Christmas 2010

I love Christmas. I love the reason for the season. What I'm not all that crazy about is how rushed I make myself - convinced that a ton of stuff has to be done by a certain time or - what - I don't know. Or I won't be ready.

In August or September, choir practice began - not at my church but at the Baptist church that lets me hang out with them for Christmas and Easter music. So once a week I've enjoyed getting ready for Agnus Dei - the lamb of God - gorgeous music with voices and orchestra. We sang two times. It was truly wonderful both time - very uplifting! - so that's something joyous about the season, something to appreciate and be thankful for.

We also performed The Christmas Shoes at Glendale Christian. Cast and choir worked hard - and had a really really good time doing it. We've had some sadness at church, and this effort may have helped make hearts hurt less.

Okay - the year in review. Steve stayed pretty healthy, much healthier since his diet started around May. He taught second session of summer school and skipped the first session. Instead he started riding his bike to the fitness center, working out, eating smarter - and eating less. He's lost well over 20 lbs., maybe closer to 30 - looks great and feels much much better. That's not to say that he's pain-free, but he is able to do more and has fewer down days. This is something to be thankful for in a very big way.

For fun, Steve still reads lots - he's a frequent patron of the library in the kid's section. Have you read some of the children's books? Great humor, good stories (and the print is usually bigger too). He gardens - we have lots of pots with a variety of green things in them: trees, onions, lettuce, tomatoes ....

Mostly I work - either looking for properties for buyers, or looking for buyers for properties that I have listed for sellers, or looking for business period. And most of that business - not all, but most - is short sale business. Not easy, and not short, but very gratifying when a deal comes together.

Just a little travel this year - a couple of days in Sedona for vacation, a short trip to Austin for business, and another short trip to Colorado (Castle Rock) to see my friend Janice.

We did several Bible studies this year - and plan to do more in 2011.

We are with Jenny and Scott usually once or twice a week. They're well. They've managed to stay employed when so many have lost work. And they love their dogs and their home and their toys - these are big kids, with big hearts, and know how to have fun and open their home to friends.

Goals: still working on them. Unwritten, they amount to nothing but wishes. So when they firm up, I'll write them down where I can look at them daily - and who knows but what I may blog them too.

Vistancia - Entrada

I love houses. And this one is extraordinary. Mountain views. Gated community. Gorgeous house - living room, formal dining room, den, family room with fireplace, kitchen to die for, tech center, game room with built in frig and wet bar and lovely cabinetry - and that's just the downstairs. Upstairs there are four bedrooms and three baths. The master bedroom has a sitting room, a huge walk-in closet with built-ins and ceiling fans, an awesome bath with both a tub and a walk-in shower. And - are you ready - this truly beautiful home also has a theatre upstairs, with a frig and wet bar and built-in cabinets.

Then there's the yard - with flagstone, built-in barbeque, block wall, grass, beautiful plantings - words fail.

When built just a few years ago, this 4800+ s.f. home cost over $800K. Today it is priced at less than half - and it is move-in ready. This one is a short sale. Look up MLS#4502465 for details.

Pebble Creek - Goodyear

I am excited to market a lovely 1445 s.f. home in an extremely attractive adult community (age 55+) in Goodyear - Pebble Creek. This is an energy-efficient block home - stucco with tile roof - with an open floor plan great for entertaining. Beautifully decorated, with tasteful color choices, tile and carpet, it has vaulted ceilings, two bedrooms, a den, two baths, two car garage - and a covered patio with block wall around the private back yard.

The address is 3989 N 160th Av, Goodyear - and we've priced it at $230K. This is not a short sale.

Not only is the house awesome, but so is the neighborhood. Quiet. Safe. This is a gated community with 24-hour security. The community boasts restaurants, golf, tennis, clubs, special interest classes - lots of stuff. The website is www.robson.com/page.cfm?name=PebbleCrk_

Call me if you know someone who might be interested. This is truly a fine home and beautifully maintained. It needs absolutely nothing but a qualified buyer.

Casting Off

We went to Bookmans the other evening - I had a credit that was burning a hole in my pocket (from 2008!) so we looked for books. It's a great store tho' I wonder what it'll be like in a few years with Kindles and the like gaining in popularity. I still like books - the paper kind - so it was fun to browse the shelves.

