“Phoenix’s Innovation and Efficiency efforts are leading the way nationally,” said Mayor Greg Stanton. “As a leader of the city, I get my best ideas from listening to people. We want to put as many of the city’s best ideas forward as possible.”

This deserves a huge round of applause!

The Innovation and Efficiency Task Force went to work January 2010, with private sector members and city executives serving together. Ideas flow through the Task Force to a subcommittee and then to the full City Council. In this excellent 10-minute video the City Celebrates $59 million in Innovation and Efficiency Savings (with numerous specific examples) and announces a $100 million Goal.

“The leadership from Mayor Stanton and Councilman Gates, the full City Council, our Task Force members and hard work from city staff have created a culture of innovation,”said City Manager and Task Force creator, David Cavazos. “Innovative ideas and sound financial management are at the heart of what we do here at the city of Phoenix, and we will continue to find new ideas and solutions.”

Marty Schultz, Task Force Member, and Senior Policy Dir. Brownstein/Hyatt/Farber/Schrek had this to say about the people in the private sector who are involved:

“They are actually very smart people who have finance backgrounds, service backgrounds, and management backgrounds, and have been able to work closely with the city staff.”

This brings to mind a string of programs Mayor Stanton and the city have initiated: In June, I told you about the unveiling of “Go Green Like Your Grocer”, a community energy efficiency showcased at AJ’s Fine Foods; in August, the innovate community-engaging website ‘My Plan Phx’ opened an opportunity for residents to help shape the future of the city through participation in updating the city’s General Plan (Conserve Create ConnectPHX), and planning for the communities along the light rail line (ReinventPHX). This short 1:30 video gives a good idea of what My Plan PHX is all about.

As a former State Legislator and the former state Energy Office Director, I have a strong understanding of energy efficiency in homes. I participated in Energize Phoenix on my property in Garfield, as have many others. That’s a significant bonus when people work with me as their agent. Of the two homes I’ve renovated in Central Phoenix, I did the Energize Phoenix program on my 1925 Arts and Crafts Bungalow. (The other home is a 1948 “war baby” tract home). I understand the attractions and challenges of old homes, as well as how to identify quality new homes. So, please let me know if I can apply my experience to help you buy or sell an energy efficient home in Phoenix.

 [innovation image: seth1492][usa image: Kyle McDonald]

Let me tell you a few reasons why I think my new listing on Roosevelt and 10th Ave is a great opportunity.

1) It is a short sale and very well priced. There are so few short sales left. That’s good, but it also means fewer chances to get some great deals.

2) It is very close to all the great things downtown. It is close to Grand Ave. galleries and Roosevelt Row, as well as one of my favorite places to appease my sweet tooth: Treehouse Bakery.

3) It has a garage, which is rare downtown.

4) The owner did a lot of work on the kitchen, which you get to benefit from. Oh, and the wood floors look great.

5) There are two rooms, each of which has its own little den. That’s perfect for first time home buyers or renters.

This home is only $135,000 –or whatever we convince the bank to take!

Please give me call if you’d like to see it at 602-456-9388.

The next time you are around Copper Star Coffee or one of the other locally owned gems on 7th Ave, swing in to the Woodlea Historic Neighborhood and see the my listing at 1109 W. MacKenzie.

Or, you can touch on this link to see the listing right now.

This is truly great renovation. Check out the “before” picture, below. The owners made it their goal to retain and respect the historic qualities of this 1,445 square foot, 3br/1.75ba home on a double lot of land. When you make an offer on this house you actually have to write in the sale of two lots. This is a great big space in an established CenPho historic neighborhood. 

The owners kept the original marble honeycomb tile and flat subway tile in the kitchen and bathroom. They also completely renovated the wood floors and kept the original kitchen vent hood for a touch of historic charm. 

They made detached garage operable again by rebuilding much of the structure. They added fixtures and features throughout the house, but also added new touches like an expanded master bathroom, a 21-SEER air conditioner in the master addition, a patio sitting area. They also re-built the front porch over-hang. Other modern touches include the 6-burner stainless steel stove and recessed lighting.

I was hosting our first open house last week and the neighbors were thrilled with the work that had been done. You will be, too.

I used to live in this neighborhood and I can tell you it is a great place to live, with wonderful people and easy access around town.

Please give me a call at 602-456-9388 to see the home.

==========Pre-renovation Photo===========

If you owe a debt to someone and they cancel or forgive that debt, the canceled amount may be taxable. Same goes for mortgage debts. Hence, the creation in 2007 of the Mortgage Debt Forgiveness Relief Act. The IRS explains the concept surprisingly well. This act expires in 96 days, the end of this year, after the holidays; much sooner than you realize.

