Welcome to Urban Life. Our intention is to provide a mix of real estate, housing, market analysis, downtown/central Phoenix news & events, as well as area restaurant & business review.
Thanks for visiting Urban Life.
Gene Urban & Ron Urban
The Urban Team
According to an article in US News, strength is gaining for an extension of the first time home buyers tax credit.
According to the article, the Senate has agreed in terms to an extension with a deadline of April 30, 2010. If passed the deadline would mean the home buyer has to close escrow and take possession of the home prior to the April 30, 2010.
The new bill may add some perks to move-up home buyers as well as some in higher income brackets. We must emphasise the word "MAY" since the legislation is still being picked apart by law makers and surly each one has some special agenda he or she will want to affix to the bill. In the end who knows what it will look like. Hopefully there will still be some language about a first time home buyers tax credit along with the pork we were promised would never be included in a bill after the last election... oh don't let me go there God, please.
I think I am back under control but I better end this post now. We will keep you informed of any changes.
Gene Urban
The Urban Team at Realty Executives
602-234-5777
One might think we'd be in favor of having the real estate agent since we are Realtors. Truth be told, we believe a real estate agent is, in most cases, the wrong person for the job. The reasons are pretty simple. First and foremost, negotiating a change in the terms and conditions of a mortgage agreement/contract often fall outside the expertise of a real estate licensee. Secondly, some information shared by a home owner can be of a private and sensitive nature. Thirdly, the negotiation often affects the legal rights of the home owner and may be considered the unlawful practice of law.
Let's take a look at these three concerns.
Most real estate agents are not mortgage professionals. Therefore, most agents do not have the expertise and knowledge of the mortgage industry, associated documents, and industry language to properly represent the interests of the home owner. In most cases, a real estate agent is required to inform his client, the home seller, that he or she does not have mortgage expertise prior to engaging in negotiations with banks, loan service providers and investors. The question is. if I, as a real estate agent, do not have a high level of expertise, should I be performing the duty?
The same argument applies to home owners who self-represent a short sale. Most homeowners are not mortgage professionals or attorneys. Therefore, most home owners are ill equipped to provide they and their families the highest degree of protection and advice.
The second concern we hold is centered on privacy issues. Real estate agents do not enjoy protection under attorney client privilege. Information shared between a client and his/her real estate agent could be subpoenaed and used in a court of law.
Our third concern is about the actual practice of law. A homeowner who represents themselves in negotiations with a bank is free to do so. However, a real estate may is walking a very thin line under Supreme Court Rule 31 (a)2A, especially under the last bullet point noted below regarding negotiating legal rights or responsibilities for a specific person or entity. Mind you, a real estate agent is granted a number of rights when it comes to negotiating real estate documents. The question is whether or not we have the right to negotiate an existing mortgage document that the agent is not a part to.
The practice of law is defined in Arizona Supreme Court Rule 31 (a)2A:Practice of law means providing legal advice or services to another by:
● Preparing any document in any medium intended to affect or secure legal rights for a specific person or entity;
● Preparing or expressing legal opinions;
● Representing another in a judicial, quasi-judicial, or administrative proceeding, or other formal dispute resolution process such as arbitrations and mediations;
● Preparing any document through any medium for filing in any court, administrative agency or tribunal for a specific person or entity; or
● Negotiating legal rights or responsibilities for a specific person or entity.
Our take is to err on the side of caution and establish best practice policy. It is for this reason we advise clients considering selling their home via the short sale process to contact a qualified attorney to help them with the negotiation of any and all loan modifications and to provide counsel prior to signing any documents.
Hope this info helps you if you are considering selling your home as a short sale and helps you understand why the Urban Team at Realty Executives recommends that their clients have an attorney as part of their short sale team.
Gene Urban
The Urban Team at Realty Executives
602-234-5777
The October Radiate Phoenix meeting will be held at After Hours Creative. After Hours Creative is a marketing and branding firm in the downtown core and promises to be a cool place to radiate Phoenix.
Radiate Phoenix is a non-traditional networking group where people passionate about the future of downtown Phoenix gather to share thoughts, ideas and friendship. Radiate celebrated its second year last month so this meeting will kick off our third year of making a difference.
When: October 27th from 5:30 -- 7:30
Where: After Hours Creative at 116 W. McDowell, Phoenix 85003
Why: To make a difference in our community
For more info or to join our group click ont the Radiate Phoenix Badge in our sidebar.
Hope to see you tomorrow...
Gene Urban
After months of research, classes and study, the Urban Team is now prepared to help Phoenix home owners who are considering selling their home through the short sale process.
