![HOAs… Love Em or Hate Em?]()
by MICHAEL BODEEN | Sep 15, 2014 | Bodeen Team Blog, Real Estate News
When setting up property search parameters for our buyers on the MLS (Arizona’s Real Estate Listing Service), we are sometimes asked to filter out HOAs (Home Owner Associations). Conversely, every once in a while we’re also asked to make sure that the property includes an HOA. Virtually every time when requested, it’s due to the prior negative experience of the buyer.
I’ve experienced both sides personally and professionally. And you know what? Even though folks feel strongly about HOAs one way or another, they’re not right or wrong — it’s simply a choice that each of us has. The most important thing is to know what you’re getting into and the potential downside.
This week we’ll cover the benefits of an HOA. Next week, we’ll look at the drawbacks. And finally, in the last installment I’ll cover what a buyer should know about the HOA from the perspective of the purchase contract. Just knowing what you’re agreeing to in a purchase contract can save or cost you hundreds of dollars
Benefits of an HOA!
As I see it, the benefits on an HOA are many. Homeowners within a given community pool their funds to pay for a few or many amenities, privileges or restrictions. The minimum responsibility that I’ve seen in an HOA community is for rules enforcement only. Typically the cost of this limited type HOA is $30 to $40 per month.
If for example, your next door neighbor (whether owner or renters) does not maintain their home, doesn’t maintain the lawn or weeds, or leaves a jacked up car in the driveway – all the time, then there is a process to get that taken care of. In some communities, hired HOA staff actually drive the neighborhood daily to look for these rule violations. I’ve heard the term “Gestapo Tactics” when related to this type of oversight. Strict enforcement may be a pain in the you-know-what, but guess what? That community is probably kept pristine. For many, there’s nothing more frustrating than having visual blight in the neighborhood that you see day after day.
The next minimum step up in HOA services and fees is for “common Area Maintenance.” This is where the HOA keeps up with the appearance of the neighborhood by cutting front lawns, keeping trees trimmed and trash picked up.
I can tell you from a buyer perspective when driving through “the hood,” that if there are unsightly yards or houses, or too numerous vehicles around, that is often a turn off, or more appropriately, a turnaround, where I turnaround the car and head to the next home. Just having these community rules alone can be very valuable.
Townhouse/Condo HOA’s are especially important because of the close proximity that people live near each other. Often these HOA’s are more costly because they may also include a monthly water, sewer, trash fee and cable charged by the association besides the maintenance of the community pool and the community gate or guard gate. Yes, you will pay for someone to keep the pool and spa clean and heated in winter even though you don’t use it, but many folks enjoy the fact that they have access to these amenities year round and don’t have to pay for it on their own property.
Don’t like the way the community is being run? Well, you can make your voice heard at a monthly HOA meeting, and you can even run for a position on the HOA board. Warning though, this is not for the faint of heart.
(Click Here for Part 2)
– Mike Bodeen
![Saguaro Estates]()
by MICHAEL BODEEN | Sep 9, 2014 | Featured Communities, North Scottsdale News, Real Estate News
Do you like gated privacy, spacious lots with generous building envelopes in a fresh newer North Scottsdale community located in the 85266 zip code? Welcome home! This serene desert community in North Scottsdale offers new homes on one acre home sites with excellent A Rated schools and lovely mountain views. It’s a short drive down Scottsdale Rd to all that North Scottsdale has to offer including world class restaurants, shopping, golf, etc.
http://www.tollbrothers.com/AZ/Saguaro_Estates
Open and large Toll Brothers floor plans are featured with Contemporary, Spanish Colonial, and Tuscan style architectural designs. 7 distinct floor plans range from approximately 3,927 square feet to 6,430 square feet. Home highlights included 3-4 bedrooms, 3.5 to 4.5 bathrooms, 3-4 car garage, media rooms, serving centers, casitas and outdoor living options.
Toll Brothers not only builds homes, but whole communities. There are a number of Toll Brother Communities in the Valley including several in the North Scottsdale and North Phoenix area. Saguaro Estates in my opinion is one Toll Brother’s crowning achievements. They are a fortune 1000 company and was recently named by Builder Magazine the 2014 Builder of the Year.
Two Toll Brother models are available onsite. Pricing begins in the low $900’s. Call Mike or Jonathan Bodeen to view this community firsthand. There are still a few good lots to choose from.
And remember, it costs you nothing to have our professional representation, but we must accompany you to the community the first time you go, or the builder is not required to pay our fee. Call us now at 602-689-3100.
North Scottsdale Zip Code Report: 85266
The 85266 Zip code, which is the most northern reaches of North Scottsdale is showing August sales to be down 29% versus 2013. The monthly median sales price in the North Scottsdale zip code is now back up to a median sales price of $620,000 compared with $605,000 one year ago and up 41% over August of 2012. Pending listings in North Scottsdale 85266 are at their lowest point since October of 2013.
