Gina McKinley, ABR, CIAS, CDPE, CRS, SFR ~ Chandler, Gilbert, Mesa, & Scottsdale

You may have heard recently that there is no difference between a short sale and a foreclosure and I wanted to set the record straight. Short sales are an agreement between the seller’s lender and the seller to accept less than they are owed for the value of the house. During a short sale, the first lender will also offer payment to the second lien holder in order to encourage them to approve the sale. In order for a short sale to reach approval, all parties involved must reach an agreement on the sale.

Even though our foreclosures are significantly down, they still represent 15 percent of total home sales in our market. Short sales represent 66 percent.

Today, banks are incentivizing homeowners who are short selling their homes. They are also streamlining the approval process in order to approve a greater number of short sales. In addition banks are also offering relocation assistance on top of the existing federal and state programs.

As a Certified Distressed Property Expert, I am experienced in helping homeowners avoid the negative and long-lasting effects of foreclosure. Contact me today in order to schedule a free no obligation consultation.

Chandler is seeing its first new commercial development project since 2009. Douglas Allred Company, a developer from San Diego broke ground on a 92,109-square-foot, two-story building in the Price Road Corridor. This has been a project in waiting for the past six years, to which the company has finally received funding for.

The new building, Allred Park Place, will join three other office complexes in the area. The company is also buying the former Kuiper Dairy Farm, which consists of 65-acres of land for a different project. Combined, these new projects will bring more than 1 million square feet of new commercial space to the area of Chandler.

This is more great news for Chandler, as it is already one of the few cities where it is possible to both live and work. It has access to both the Loop 101 & 202 freeways, as well as lots of shopping, dining, and entertainment. Now is a great time to purchase either an investment or primary home in Chandler as our inventory has declined 54 percent to a 2 month supply. Days on market are also down from 118 to 89 days. Prices are appreciating, and homes are selling for 97.5% of list price.

Contact us today for more information on how to get started on your next great home!

Over half of all of the homes for sale in the Phoenix Metro Area are distressed. But what does that mean? Are buying these homes even a good idea?

Distressed homes have either gone through foreclosure or are put on the market by the homeowner as a “short sale”. A short sale means that the homeowner can no longer afford to pay the mortgage on their home, and the mortgage is greater than the current market value of the home. The homeowner’s lender then agrees to accept less than the outstanding loan instead of going through the foreclosure process.

These two types of sales are very different from traditional sales – they usually have a lot more paperwork, and in the case of a short sale, a much longer transaction. If you don’t have a qualified agent to represent you, these transactions can potentially be very frustrating. Most buyers will shy away from these sales for the above reasons.

As a Certified Distressed Property Expert, both I and my team are experienced in navigating the potential pitfalls that these types of transactions have. We can help you find some of the best deals in our current market. Regardless if the property is distressed or not, this is an amazing time to buy a home. Incredibly low interest rates combined with low property values will provide you with a great bargain every time.

One of the best advantages of buying a distressed property is that the seller is highly motivated to sell. Banks are looking to remove the liability in the case of a foreclosure and a homeowner in financial trouble will want to get out of a mortgage they can’t afford. These sales are also much less emotional, and won’t be offended if your offer comes in below list price.

That’s not to say that your offer would be accepted – with low inventory, bidding wars are beginning to break out on many of these homes. So if you’re looking for a true “steal”, chances are you aren’t going to find it. Both buyers and investors are looking to take advantage of the great opportunities our market has to offer, so any home in move-in ready condition is going to go quickly.

One of the biggest disadvantages for short sales is their transaction times. Sometimes, it can be difficult to determine who the investor is on the back end of the loan, and there may be two mortgage insurance companies – one on the homeowner’s loan, and another as an additional insurance that the mortgagor provides when multiple notes are bundled together and sold on the secondary market.

A disadvantage to foreclosures is that some of them can be in rough condition. Most foreclosures have been vacant for a while with little-to-no maintenance. The previous owners could also have damaged the property, or taken fixtures from the property. Any renovations to a home can also make buyers uneasy.

With any transaction, it’s critical to have a professional home inspection prior to finalizing your purchase. The AAR Residential Resale contract has a 10 day inspection period for the buyer to unilaterally cancel if there are items that come up in the inspection that they are unwilling or unable to fix. It’s also in the buyer’s best interest to be pre-qualified – offers without one will often not even be considered. The McKinley Group has strong working relationships with several lenders who excel in navigating the difficulties that can arise in distressed property sales, and work on which is the best loan program and rate for you.

There are also a few different types of foreclosures depending on the type of mortgage that the previous homeowner had. If the previous mortgage was an FHA-insured loan, then the US Department of Housing & Urban Development (HUD) is the seller. Only an agent who is registered with HUD, like our buyer’s representatives at The McKinley Group, can present an offer on behalf of their clients. One advantage of HUD homes for primary home buyers is that they have a 30 day restriction on investor offers. A conventional loan can end up with Fannie Mae or Freddie Mac as the seller, who also have a time restriction on investor offers, but their time restriction is only 15 days.

