Chuck Willman, Arizona Realtor® 480.292.0600

We have reached the end of an uncharacteristic Arizona Cardinals football season. Here are the high/lowlights:

• After earning a single playoff victory since 1947, the Cardinals make a run for the playoffs. It was only their second winning season since arriving in Arizona 21 years ago.

• After earning their playoff spot, the Cardinals lost most of their final games... a few were blowouts.

• The Cardinals stepped it up in the playoffs and managed to shut down some of the best running backs in the league.

• Having been labled by some "the worst playoff team in NFL history" the Cardinals make it to the Superbowl.

• The Superbowl game did not disappoint the casual fan... it included the longest play in history- a 100 yard interception return to close the first half.

• With less than three minutes to play, the Cardinals managed to score the game's go ahead points- leaving them 2.5 minutes away from the largest come-from-behind win in Superbowl history.

• With 35 seconds to go, the Steelers orchestrate their own come from behind victory.

What a magical season it was. Though the Cardinals didn't win it all, they shocked the NFL world with their progress.

Now the Mayor of Phoenix has announced a coming-home surprise. Fans are encouraged to greet home their players at a Welcome Home Party that's scheduled from 3:30-4:30 at Sky Harbor Airport.

I want to thank the Cardinals for giving us a great show.

When we were younger we knew one thing for sure.

If you wanted grandma's attention, you didn't go to her house when the Cubs or the Bears were playing.

It's not that she was rude about it; she was just completely engrossed.

With time, her focus on the game was even more intense.

Age had claimed most of her eyesight and much of her hearing.

By then, she had moved from Illinois to Arizona and had added the Diamondbacks and Cardinals to her list.

And what a fan she was.

When my brother was honored to throw out the opening pitch to a Diamondbacks home game; for the occasion, we were privileged with a stadium suite.

From the front of the suite we could see him hurl the ball toward home plate.

Behind us was grandma.

She was at the back of the suite- standing on a chair- a few inches from the TV set.

This would be her preferred distance... as it was the only way to catch a fuzzy version of the action.

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A couple years ago Grandma was in a unique situation.

Her beloved Bears were headed to the Superbowl.

She was recovering from a sudden illness that had become life-threatening.

She told us she would be watching the game.

The doctors publicly admired her resolve; behind the scenes they let us know time was not on her side.

Her condition worsening, the hospital could do little for her; it became time to transfer her to a hospice.

With the Superbowl several days off we rooted for one more thing.

... that being time.

Time to say our last goodbyes.

Time to wait for her lucid moments where she could recall her childhood with remarkable clarity.

In those last hours grandma opened up a treasure trove of memories for us to experience.

And she spoke of the Bears and their big game that was coming up.

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It was remarkable that she made it to Sunday.

She spent most of the day in the final throes... she would retreat to a deep slumber and then would awake and ask, "Is the game on yet?" ... We'd tell her, "not yet" and she'd slip ever closer to destiny.

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Grandma made it to the game.

Unable to see it, she could hear it.

Is this really the final scene you'd pick for your elders?

Sitting by a bed- with a football game blasting?

Yet it seemed so right.

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We took turns holding her hand... and providing game updates.

The Bears didn't win the championship.

And grandma left us that evening.

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"It's only a game" they say.

And, for many, that may be true.

But they don't know my grandma.

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If ever I feel an obligation too large, or a task that feels impossible, I will forever think of her...

...and how, in her final days, she defied the odds... and lived for the Bears.

Were it not for the game we'd have missed many days of memories.

A few more hugs.

And her winning smile.

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There's a game on soon Grandma... I don't know if you have special viewing arrangements... but this time it's the Cardinals... I'll be thinking of you.

In Arizona, it's not uncommon to find many homes priced in the low $100's.

Such homes will have monthly mortgage payments just above or below $1,000/month - depending on the loan.

When comparing homes, the buyer will normally be able to add the other monthly responsibilities:

• Telephone
• Water
• Electric
• Cable
• Transportation

Normally the Telephone and cable bills are very easy to compute. The water bill is not difficult either... they tend not to vary to much from location to location. Transportation costs are a function of location- so this is not difficult math either.

The area most overlooked, in my view, is electric. Note these things, when looking for the home:

• Is it energy efficient?
• How are the windows?
• How is the insulation?
• Which is the power company?
• What is the internal volume of the home?
• Which electric company provides service?
• What is the age of the home?
• Is there a pool?

When someone is on a budget, the heating, and especially cooling costs can add significantly to the monthly payment. Pools can add a couple hundred or more. Some older homes can cost twice as much to heat or cool.

So... when purchasing, be sure to add the utilities to your monthly preparation list.

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Chuck Willman is a real estate agent based in Arizona

Photo Credit: "Electric Meter 1" by Kenn Kiser

On 9/12/2007 I posted what I thought would be very cool news.

