TJ Harris, Exclusive Buyers Agent, Certified Negotiation Expert 85268 AZ

When a Lender is forced to foreclosure on a property and it acquires title to that property through the foreclosure process the property is then commonly referred to as an "REO". "REO" is an acronym for "Real Estate Owned". In dealing with an REO property the process is essentially the same as dealing with an individual, non-institutional Seller. Often, but not necessarily always, the Listing price on an REO property can represent a bargain for a Buyer. As your exclusive agent it will be my responsibility to do the research necessary to determine if an REO Listing price is (i) at market, (ii) above market, or (ii) represents a bargain price.

The primary difference between an REO sale and a sale of property owned by an individual is in the disclosure and due diligence process. An REO Seller, not having lived or owned the property prior to the completion of the foreclosure, will not make any disclosures. In addition the REO Seller as a rule will not agree to make any repairs to the house, the so-called "As Is" sale. I will however protect you in this situation. The Home Inspection will reveal what, if any, repairs are necessary. If you are not comfortable with your making the repairs you will have an unconditional right to withdraw your Offer and receive the return of your Earnest money.

Be assured that as your exclusive buyer agent I have the experience and knowledge to deal with an REO property. You can also be comfortable in knowing that whether we are involved in a foreclosure/REO sale you will receive a full and complete title to the property free and clear of any and all liens recorded by reason of the Seller's financing.

TJ Harris, Buyers 1at Realty, 480-836-4338 www.azbuyers1strealty.com

This morning (Friday the 16^th ) I turned on our local NBC TV station. The frequent "housing" section was on. The announcement was that home prices in the Valley of the Sun are down 40% from the peak period of the housing bubble.

With that type of price reduction combined with the historically low mortgage loan interest rates now is the time to buy. I have seen rates as low as 4.5% to 5.25% for a 30 year fixed rate. With these types of interest rates and some awesome homes on the market this is a win win situation for buyers.

Keep in mind that the 40% figure quoted is "Valley Wide". As your exclusive agent I will determine the statistics for the area of the Valley you are interested in and have that information available to you. Even if your area of interest has not seen as drastic a reduction as the quoted 40% you can be assured that there have been downward price reductions in all areas of the Valley and this is a great time to buy a home in Arizona.

As I have said in previous Blogs, interest rates fluctuate continuously and as an exclusive buyers agent I have many lending sources that I provide to my clients to be sure that they are getting the best interest rate available to them.

So if you're in the market for a home in the next 90 days and are going to be looking for a property priced between $300,000 and $1,500,000, have excellent credit, or you are already pre-approved for a mortgage or perhaps you need some help getting to great lending sources that have great rates give me a call at 480-836-4338. I am an Exclusive Buyer's Agent that only represents buyers, never sellers. I am Certified Negotiation Expert and will $ave you thousands of dollars on your next real estate purchase, contact me, TJ Harris at Buyers 1st Realty, Fountain Hills, AZ. Email tj@azbuyers1strealty.com or visit my website www.azbuyers1streatly.com

A Short Sale is a sale of property at a listed price that is less than the existing financing debt on the property. Unlike a foreclosed property the Buyer is dealing with a Seller who still owns the property the market value of which is less than the financing debt on the property.

The very first thing a Buyer needs to understand is that a purchase of property that is a short sale cannot be completed without the Lender, or Lenders approval. This process of obtaining approval can, and usually does vary, amongst the very numerous Lenders who are holding mortgages on residential properties. In describing the approval process a Buyer can assume the following: The Listing agent will be representing the Seller in dealing with the Seller’s Lender (or Lenders, if there is more than one financing lien against the property).

The ability and professionalism varies amongst real estate agents, just as it does amongst any other group of professionals. As a result I will, as your exclusive agent, attempt through conversation with the Listing agent, to determine if the agent is knowledgeable regarding the short sale process. In particular I need to attempt to find out if the Listing agent is familiar with the specific approval process required by the Seller’s Lender or Lenders.

The purpose of this inquiry is to try, as best I can, to determine the possibility or probability of obtaining the Short sale approval and how much time it is going to take for the Lender or Lenders to make a decision as to whether or not to approve your Offer. The Listing agent will assist the Seller in assembling the documents that the Seller’s Lender or Lenders will require. These documents vary from Lender to Lender but two (2) Lender’s requirements will be more or less constant; the first is a hardship letter from the Seller. This letter evidences that the Seller can no longer pay the financing debt and does not have other assets that the Lender or Lenders can reach to satisfy the financing debts. The second is the Lender or Lenders obtaining an opinion of value. This opinion is generally obtained from a licensed Real Estate Broker who has knowledge of property values in the market area where the property is located.

After these things have been completed the approval process will continue pursuant to the Lender’s demands and instructions, generally through the Seller’s agent, and on the Lender’s schedule. When we submit an Offer for a Short sale property we will use a form Short Sale Addendum. The Arizona Short Sale Addendum has a specific provision that will allow you, as the Buyer, to withdrawn your Offer without any liability, prior to the receipt of a written approval from the Seller’s Lender or Lenders. The ability to withdraw your Offer will allow us to continue to find other properties that might interest you. If we find a property we can submit an Offer and withdraw your Short sale Offer before receipt of the Lender approval.

