There are 3 questions a first time homebuyer must ask themselves, as they prepare to buy a home, whether you live in Chandler, AZ or somewhere else.
How much home can I really afford?
When it comes to how much home you can afford, don't forget to include all of your monthly expenses, not just the things you have purchased on credit. This should include things such as groceries, dining out and entertainment, home maintenance, gas, and auto insurance and maintenance to name a few. A good ballpark guideline for first time home buyers is not to spend more than 2.5 times your annual household income on a home.
How much will I need for a down payment?
The minimum down payment required for a loan is 3.5% with a FHA loan. Typical down payments can go up to 6% of the purchase price. If you can afford it, putting 20% down is ideal. You should be able to get a better interest rate, you won't have to pay any mortgage insurance, and you will already have built-in equity. You will also have a lower monthly mortgage payment because of the lower loan amount.
What about money for closing costs?
Don't forget about additional fees for closing costs. Earnest money of 1% is typically required as soon as an offer is made on a home. Other closing costs will range from 2% to 5% of the purchase price. In a buyer's market, it is typical to ask the seller to pay part or all of the closing costs. Other expenses include $300 to $500 for a home inspection and $350 to $450 for a home appraisal. In addition, you will incur moving costs, and need to pay for setting up your new utilities.
Extras:
If you are buying a newer home, you also will have to account for other expenses such as window coverings, applicances such as a refrigerator and/or washer and dryer, and any additional furniture or accessories. Typically if you are moving from an apartment, you will need additional furniture to fill the home. On the exterior, you may need to account for landscaping the front and back yard, or installing any walls or fencing.
If you are a first time home buyer, buying an older home in Chandler AZ, you need to consider the expense of replacing the a/c unit and water heater sooner than you would a newer home. Some things like the dishwasher may need to be replaced, in addition to water faucets and light fixtures. Flooring also may need replacing, and the interior as well as the exterior of the home may need to be painted.
Make sure to answer these 3 questions as a first time home buyer in Chandler, AZ, before you start searching for that perfect home. You may not like learning that you can't afford it.
Why consider buying a Chandler AZ home now? There are many reasons first time home buyers should consider buying a home in today's market. First of all, first time home buyers have the luxury of not having to sell their current home, that most likely would have lost value, before they make an offer on a new home. Secondly, the $8,000 federal tax credit is getting close to expiring, and if you are even considering purchasing a home, why not put another $8,000 in your pocket? 
If that doesn't get you off the fence, then perhaps the next several reasons to buy now may help. There is still a large inventory of homes available (1,307 active Chandler Homes for Sale), home prices have dropped more than 40% over the last year, and interest rates are still very low. As a first time home owner, you also can deduct the cost of your mortgage interest and property taxes. Part of the monthly mortgage you do pay will go towards the equity, and at the same time, the home should appreciate in value over the long term.
When buying a home as a first time home buyer, when should I see a mortgage lender? You should start working with a lender way before you even start looking at homes. Without at least a loan pre-qualification, you, as a first time home home buyer, will not even know how much home you can afford to purchase. This will also let you know where your credit situation is, and whether you can even qualify for lending in this market. I recently wrote a post about what information a lender will need from you to qualify for a loan.
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Contact Troy and Mia Erickson, Realtors®, Terra Solis Realty, LLC. Licensed Residential Realtors® in Arizona at 602-295-6807 for Price Corridor, and Chandler Arizona Real Estate.
You can view all Chandler Real Estate from our website. We know Chandler Arizona Real Estate and we are here to help.
Phoenix Real Estate and East Valley Market Update for August 2009. According to a report by Arizona State University, home resales and foreclosures dropped from July to August, but home resales were much higher than a year ago. Sales of existing single-family homes decreased from 7,300 in July to 5,995 in August. Foreclosures went down from 4,200 in July to 3,085 in August. The total number of resales for August 2009 was still higher than the 4,210 in August of 2008. At the same time, foreclosure sales decreased by over 200 from the 3,295 sold in August of 2008.
The median sales price of existing homes contined to decrease to $138,000, about 29% percent lower than August of 2008 ($193,550). There is still one foreclosure happening for every two home resales. According to ASU Realty Studies Director Jay Butler, a recovery cannot be considered until foreclosures decrease to one in every twenty regular home sales. He also says that investors are still the driving force moving the housing market forward at this time. This will also need to change in order to consider moving towards a normal market.