People have been opining this whole year about the possible extension of the $1 billion mortgage debt forgiveness relief provision at the end of the year. I’ve been hearing the following:

“Should I short sell before the end of the year?”

“Can I count on the hopeful January 1 extension?”

“The $1 billion mortgage debt relief provision allows me to avoid paying taxes on mortgage debt forgiven by my lender, but it expires at the end of the year! My chance to short sell and still seek tax relief is disappearing quickly!”

“But I hear these holiday months aren’t as slow as one might think. Oh, no! I’m almost out of time to avoid the tax repercussions of selling my home short!”

Let’s be clear on what the act does.

The 2007 Mortgage Debt Relief Act allows taxpayers to exclude up to $2 million of forgiven debt on their principal residence in calendar years 2007 through 2012. With one caveat: The discharge of debt must be directly related to the decline in the residence’s value or in the financial condition of the taxpayer.

The Mortgage Forgiveness Debt Relief Act was originally going to expire at the end of 2010, but lawmakers decided to extend it until the end of 2012. If it does expire, anyone who receives mortgage forgiveness on day one of 2013, or after that, will have to face paying income tax on a forgiven debt.

Isn’t it in the President’s budget?
Didn’t it pass the committee level in the Senate?

Yes/But… We don’t know the outcome of the election in November and nothing is moving in Congress for the next 6 weeks. This time bomb very likely won’t be voted on before the end of the year, what with their attention consumed with the nation’s budget crisis.

Furthermore, given that it takes 3 to 6 months to close on a short sale…Are you really willing to take the risk that the act will be extended?

What’s the bottom line?

List now and be more certain that you will avoid that tax liability. I strongly advise you consult with a tax attorney!

[referee photo: compujeremy] [house photo: surprise truck]

As the summer begins to tease us with signs of fading out–the sky is overcast and the rain is supposed to continue for the next week or so, I find myself thinking about the end of the year. Specifically, I think about how the older realtors always talk about the “slow months” –November through January.

Now, I’m no old hand, but I’m not that new and I can tell you that last Halloween through New Year’s was all work for me in the real estate business.

As the story goes, people stop buying or selling houses because the holidays just creep up on them and they get distracted. The common wisdom says that the market slows down after the summer and then maybe you may be able to negotiate a better deal during the holidays and Christmas. But that has not been the case the last two years.

If you look at previous years (see below), you will see that this is generally true; especially around Thanksgiving. In the first chart below you will see the last nine years. Some of them drop off drastically, but come back around February. In the second chart you will see 2004 and 2005 compared to 2010 and 2011. In ’10 and ’11 there was a little drop around November, but then we just picked right up again.

In other words, don’t assume that the end of the year is going to be slow!

The take away?

First: Don’t assume the end of the year is going to be slow. Whether you are selling or buying, take advantage of the active market.

Second, it’s been hectic the last two years. We have every reason to believe it’s going to be hectic this year, too.

And by the way, if you’re thinking to short sale, you’re running out of time if you want to avoid the tax repercussions of selling your home short. Please see this article and learn how the Mortgage Forgiveness Debt Relief Act allows you to avoid paying taxes on mortgage debt forgiven by your lender. This act runs out at the end of this year.

This is part two of my little analysis of what you might want to consider when deciding between a house and a condo. So, let’s get right in to it.

1.      Gated security may be just what you’re looking for right now.

Perhaps you are living alone. Perhaps you like to know that there are people right next door. These are all legitimate concerns that condominiums (at least the good ones) seek to address.

Some questions to consider regarding security at condos:

• How careful is the management company with the common area keys or codes?
• Is the common are well-lit?
• Is the HOA paying for any live security? If so, how much does that impact the monthly assessments?
• When you look at the condo, does it look like the other condo dwellers take security seriously?

2.      Condos are often close to public transportation (the car-free life!)

One of the best things about urban dwelling is that you can leave that car in the garage, or just go without it completely.

Some things to consider when you’re looking for a condo:

• Some condos used to be apartment buildings and the parking may not always protect your car from the sun and weather while you are taking the light rail to work every day.
• The closer your condominium is to public transportation, the more likely that your condo will eventually sell for more.
• If you are thinking of the car-free lifestyle, also consider whether amenities such as groceries, the dry cleaners, and coffee shops are near-by.

