Phoenix Homes for Sale

FHA mortgage insurance premiums are rising

adminphoenix — Sat, 10 Mar 2012 00:54:41 +0000

The Federal Housing Administration (FHA) is a United States government agency created in the 30′s to insure home loans. They charge an up front mortgage insurance premium to offset the costs associated with running the agency and to cover losses from loan defaults. For years the premium has been 1% of the loan amount but that will soon change. Starting April 1, 2012 the amount will increase to 1.75% increasing the average borrower’s monthly mortgage payment approximately five dollars.

This small change is not severe enough to “price” borrowers out of the market but it is a true increase in FHA mortgage expenses and if someone is planning on buying a home in today’s market it would benefit them to find one before the deadline. Borrower’s don’t have to close on their home before April 1st, 2012 but they must have a FHA case number assigned to their file before then otherwise they will be subject to the mortgage insurance premium increase.

If you have questions about the material contained in this article or other real estate subjects, email info@phoenixhousehube.com

Phoenix House Hub provides exceptional real estate brokerage and property management services. For help, email info@phoenixhousehube.com

Warren Buffet and rental homes

adminphoenix — Thu, 08 Mar 2012 17:49:52 +0000

Warren Buffet was asked again about his eventual successor as chief executive officer at Berkshire Hathaway. Although he provided no more information on the matter than he has in the past, he did discuss his top stock picks and said that the only investment opportunity that he currently liked better than stocks was housing. “It’s a very attractive asset class right now,” said Buffet, adding he would be happy to buy thousands of houses and take out low-rate 30-year mortgages on them if there was an efficient way to manage such a portfolio.

If you are reading this post on my website or media feed, I am confident that you are not a mega financial elite like Warren Buffet. But that isn’t the point. The point is that Buffet, one of the world’s most beloved investment tycoons and “American Dream” success stories, just shared with you an investment tip, INVEST IN RENTAL REAL ESTATE. So ask yourself, “how could his advice help you advance your financial success and achieve your investment goals”?

Rental properties in Phoenix are a bargain and interest rates are at historical lows. Now is the time to participate in what is perhaps a lifetime opportunity to acquire income property that will both cash flow today and appreciate in the future. Phoenix House Hub provides exceptional real estate brokerage and property management services. So act on Buffet’s tip and begin investing in rental homes today by calling 480-221-5449. info@PhoenixHouseHub.com or site PhoenixHouseHub

More details regarding Government refinance program H.A.R.P.

adminphoenix — Thu, 17 Nov 2011 18:43:40 +0000

The government has now released more details on their Home Affordable Refinance Program which is designed to allow more homeowners lower their monthly mortgage payments by taking advantage of low interest rates. The program is focused on helping homeowners that are current on their mortgage payments but are “upside down” owing more on their home than the current market value. Without this program there is little hope for these individuals to obtain the much needed refinancing and financial relief.

Here are some more details about the changes coming to HARP:

1. Borrowers must be current on their loan and have no delinquencies in the last six months. A borrower can be 30 days late, however, on one payment in months seven to 12 of the past year. Borrowers much have 20 percent or less of equity in their homes to participate.
2. Loans must be owned or guaranteed by Fannie Mae or Freddie Mac before May 31, 2009. Borrowers can see if Fannie Mae or Freddie Mac backs their mortgage by visiting www.freddiemac.com/mymortgage or wwww.fanniemae.com/loanlookup.
3. The revamped HARP program will begin Dec. 1, 2011, and run until Dec. 31, 2013. Participating in the program is voluntary for lenders.

To see more details on this program you can review my previous post on the program.

If you have questions about this program or want to refinance your underwater home, contact Royce Munroe at 480-221-5449 or Royce@PhoenixHouseHub.com

Fed properties hit the auction block.

adminphoenix — Thu, 17 Nov 2011 16:59:00 +0000

In an effort to curb costs the federal government is disposing of unneeded property including real estate. The President’s goal is to realize $3 billion in savings by October of 2012.

I looked over the site and saw some interesting items listed including a desert home in Ajo, Arizona that had a bid of $50, yes fifty dollars. The properties available are broad and have included vacant land, residential homes, warehouses, and even historic lighthouses. To review the properties available and possibly bid, visit the U.S. General Services Administration website for more information at http://realestatesales.gov

If you have questions about this program or Phoenix real estate, contact Royce Munroe at 480-221-5449 or Royce@PhoenixHouseHub.com

New refinance help for “underwater” homeowners

adminphoenix — Fri, 04 Nov 2011 22:06:48 +0000

If you own a home that is valued less than owed and you have stayed current with your payments then new program changes to the Home Affordable Refinance Program (HARP) may be of interest. Complete program details are not anticipated until November 15th, 2011 and operational availability with lenders until later in December. For now we know the following:

1. There is no limit to the loan to value ratio (it was previously maxed at 125%) as long as the loan is backed by Fannie Mae or Freddie Mac.
2. A full appraisal will not be required in all cases (not sure why this matters). Automatic valuations may be used in some situations.
3. Supposedly mortgage insurance providers have agreed to transfer coverage to the new loan. This is significant since previously homeowners with mortgages carrying mortgage insurance were not eligible for HARP benefits.

