![A Short Sale Miracle]()
by MICHAEL BODEEN | Aug 25, 2014 | Bodeen Team Blog, Real Estate News
(A Short Sale Miracle Part 2)
Jonathan and I had been working two short sale listings that were under contract. On one, we had lender approval from the two lenders who were on the loan. We had been working on this listing since December 2013. We only needed Freddie Mac approval. (Freddie Mac is the Public-Government run GSA which attempts to keep mortgage money flowing to lenders. It is government regulated)
After months and months of difficult and frustrating work on this Short Sale, Freddie Mac said “No, we’re not doing the deal. Your client (our seller) does not qualify as he doesn’t have a sufficient hardship to qualify!”
We asked the Servicer of the first loan if there was anyway we can make this deal work? No way! Once Freddie Mac says “no” it’s “no!”
So now, we need to let everyone know, including the buyer (buyer’s agent) that we’ve got no deal. Bummer!!! The buyer was not happy, though they were well aware that this deal was a crapshoot to begin with. Still, they had big plans for the home, like even getting married there.
Several weeks go by and the buyer calls me directly – not his agent. He pleads, “Is there not anything we can do to buy this house!?” No, we reply, it’s dead. Then he adds, “I’ll pay more $. “No, we reply, they closed the file and besides, the money was not the issue, but that the seller was not qualified – made too much money.”
At this point, to show him that we’re trying everything we know to make this work, I said, “Okay, I know a guy in our company who does more Short Sales than anyone in town. I’ll call him to see if he’s got a connection at Freddie Mac. I’ll let you know.”
I e-mail my cohort at HomeSmart and cry on his virtual shoulder. He replied, “Mike, Freddie Mac is absolutely the worst, but I’ve got the President’s #. You’re probably out of luck. I called the number once and it went to voice mail and this guy leaves three names and #’s of people to contact if he’s not answering. Here are the three names and #’s.”
I looked at the names and picked the first one thinking, ‘this is a waste of time.’ The phone rang and a live person answered the phone — without going to voice mail! I was so stunned I forgot why I’d called. “Is this Samantha?” I asked?” Yes, how can I help you?” I explained the situation to her while profusely worshipping her for being a live sympathetic ear. She said she would look at the file and call me right back. Oh, I’ve heard that before, I thought. But she did. I was flabbergasted.
Long story short, Samantha checked the file, put a manager on it, and said if we can add $3000 to this deal, we can make it go. The buyer agreed in a heartbeat.
We’re several weeks down the road since then but believe it or not, we’re putting this deal together. I wish I could say it was my knowledge, my persistence and my wherewithal to do all this, but it wasn’t. It was a persistent buyer, a helpful fellow HomeSmart Agent, and a genuine caring lady at Freddie Mac who did the impossible for us. Truly, this was short sale miracle.
(A Short Sale Miracle Part 2)
by MICHAEL BODEEN | Aug 19, 2014 | Bodeen Team Blog, Real Estate News
You probably don’t know Judy, Alan or Ruth. But they are three of many reasons why I love my work.
Bittersweet! This past Thursday afternoon Judy and I sat down at the closing table of Magnus Title as Judy was signing the deed for the sale of her Scottsdale Ranch Lake home. She’s owned it for 14 years and has had good memories in this home, but to be honest, I was still somewhat surprised that she expressed some emotion as we hugged goodbye. But in the past few hours as I’ve thought about this house closing, I’ve been thinking about some of the reasons why I still love what I do. And it has to do with people like Judy.
I was referred to Judy by her longtime friend Alan Dube. Alan was a Realtor with me at Realty Executives a number of years back when I managed the office at Scottsdale Ranch. At 80+- years of age, though he looked 70ish, Alan no longer wanted to be active in real estate, but he would nonetheless come by the office regularly to chat with me and others – it was therapy for his loneliness. I was so happy that he took the initiative to get out of the house to see people. I would meet with him periodically at Barnes and Nobel on Shea and the 101 where he would faithfully, daily, read the paper at the Starbucks lounge.