Last night I finished one that we found - Casting Off written by Nicole R. Dickson. It is a good read - a story (fiction) of a woman and her daughter to go to a small island in Ireland, where her friend was raised, to complete a study on Irish textiles and their history. The characters are likeable - tho' the main character is kind of slow on the uptake. I guess - were she not - we wouldn't have much of a story.

Not the best book I've ever read but I liked it. See what you think.

Short Sale Tips Courtesy Bank of America

I went to an interview yesterday to listen to BOA's Gary Haygood's "insider information" on Bank of American short sales. Gary heads up BOA's closing department in Chandler. His phone is 480.224.4497 and his email is gary.haygood@bankofamerica.com. If my experience with BOA short sales is any indicator, just the contact information is good to have.

Here are a few of my notes:

• Sometimes it is simply not possible, no matter how much you beg and plead, for a "full deficiency release" letter. Even though the bank probably will not pursue the deficiency (assuming we're talking about owner-occupied property that meets all the standards), some investors have a policy not to include full release language in the short sale approval letter. Sometimes it's the mortgage insurance company who makes the decision. So if that's going to be a deal-killer with the seller, better address it up front. Because you may be successful with language changes sometimes, and othertimes it is what it is.
• We'll hear more about "cooperative short sales" soon. This is when the bank has approached a borrower who is behind on payments and suggests they do a short sale, at a pre-agreed price. BOA may be moving in that direction, but it takes a stable market for it to be a win-win, and I'd say the market is not quite there.
• Most BOA files are getting full appraisals rather than BPOs (broker pricing opinions) - unless the investor orders a BPO. What's the difference? A BPO is essentially quick and dirty - cheaper, but of less overall value than an appraisal.
• BOA is okay with electronic signatures on their short sale files. Not all banks are.
• One day soon we'll see a change in the closing process in equator - so that the offer worksheet tracks with the HUD. That'll be good.
• Standardized processes sound good in theory, but BOA owns only 20% of its loans. The remainder are owned by a wide variety of investors, and each investor has its own way of doing business.
• Probably the best piece of insider information is this: because the bank will have all the sellers' financial information, repeat - all of it, have a detailed conversation with the seller at the listing appointment so there are no surprises about income, expenses, debt, assets etc.
• BOA is becoming less and less receptive to "strategic defaults" unless the seller makes a contribution at close.
• Gary says that the seller does NOT have to be in default to do a short sale. Other contacts at BOA say that the seller MAY have to be in default - based upon the investor and/or the mortgage insurance company.
• Commissions at 6% are usually approved - but for properties at $375K, they may only pay 5.5%.
• What is a good offer? Fair market value, no "junk fees," no big repair credits. Closing cost credits are okay. HOA fees are NOT allowed tho' the HOA transfer fee is.
• If the seller's FICO score is high, BOA will ask for a promissory note. The higher the loss, the more they ask for.
• In BOA's equator system, when the short sale has been approved and the buyer drops out, you can't plug in another buyer and keep on going. All workouts are buyer specific. Based on the discussion, it sounds like that's to make sure "arms length" remains in place with new buyer. When you get a new buyer, you must ASK for a fast track - call the closer and ask. Will need to upload seller bank statements etc. again, but if you get a fast track, you at least have hope of getting the transaction to close with a new buyer.

Christmas Shoes

We've been rehearsing like crazy for three December performances of "The Christmas Shoes." All cast and choir are church members, and we're being whipped into shape gently but effectively by Louise Jennings and Kathleen Kunkler. They have a job on their hands ....

It's a sweet story - a young family with a dying mom, an established family with lousy priorities and how both families are changed at Christmas.

The talented boy (who wants to buy his mom shoes (red - very Keller Williams) so she'll smile and look beautiful if she meets Jesus) is Jacob Herrera - and he'll run away with the show. He has his lines down pat.

The grinch guy is Ray Runkle - and he'll be flawless. He can't help it - he's an engineer.

The musical will be in the sanctuary - which is tricky because it's small and the cast and choir are all over the place. But it'll be okay.