Unfortunately the cut-off dates for eligibility remain unchanged so if your loan was taken in June of 2009 or later you are still ineligible for the HARP program and it’s most recent changes.

If you have questions about this program or want to refinance your underwater home, contact Royce Munroe at 480-221-5449 or Royce@PhoenixHouseHub.com

10 ways to prep your home for sale using P90X

adminphoenix — Sat, 22 Oct 2011 20:59:47 +0000

By now you’ve seen the television commercials for P90X, right? Tony Horton and his sculpted comrades do endless pull-ups on the screen while you decide whether to order the DVD’s and change your physique or switch the channel and maintain status quo. Regardless of your fitness goals, if you plan on selling a personal residence then you need to follow the P90X motto – Decide. Commit. Succeed. Selling your home is an emotionally complex decision and unless you prepare properly the process will be inefficient and will not produce the results you are seeking. Follow these simple steps and you will realize home selling success.

1. Decide to disassociate yourself from your home.
• Say to yourself, “This is no longer my home – it is a house for sale much like a product on the shelf of a store.
• Let go of your attachment to the house and embrace the concept that in the near future it will no longer be your home.
• Envision yourself signing closing documents finalizing the sale and passing keys to the new owner.
• Say farewell to each room.
• Don’t look back rather forward with resolve.

2. Commit by de-personalizing your home.
• Walls and surface spaces covered with family photographs or heirlooms are a distraction to homebuyers. Pack these items so they can focus on your home and imagine themselves living there.

3. Commit by de-cluttering your home. Repeatedly ask yourself this question, “Have I used this item in the last year?” If not, you probably don’t need it.
• Be quick to donate or throw out.
• Clear your kitchen countertops and appliances of everything.
• Reduce the number of books on the shelves.
• Consider this process as a head start on the eventual pack-up.

4. Succeed by wowing buyers with organization. A neat home exudes a strong message of order and good repair.
• Alphabetize spice jars and neatly stack dishes.
• Reduce and organize the number of items stored in the pantry.
• Hang shirts buttoned and facing the same direction. Line up shoes.
• Pack up clothing that won’t be used during the current season.

5. Succeed by renting a storage unit.
• Less furniture in your home means more space for buyers to move about freely allowing them to envision their own furniture instead.

6. Succeed by removing or replacing items you will not leave.
• People want what they can’t have so store your inherited chandelier and hang the new one long before the buyer arrives and gets greedy.

7. Succeed by repairing minor items now.
• Service leaky faucets, toilets, and shower heads.
• Fix broken locks, doors, windows and drawers.
• Patch holes and repaint walls with neutral colors.

8. Succeed by making your home shine.
• Wash windows inside and out. Clean tracks and remove sunscreens.
• Re-caulk tubs and showers.
• Clean out the fridge and deep clean all kitchen appliances.
• Polish all metallic fixtures and mirrors.
• Frequently vacuum, dust, polish, and wax.
• Steam clean carpet, scrub grout, and replace air filters.

9. Succeed by scrutinizing your home’s interior show appeal.
• Stand in the front doorway. Does the home welcome you?
• Enter each room and be certain that it presents exceptionally well.
• Does the home appear that no one lives there? If so, perfect!

10. Succeed by gauging your home’s curb appeal. First impressions are everything and if a buyer won’t get out of the car, you’re sunk.
• Keep sidewalks swept and clear.
• Lawns, plants, and trees must be trim, green and clean.
• House numbers must be obvious and legible.
• The front door along with doorknob, doorbell, and doormat must all work and be clean and inviting.

Upon completion of these 10 steps for preparing your home for sale you may be exhausted (Man oh man a Chevy – where’s my little bucket?). If so, don’t dismay because your hard work will be rewarded. Soon enough you will be proudly showing off your impressive home to buyers like Tony Horton flaunting his chiseled abs. Selling your home quickly and for top dollar is key so making these changes will help you appeal to buyers and receive maximum offers.

To buy or sell real estate in the Phoenix area, contact Royce Munroe #480-221-5449.

Top 10 homebuyer turnoffs

adminphoenix — Sat, 22 Oct 2011 20:34:40 +0000

If you want to sell your home then avoid these mistakes. When homebuyers are faced with one of these problems, they will most likely cut their visit short and eliminate your home from their consideration.

1. Odor – cigarette smoke and pet odor are sure ways to send buyers to the next house quickly. When it comes to odor you must eradicate vs. mask.

2. Excited dogs – Skippy can frighten or irritate potential buyers. Ideally he’s gone while the home is being shown. Merely kenneling or blockading certain rooms can annoy homebuyers…especially if there’s barking.

3. Dirty bathrooms – clean, scrub, and maybe repaint. Consider a new rug, shower curtain, linens, and soap dispenser. Make them shine!

4. Poorly lit rooms – replace old light fixtures, upgrade bulbs, and trim trees to provide more light. Open blinds and or remove heavy drapes. Clean windows thoroughly and remove sunscreens. The more light the better.