From time to time, Alan would refer these wonderful clients (friends really) to me. Judy was one of those referrals. Judy has this way about her that brightens up my day. She knows how to make people laugh. That’s the thing about our profession — often, if not usually, our clients become our friends. If you’re able to talk about personal finances with someone, you will usually talk about anything under the sun. Whether it’s anger, joy, sadness or happiness — it’s an honest expression of our humanity.
Alan and I had gotten to know each other pretty well. He had had some heart problems for which he had been hospitalized at Scottsdale (Shea) Healthcare. Alan, the consummate sales pro that he was then made fast friends with one of the hospitals finest ER nurses, Ruth. Alan then referred Ruth to me to sell her South Scottsdale home and then Ruth bought a new home in Surprise. Ruth is one of the sweetest people I know. Her heart for her family, friends, and those she helps at the hospital is amazing. She has a sweet passion for people.
Shortly after Alan got out of the hospital he started to attend Scottsdale Bible Church near his home. He would later mention to me how much he looked forward to Sundays – it was the best day of the week as he was getting to know some of the people there. He told me how much he enjoyed the hymns and the Pastor’s message. Alan loved to talk about these spiritual matters as it was a somewhat new dimension for him later in his life.
Without exception, these friends of Alan loved him. He was in a word, adorable! I don’t think he was even 5’ tall, which perhaps led to his loveable nature. He would always speak his mind though – you could count on that. Sadly, Alan passed away in 2011. I miss him.
So yes, I am a Realtor Professional – have been for over 35 years. There were a number of other directions I could have taken and some directions I did take that perhaps I shouldn’t have, but each time, I came back to what I know and love. I have met so many Judy’s, Alan’s’ and Ruth’s and I’m a richer man for having known them.
by MICHAEL BODEEN | Aug 11, 2014 | Bodeen Team Blog, Real Estate News
Hey is that a new word? Nah, but it seems to fit better.
As is our custom, we want to continue providing you with the very best and latest real estate market data available, and we’ve got it, via Michael Orr’s Cromford report that the Bodeen Team subscribes to. By doing so, Orr gives us permission to share with our clients and friends this cutting edge information.
What we appreciate about Orr’s data is that it often transcends the MLS, which is very good information, but much of the research by Orr goes into the public records, which the MLS does not, unless specifically mentioned otherwise, such as Orr’s following report for July 2014:
Here are the basic MLS numbers for August 1, 2014 relative to August 1, 2013 for all areas & types:
The Bodeen market summation for those not wanting to be bored by the minutiae:
— Fewer Buyers. Fewer Contracts. Less Demand. Marginal Price Drop —
- Active Listings: 23,900 versus 16,456 last year – up 45.2% – but down 2.2% from 24,440 last month
- Pending Listings: 6,079 versus 7,755 last year – down 21.6% – and down 5.4% from 6,426 last month
- Monthly Sales: 6,805 versus 8,076 last year – down 15.7% – and down 6.4% from 7,271 last month
- Monthly Average Sales Price per Sq. Ft.: $126.53 versus $119.65 last year – up 5.8% – but down 2.3% from $129.56 last month
- Monthly Median Sales Price: $196,790 versus $185,000 last year – up 6.4% – but down 0.1% from $197,000 last month
- 30 Year Mortgage Rate with 740+ Fico, 20% Down Payment: 4.00% (*Source: Bankrate.com)
Similar to last month, active listings rose 4.9% between July 1 and August 1 in 2013 but fell this year by 2.2%. This weakness in supply is very unusual, but is hardly getting noticed because it is overshadowed by the prolonged weakness in demand.
There are a few strong areas in this market where demand exceeds supply. These include Sun Lakes, Sun City West and Sun City. Clearly baby boomers are doing their bit. Paradise Valley, Scottsdale, Fountain Hills and Gold Canyon have all improved their balance because supply has declined faster than the rest of the valley. In general, the higher you go in price range the better demand has held up.
All the talk of loan underwriters getting more flexible has not resulted in much change in buying patterns so far. Mortgage applications are low. Perhaps potential buyers assume they will either get turned down or have to provide too much documentation. Nationally too, purchase loan application rates remain weak according to the July 30 report from the Mortgage Bankers Association.
All This is to say, “It remains a very opportune time to buy!”