![Wisdom from the Greatest Generation]()
by MICHAEL BODEEN | Sep 8, 2014 | Bodeen Team Blog, Real Estate News
I’m a boomer. Always have been. Always will be until I shed this mortal shell. There’s more of us boomers in our country than any other age demographic. You’re a boomer too if you’re currently between the age of 50-68. We’ve got changes ahead, but you’ve probably already figured that out. If you’re beyond boomer, perhaps you’ll nod affirmatively at what I’m sharing. If you’re not there yet, read on, it may do you well.
My parents were part of the greatest generation our country and perhaps this planet has ever known, but that’s just opinion, and worth little to nothing. I miss them more and more as each year rolls around. You may have had an entirely different growing up experience than I’ve had and I get that. But where we go from here is all that matters, because it’s all we got left.
From 1969 until 2004, my parents lived in a very nice Cape Cod style home in a suburban community called Marinwood. Their home was paid for, as in no mortgage. Dad was a butcher and a part owner of a small mom and pop grocery store near San Rafael, north of San Francisco, not far from where Robin Williams lived (and died) in Tiburon on the bay. In comparison, we lived on the “other side of the tracks” but in Marin County, that is way upscale compared to most anything else in the world.
Dad worked hard – very hard. His hard work and frugality (in a good sense) enabled him to retire and live well till he was 93. He was also healthy in body, soul and spirit. He lived an honorable life. Mom was, for the most part a “stay at home” mom. She passed away at the age of 78. She had smoked most of her life and it did indeed catch up with her. I think dad mourned mom’s passing for the rest of his life. Their relationship matured and blossomed after dad retired.
As I’ve now crested 60, I’ve been more considering the things that are of importance in life, which by the way, is not Fox or CNN news, or the Diamondbacks…now the Cardinals and ASU football, that may be a different story;-)
So what’s the real estate point of all this Mike? Crimeny man, would you just land the plane?!
The point is, that I believe a big part of dad’s success and health, was that he didn’t have a mortgage. He was able to save. (Mike, could you please define that word?) And then he invested, very conservatively – a little here, a little there. Fortunately for him, he had trusted advisors who did him well.
The point is, is that I (and most boomers) don’t own our homes outright. I’ve chosen instead to enjoy a nicer, larger home and having a mortgage has enabled me to do this. But you know, Karen and I are currently rethinking our life strategy and we’re definitely warming to the idea of modest and smaller versus “the nicer and bigger.”
What do you think?
![Flip or Flop?!]()
by MICHAEL BODEEN | Sep 2, 2014 | Bodeen Team Blog, Real Estate News
A number of clients and friends have asked me over the years my opinion on house flipping. “Can I actually make money doing it?” they ask. The short answer is yes you can. However, the process is NOT for the faint of heart.
By the way, what is house flipping? Very simply, flipping is (usually) the process of buying then quickly selling a home to make a profit. The idea is that one day the buyer acquires the property, quickly fixes it up, then puts it right back on the market (the flip) to sell. If you’re going to consider this endeavor, consider the following:
First, it’s imperative that the house you buy to flip is either priced well below the market and/or significantly distressed. It may take you weeks or months to find the right home to do it assuming you’re checking the market daily. You or your Realtor professional should have a good eye for the right property. As with all real estate value, location is hugely important.
From an investment standpoint, it’s best that you have cash or access to cash without having to get a new loan. There are hard money loans available (high interest – short term loans) but buyer beware, this is not recommended for most borrowers and the borrowing costs will eat into your profit.
Second, you need to know the current condition of the property you’re buying which may include more than just a typical home inspection. Make sure there are no hidden physical flaws. If you’re not well versed on the cost of renovating, it’s best that you have your contractor with you to examine the house as well. Actually it’s ALWAYS a good idea to have a second set of eyes to view your property. Also, make sure you get title insurance. Good title companies can also reduce these costs if you’re an investor and then you sell within 2-5 years. But you need to ask.
Once you’ve examined the house and know what you’re getting into, you need to determine the cost of flipping it which includes not just the physical remodeling, but also your closing and carrying costs (mortgage if any, taxes, insurance, hoa fees, utilities, title insurance, escrow fees, Realtor commission, etc). All of these costs and more go against your ultimate profit. You need to figure these costs for as long as it takes to sell the house. Your time estimate for this should be conservative.
Oh, and one other cost item that is often overlooked in the final analysis are income taxes. You will pay IRS based on your gain in the home. To defer any capital gain tax, you may want to consider doing an IRC 1031 tax deferred exchange if you’re planning on reinvesting in another investment property. (Have a chat with your CPA or tax attorney in these regards)
Once the home has been rehabbed, it’s ready to put on the market. The price you set should be a price that moves it quickly, even discounted against similar comparable sales. A home that sits on the market unsold will at a minimum be a drain on your profits. A quick sale for a very fair price will get you in and out and ready to embark on the next one!
![The Bodeen Zip Line Report – Real Estate Market Update – North Scottsdale Zip Codes and Surrounding Communities]()
by MICHAEL BODEEN | Sep 2, 2014 | North Scottdale Zip Code Information, North Scottsdale News, Real Estate News
85254
Home sales bottomed out in March of this year and have increased since then peaking in July. The magical 85254 zip code real estate market dropped back in July registering 66 sales, compared with 104 from one year ago. The median priced sale in July was $378,000, down from the same month last year.
