Phoenix Real Estate Market Keeps Tanking (Fountain Hills: legal, move, authority)

[pandaundercover]

Originally Posted by ReadyFreddy

I always figure selling a house is going to cost 8-10%. I've never heard of military discounts but I suspect they're not significant. So if you sold it now for $120k you'd probably not do much better than breaking even, especially since buying another house isn't fee-less, either.

Well, it's not really a "discount," but there are places that choose not to charge military certain things. For instance, when we bought the house, the real estate agent wasn't charging us for their services, which supposedly saved us quite a bit of $$. They also provide similar free services if we rented out our house. However, I'm not sure if they provide the same for selling the house, so I figured I'd see if anyone is an agent that knows the specifics about this.

Some calculations I'm seeing is that we'd walk with at least $5k if we sold our house for 124k while having 107k left on the mortgage. So ya, it's obvious a massive sum we lose, but that's $5k more than we have right now. We're not greedy about it; walking away with a few thousand in our account is our main goal. But of course, more is better. and we won't be planning to buy another house for several years, or a decade.

[ReadyFreddy]

If you find a listing agent who will list it for free (or if you sell FSBO) you can subtract about 3% from that 8-10% I estimated. There are so many variables. The other huge one is if your buyer has an agent that needs 3%. It might make more sense to start a separate thread.

[sh9730]

So, the CNBC reports are done for the day - nothing exciting really (not that I was expecting there to be given their national bent and only having 2 mins to report).

Although there were mentions of the lack of inventory and bidding wars here in Phoenxi, they decided to focus on the "return" of ZERO DOWN FINANCING via the USDA rural loan program. Hence the reason they did their "live" shots from WITTMAN??? rather than Gilbert or Chandler etc..(to emphasize the USDA programe).

In reality this program is NOT NEW and was here before the bubble, during the bubble, and still here now, and was NOT a significant part of the housing bubble problems. These loans have always had more strict underwriting standards than the "liar loans" of the crisis. But it sounds so much more exciting to make a big deal about this program, like it was the beginning of the end again.

They also talked to a large investor who was buying up many SFRs in the Phoenix area....but didnt say anything exciting except that he is not having any problems getting homes rented.

So, nothing we here at C-D didnt already know about.....well, they did make a mention that builders are building again due to the fact that many buyers are tired of the bidding wars etc. , so they are just opting to go with a new build for a little bit more money, but less of the hassle.

[rjrcm]

Originally Posted by pandaundercover

Well, it's not really a "discount," but there are places that choose not to charge military certain things. For instance, when we bought the house, the real estate agent wasn't charging us for their services, which supposedly saved us quite a bit of $$. ...

You likely did not get a special military discount. Generally, agents working with the buyer (buyer agent) are paid by the listing agent who splits the seller's commission payment. Most buyers don't directly pay their agent a fee.

[asufan]

The real estate market in my area of South Chandler is absolutely unreal right now. I see people selling houses for more than they bought them for in 2009 and 2010 and they are selling fast. I saw a house that was 1,900 sf listed for $240,000 as a short sale, which was canceled in January 2012, the bank foreclosed and re-listed it for $331,000 and it is pending after 2 weeks on the market. $500,000 doesn't get you much of a luxury home here anymore, but if you find one you'll be one of 3-4 bidders. I guess it's just the perfect storm of low interest rates and new jobs in the area.

[Captain Bill]

We are also beginning to see fewer REO's come on the market, and not because of being held back by the banks.

It's because it appears that the short sale lenders are trying harder to get their short sales closed, by granting extensions if necessary.

So the REO's are still drying up. The total count of REO's in the valley is 7,055 as of today, and that includes all that are Active, AWC, and Pending; plus those that are in the 2 month period it takes to get them on the market, and the 1500-2000 that have been on the list longer than 2 months.

[Zippyman]

Originally Posted by Captain Bill

We are also beginning to see fewer REO's come on the market, and not because of being held back by the banks.

It's because it appears that the short sale lenders are trying harder to get their short sales closed, by granting extensions if necessary.

So the REO's are still drying up. The total count of REO's in the valley is 7,055 as of today, and that includes all that are Active, AWC, and Pending; plus those that are in the 2 month period it takes to get them on the market, and the 1500-2000 that have been on the list longer than 2 months.

Wrote an offer on a short-sale yesterday, one of the only *habitable/financeable* sub $100k listings I've seen in a while in that neighborhood - listed at $75k, we gave a cash offer of $78k (the most recent sold comp went for $70k a month ago)... this was the email message I received...

"Thanks Zippy, this one has gone crazy. Multiple Cash offers/ hard EM / no insp $10-15K over asking, sorry. Will let you know if any changes."

That's with 24 hours on the market.



Meanwhile, Zillow says my model-match rental unit around the corner from this place went up $600 in value this month..

Umm, yeah... a normal sale in that neighborhood offered at the Zessitimate value would likely cause a riot.

I really feel bad for the folks out there who just want a place to live, not a cash cow. Not bad enough to sell the ones I've already purchased in the neighborhood, but wow... just wow...

We are in uncharted territory right now, no real product & a lot of very serious buyers.

[MN-Born-n-Raised]

Originally Posted by Zippyman;23948237...

We are in uncharted territory right now, no real product & a [I

lot [/i]of very serious buyers.

Thanks for the update Zippy.
It is going to be VERY interesting in the coming months. Did I mention yet that I'm happy I bought in while the selection was MASSIVE.

[ReadyFreddy]

I really feel bad for the folks out there who just want a place to live

I know people who farted around looking at house after house all 2011 and now are complaining it's not fair. Sometimes you have to strike while the iron is hot or you lose your market.

I'm guessing the people who really just started looking in the past few months will have to wait out the shortage or move up the scale to the homes that aren't so in demand, the pricier ones. Not that most people are able, since normally they max out their house spending. But if prices DO go up 25% by Sept., they're going to be stuck paying that premium anyway, or not buying at all. May as well get the bigger house now and enjoy the appreciation yourself, if you possibly can.

[khuntrevor]

just a few short years ago, the renters were claiming total victory over evil capitalism. People have very short memories.