If you’re interested in purchasing a distressed property, be sure to contact us today to get an experienced, knowledgeable, and qualified agent to help you through this process.

In today’s challenging market, there are still plenty of good reasons to sell your home. The following are some good tips in order to help you sell your home quickly and with the least hassle.

Hire A Professional. A challenging market makes it difficult for sellers to be able to sell their home on their own. Hiring a professional who will help with pricing, negotiating contracts, bringing in possible buyers, and marketing your home will get you the best deal available.

Disclose. Do you happen to live near an airport? Was your home built prior to 1978, and as such requires disclosure about lead based paint? Have you ever had a pest infestation? Everything about your current home needs to be disclosed to the buyers – not doing so can get you in trouble.

Be Realistic About Pricing. It’s much better to be realistic about pricing your home initially than having an overpriced home sit on the market for a couple of months before doing a price reduction. Well-priced, new listings are going to receive the most traffic from potential buyers.

Be Less Emotionally Involved. Many sellers attach sentimental value to their homes. Where a seller recalls a treasured memory, a buyer will see something that needs to be updated. This emotional attachment makes it difficult for sellers to make reasonable decisions about their home.

Be Involved. While you’ve hired a professional to help you, understanding the process of selling you home is important. Always make sure to contact your agent if you have any questions or concerns.

Stage Your Home. This is the perfect way for buyers to see the true potential of your home. Most homes don’t need professional staging, so this means that you may have to tone down your personal style and pack away any clutter or extraneous décor.

Don’t Be Inclined to Hover. Many sellers will put a lot of work into staging and getting their home ready to go on the market. They may want to hang around to hear potential buyer’s feedback on their efforts during showings or open houses. Potential buyers find this uncomfortable. Be sure to make yourself scarce during showings of any kind.

Be Ready For Your Next Step. Have you decided to purchase another home? Will you be renting? Make sure to be ready for your next step, as some buyers will need less time to close than others.

Be Flexible. The current market is very challenging for many sellers, which means that you must be open and willing to negotiate on price and terms.

Be Positive. Don’t get discouraged! Work with the feedback you receive from agents and their potential buyers. If you follow these tips, you definitely will find a buyer!

Whether you plan to sell to downsize, avoid foreclosure, follow a job opportunity, or move up, be sure to keep these tips in mind. Contact us today for more tips to ensure a smooth sale of your home!

The Valley has plenty of exciting things planned for our economy in 2012. We’ve finally started to see a turnaround in the housing market, as well as developers and prospective employers returning to the Valley.

In Goodyear, both the Cancer Treatment Centers of America and West Valley Hospital have submitted plans for expansion. As well, construction of a new Dick’s Sporting Goods distribution center will be nearing completion. Dick’s Sporting Goods intends to start hiring new employees in late summer or early fall, and the distribution center will supply Dick’s stores in the West. The city is also noticing decreasing retail vacancies, and an increased amount of new home permits.

In Buckeye, the town is opening its first Park and Ride to help with the commute from Buckeye to Phoenix. The new Park and Ride will be opening on January 23^rd, and is located on the Southwestern corner of Jackrabbit Trail and Palm Lane. The construction of the new fire station in Verrado community is expected to be completed in March, with a grand opening planned for April.

In Tolleson, the city is looking to build its La Entrada development. La Entrada is a $9 million, 5.5 acre cultural and retail center located off of 91^st Avenue and Van Buren.

For the entire West Valley, construction on the next multi-level freeway interchange will begin this year. The interchange will connect the I-10 directly to the Loop 303 near Cotton Lane in Goodyear. The Loop 303 will also be receiving improved six-lane segments between Thompson Road and Grand Avenue. The project is expected to be completed and open to traffic in 2014.

In Mesa, Benedictine University, a private four-year institution, was proud to announce yesterday that it hopes to begin offering classes in downtown Mesa in the fall of 2013. They plan to move into the old Tri-City Service Center building, and then grow to a 1,500-student residential campus by its 10^th year of operations. Establishment for a Mesa campus is pending based on secular and church approval, along with a permit from the Arizona State Board for Private Postsecondary Education. If approved, the move will coincide with the plans for expansion of the light rail, which is expected to begin operating mid-decade.

In Chandler, the developer for the luxury townhomes in San Marcos will start construction on the last phase of the San Marcos Townhomes beginning next month. They will be the same as the first phases built nearly four years ago, but at a much lower price – beginning from the upper $100,000’s as opposed to being sold in the mid $300,000’s. The developer, Desert Viking, also announced plans for more shops, restaurants, and a parking garage in downtown Chandler, after construction on the townhomes are completed.

This news for our local economy means great things for our residential housing market. Low home prices combined with record-low interest rates make any purchase an amazing deal, regardless if your plan is to purchase as a homeowner or as an investor. Rental vacancies are incredibly low and still expected to decrease, and housing will become more desirable as these new development plans bring more life back into our community. Remember, as a full-service real estate brokerage we offer buyer, seller, investor, and property management services. Contact us today for any of your real estate needs!