From Our Blog

Short Sale Strategies – Part 1

Just about everyone has heard of short sales by now but our office still fields questions about them regularly. If you’ve been facing financial difficulties and are unable to continue paying your mortgage, a short sale may salvage your credit by keeping your home out of foreclosure. Put simply, a short sale is when a house sells for less than is owed to the lender. The seller can no longer afford the payments and thus, cannot afford to pay the difference between what they owe and a lesser sales price. The lender must agree to this loss, reports the loan as “satisfied” to the credit bureaus and releases its lien [...] read more

Pricing Your Home For A Fast Sale

Since the housing market crash and decline on Wall Street, Paradise Valley average home values have plummeted approximately 40% from their high. Scottsdale averages have seen a 34% decline over the same time period. Our office has quite a few listings that came to us after languishing on the market for a year or two, hoping to attract a buyer willing to pay the prices of yesteryear. Sadly, if you know home sellers that price their property while saying things like “I need to get…” or “But I paid…” and their home still hasn’t sold, these sellers are likely ignoring the reality of the market. The biggest danger of not [...] read more

Credit Impact of a Short Sale

Upon hearing that a seller may have to short-sale their home, the next question is always: “But what will it do to my credit?” The answer is: It depends, and anyone that claims to have a one-size-fi ts-all answer simply doesn’t know the intricacies of the process. In some fortunate instances, a short sale will have no effect on your credit rating. This is a decision based on the lender currently holding the debt and the circumstances of your situation. We can help negotiate a short sale for you, and if the lender agrees, they can simply report the debt as “satisfi ed” to the credit bureaus. While that is [...] read more

By The Numbers … Distressed Properties

Paradise Valley The latest figures released for Paradise Valley indicate that nearly half of all sold properties are either bank owned or in pre-foreclosure (short sales). Yet even combined, bank owned and short sale homes account for less than a quarter of the Town’s active listings. Further analysis reveals that bank owned properties are a mere 5% of the active market but make up 27% of closed sales. This ratio of listed to sold for bank owned properties shouldn’t be surprising. As banks are forced to firesell their inventory at rock-bottom pricing they are attracting buyers looking for a good value. However, if individual sellers are going to compete in [...] read more

Capitalizing in a Down Market

Some good news! While it is a challenging time to sell a home, I’ve never seen as many incredible bargains available. If you are looking to move up, excellent opportunities await the discerning buyer. The math is fairly straightforward, but will require some effort to sell your current home while looking for a deal in pricier neighborhoods. In the luxury market, a quick estimation places the decline at around 40%. Let’s say you purchased your home at the height of the market for $3 million. Currently it might sell for around $1.8 million. But a home that was $7 million at the height of the market could be had for [...] read more

Buying After A Shortsale

Now that credit markets have tightened and formerly well-qualified buyers are being turned away by lenders, people looking to purchase again after short-selling their home are wondering just what it takes to get a loan. “The focus should be on restoration of their credit,” says Dan Hrey, a lender with Bank of America. “A short sale can shave 100 points off of a person’s score and it typically isn’t the only credit issue that we need to work through,” he says, referencing late credit card or auto loan payments that he often sees on a short seller’s credit history. In our luxury market where jumbo loans (those over $417,000) are [...] read more