Our take on the process is a bit different than many agents; We work hand in hand with a professional, legal negotiations team. We feel this is an important distinction. Some agents negotiate a short sale transaction themselves. However, truth be told, the skills needed to reach an agreement between a home owner, his lender and other parties involved in a short sale transaction are of a legal nature and we believe best handled by someone with the letters JD behind their name.
As professional Realtors, we handle the listing, marketing, initial negotiations and special contract language and considerations involved in a short sale. This task has many elements and we have the specialty skills required to do the job properly.
We've learned many things as we've taken dozens of hours of classes, spoken with attorneys, attended professional negotiations courses, and worked though case studies. The bottom line is that short sales are very different from traditional or bank owned listings. The short sale addendum has many weaknesses that need to be addressed and failure to do things properly can leave both the home owner and home buyer in jeopardy.
If you are considering selling your home as a short sale, we would be happy to answer your questions. A short sale may well be a viable choice for many homeowners. However, many variables need to be considered and done so professionally.
Best to you,
Gene Urban & Ron Urban
The Urban Team at Realty Executives
602-234-5777
I spent much of the weekend doing home searches on ARMLS and was once again reminded of the problems faced by our industry. The quality and standards practiced by some listing agents is simply embarrassing.
As listing agents, one of our most important jobs is to provide effective marketing of the home we are trying to sell. ARMLS is the principle tool we use to execute this function. In addition to agents using ARMLS to view potential homes for their clients, ARMLS sends home information out to thousands of other web sites where home buyers can search on their own. With that in mind you'd think the listing agent would take great care to provide good pictures, virtual tours, and compelling descriptions to best sell the property.
Below is just a sampling of what I found from a sampling of about sixty listings.
Based on surveys, photos and virtual tours are very important to consumers searching for homes on the internet. Most say they strongly base their decision to view a home based on the pictures they see. Let's take a look at some of the fine pictures I found while conducting my home search.
Next, let's take a look at some of the excellent prose used to describe homes to potential home buyers.
How do we up the standards in our industry? Perhaps it starts with the licensing requirements imposed by the State of Arizona. The fact an agent is not required to have a GED or high school diploma is one oversight. Most State licensed professions require several hundred hours of monitored or mentored work prior to licensing, real estate has none. Real estate licensees simply have to complete 91 hours of course work and pass an exam. Did you know a massage therapist completes over 7 times as much training prior to getting their license? An appraiser must complete 26 times as much training to get their license. Why are the standards so low for our professions?
If this post raises your shackles, I'd invite you to contact the Arizona Department of Real Estate and voice your concerns. Nothing will change until lots of people voice their opinion and mandate change.
Best wishes to you on this great Arizona day.
Gene Urban
The Urban Team at Realty Executives
602-234-5777
Mayor Gordon's monthly breakfast get-together celebrated downtown commercial reuse projects this month. The event featured three distinctive projects where the historic and the modern have merged: The Luhrs Building, Anchor Manufacturing Company and Arizona Hardware Supply.
A group of 80 or so began their adventure at the Luhrs Building at 11 W. Jefferson. The building's roots go back to 1924 when George Luhrs felt a downtown office tower would benefit and celebrate an emerging Phoenix. Today, Hansji Urban owns the building and has spent several million renovating the historic property for commercial and retail use. Our group met on the tenth floor in the offices of the building's first tenant, Hagens Berman Sobol Shapiro, LLP .
Next we boarded Olie the Trolley where we met up with Steve and Andi Rosenstein at their emerging business, The Duce. Located in the old Anchor Manufacturing building at 525 S. Central, the duce promises to bring true Urban culture to the area. The Rosensteins, who I'd met through Radiate Phoenix, are converting this one time iron works building into a gathering place with loads activities under one roof. You can shop for clothing, sip a latte, buy a real fountain drink, get a great hot dog, catch a beer or glass of wine, buy a rehabbed cruiser bike, shop for veggies (organic of course) and lots more. The project is under construction and expected to open in late January or perhaps on First Friday in February. We'll tell you more as the grand opening closes in.
Our final stop with the old Arizona Hardware Supply building at 22 E. Jackson. Whereas Duce was funky urban, our last destination was urban modern. The building was purchased by Dudley Ventures and renovated to create office space for the firm. The interesting thing is that Dudley Ventures specializes in community renovation projects. James Howard, the firm's founder, said this project gave the firm an opportunity to walk their talk on a personal level. Howard's long term goal is for the building to be converted to a restaurant as the Jackson Street Entertainment District gains more strength.
Mayor Gordon joined us at Arizona Hardware/Dudley Ventures and talked about the many important urban project going on downtown and how important the investors and visionaries are to a revitalized downtown and Phoenix as a whole.
Historic reuse projects truly help make a downtown work. No only do the projects offer new space, they maintain the history and heritage that makes a city great.
Another good reason to live, work or play in the urban core.