3.      Condos maintain all the goodies: pools, landscaping, general maintenance.

 Especially on those hot summer days, it’s a great relief not to have to maintain your own landscaping, or pay somebody else to do it. This is especially helpful if the condo has a pool. Maintaining a pool at a detached residence house can cost thousands every year, and you may not even use it 10% of the time!

Some things to ask yourself before you buy a condominium**:

• Is the current HOA solvent? Do they have enough to properly maintain all of the features they promise when you buy?
• Who manages the property? Many HOA’s pay a management company to take care of details such as landscaping contracts and maintenance.
• How long has that company been working? How many properties do they maintain? What do the current residents think of their work?

** You can have a chance to ask these questions during the inspection period.

 4.      What is an assessment and what is expected of you in an HOA?

An assessment is a monthly fee on every unit in condo that goes in to a pot to pay to keep the place up. If you don’t pay your assessments, the HOA can record a lien against your property. If you have a lien against your property, you can’t finalize the sale of your condo to another person without paying off that lien.

The more units vacant in a condominium, the harder it is for the HOA to pay the bills.

Also, if there are outstanding big projects or maintenance issues on the condominium, or if the HOA board is not wise with its money (your money!), your assessment might go up every month.

Learn what you can about the HOA board, before you purchase a condominium.

5.      What is a CC&R?

CC&R means “Covenants, Conditions, and Restrictions”. It means, basically, that all of the people in a Home Owner’s Association agree that their property came with (and will go with, in the future) certain conditions and restrictions.

In other words, condo owners can’t just do anything they want with their condo.

CC&R’s outline everything from how often the board meets, to what is considered common property.

When you buy a condominium, inspecting the CC&R before your purchase is just as important as inspecting the condo’s wiring!

If you are part of an HOA, read what is expected of you in the CC&R’s. The best way to protect your investment is to stay involved in the HOA.

For those looking to relieve some pressure from the uncertainty of when to swing their buy-it-now bat and make contact with the house-ball, the number of listings  are creeping up again, wouldn’t you know it. (See the brown line in the “Monthly Average Sales Price” chart below).

Why is that, you ask?

Which is better:

The freedom of a condo? Or the land value of a house? You’ve found the area where you want to live. You have your financing arranged. But, you are stuck.

[Image:davecito]

This week and next I’ll be sharing some ideas to help you sort it all out by comparing the pro’s and con’s of each option. Today, I’m going to focus on the bonus features of a detached, residential house. (If you’re leaving toward a condo, you’ll want to read this, though, as you’ll get advice, too, since I’ll be comparing the two options.)

1.   The land Will Never Go Away

90% of all millionaires become so through owning real estate.”
~ Andrew Carnegie

Let’s face it. Buildings fall down.

But unless you live on an island in the Mississippi, your land will probably not go away.

This is a drawback for condominiums. Although many are built to last, some have been thrown up so quickly in recent years, they may not last 30 years.

Ask yourself this question:

Which is more important to me at this time in my life: being free from yard and home maintenance or buying something that I will have 20 years from now?”

[image: PrimeImageMedia.com]

2.   No Shared Walls

In a condo development, you may hear your neighbors. If you are the kind of person who does not like to see the same neighbors almost every day in close proximity, you may consider a house.

You can build a privacy wall or grow bushes around your home. Your back yard can be a fantastic get-away.

Ask yourself this question:

Do I enjoy the sense of community that I can have by sharing a common living area. Or, do I prefer more space that I can call just my own?”

How much more are you willing to pay for that luxury?

3.  Greater Flexibility to Improve and Remodel

Most condominiums, if built with block construction, give you some flexibility to re-arrange inside. You may be able to remove some walls and expand rooms.

However, once you start talking about windows, balconies, and patios, the restrictions begin to pile on.

If you have a house, you can go crazy repainting, adding features, and personalizing your home.

However, you must still adhere to city code for things like wall height and that massive Trojan Horse water slide you are planning to build in the back yard.

Get to know and love these two links:

City of Phoenix Historic Preservation

City of Phoenix Residential Building Permits

4.  Your Property Value is Tied to the Success of Neighbors

In a condominium, all owners pay into a fund that maintains the common property, including landscaping and insurance for things that owners share, such as walls and a roof.

In a house, you don’t have to pay these monthly assessments. But, then again, you have very little power over your neighbor, who has decided to park a massive pink RV between your two homes.

Or, if your neighbors don’t take crime prevention seriously, will your neighborhood likely improve or decline?

Ask yourself this question:

Am I willing to spend the time volunteering with the neighborhood association in order to protect my property value?”