Three performances: Saturday, December 11th at 7:00 pm, Friday, December 17th at 7:00 pm and again Sunday, December 19th at 10:30 am (or maybe it's 10:00 am - might want to be early anyway to get a seat). Glendale Christian Church, 59th Av and Mountain View (south of Peoria and north of Olive). It'll be fun. Very Christmas-y.

Open House on the Lake

I had a great open house today - at 10549 W Bayside in Sun City. I'd thought I'd stop by long enough to take some pictures - took the open house signs with me so as not to miss an opportunity to meet someone who might be interested.

I was there for four hours.

Lots and lots of visitors - some were neighbors, some were visiting friends in the area, others were out driving around and thought they'd stop.

It's been on the market less than a week - so this was good exposure.

It's a good, solid house in good condition - in a well-cared for neighborhood, close to rec centers and other Sun City amenities. The best feature - by far - is that it is on the lake. The buyer will get a private dock, with a pontoon boat, and what views!

Sun City Festival - will try again

My buyer made an offer a few days ago on a property in Sun City Festival which, had it been accepted, they'd have used as a vacation home. Sadly, the seller did not accept our offer. It's always a little painful to be rejected. I'd have liked a counteroffer, even if it didn't go anywhere - but all we got was an email - a day after our offer expired.

It's disappointing, but there are other houses. Especially in Festival - there are a LOT of other houses. I'll keep looking. The trick is to find a resale there that competes at all levels with the new builds.

This is a great buyer - smart about the housing market, courteous, appreciative, pleasant - and hopefully we'll still be able to make business happen together. Someday soon.

Piano Recital - Vicki Zemke's Students

Last night was the annual piano recital for Vicki Zemke's piano students. Vicki, who has dozens of students, teaches from her home studio. Her students love her - as do their parents. She is gentle, quiet, firm - and the results of her technique show in her students' performance. The recital was at her church, Southern Baptist at Saguaro Ranch in Glendale, where she plays on Sundays and also works with "wee ones." She plays at Glendale Community College as well.

This is a remarkable person. I say that about all my friends - and here's a glimpse at why it is true of Vicki.

Since she has been big enough to mount a piano bench (true - she isn't very big - but back to my story) she's played piano in church. She is careful always to give God the credit for her talent, and it is considerable. At last night's recital, she also honored her parents who had just celebrated their anniversary - her parents who provided lessons for her and who have encouraged her always.

She's not limited her service to church or to her piano students. For many years Vicki and Dan were foster parents - a story all by itself.

Our friendship developed one summer when stress levels were particularly high. We clocked a lot of miles walking the perimeter of a park near where our homes - and spent lots of hours in water aerobics. She found out that summer that she had breast cancer, pretty advanced, and together we researched the disease as she made decisions that were right for her. It was a pretty traumatic time, and she determined that she'd tell her story at every opportunity. She's since counseled one-on-one with women pre-and post-surgery, shopped with them for wigs, showed her scars, passed out educational literature, hosted business lunch and learns on the subject of breast cancer, served on the Susan G Komen board of directors, and on and on. Today she is healthy, and based on last night's performance, I'd say stronger than ever.

Her daughters Jennifer, Elizabeth and Katelyn played with her in the recital. Sorry about the picture quality - but the performances were outstanding.

Sometimes a Short Sale is a No Sale

I have a client who made an offer on a cute little house near Glendale Community College. It's a short sale. Compared to other properties that we considered, this one is terrific - at least at list price. Lots of character. In pretty good condition - obviously well cared for by the homeowner. Not perfect - the roof does not look all that great - and the build-out in the garage may have worked for somebody but not for my buyer.

We made an offer - decent, given the comps and the current market - and then raised our offer by $2000. Unfortunately, the seller's lender wanted more - $10,000 more. Without roof etc. issues, that might fly. But as is, no. We might have been able to meet in the middle - another $5000 from my buyer - but it looks like too much work, so we've cancelled.

I support the buyer's decision. We will try to find more value for the money. There are still good choices, and the interest rate is still low. It may not be a great time to sell, but it is a very good time to buy - assuming we can find the right property.