The one thing you need to remember is that you have to have patience in dealing with a Short sale. It can take weeks, sometimes months to finally obtain the necessary Lender approval. My advice, if you need to purchase a home for immediate use, or if you want to complete a purchase within a reasonable time period, do not become involved with a Short sale.

If on the other hand you do have time and patience, you definitely need an agent that knows the ins and outs of the short sale process. I am an Exclusive Buyer's Agent and a certified negotiation expert and have the experience you will need if and when you should get involved with a short sale.

So if you're in the market for a home in the next 90 days, and are going to be looking for a property priced between $300,000 and $1,500,000, you are prequalified and have excellent credit, and want an agent that will be on your side and could save you thousands of dollars contact me, TJ Harris, at Buyers 1st Realty, Fountain Hills, AZ. 480-836-4338 or email me at tj@azbuyers1strealty.com You can also visit my website at www.azbuyers1streatly.com

When I say that phrase out loud, I can't help but hum to that old song "where have all the flowers gone". But really have'nt we all noticed that some of our friends and collegues just are'nt around lately or have just sort of disappeared off the real estate map. We constantly hear about the layoffs and job losses as it affects the financial sector, the construction industry, the auto industry etc. But I have'nt heard much about how is has affected the actual Real Estate profession, i.e. REALTORS® I know here in Arizona, many have had to go and get part time jobs if they can find them, many have completly left the profession and gone on to do God only knows what. I have friends that have said they just don't know what they are going to do, this is what they have done for so many years and don't have the skills or are not young enough to go and do something else. Are unemployment benefits an option, I don't believe so since the majority of us are "independent contractors".

I was curious so I went on NAR's website to find out membership statistics. You can actually find them all the way back to 1908. Anyway in 2007 the membership was 1,338,001, in 2008 the membership was 1,197,529. I actually expected that number to be lower, but still some 140,000 are no longer members. Now I know that there are many agents right now that are doing very well in the REO/Short Sale end of the business. But actually its really only a handful. And you know what thats OK, more power to them. But I also know many are struggling to make their mortgage payment, pay their kids tuition or yes even put food on the table. As agents we all have access to the preforeclosure lists and sadley I see names on that list that break my heart.

One of the most recents stories right here in the Phoenix area was on fox news the other day of a REALTOR® found living in a foreclosed home.

"I was just trying to get out of the cold," xxxxxxxx, who lost his job when the real estate market collapsed, told MyFOXPhoenix.com. "I wasn't trying to, you know, vandalize the place or hurt the place or try and cause any trouble. Really it was just a matter of, you know, getting in out of the elements."

These are very tough times right now and I know there is alot of depressing news out there and you all probably did'nt need one more drepressing story, but I do believe we should be conscious of one another and the hardships that are facing the very people we know and work with. When I hear a story about the young man that was trying to get out of the cold living in that foreclosed home I have to say to myself "there but by the grace of God go I".

TJ Harris, Buyers 1st Realty

Fountain Hills, AZ 85268

In my on going effort as your Exclusive Buyer’s Representative in Fountain Hills and the Scottsdale area, I am continually researching information regarding Mortgage financing. Today my research revealed the following rate information from the National Association of Realtors;

The National Association of Realtors reports on January 9 that mortgage rates have fallen to “all time lows”.

The average 30-year rate was 5.01 per cent.

The 15-year fixed rate dropped to 4.62.

One of the benefits of having your own exclusive Buyer’s Broker is that I am always monitoring Mortgage rates. I am obtaining rates from local mortgage brokers and Lenders on an ongoing basis in order to keep you informed. As a result I have access to current rate quotes which will analyze before we submit an offer to a Seller. In so doing we will be able to ascertain the monthly mortgage expense you will be incurring.

Please be aware that Mortgage Rates are extremely volatile, as result the rates quoted may have changed when you have had an opportunity to read this information. I however always have current rate sheets on hand, or can obtain them immediately. If you would like current information on rates please do not hesitate to contact me.

Would be surprised to learn, as I was, that in November and December of last year Mortgage rate changes occurred, on average, 2.15 times each day. That equates to 10.75 rate changes for each five (5) day week. The lesson to be learned is that when you have decided on a home you would like to buy one of first things we must do on your behalf is to determine what are the current Mortgage rates?

The next immediate step is, if you are not working with a Lender or Mortgage Broker of your choice, to refer you to a Lender or Mortgage Broker I have worked with and have confidence in. I will give you three (3) or four (4) names and you can and should interview each. Remember that rates and terms can vary from Lender to Lender so it is in a Buyer’s best interest to “shop” the Mortgage.

Dan Green (a much respected loan officer with Mobium Mortgage Group and a very informative blogger) states in his most recent Blog that ‘unless you’re prepared to accept a higher rate, you may not want to gamble on getting the lower one”. Therefore when you have “shopped” your loan and have received the best rate and terms available in the market you should “lock in” that rate. Dan poses the following question that illustrates the point I have just made, “is it worth a 1/8^th percent rate increase to gamble that I’ll find a 1/8^th percent lower rate tomorrow?’ My answer to the question posed is unequivocally no.

As rates change and as I find further pertinent and informative information I will amend and add to this Blog.

The information presented here is just a small part of what I will provide to you in my role as your Exclusive Buyer’s Agent. As usual I can be contacted at www.azbuyers1strealty.com or 480-836-4338