Hint: You will want to ask a similar question for condos.

5.  Keeping Up Appearances

People often talk about keeping up appearances in the negative, as if it is all about superficiality.

But in a neighborhood, keeping the street looking good has a very direct impact on your property value.

If you are inclined toward a condominium because you don’t have to mow the lawn, consider this:

• The Average HOA Assessment = $200/month
• Average gardener = $100/month

6.  Other Things to Consider with Houses

Growth potential tends to be higher.

Condo boards politics can be tricky.

Houses are more adaptable for growing a family.

Always meet the neighbors before you buy, as part of your inspection period.

Kenneth “Ken” Clark
REALTOR(r)
At Your Service!
HomeSmart
(602) 561-5881
Ken@GetYourPHX.com

 

Nobody has any idea. But I predict that, while it won’t be as dramatic as our last, it may go on for a while.

Here’s the analysis:

After the presidential elections in November, regardless of the winner,  prices will continue to move upward. How do I know this? And why does this sound like a weather report prediction?

It’s because the coming change in home-buying patterns is showing evidence of a refreshing rain moving our way. After a six-year long summer of dry, cloudless skies, we’re beginning to smell the change in the air. A break from the scorching heat is a ‘comin.

To say it without the weather analogy, the increase in buying will continue, in part because a lot of companies are holding off on major projects and hiring until after the elections’ fallout. However, that upswing won’t be dramatic because our national debt and energy prices will continue to be a drag on our economy.

In regards to prices, we don’t see where new inventory in our Phoenix market will come from, especially in CenPho. Tight inventory means higher prices.

Mark Zandy, one of the nation’s preeminent housing analysts was on the Diane Rems Show yesterday morning talking about prices and how they are continuing to move upward as distressed properties are going away.

In Phoenix house prices have gone up 30% from last year. Yes 30%.

Take a look at the graph below, showing the Monthly Average Sales Price Per Square Foot. You can’t see the wind, but you can tell how and where it’s moving by watching the things it affects.

This chart shows a snapshot of four years worth of housing prices on the move. The brown line on top, the one with the greatest upward spiking is 2012.

My expert conclusion?

The heat is unbearable and so many people are walking around with sunburned proof of the long, hot summer. If you’re thinking of buying, make your move and buy now.

I want to say this very clearly: while prices will be going up for the foreseeable future, they won’t return to 2007 levels for years. So, if you are thinking to BUY, do it now before you lose another 30% of your buying power. If you think you want to hold off SELLING until you hit 2008 prices again, don’t expect to see that again until 2020.

If you want more information, please contact me at 602-456-9388.

Houses are being scooped up really quickly right now.  This is no exaggeration: good homes are selling within 24-48 hours now. I’ve seen how frustrating it’s been for some of my clients when they don’t get the properties they offered on.

So… Here are five things that I am asking my clients to do to increase there chances of getting the property that they want. (There are other things, but I can’t give away all my trade secrets!)

1.  Check MLS in the evening, rather than the morning.

Most agents don’t get up early and post new listings. They do it at night. I try to check for new listings in the evening for this reason. If you see something you like, shoot your Realtor an email.

2.   Look closely at the neighborhood on the Internet before visiting the property.

If you are looking at one property in a neighborhood you don’t like, you might miss another property that you do like. So, let’s use the Internet to our advantage. Type the address of the property in to Google Street View and have a look around. We agents already have an opinion of the neighborhoods that we know. But we can’t always predict what you like.

3.  View the property within hours of identifying it, not days.

My “Get Your PHX Team” is adapting to the market conditions. When a property comes on that one of my clients wants to see, the member of our team who is available immediately will try to get them in to see the property, quickly.

4. Have your prequalifcation letter or proof of funds ready.

Realtors cannot show properties unless the buyer has all their financing sorted out. In this market, we need to make decisions in hours. Further, sellers want to verify the buyer’s purchase method. So, everything has to be ready to go.

5. Print/Scan/Fax

These days, we are allowed to sign contracts, then scan or fax them. For this reason, I have my team carry blank contracts to a property in case a buyer wants to make the offer immediately. However, if we don’t write a contract on the spot, we may need the buyer to print/sign/return documents quickly. If a buyer doesn’t have this capability at their office or home, it’s important for them to let us know before we view properties.

The rush that we Realtors feel in this market is frustrating. We understand that nobody likes to feel pressured. Yet, we want the buyer to get what they need and we sincerely appreciate their patience and accommodations. By doing these five things, we are more competitive in getting buyers the property they want.

[image: woodleywonderworks]