Currently Last Year
Active Listings: 281 vs 186
Pending Listings: 45 vs 44
Sales Per Month: 66 vs 104
Sales Per Year: 719 vs 966
Median Price: $378k vs $391k
85255
The median sales price in the very popular 85255 Zip Code for August 2014 was $633,000. This is an 8% drop over August of last year and a 1% drop from last month. Sales took an 8% drop from 91 sales last August 2013 to 74 last month – a 19% decrease.
Currently Last Year
Active Listings: 509 vs 371
Pending Listings: 57 vs 73
Sales Per Month: 74 vs 91
Sales Per Year: 896 vs 1045
Median Price: $633k vs $685k
85258
Including The Ranches of McCormick, Scottsdale, and Gainey, listings are up 31% over last year, while the median price is showing an 11% gain over August 2014.
Currently Last Year
Active Listings: 146 vs 111
Pending Listings: 18 vs 23
Sales Per Month: 38 vs 36
Sales Per Year: 379 vs 413
Median Price: $520k vs $480k
85259
Well, if we had an East Scottsdale, it would include the 85259 Zip which extends from 104th Street to Fountain Hills and has a portion of Scottsdale Ranch, south of Shea. These communities, mostly developed in the late 80’s and 90’s are very popular with year-rounders as well as snowbirds. The median price is up 12% from this time last year. Current listings are up 46% from last year – no supply problem here!
Currently vs Last Year
Active Listings: 230 vs 157
Pending Listings: 33 vs 39
Sales Per Month: 38 vs 43
Sales Per Year: 425 vs 501
Median Price: $595k vs $530k
85260
Perhaps North Scottsdale’s most central and (next to 85254) it’s most affordable zip code. The median price is pretty much mirroring August of last year, while sales were exactly the same from last year at 48 for the month.
Currently vs Last Year
Active Listings: 215 vs 145
Pending Listings: 33 vs 37
Sales Per Month: 48 vs 48
Sales Per Year: 481 vs 579
Median Price: $423k vs $430k
85262
North Scottsdale’s most expensive and one of its nicest community’s, the median price is up slightly from last year. Pending listings are down slightly.
Currently vs Last Year
Active Listings: 352 vs 308
Pending Listings: 35 vs 40
Sales Per Month: 32 vs 42
Sales Per Year: 420 vs 467
Median Price: $740k vs $735k
85266
These very popular and upscale communities which are the North of North Scottsdale, and which is home to the newest zip code being added to Scottsdale, has seen appreciation of almost 20% from one year ago. Pending sales and August sales are down slightly from one year ago.
Currently vs Last Year
Active Listings: 150 vs 121
Pending Listings: 18 vs 20
Sales Per Month: 21 vs 25
Sales Per Year: 268 vs 374
Median Price: $735k vs $620k
85253
(Paradise Valley): The Valley’s most upscale, prestigious, and expensive town currently has 301 homes for sales compared to 258 one year ago. Closed and Pending sales in Paradise Valley are off slightly from one year ago.
The median sales price is currently $1,235,000 — virtually unchanged from one year ago.
Currently vs Last Year
Active Listings: 301 vs 258
Pending Listings: 19 vs 24
Sales Per Month: 22 vs 30
Sales Per Year: 352 vs 386
Median Price: $1.235k vs $1.270k
85268
(Fountain Hills): Scottsdale’s most immediate eastern neighbor is accurately named for its mountain slopes and town fountain. For those wanting a small town feel, it doesn’t get much better than here.
Currently vs Last Year
Active Listings: 236 vs 193
Pending Listings: 21 vs 27
Sales Per Month: 32 vs 43
Sales Per Year: 450 vs 531
Median Price: $369k vs $375k
85331
(Town of Cave Creek): Cave Creek has done a great job of standing strong in value. The median sales price of $424,000 for August is up 13% from 2013 and pending sales are about the same as last year too.
Currently vs Last Year
Active Listings: 292 vs 243
Pending Listings: 58 vs 59
Sales Per Month: 56 vs 61
Sales Per Year: 609 vs 697
Median Price: $424k vs $375k
85377
(Carefree) The delightful and small town of Carefree is almost too small to accurately compare year to year stats. Having stated that, sales are way down from August 2013 at 60 – this compared to 115 one year ago. The median sales price brings one word to mind: BARGAIN!
Currently vs Last Year
Active Listings: 74 vs 63
Pending Listings: 4 vs 4
Sales Per Month: 5 vs 7
Sales Per Year: 69 vs 115
Median Price: $537k vs $850k
85086
(Anthem – North Phoenix) These communities remind me of North Scottsdale back in the mid 90’s – newer homes with beautiful mountain views in an unspoiled northern environment. These communities are the bargains of the valley. Prices are so affordable and only a 30 minute drive time to Sky Harbor Airport. Prices are unchanged from one year ago, with sales being down 26%.
Currently vs Last Year
Active Listings: 376 vs 281
Pending Listings: 66 vs 101
Sales Per Month: 96 vs 122
Sales Per Year: 936 vs 1273
Median Price: $275k vs $275k
*With thanks to Michael Orr and the Cromford Report for the Statistics used.