Gene Urban
The Urban Team at Realty Executives
602-234-5777
One of the reasons I found real estate attractive was that no one could take away the product I help people buy or sell. Unlike many sales related jobs, the manufacturer couldn't discontinue the product line because the supply came from all those sweet homeowners who at one time or another need or want to sell their home. This was the perfect business model... until recently.
Today, the supply of homes is largely controlled by banks and asset management companies.The result is a dramatic shift in the supply chain. Since an estimated 80+% of Arizona homeowners are upside down in their homes, the bulk of the supply is either bank owned or short sale requiring bank/investor approval.
I believe the shift from a open supply chain (homeowners) to a rather closed one (banks) has dramatically shifted the way real estate is practiced and not in a good way.
Since banks own the much of the supply, they control who sell homes through limited broker agreements, they regulate commissions and most alarming, they have eliminated many home buyer's rights and protections through special addendum to the residential real estate contract. The last change is perhaps the most egregious and dangerous for home buyers and the practice of real estate in general.
Today is a tough time to be in the practice of real estate. Banks have changed the rules of the game. Home owners, home buyers and real estate agents are all affected by bank policies. Personally, I can't wait until we get back to a more honorable practice where corporate conventions no longer supplant civility.
Gene Urban
The Urban Team at Realty Executives
602-234-5777
September home sales in Central Phoenix zip codes 85012 and 85013 indicate home sales in the $500,000+ market are on the rise.
For quite some time the mid to luxury home market has been the pits. ARMLS sales figures from last May and June showed just one sale each month when the price tag was over $500,000 while under $500K properties accounted for 53 sales during the same time period.
July and August saw a slight rise with 3 out of 20 sales (July) and 2 of 15 (August) sales in the higher price range. However, September saw much better numbers.
Of the twenty-one September home sales in 85012 & 85013, four properties went for more than half-a-million clams. At first I didn't think this was all that different until I looked at the percentage of total sales. May and June stats show sales in the above 500K range at 3.77% of total sales while September figures rocked in at 19%... that's a big gain by most standards.
I believe the upswing is due to jumbo loan availability. For most of 2009 it was very difficult, almost impossible, to get a loan for over the conforming standard of $417,000.The hedge funds and investors that traditionally backed the higher loans were off licking their wounds.
However, we are now seeing a slow trickle of investors putting their toes in the Jumbo loan pool. Our friends Lisa Sahughnessy at Desert Heritage Mortgage and Judy Giel of MetLife Home Loans both announced new jumbo loan programs a couple of months ago.
The bottom line is that we are seeing a sales rise in the mid to luxury market and it's not just Central Phoenix; Scottsdale numbers are rising as well. This is good news for the real estate market as it shows a bit of stability moving upwards through the market. If you couldn't get a loan for a more expensive home last winter or spring, you may want to try again... you may be pleasantly surprised with both the rates and what you can buy for your money.
That is all for this Monday in Paradise.
Gene Urban
The Urban Team at Realty Executives
602-234-5777
As Realtors, we always recommend home buyers hire a professional inspection service. Our long time favorite in the Greater Phoenix area is Advantage Inspection Service. They always performed great work and take as much time as needed to explain their findings to the homeowner-to-be.
They have begun a new service they call their Home Repair Tips of the Month. I called David Swartz, Advantage's owner, and ask him if I could re-post the email here on Urban Life and he said... sure thing. We will make this a monthly addition to the site, so check back at the beginning of each month for the next set of home repair and maintenance tips.
Simply click on the image to the right to see it full size and readable. Some browsers show the entire image, however, you may have to use the Ctrl and (-) keys to reduce the image size for better viewing.
Hope you and your home enjoy the fine tips they offer.
Gene Urban
The Urban Team at Realty Executives
602-234-5777
Advantage Inspection Service Contact Info:
8433 N. Black Canyon
Phoenix, AZ 85021
602-864-8331
arizonainspections@gmail.com (email)
www.azinspect.com/ (web site)
Radiate Phoenix brings together architects, urban planners, City representatives, downtown residents, business owners, and an Urban real estate guy like me. The purpose is to support the urban core, learn more about the downtown region, engage with like-minded others and influence development and policy. Gatherings are held on the last Tuesday of each month.
I am especially excited about our two year anniversary. It seems like just months ago it was just a thought and now it celebrating a milestone.
The specifics on the next meeting are as follows:
WHEN: September 29, 2009
TIME: 5:30 -- 7:30
WHERE: The Phoenix Public Market at Central and Pierce
If you love the downtown region, love to gather with friends and want to make a difference to the community, please join us. For more info, visit the Radiate Phoenix Ning site.
Gene Urban
The Urban Team at Realty Executives
602-234-5777