The post was titled, "The Housing Giants Sortable List of Builders"

The post included a link to a list that HousingZone.com has been keeping ... a list of the top builders in the nation.

The best feature is this: you can sort by revenues or closings.

I used to work quite heavily in the new homes arena. It became important for me to know how the builders were doing.

Though I still keep track of new homes, I don't concentrate on that segment as much as I used to.

This is evidenced by my dismantling of the website that I set up for that purpose.

As it turns out, there are other areas of the market that piqued my clients' interest.

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It's such a hard time to be a new home builder.

They're competing against foreclosures... sometimes within their new home community.

They're also competing on price. I'm convinced some builders are selling below cost.

This is a recipe for disaster.

New home builders have been hurting. Several are limping along- while others have failed.

Tonight brings the news that one of Arizona's premiere builders, Fulton Homes, has filed for Chapter 11.

They're the latest, but I would expect, they're not the last.

Some builders used to have several divisions... large builders such as Shea, Pulte & D.R. Horton.

Each of them are now single divisions- overseen by a smaller management crew.

In the process, VPs have become sales managers... managers have become sales agents... and many people have lost their jobs as sales continue to dwindle.

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So. What are we to make of this?

On a personal note, it's sad to see so many good, hard working people lose their livelihood.

On a practical note- this is how markets work. When you increase the supply you can expect, at some level, a decrease in demand. The natural result is a drop in price. Eventually the inputs to the formula no longer produce a positive output.

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I still track the new homes market. However, I have to do so with greater scrutiny. It's lamentable that I have to try to determine who can offer optimal service over the long-haul... I'd rather they all succeed. However, it's the duty of the agent to be informed- even if we don't like the bad news.

I expect other builders to fail. It's only a matter of time. Maybe some will be able to consolidate... such as Taylor Woodrow and Morrison homes... who now function as Taylor Morrison. I saw Fulton's news coming and stopped taking buyers there months ago. I also saw Engle and Element heading in that direction as well. It's regrettable... some of the floor plans these builders offered were very good. Others I didn't predict. You can't pick them all, I guess.

There are builders who are differentiating themselves by offering something that is not available.... but they face very challenging times. I hope their innovation is rewarded.

If I'm unfamiliar with something I want someone to give me a hand.

Or at least a few rules of thumb.

Such tips can be helpful as a guideline until one acquires enough familiarity to draw larger conclusions.

Right now Arizona has quite a few bank owned properties on the market.

These are homes that have been through foreclosure. Now the bank owns them.

They have their own peculiarities... they are sold "as is"; What you see is what you get.

They will most likely be priced lower than the other homes in the neighborhood.

People may tell you that these are the bargain homes and that you can make low-ball offers and the bank is very willing to unload them at rock-bottom prices.

I'm an agent. I'll make the offer you want to make... but there are a few trends, at least with regard to Arizona, that can serve as a guide to making offers on bank owned properties.

Here is what I've been seeing in the past few months.

1. If the home is a fresh listing the bank will want to see a full price offer. So... if the home has been on the market for fewer than ten days, and is in reasonably good condition... the bank will be unlikely to jump on your low price offer. If you offer full price, you have a very good chance of having your offer accepted- unless someone else offers slightly over full price. I know... sounds crazy... but it's happening quite a bit right now. It's my opinion that the banks have begun to offer better pricing suggestions to their listing agents. These prices are based on appraisals and other due-diligence items. Of course- this is not a hard and fast rule... it's just one that I've seen a lot these days.
   
2. Every 30 days the banks tend to be a little bit less choosy on price. After a home has been on the market for 30 days you can most likely offer less. Not a great deal less... it depends on the property. If the home has been listed for 120 or 150 days you can become more aggressive- offering perhaps 70 cents on the dollar. This is not a solid rule... it's just a trend I've been noticing.
   
3. Every bank is different. Some banks will request that you give them an opportunity to finance through them. The rationale is this: they've lost the loan from the previous owner. They'd like to recoup this loss by making a loan with you. Banks may also require you to sign additional addendums... in some cases, their addendums are lengthier than your purchase contract.
4. Some bank owned homes are being listed by people who have many listings. It's not uncommon for certain listing agents to know very little about the property they are listing. So... we can't always expect to know much more about the property than what we can see and glean from the listing information. I like to verify the tax records to see if there are any discrepancies between the listing information and the public record. Sometimes each contain errors.
5. Purchasing a bank owned property is not for everyone... especially those that are risk averse. You'll want to pay for an inspection. This way you'll have a better understanding of potenital problems with the property. Some properties are diamonds in the rough and others are money pits. You'll want to do all you can to avoid the latter.

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Chuck Willman performs real estate in the Phoenix metro area- www.azVest.com

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Photo Credit: "Hand Count Ten" by Gary McCord