New Life Center

I attended a fundraiser luncheon today for New Life Center. This is a non-profit 104-bed residential facility dedicated to rescuing women and their kids from domestic violence. It was a short program - just an hour - with all speakers telling (or singing) their stories. Families are designed to nurture one another, not torture one another. If you know someone whom you suspect may be in an ugly, violent situation at home, here's the contact information:

New Life Center
P. O. Box 5055
Goodyear, AZ 85338
623.932.4404
623.536.1147 (fax)
www.newlifectr.org

Contributions are welcome.

Golf Course Home in Sun City

We closed Monday on a sweet deal on a Sun City golf course property. Buyer (whom I represent) lives up north, loves golf, has friends in Sun City, is old enough (just barely) to live in an age 55+ retirement community - and for months has been looking on line at properties that might work as a vacation home. When here for a buying trip a couple of months ago, we found one that was bank-owned and ready to be auctioned.

We rescued it from the auction. Good for us.

There was a time not long ago that I complained (forgive me) about the challenges involved in purchasing a bank-owned property. That was pretty short-sighted of me. This was a very smooth transaction, at least as far as the seller's agent is concerned. Very attentive to detail. Very good with communication. Very professional in all aspects.

In a bank-owned property, the buyer does NOT get seller disclosure information - naturally, because the bank doesn't have any. The bank isn't a person - the bank hasn't lived in the property and has no information about details that the previous seller would have known. But on the other hand, the bank doesn't take long to accept or reject an offer. It only took a few business days to get an acceptance from the seller-bank - unlike short sales that may take weeks (sometimes months) to respond.

And nothing impeded the buyer's inspection period - which result, happily, was acceptable to buyer.

So - happy buyer. Golf course house. Good condition. View of a little pond (I'd call it a lake but that's "puffing") from the family room. And what appears to be a nice neighbor. Lots to look forward to in making a trip to sunny Arizona and golf weather when it's cold and snowy at home.

And happy realtor - it's always nice to get a commission.

Short Sale HOPE!!

While I was in Colorado, I got a counteroffer from the bank on a short sale where I represent the seller. Bank okayed the sales price and all other terms - EXCEPT they asked the seller to make a pretty sizeable contribution.

The seller - who had been out of work for months, in debt and out of money - is now working. But he's not working in Arizona. He left all his friends, his emotional support, his home, his family - to take a job in another state. While he is happy to have a job, there is always a probation period with a new job. So long story short, he is not in a position to make a financial contribution to the sale, nor in a position to take on a promise to pay - too much uncertainty in the future and too much debt in the present.

The happy news is that the bank listened! Monday the seller wrote a letter of explanation, and the bank paid attention to it today - and is agreeing to the short sale with no seller contribution.

If all goes well with buyer's home inspection and buyer's lender's home appraisal, we'll have both a happy buyer and an unburdened (and UNforeclosed) seller by the end of the year.

A little too soon to breathe a big sigh of relief, but we're closer than we've been yet ....

Listing on the Lake

If you know someone who might be interested in living on a lake in Sun City, Arizona - a Del Webb retirement community - give me a call and I'll send you the link. It's over 2100 sf with a private dock and a view at sunset that will melt your heart.

Three bedrooms, two baths, den, Arizona room, family room - nice looking home with a red tile roof. Faces north, with the Arizona room facing the lake. Pontoon boat is included.

Reasonable price. Would love to find a buyer for the family before Christmas.

Living History Museum

Janice's Uncle Bob lives in a house that suits an old cowboy. It's filled with memories, and filled with what have become antiques. I took some pictures just to hang onto the trip in my mind for as long as I can. My dad has been gone for a long time, and he would have been a couple of years older than Bob. There are some similarities between them - both are charmers, both have lived hard lives, made risky choices. Lots of differences too, yet he put me in mind of my dad somewhat.

This is a home crammed with cowboy memorabilia. Arrowheads. Rattlesnake rattles. Pictures of family. Drawings by friends. Wood cook stove. Photographs of people even I've heard of! Saddles. Sewing machines. Butter churns. Ropes. Trunks with Indian blankets. He says it's like living in a museum, and he is telling the truth. It's live-in history.

