Mark R. Hardy Short Sale Specialist Realtor Mesa AZ

Now it makes more sense than ever to purchase your first home or invest in real estate vs. renting and making someone else rich!

Here are 3 points where renters are losing money compared to homeowners:

1.  You're missing out on the appreciation that the property gives to the property owner. Appreciation is a term used in accounting relating to the increase in value of an asset, which means in real estate terms, added value to the property. With price so low, over the next 5-10 years, you will be locking in the appreciation of the building as long as the market cooperates.

2.  Renters don't get to freeze their monthly housing expenses like home buyers can. Of course, many home buyers get mortgage payments with adjustable interest rates and their payments go up over time. However, these payments will not go up over the long term like rising rent payments! A fixed rate mortgage in the 3's or 4's - are you kidding me? Those are unbelieve rates and now is the time to lock in an affordable mortgage payment.

3.  Renters don't benefit from tax advantages. Homeowners get income tax deductions. Tax deductions for interest costs, for instance, save tax payers thousands of dollar each and every year.  Buy a home this year and write off the loan origination charges for 2011!

Emotional Satisfaction of Home Ownership

Besides losing out on making money with real estate, renters don't get the same satisfaction of home enjoyment that benefits home buyers. Many landlords won't allow you to paint your walls in colors that you desire. Also, you won't feel like fixing up the property with custom window coverings and you get little say in flooring materials. Because you can't make your personal statement, you won't feel like you're HOME as much as home owners who feel emotionally connected to their property.

As I have practiced real estate, one of the biggest hurdles that would-be buyers cannot seem to overcome is saving enough money to come up with a down payment. With several loan options to choose from, (depending on your credit), FHA and HomePath provide affordable down payment options requiring as little as 3.5% down to purchase a home. People sometimes have this misconception that it requires thousands of dollars for a down payment, but it really does not.  With careful planning and just watching what you spend, those considering a purchase can have the funds saved on in no time at all.

Remember, to add in about $2,000 extra for your loan origination and pre-paids. For example, right now in Mesa if you bought a $75,000 home through an FHA loan and put the minimum down payment required (3.5%), and got the seller to contribue $3,000 towards your closing costs, you would to come up with about $3,800-$4,400 to buy a house.

The average rent for a 1,500 sq ft home, 3 bed, 2 bath in the valley is around $1,150 per month. The same house if purchased, would be $550-$700 per month.

If these amounts sound high (or low) to you, check your local area. Perhaps your monthly rent is only $1,000 and houses cost less than $200,000.

Talk to a mortgage loan officer and see how much of a home you can afford.

If you're renting, make one of your priorities to buy your own home in 2012.

We all have been watching the headlines and watching our 401K and other investment accounts decline in value over the last few weeks. The question is - when will the bleeding stop?



In focus for Monday, 11/28/2011, is the Eurpean Soverign credit ratings - will they be downgraded and lead to future market volatility? Solvency tests will likely occur as these sovereigns wade through the biggest EU banking crisis in a decade.

I don't know about you, but all of this is just too stressful for me.  Meanwhile, in Arizona my own, (as well as my client's), investments in rental property are paying me on time every month (covering all my speculative investments in the stock market and then some) without all of the stress and hype.  See, real estate is much more predictable than the stock market, and for some, it is making more and more sense to move some of their hard-earned retirement money into an asset that will create an income stream for years to come.

With an experienced Realtor, who is also an investor, why not give me a call today and let me help you reach your goals and stop stressing about your stocks and bonds.  Let me show you how to make money while you sleep in real estate by investing in a cash-flow property today!

Yes, I even know how to do it using your 401K and Roth IRA money!

Live in Gilbert? Looking for something fun to do or take the family to on Saturday nights? If so, check out the Copper State Cruisin Car Show in Gilbert, AZ. The car show is on the first Saturday of every month at the Sonic at the corner of Germann and Higley roads from 5-8pm.

Please come out and see all the wonder muscle cars and take yourself back to the best of the 50's, 60's and 70's cars! Find the car below, and come talk to me about your Gilbert real estate needs!

For more information, please go to: http://www.facebook.com/pages/Copper-State-Cruisin/173920319313237?sk=info

Perhaps you heard about the great energy tax credits that were offered a few years ago, but you failed to take advantage of them? Well, the good news is - there are still energy star tax credits available for homeowners to claim in 2011 who either did not at all or only partially claimed one of those tax credits on one of their previous year's tax returns.

Replacing items such as old exterior windors, doors or skylights are a great way to cut costs by saving on your utility energy bill in 2012! In the last few weeks of November, I plan to add insulation to my primary residence - which also qualifies for the deduction.

Believe it or not, over 60% of homes in the U.S. are under-insulated when they are built or that insulation 'settles' and over time does not produce the same energy rating as it did when it was originally installed. As a general rule of thumb, if you don't have 8-10 inches of insulation in your attic, you probably need to add more! Look how easy this guy makes it look:

The credit is 10% of your bill, up to $500 (so total parts and labor could be as much as $5,000 and you could still claim the credit.)

So, if you have not completed your 'honey-do' list for the month of November or December; you better 'check that list twice to see if you have been naughty or nice' on your home energy reduction plan for the year. Have a safe Thanksgiving Holiday and excuse the use of the cliche - I just had to try and make it work!

Please see the IRS YouTube video below for more information; and attention those considering installing solar panels - yes, they may qualify for the energy tax credit as well:

One of the most complicated real estate transactions involves what is called a 'short sale.' A short sale is simply when a seller of a home owes more than their home is currently worth but they are trying to sell it anyway as a way to avoid foreclosure which is much more detrimental to their credit.

For buyers, short sales can often provide a discount to a home that they would otherwise not be able to find and purchase on the market (everything else equal).

However, because the sale of the home is contingent on the bank's final approval of the price and other terms agreed to in the purchase contract; the buyer is often waiting anywhere for 60-120 days or more. Because the seller does not want to lose the buyer after so many days have passed, it is becoming increasinly more common in Arizona Real Estate for the seller to require that half of the buyer's earnest money to be deposited immediately after the seller accepts the offer and become 'non-refundable' for 60 or 90 days.

Earnest money is monies (usually a check) written out to the Title Company to be applied towards the purchase of the home at the close of escrow and is typically 1-2% of the purchase price of the home. What is common is usually a $1000-$2000 earnest money check, and so half of that ($500-$1000) typically becomes non-refundable for the 60 or 90 day period while the seller seeks approval from the bank during a short sale.

So the question then becomes...will I lose my earnest money if the bank counters in a short sale?

No. If the bank counters your initial offer to the seller (who initially accepted the offer before it went to the bank), you will have an opportunity to either accept, reject, or renogotiate your offer if the bank counters your offer at a higher price. Should you decide not to counter the offer from the bank, you can withdraw your offer immediately without losing any of your earnest money even if the counter from the bank occurred before the 60 or 90 day period expired.

This Q & A was just a brief portion of a short sale and these transactions require an expert to represent both the buyer and seller. Please consult a qualified real estate professional to represent you if you are considering either the purchase or sale of a home.

If you have any other short sale questions, please contact me today and I would love the opportunity to work with you.