![Our Traditional Market Returns]()
by MICHAEL BODEEN | Aug 5, 2014 | Mike's "Real State" of the Market, Real Estate News
The Phoenix Metro residential real estate market continues to slog along…supposedly. What’s interesting is that when we compare now with the past few years, the pace of the market has slowed because there are a lot less sales. Why are there a lot less sales? The main difference is that the investor gold rush has slowed. Now that the investor market has cooled its jets, what we’re left with is a “traditional” market.
So what does our traditional market look like? Fewer sales. Longer market times. Conservative annual appreciation rates. Oh, you mean like most of the rest of the country? As I’ve mentioned many times in the past, what most often has described the Phoenix and Scottsdale real estate market is radical, frenzied, hurried. Adjectives such as conservative, moderate, and subdued have seldom described this market, but this is where we currently find ourselves.
Much of the rest of the country is also in a lull and many cities are experiencing decreasing prices. We are currently through our 24 month price run up, and now in moderation mode, but NOT decreasing in value, in fact still slightly increasing.
The good news for Sellers is that even though demand has remained low over the last 6 months, creating a mild buyer’s market, the supply is quickly shrinking. Even in just the last 30 days we have seen a dramatic decrease in the amount of homes available. As I’ll explain more below, this is mainly due to a lack of new listings, probably sellers reticent to try selling in the recent buyer’s market. As a result, we are back in the balanced zone, though probably not for long. This is Arizona after all.
NEW PHOENIX-METRO LISTINGS AT 14 YEAR LOW
In a recent analysis of new listings hitting our market, Michael Orr of ASU and the Cromford Report has compared the first two weeks of July 2014, to the same two weeks for each of the previous 14 years going back to 2001, and states that new listings are at their “lowest” point since then. July 2014 registered 3568 new listings. When compared to previous years, the next lowest listing total was 4027 back in 2012. In 2001, for example, there were 4021 new listings. The high point of 6651 new listings was in 2006. So, if you’ve been considering selling your home, now might be an opportune time.
CANADIANS LOVE ARIZONA REAL ESTATE – CHINESE? NOT SO MUCH!
We’ve long known that Canadians love to buy real estate in Arizona. For a while last year, Canadians were the largest out of state buyers even surpassing Californians. With the booming economy of China, some have wondered if the Chinese will commence a buying spree in Arizona. Well, according to the National Association of Realtors, that is not likely in the near future. I quote from NAR:
There is little to no evidence of a large amount of buying from China in Arizona. It seems from all the evidence that the Chinese, many of whom are wealthy people looking to diversify where they keep their assets, are focused on the most expensive places to find housing, namely the fashionable areas of California. The median price paid by a Chinese buyer, according to NAR, is $523,148 for the
period April 2013 to March 2014. This is far higher than the buyers from other major countries and more than double the median for Canadians which was $212,500. When it comes to the Chinese buyer, our affordability seems to be a disadvantage. Canadians, however, appreciate a bargain and also our overdoses of sunshine.
2013 PROFILES OF HOME BUYERS AND SELLERS
So what do we know about the Buyers and Sellers of 2013? Who’s bought? How old were they? How much money did they make? What was the typical size of their home purchased? These and a multitude of other data are available to Realtors who opt to purchase it. Some of the findings include:
Characteristics of Home Buyers
– Typical buyer was 42 years old; 31 for the first time home buyer, and 52 for the repeat buyer
– 2012 Median income of buyers was $83,300. $64,400 for First Timers. $96,000 for repeats
– 66% of Home Buyers were married couples. The highest share since 2001
– Typical home purchased was 1900 SqFt in size, was built in 1992, and had 3 Bedrooms and 2 Baths
– 80% of home buyers purchased a detached single-family home
– 14% of recent buyers over the age of 50 bought a home in senior related housing
The Home Search Process
– The first step for 42% of Home Buyers was to look online for properties
– 14% looked online for information about the Home Buying Process
– The overall use of the internet for the buyer’s home search rose to 92% from last year
– The typical home buyer searched for 12 weeks and viewed 10 homes
– For more than half of buyers finding the right house was the most difficult step in the process
Home Sellers and Their Selling Experience
– Almost half of home sellers traded up to a larger size and higher priced home
– The typical seller has lived in their home for nine years, up from six years in 2007
– 88% of sellers were assisted by a real estate agent
– Recent sellers sold their homes for 97% of listed price. 47% reported they reduced the price at least once
– 13% of recent sellers had to delay selling due to their home’s value being less than their mortgage
THANK YOU!
