There seems to be lots of movement in downtown tempe when it comes to commercial and residential real estate. After several new construction projects were abandon the empty shells of buildings sat vacant while the entire economy suffered. However there is signs of life with several of the buildings finally being placed back on the market to allow for construction to continue. We will have to see how the new owners will sort out this damaged project. Stay Tuned.

The Home Buying Process

To begin the exciting process of finding your next home, we will first discuss your criteria for a house, including number of bedrooms, bathrooms, size, location, and any other factors. At this time, we will discuss your finances and mortgage options, in preparation for meeting with a lender to make a formal application.

1. Make application with a lender and obtain a pre-approval letter. Most lenders will charge you an application fee which covers credit report and appraisal of the home you buy. Check with them to find out if it’s payable immediately or at settlement.

1. Visit available homes that meet your criteria, and select the one you wish to purchase.
2. Submit an offer on the home of your choice.
3. Write up contract papers and sign
4. Submit with the offer an earnest money deposit
5. Decide on which inspections and contingencies to include
   • We recommend that every single purchaser include a home inspection and we can supply the names and phone numbers of a few qualified home inspectors if necessary.
6. The offer will be either accepted, rejected, or countered.
   • If it is accepted, you are able and obligated to purchase the house.
   • If it is rejected, you are released and are free to submit another offer on this house or select another.
   • If it is countered, then you may accept the new terms, counter them, or withdraw the offer.
7. Once the contract is agreed to and signed by all parties, the inspections begin. First is the home inspection, which will cost about $300 and be paid AT THE TIME OF THE INSPECTION, which will be within ten days of contract acceptance. You should be present for this very informative process, and it will take about three hours.
8. Once you have the results of the inspection, you may ask the Seller to repair or replace items as a result. They may agree to some, none, or all of your requests. under most circumstances, you may also withdraw from the contract if the home inspections turns up a problem that makes you no longer want the house—a major structural flaw for example.
9. The lender will hire an appraiser (the cost is included in your lender fees) to appraise the property and ensure that it is worth the amount they are loaning you to buy it.
10. A termite inspection of the property will be performed within the last 30 days prior to settlement. It usually costs $50, which you pay at settlement. It is included in the closing costs estimate which I will prepare for you.
11. After your offer becomes a contract, you will need to be in touch with your insurance agent to purchase homeowners insurance on your new home. You must provide proof of this paid insurance to your lender at settlement.
12. At settlement, you will bring a cashier’s check or certified check made out to the title company for the amount you owe. You will sign the lender’s papers and the deed transfer. You will get the keys to the house, and it will officially be yours.

uying real estate???? Now that the market has gone down everyone is wondering when we have hit “the bottom”? Real Estate has always been a good investment, but over the last year the market has lost over 45% of its value in some markets. Even though the lending institutions are tightening their belts and lending has come to a stand still, we still are selling homes. Granted we are not selling at the rate we were back in 2004 and 2005 however I believe the worst is over. Skepticism has kept many qualified buyers out of the market until more recently and with the majority of bank reorganization over and foreclosures no longer dominating the market we should be on our way to a leveling then recovery.

In today’s market it is difficult not to see all of the for sale signs everywhere. From Gilbert to Tempe, Fountain Hills to Paradise Valley. Even Scottsdale has had over a 45% price decrease since 2006. Either way bank owned properties comprise about 15% of the current housing market and short sales make up another 47%. In these troubling times who comes to the bailout rescue??? Bank of America? JP Morgan Chase? Wells Fargo? Not a chance. It seems as if all of these banks cannot identify the struggles of the current real estate market. Without the proper help many homeowners will face foreclosure unprepaired and under educated about the future impacts of this route. As far as I can see, these banks don’t look like they are letting up on homeowners, and forclosure predictions look like they won’t peak untill next summer.

Tempe has been one city that has been semi stable in this rapidly declining real estate market. The reason? Tempe homes are used as seasonal rentals for college students. This is obvious however lets not forget that Tempe homes are located in the middle of the south east valley.

In today’s market it is difficult not to see all of the for sale signs everywhere. From Gilbert to Tempe, Fountain Hills to Paradise Valley. Even Scottsdale has had over a 45% price decrease since 2006. Either way bank owned properties comprise about 15% of the current housing market and short sales make up another 47%. In these troubling times who comes to the bailout rescue? Bank of America? JP Morgan Chase? Wells Fargo?

Many of these banks don’t seem to identify with the direct financial struggles of the current real estate market. Without the proper help many homeowners will face foreclosure unprepared and under educated about the future impacts of this route. As far as I can see, these banks don’t look like they are letting up on homeowners, and foreclosure predictions look like they won’t peak until next summer.

Bank of America seems to be trying to improve they way they handle short sales through their new Equator system. They have been trying to revamp the way the work with homeowners in distressed situations. Make sure you are prepared for the worst if your loan is a home equity line of credit (HELOC) as these do not fall under the Debt Relief Act of 2007. Some banks will in most cases come after the homeowner in both a foreclosure and short sale if they do not sign a release of lien before hand. For some reason it seems as if many banks do not want to help out either the new buyers or existing sellers who have legitimate financial hardships.

In order to not fall into the foreclosure category you must be well informed as to your different options. The first step would always be to speak with your attorney and/or CPA to find out what options you have.

In my experience the most difficult bank to work with is Bank of America. They have been trying to revamp the way the work with homeowners in distressed situations but it seems as if they are not trying hard enough. Make sure you are prepared for the worst if your loan is held with Bank of America or if you have a home equity line of credit HELOC. They will in most cases come after the homeowner in both a foreclosure and short sale if they do not sign a release of lien before hand.