Trinidad

Day Three of my vacation was a trip - literally, a trip. We drove to southern Colorado, almost to the New Mexico border - to visit Janice's 94 year old mom's 92 year old brother Bob.

On our drive we were blessed to hear great stories of growing up on a working ranch, and when we got to visit with cowboy Bob, we heard about driving cows (not the same as driving cars), about gunfights - and those looks at the past bring appreciation to the present.

Here are pictures of the brother and sister in a local restaurant, with a picture on the wall of the restaurant of them as kids. There's also a picture of the best horse Bob has ever had.

Double the Pleasure, Double the Fun

Day Two of my Colorado vacation was experiencing the joy of being with one-year old twins. And these aren't just any twins - they are famous! They were born at 26 weeks - that's pretty early - because of complications during pregnancy. Maddy was 1 lb 2 oz, and Matt was 1 lb 14 oz. It was pretty scary for a long time, but look at them now at around 18 lbs each! They celebrated their one year birthday at the hospital where they were born, and the local TV station interviewed them and told their story on the nightly news. (Darn - I should have gotten autographs).

The twins' mom and grandma ran a half marathon when the twins had their one-year birthday - that tells you something about the "can do" attitude of this family.

It was a great day, and my respect for twin parenting (and grand-parenting) is unlimited. Such abundant love in that family - they appreciate those babies so very much.

Eighteen Months of Sunshine

I took a few days off to go see my friend Janice in Denver. Janice works nights at Sky Ridge Hospital, and she and her husband Peter take care of her 92-year old mom. Once a week Janice gets to babysit her 18-month old granddaughter, so while I was there, I got to hang out with them.

I'd forgotten how much fun an 18-month old is! She walks (toddles is more like it), she talks, she laughs, she HATES having sun in her eyes, she chases dogs, she colors, and - get this - she uses the potty chair. And when she SHOULD HAVE used the potty chair but didn't get there in time, she says "oh shoot."

What a doll. What a lucky "mimi."

Election

I worked the November 2nd election - and it was a good experience.

The Elections Department in Maricopa County hires about 7800 poll workers, and of that number, there are over 500 "trouble shooters." I was a trouble shooter again this election.

A trouble shooter's job is to be a resource to a small selection of precincts - I had seven assigned to me, but in only four polling places. The BIG job is done by the inspector of each precinct - but a trouble shooter answers questions for the inspectors, repairs machines, refills supplies and generally fills in where needed. The polling places assigned to me where pretty close together - and I drove from one to the other to the other to the other - and back - continuously. Looking for trouble - not finding much. That's a good thing.

Although the polls are open from 6am to 7pm on Tuesday, trouble shooting begins the Saturday before, continues as the polls are set up on Monday, and then clock begins ticking at 5am Tuesday and keeps on going until polls are closed and votes are delivered to drop sites. I was home by about 9pm Tuesday - and believe it or not, could still see to drive.

All seven of the inspectors I worked with were terrific. They were capable, prepared, experienced (most of them) and had great can-do attitudes. They worked well with their Boards, and I don't think among them there was any unpleasantness the entire day. It's simply amazing how much work it takes to make an election happen - and what happens at the polls doesn't begin to address the hard work the Elections Department goes through before and after.

We are so blessed to be in America ....

Reluctant Buyers

I'm working with one of the nicest buyers I've ever met. I like her (I almost always like my clients, but she's particularly nice - and I'd be so happy to help her find what she's looking for). She's on an automated search, meaning that when something turns up in the Multiple Listing System that meets her criteria, she receives an email notification with the property details. And when she sees something that looks good, she calls me and we go look.

A couple of weeks ago, I thought we'd found just the right thing. Stucco, red tile roof, around 2000 sf home built around 2000. Good location for her. Three car garage, RV gate, covered patio, pebbletec pool. Nice floor plan. Great kitchen - love that kitchen. Fireplace. Gently-used. NOT a short sale (did you get that - NOT A SHORT SALE!!!) and not trashed. Window coverings all in place. The carpet needs help - either a professional cleaning or replacement - maybe some of both. But the yard was in decent shape.