5. Clutter – have you even been to a model home? Clutter is nonexistent!

6. Busy wallpaper and bold paint – décor is personal and strong statements will distract most homebuyers. Go generic and appeal to the masses.

7. Bugs – ewe. Just get rid of them.

8. Weak curb appeal – first impressions are everything. Untidy lawns, broken down vehicles, & peeling paint are just a few curbside homebuyer turnoffs.

9. Moisture – musty or damp rooms will send homebuyers running out the door with deep concerns over the root cause. Also correct faulty grade or sprinkler overspray since excessive moisture is conducive to termites.

10. Sellers “hanging-out” during showings – awkward! Leave the house during homebuyer visits. You want them to take their time and be relaxed.

The average home suffers from at least one of the above problems during everyday living but it shouldn’t once the home is listed for sale since anyone of them can be detrimental. The bright side is that most items above can be corrected with little or no money and fixing them will not only facilitate the sale but also help you realize a favorable sales price. Every showing is important so optimize your home’s broad appeal to ensure success.

To buy or sell real estate in the Phoenix area, contact Royce Munroe #480-221-5449.

Phoenix Enjoys a Strong Rental Market

adminphoenix — Thu, 24 Mar 2011 03:06:52 +0000

Phoenix News 15 reports that Phoenix rental vacancy rates have dropped to an average of 6.6 percent and that rents have appreciated 2.2 percent. Many landlords are renting clean properties in a matter of days and sometimes carry a back log of interested renters. This strong rental market in Phoenix has been created as foreclosed homeowners looks for rentals as a place to call home. As a result, Landlords in Phoenix are offering fewer concessions, collecting larger security deposits, and requiring stronger credit and income profiles from their tenants. This is welcome news for Phoenix rental property owners.

For investment information on Phoenix rental properties, call (480-221-5449) or email Royce Munroe.

The Mortgage Debt Relief Act of 2007 and Debt Cancellation

adminphoenix — Fri, 04 Mar 2011 00:26:05 +0000

Will I be taxed on the deficiency if I short sell my home? This is the most common question asked of me by individuals contemplating the short sale of their home. The correct answer is, “it depends”. Reviewing the following information published by the IRS and consulting with a tax professional are important steps in understanding your exposure due to debt cancellation.

If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.

To obtain information on short selling a home in Phoenix, call (480-221-5449) or email Royce Munroe.

How much will my home in Phoenix rent for?

adminphoenix — Thu, 03 Mar 2011 21:43:58 +0000

How much will my home in Phoenix rent for? What should I look for when buying a Phoenix rental home? And, where is the best place in Phoenix to buy a rental home? As a Phoenix property manager these are the three most common questions asked of me by Phoenix rental home investors. Hopefully the following information will assist you in your investment decisions.

When selecting a rental home for purchase in Phoenix, an investor should keep in mind that generally speaking renters are no different than owners in their preferences. Therefore, Phoenix rental home investors should ask themselves these questions when selecting a home. Would I rather live in a single level or two-story home? Would I prefer living in a single family detached home or in a cluster community where the streets, driveways and setbacks are smaller? Would I prefer to live closer or farther from the convenient freeway?

Phoenix rental home investors may also want to consider the following information regarding floor plans and amenities such as swimming pools and finished backyards. These rental home features will help your investment home stand out to tenants searching online.

Bedrooms – Three bedroom homes rent very well in the Phoenix area but four and five bedroom homes rent even better. Why? Displacement! Many families have fled their homes as a result of financial distress and need a larger home with more space and bedrooms.

Swimming Pools – Pools are common in Phoenix and some renters seek homes with pools exclusively. This seems to be the exception and not the rule. Rental homes with swimming pools are more expensive for tenants to operate and for owners to maintain, not to mention the liability. If you are selecting a rental home in Phoenix that you will some day live in and really want a pool, then buy one with an existing pool since it is more affordable than installing one later.

Levels – Single level homes are more energy efficient and easier on the knees.

Lot size – Most tenants in Phoenix prefer a larger space to call home and appreciate larger set backs in-between neighbors. RV gates are also very desirable for tenants who own boats or trailers.

Yards – All rental homes in Phoenix should have front and backyard landscaping even if it’s minimal. Most resale homes have a front yard installed already so this shouldn’t be too big of a concern. Don’t split hairs over desert or grass so long as it is neat and clean and curb appeal can be achieved and maintained.

Location – Where in the Phoenix area should you purchase a rental home? If you plan on living in this home at some point in the future then your considerations may be completely different than a Phoenix home investor that will never occupy. For most Phoenix home investors this is a strategic or budgetary question. By strategic I mean that some Phoenix home investors may feel it’s smarter to own three $75,000 homes in Maricopa or Queen Creek instead of one $225,000 home in Scottsdale. Generally speaking, when it comes to location, buy Phoenix rental homes near amenities such as schools, freeways, shopping, dining, and all other quality of life factors that are not only preferred by owners but also renters. This will ensure that tenants want to live in your Phoenix rental home and as a Phoenix rental home investor you will have low vacancy and positioned well for future appreciation.

For investment information on Phoenix rental properties, call (480-221-5449) or email Royce Munroe.