A very special thanks to those of you who have recommended or referred me to others to help them in the home buying or selling process. Referrals are truly the lifeblood of our business and are the highest compliment we can receive. I personally meet with the client and handle their business. Jon handles the administrative, marketing, and follow through for which I’m grateful. It frees me up to do what I do best, which is to accomplish our client’s goals!
So, if you know of someone considering whether or not to make a real estate move, please let me know, or give them my direct line. I’d love the opportunity to help them anyway I can. 602-689-3100.
Mike Bodeen
by MICHAEL BODEEN | Aug 4, 2014 | Bodeen Team Blog, North Scottsdale News, Real Estate News
In updating one of our websites, NorthScottsdale.com, we have come to find that there has been a bunch of accolades recently lavished on Scottsdale that I’m guessing most people aren’t aware of. Even I wasn’t aware of them all. Pretty heady stuff. Let’s look at some of them:
- Scottsdale ranked No. 1 place to raise children, according to a study published in early June 2014 by MyLife.com. Cities were judged using five criteria: crime rate, public school rating, public parks per capita, average family salary and cost of living.
- Scottsdale ranked No. 6 safest city in America (out of 100 most populous cities) by Movoto.com. This study is ranked on per capita statistics relating to property crime, violent crime and the chance of being a victim of crime. In all of 2012, Scottsdale only had one murder and just 147 violent crimes making it on the safest big cities in America.
- Scottsdale earned the No. 6 spot on 24/7 Wall St.’s “Best Run Cities in America.” To determine the performance of the nation’s largest cities, 24/7 Wall St. reviewed the 100 largest U.S. cities by population and considered a variety of factors, including the area’s economy, job market, crime level, and welfare of the population.
- Top Ten Tech Savvy City: The Center for Digital Government recently honored Scottsdale as a top 10 tech-savvy city for using technology to eliminate waste, enhance service levels, improve transparency and engage with citizens in the digital world.
- Scottsdale named one of Top 100 Best Places to Live – Livability.com, a national website that ranks quality of life in America’s small and mid-sized cities, has named Scottsdale one of the Top 100 Best Places to Live. Scottsdale, touted for education and amenities, ranked No. 89 on the list. It is one of only two Arizona cities named to the list. The other is Tempe. 1,700 U.S. cities were considered and the factors that make them the best places to live, work and play.
- Google honors Scottsdale as Arizona’s 2013 “eCity”
Scottsdale recently captured the 2013 eCity Award from Google, an honor that recognizes the strongest online business community in each state. Google said, “The businesses in these communities are embracing the web to find new customers, connect with existing clients and fuel their local economies. Scottsdale joins the ranks of America’s leading cities in the digital economy.” For more information, visitwww.google.com/ecities
- Scottsdale ranks in top 20 of “America’s Thriving Cities”
The Daily Beast ranks Scottsdale 15th on a list of “America’s Thriving Cities.” To find the country’s top 20 thriving cities, the news reporting and opinion website looked at the 100 largest cities in the United States and compared them in various categories including: population growth; employment and earnings; market strength; infrastructure; and intellectual capital.
- Scottsdale ranks No. 1 spot for retirees
MSN Money named Scottsdale the No. 1 city to retire in. Here’s what it had to say, “The city packing the heaviest post-65 punch in America sits just off the northeastern fringe of Phoenix, luring newcomers — or retaining longtime locals — with plenty of play and rays. The biggest attraction is the weather (and) just how pleasant it is here.”
- Scottsdale recognized for top innovative green initiatives
NerdWallet, a San Francisco-based consumer advocacy website, recently featured Scottsdale as a top city for innovative green initiatives. The website applauded Scottsdale for protecting natural areas like the McDowell Sonoran Preserve, incorporating multiuse paths, and using compressed natural gas trucks, solar power to generate electricity and energy-efficient LED light fixtures.