The problem was that by the time we got to it, it had been on the market about a week and there were five other offers. We wrote the best offer we could - a little over list price - and we asked the seller (a bank) to pay most of buyer closing costs. The bank countered somebody else's offer. Darn. But my buyer still liked it, so I approached the seller's agent again, after our offer had expired, to see if there was any chance at all.

Well, there was! The buyer that the bank had countered somehow went away - I don't know the details - so we were still in the game. The bank countered our offer, but the terms remained the same: same price we offered, same deal as to buyer closing costs.

And here's where it gets painful: my buyer has decided to pass. She knows what she's comfortable with as to monthly payments - and given the amount of down payment, this pushes her just past her comfort zone. She's within lender criteria as to what she's eligible for. All the same, monthly payments for the forseeable future - 30 years worth - is a big commitment in today's economy, with all its uncertainty about job stability.

Rent receipts don't help much when could use your interest as a tax deduction, but on the plus side, you aren't trapped either.

It's not the decision I'd have made, but I respect that she's made it. We'll look for the perfect house at a lower price - and keep fingers crossed.

Trick or Treat

Funny how things change. We're aren't big on Halloween at our house. Not that I don't get a kick out of giant spiders on houses and spooky decorations - but I'll stick to passing out candy, thank you very much. Seems like stores were promoting Halloween back in August, skipped Thanksgiving and went straight to Christmas. Not complaining - just think it's odd. It's hard enough to live in the moment for some of us.

When I was a kid - back in the olden days - trick or treating was as much about tricks as treats. And the tricks we suffered sound a lot like vandalism, looking back on it. We lived in a little post-WWII house in the midwest, in the suburbs, with a board fence around the house. Kids threw kernels of seed corn at the fiberglass awning - which made a big racket. It was a stealth thing - it'd be dark outside, you'd be inside watching television, then the corn would hit and sound like an explosion. Fun if you were the thrower - not so much if you weren't.

It was also the time for soaping windows. The "trickers" used bar soap, and sometimes just "decorated" your windows - again, a steath thing. Not so innocent were soaped screens - it was difficult/impossible to remove the soap writing from screens.

Then there were burning paper sacks on the porch - kids would knock or ring the bell, the dad would go to the door, see the burning sack, stomp it out - and get dog poop all over his shoe.

Sometimes doorknobs would be greased. Sometimes car horns would be "stuck" - this was a time when cars were in the drive, not in the garage, and it didn't take much ingenuity to strategically place a wooden toothpick where the horn would blast.

And Halloween wasn't just on October 31st - it was the whole week prior.

It was also a day when kids who went to the door for "trick or treat" didn't have to worry about poison or razor blades.

This year, Steve set up the candy-passing-out-station around 5:30 - and by 6:30 we were about out of candy. (It wasn't even very good candy. When we have the good stuff, we eat it - and we don't need it.) Every single child - and most were in pretty clever costumes - was well mannered, said thank you, and if there was any "tricking," we haven't found evidence of it yet.

First-Time Buyers

I don't FEEL old. But I have to admit that representing the GRANDDAUGHTER of a friend my age does point out a pretty significant age differential.

We closed yesterday - after nearly a four and a half month wait - on a cute little house that my clients will turn into their first home together. It's has three bedrooms, two baths, a two-car garage and a fenced yard - great for dogs (and maybe little people some day) - with a newer roof and air conditioner. We got it for a very low price - so low that their house payment will be less than $500 a month.

No more rent receipts - instead they'll be able to write off their interest expense on their income tax. And - at the price they paid - they have equity already.

I love it when something good happens.

Sun City Festival

I dragged my friend Sally with me on Friday out to see Del Webb's Sun City Festival in Buckeye. It is far. Very far. About 26500 west. Who knew.

Festival is an active adult community - with fourteen different models. The smallest is about 1100 sf - the prices start at about $140-ish thousand and go up from there. Even the smallest has a two car garage.

The community is in the mountains, and it is in the Town of Buckeye. I've been in Buckeye lots of times - even bought and sold some property there (residential resale), but I had NO IDEA that Buckeye was this far north. To get there we took Bell Road as far west as it goes - when it turned into Desert Vista Blvd. My Buckeye travels previously were along I-10 - many miles to the south. Just the trip itself was an eye-opener, not to mention the models.