July is typically the month that starts the slower market season, as sales usually continue to decrease through the end of the year. If the trend continues, and sales start decreasing each month, that could be a sign that the market is returning to normalcy. If foreclosure sales and investors continue to purchase, then we might not see as much of a decline in sales through the end of the year.
| CITY | AUGUST 2009 RESALES | AUGUST 2008 RESALES | AUGUST 2009 MEDIAN | AUGUST 2008 MEDIAN | FORECLOSURE DIFFERENCE JULY TO AUGUST 2009 |
| Phoenix | 1,720 | 1,145 | $85,000 | $156,000 | -360 |
| Chandler | 325 | 320 | $197,500 | $240,000 | -70 |
| Gilbert | 380 | 345 | $200,000 | $232,900 | -25 |
| TOTAL | 5,995 | 4,695 | $138,000 | $193,550 | -1,115 |
Chandler Homes showed an increase of only 5 resale home sales from August 2008 to August 2009. Sales of Chandler foreclosures decreased by 70 from July to August 2009. The median price of Chandler homes dropped $42,500 from August 2008 to August 2009. Gilbert saw an increase of 35 resale home sales from August of 2008. The number of foreclosure sales dropped in Gilbert by 25 from July to August.
These are good trends, as sales of foreclosures are decreasing, while home resales are showing a big increase from the sales in 2008. We will have to see if this trend continues through the rest of the year with the typical seasonal slowdown in sales.
Some other posts I have written about the Phoenix Real Estate Market that might be of interest to you:
Real Estate in Phoenix - The market is turning - Believe it or not
Chandler Homes and Phoenix Area Market Update for February
Maricopa County Comparison of 2008 vs 2007 Resales
Phoenix Year End numbers, Analysis, and Estimates for 2009
Maricopa County Real Estate Year in Review
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Contact Troy and Mia Erickson, Realtors®, Terra Solis Realty, LLC. Licensed Residential Realtors® in Arizona at 602-295-6807 for Phoenix Arizona Real Estate. We are always accepting referrals.
You can view all the Phoenix Real Estate from our website. We know the Phoenix Arizona Real Estate, and we are here to help.
Within the Chandler Price Corridor, there is a new proposed 11-story hotel, conference center and office project. It may be located southeast of Loop 101 and Chandler Boulevard, and will include the city's tallest building. This should be "a signature urban landmark for Chandler, on par with Phoenix' Camelback Esplanade and the downtown Arizona Center", said Chandler Economic Development Director Christine Mackay.
The Plans for Rockefeller Group Chandler 101 will go to a City Council vote September 24th. The proposal is for a 300-room hotel and 65,000-square-foot conference center on the 22-acre site near Chandler Fashion Center. The plan includes at least 725,000 square feet of office space, and 24,000 square feet for restaurants and retail. City Manager Mark Pentz says this project is "exactly what we want to see happen at that intersection . . . a great project for Chandler."
The city's first choice for a conference venue is downtown Chandler, near the San Marcos Resort. The Rockefeller Group Chandler 101 project site is the backup site for the conference center if negotiations for a downtown location fall through. The buildings will be eye-catching and elegant, and the offices will be attractive to financial institutions, law firms, as well as technology-related companies.
The Rockefeller Group Chandler 101 site seems to be a perfect location due to its high traffic, freeway access, proximity to Chandler Fashion Center and Chandler's desirable demographics. "There isn't another site like it in the Southeast Valley," said Mark Singerman, regional director for Rockefeller Group Development Corporation. Christine Mackay goes on to say, "The city is making plans to build pedestrian and bicycle access below the freeway to give the area and urban feel potential office tenants find appealing. It's a beautiful project, absolutely gorgeous and a showcase for Chandler."
The land on the southeast corner of Loop 101 and Chandler Boulevard has been vacant since 2006. It would truly be a spectacular attraction, and destination for business conferences and events, in combination with the Chandler Fashion Center mall.
I discovered this great video that explains how you can qualify for the first time home buyers $8,000 tax credit in Chandler, Arizona.
You can also view the post I wrote for additional information regarding questions about the $8,000 first time homebuyers tax credit.
Home prices in Chandler, AZ are still very reasonable, and so are interest rates. If you are a first time home buyer, what are you waiting for?
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Contact Troy and Mia Erickson, Realtors®, Terra Solis Realty, LLC. Licensed Residential Realtors® in Arizona at 602-295-6807 for Chandler Arizona Real Estate. We are always accepting referrals, and are here to help.
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It's all about quality service with us. We specialize in working with buyers and sellers in Chandler, Gilbert, Queen Creek, Phoenix & East Valley. We are here to help, advise, and answer questions.
Mia and I have lived in Chandler for 12 fantastic years. We have 2 wonderful children who make life worth living. Our daughter is 22, and is still trying to figure out what she wants to be in life. She has been going to Chandler/Gilbert Community College, and is in the process of applying for beauty school. She has been singing in Choir since I don't know when, and was singing with the Chandler/Gilbert Choi
r the past two years. Our son is 9, going on 25. He wears a men's size 9 shoe! He is your typical boy who loves to be active. He has tried everything from Gymnastics, to BMX biking, to flag football, and he is currently trying out Club Soccer to bring out the competitive side of him. We just recently had a new addition to our family, a boxer puppy. We named her Gracie. We got her this past Easter, and we love her to death.
