an additional factor.  Because during the boom, people could buy more home due to the financing that was available, many people over reached. During the recessionary period, the first people to be affected were in the lower price ranges, but as the recession has continued, we are seeing more affluent people having trouble making payments and the number of distressed properties are increasing now.  This has also contributed to the lag and probably means that price reductions in the higher ranges are not over yet.

Let go over what you should do now.

1. Price your home to sell.  That doesn’t mean be the lowest on the street, but make sure that you consider the following elements.  

• What has been the recent history for sales in your neighborhool.
• What is currently listed and how long have they been on the market.
• How does your home compare to the others on the market right now. Be brutally honest, because potential buyers are.

2.Do what you need to do to make the home showable.  You only get one chance to make a first impression.

• Street appeal.  How is the landscaping and exterior paint?  If a buyer doesn’t get out of the car, it doesn’t do you any good.
• Get rid of any excess furniture etc.  You want rooms to look expansive.
• Get rid of any controversial  things.  Paint the red wall.  Get rid of the def leopard posters
• Get rid of clutter in closets and garage.
• Make sure everything works, and everything is clean.
• Order an inspection and fix anything on the list.

3.When the home is being shown.

• Make sure everything is picked up, beds made, dishes put away, trash thrown out.
• Put pets in a safe place or take them with you.  Leave the home.
• Make sure the realtor with the people knows about any pets or kids if they are there.  No one likes to be surprised.

4.When you get an offer, don’t be offended.

• In this market, everyone has been conditioned to offer low prices.
• Take some time and analyze the offer.  Is the buyer qualified?  What are all of the terms?  
• Make sure that before you counter, there is a reasonable opportunity for the home to appraise.  Otherwise, you will be back to the table.

If your house is worth less than you owe, do this before you put it on the market.  
    

• Do you need to sell now or can you wait until better times when prices move up?
• If you must sell, you must talk with your bank and explain the hardship.  Get them to agree with allowing a short sale and get  them to commit to taking whatever you get for the home.
• They are your partner, and not a very good one.  They are slow and may actually put conditions upon the sale that nobody can live with
• Get legal advise.  Lenders can come back on you for deficiencies 5 years after the sale.
• List the home with a qualified agent, who knows how to negotiate short sales.  The agent is not going to be able to talk to the lender, only you.

Can I be of service to you as your listing agent?