We were there about 90 minutes and didn't get through all the models - but saw enough to want to go back. These properties are not for everybody - they are pretty far off the beaten path. Yet that will be the attraction for many adult buyers, particularly those with a wish to get out of the city and enjoy mountain views and desert nights.

Most of the properties are brand new, but there are a few resales - even a short sale or two. The website is http://delwebb.com/communities/az/buckeye/sun-city-festival/index.aspxs - there's even a map.

Golden Anniversary

I went to a lovely anniversary party Saturday for some friends who have been married - yes, to each other, for fifty years. Their children threw them a spectacular "do" at the home of the eldest daughter in Litchfield Park. Lots of friends, lots of family, lots of food and lots to celebrate.

They are an inspiration.

We met in the mid-'70s. I had been working at a major Phoenix law firm and when one of the partners was appointed to the state court of appeals, I went along as her judicial secretary. That's what we were called back in the olden days - the title is more impressive now (and the work is probably more challenging). Martha worked in the judge's office next door - and we became friends pretty quickly. What's nice is that we have STAYED friends - although it has been over 30 years that we've worked together.

This couple have stayed in their home while my husband and I have moved eleven times (I think) since we met. The number is a little foggy - but I'm pretty sure seven cities are involved. They've upgraded their upgrades, and added gorgeous features - including a kitchen any chef would be proud of. It's more than a home - more like a compound. Nicely done.

They know the meaning of friendship too - they're letting me represent them in an investment property purchase. Their trust pleases me no end.

Great people - celebrating the golden years ....

Windows - Can't Live Without 'Em

Okay - you probably CAN live without windows. Being without five of them for about ten days helps you appreciate them - especially dual pane. It is surprising how much QUIETER it is when you replace heavy-duty plastic with dual pane windows. Our neighborhood is great for us - close to our church and to GCC - and I'd say our neighbors are as good as we could ask for - but all the same, it is nice NOT TO HEAR THEM!

Our screens on the east and the south have been replaced too - with a good quality sun screen. It's a little dark inside - not as dark as a bat cave maybe, but sun screens DO block the sun, on purpose, so it may take a little getting used to having less natural light.

Our windows were replaced by Howard of Taylormade Glass. Howard's phone is 623.203.2516. He takes pride in his work, and you can tell. (He even worked on his birthday! - How is THAT for dedication?) I'm happy to recommend him.

And our screens were replaced by John of Sonoran Sunscreen. John's phone is 623.810.2028. John also takes pride in his work - AND he likes our dog! Quality work and a quality person. I'm happy to recommend him as well.

Buyers in the West Valley

I showed houses to two buyers on Saturday and wrote offers for each of them on Sunday.

One buyer found a bank-owned property in Avondale - a great location for her, and it meets all her requirements. It looks to be well-maintained, has gorgeous kitchen cabinets, a nice yard for her dogs, a pebble tec pool, three-car garage, and the HOA is reasonable. The problem is that there are at least five offers besides ours. We've given it our best effort - and should know within a couple of days whether we're in the running. It is a LOT of house for the money, especially for the condition it is in. No wonder the seller/bank has a half dozen offers.

The second buyer has made an offer on a short sale in Glendale, close to Glendale Community College. It has lots of features that I like - vaulted ceilings, fireplace, cute kitchen, well maintained, nice yard. We should hear back from the seller within a couple of days. The house is priced to sell - maybe priced too well. Sometimes short sales are like that. The price is too good to pass up, buyers make an offer, seller accepts, and then after comparing market analysis with needs of the investor, the seller's lender[s] counter with a higher price. We'll see. That's what negotiation is all about.

It's good to have buyers. I'd be glad to have more - and more sellers. Lots more sellers ....

The Story of You

In my "former life," whether it was when I worked at a law firm or the court system or the county, I interviewed and hired people - and now and again set them free. As a realtor, I'm presently a one-person operation, with whatever help I can get from others when I need it. No one hired, no one "freed." In discussing what a great hire would look like for my business, I've been introduced to a "career visioning" tool - part of what Keller Williams recommends for building a solid team.