Prior to moving to Arizona, I lived in many states throughout the country, as well as Okinawa. My father was in the military, and we lived in Florida, Idaho, and Kansas (to name a few places), before moving back to Oregon when I was in the fifth grade. I guess you could say I knew a lot about being the new kid in school. Mia had lived in Oregon her whole life. Her father was an educator, and her mother worked for the post office before they both retired. She, however, had traveled extensively, including trips to Japan and Costa Rica. We both come from households with great work ethic and good family values.
In our spare time, we love activities, whether it is riding quads or jet skiing in 
Lake Havasu, attending Broadway shows and sporting events, or visiting new places like Bisbee and Jerome, AZ. We enjoy spending time with our families, and try to get together as often as possible. I especially like to play softball, as I am too old to participate in just about any other sport (The knees are giving out on me). Mia loves to create things, as she designs her own jewelry, and can be very artistic when she has the time. She can also create a meal out of nothing in less than 10 minutes, and that's an art all in itself. Mia is also fluent in Spanish, which has come in very handy with our trips to Ensenada, Costa Rica, and Cabo San Lucas.
We are very civic minded individuals as well, and at one time or another have both worked for County and/or City Government. Mia has also been on the Board for the school PTO, as well as a volunteer for the Special Olympics, and Hands Across The Border. I have been a youth sports coach and official for so many years, I can't remember how many. We have also served on Youth Councils, the Little League Board, volunteered for the United Way and the City of Chandler Youth Enhancement Program. We believe in giving back to our community, and that it really does take a village to raise great children.
We are Residential Real Estate experts in the East Valley, and we focus on neighborhoods in Chandler, Gilbert, Mesa, Queen Creek, Tempe, Scottsdale, as well as other cities within Maricopa County. My wife and I have been in Real Estate for over 7 years, and we enjoy the opportunity we have to work together to help others. Whether it is buying your first home, investing, or helping you sell your home so you can move, we are here to help, and available 24/7.
I have an additional 15 years experience in finance and accounting (including 3 years as a Loan Officer), and Mia has 10 years in corporate business, and another 10 in the public sector. Mia, at an earlier time in her life was an EMT4, riding around in Ambulances saving people's lives. Mia is fluent in Spanish as mentioned above. We are all about service, and together our experience and skill set are second to none.
We got into the Real Estate industry to help people. There have been many ups and downs in the real estate market (as to be expected), and we have stayed true to ourselves and our clients. Whether it is a buyers market or a sellers market, we do what's best for our clients, and we always offer our dedication, expertise, and full service.
Mia and I hold memberships with NAR, National Association of REALTORS®, AAR, Arizona Association of REALTORS®, and SEVRAR, South East Valley Association of REALTORS®, and are members of the Chandler Chamber of Commerce. Please visit our websites at http://troyandmiaerickson.point2agent.com and www.arizonarealestatehometeam.com. We are in the process of enhancing our websites, so please stay tuned.
Sheila Kofahl is our Designated Broker for Terra Solis Realty, LLC. She has over 13 years in the industry, is part of our team, and she holds the prestigious CRS, Certified Residential Specialist, the GRI, Graduate REALTOR® Institute, the ABR, Accredited Buyer Representative designation, and the e-PRO certification.
In addition to this, we only work with the best in the industry when it comes to home inspectors, lenders, appraisers, title companies, and home warranty companies. We want to work only with businesses that have the same integrity, values and morals that we have, and people who are the best at what they do.
Just a note of thanks for all of your hard work and patience. I know that it wasn't easy to get us into a house, but your efforts have made us feel that you care about what's best for us and not your respective careers. If you continue to do your jobs this way - there is no doubt you will find great success. Thanks Again! - Mark & Elaine Foster
Troy Erickson handled my mortgage refinance loan and provided very good service. Upon learning of my desires to refinance, he kept me posted on interest rate levels. I compared his rates against a few other banks and mortgage brokers, and found them to be quite competitive. Troy made himself available at all times to answer my questions and was very quick to follow up. He is an extremely honest individual whom I can trust, and he goes to great length to deliver good service. - Shari Fujii
Hello we are Daniel Maples and Brianna Joyner. Let us start out by saying that we love our new home and you could too! We were desperate to find a house in less than a month and received a number through a close friend. Our friend had told us these guys were great, just give them a call. This number that was given to us was the number for Troy and Mia Erickson. We needed a house fast, so we called them and they told us they could get it done. We gave them our criteria for what we were looking for in our new house. They were very thorough in their search for our perfect home! We were given a list of homes to pick what we would like to go and look at with them. We made a selection and shortly after we went to look at them....and found this big beauty. It was exactly what were wanted and so much more. We were told that Troy and Mia were great realtors, and now we can say that they are GREAT realtors! You can rely and trust them in the stressful situations while moving. You have plenty of things that you need to worry about when moving, let them help you by taking the most important thing off your shoulders...finding your new home! - Daniel Maples & Brianna Joyner
More references and testimonials available upon request.
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