The material designed to guide an employer to visualize the best candidate and the interview questions are insightful. The questions are structured to force the employer to picture what behavior style, skills, experience and attitudes it'll take to make success happen in the position. And the interview questions - some are the routine stuff you'd expect (what are your strengths and give me an example of what that looks like in the workplace, and do the same with your weaknesses). And discovery questions get more challenging. I wish I'd had this back in the "olden days." I'm glad to have it now.

After the interviews and the reference checks, there's a process to get to the real you. The script (real estate professionals are REALLY BIG on scripts) is particularly powerful. It's written to guide the interviewer to pull out the candidate's life story. You may not be interviewing anybody, or you may not be about to be interviewed. But simply getting to your story may be good for your mental health. So ....

If you need a little gentle prodding to think about who you are and tell the story of who you are (without letting your mascara ruin your make-up in an interview), privately ask yourself questions like these and write down your answers. This is for your eyes only unless or until you want to share - if ever. Here are your five categories: Date, Event, Highs/Lows, What You Learned, and - if this applies - What You Earned. Here goes:

• When did you finish your formal education? (that's the first date)
• What happened (that's the first event)
• What were your "highs"? And what were your "lows"? (that's the first entry under the high/low column)
• What did you learn? (you get the drift - that goes under the "what you learned" column)
• If you were working, what did you earn? (that's the fifth column)
• Anything to add?

Then go to the next major event - you get to define "major" - and keep going. Run through all the columns. Then go to the next major event and work through all the columns. And so on and so on. Don't rush. Give yourself whatever time you need - this is just for you. When you get to the present, stop - and look at the story of you.

If you're honest (and why wouldn't you be), what's important to you - who you are - should come out loud and clear. Does your story surprise you? Do you wish you'd gone through an exercise like this with someone before you partnered up with them?

Sarah's Short Sale Shop Talk

I'm making myself available to answer questions about foreclosure avoidance options on Monday, October 18 and again on Monday, October 25 - 6:30 p.m. at Room D-101 at Glendale Christian Church. It's on the southeast corner of 59th Avenue and Mountain View in Glendale - and the "D" building is on the north parking lot side.

We read in the newspaper and hear on the radio that we're coming out of the recession and that the economy is on the upswing. Great news. For some, it doesn't sound real. Lots of people still struggle with getting the bills paid at all, much less on time. Some have been successful with loan modifications that reduce their mortgage payments so they can keep their houses - I just got a call from someone a few minutes ago whose loan mod came through.

Others have found either that the loan modification was denied or that their payment is still too high. Those who decide that keeping their home just isn't going to work have some choices to make.

I know the local real estate market. It's my goal to help as many people avoid foreclosure as possible. If I can help anyone make a good decision that will protect their credit and their long-term financial future, I will be my pleasure. Monday, October 18 and 25, 6:30 p.m.

Emotional Real Estate

I haven't always been in real estate. I may have always LIKED it - we've moved two dozen times. I just like houses.

Four years ago, I had an "aha" moment while I was working for the county. I'd worked for the court system for a dozen years, then switched to a technology office and had been there four years. Anyway, after the first year with technology it stopped being fun. By the fourth year, I was miserable. In the middle of that misery, a lightbulb went on when I thought about what I liked - instead of what I didn't like. The next thing I knew, I was a retired county employee and a full time realtor.

The first year in real estate was great fun - there was (and is) so much to learn. It is a joy when a seller finds a buyer or a buyer finds just the right house - and both buyer and seller get what they want. A win-win.

The second year in real estate was more productive. People were still selling and buyers were still buying. There was some tension, not desperation exactly, but the win-win wasn't quite as equal maybe as it had been.

Year three, prices dropped like a stone. The sellers who wanted to sell were faced with the cold reality that they couldn't do what they wanted to do with the result they wanted to have. Buyers bought, many of them for the first time. Lots of what they bought were foreclosures. And they bought at prices far far lower than they'd have paid even a year before.

And now year four. Almost all my business is short sales - when the seller sells for less than is owed on the house. For sellers, this is hard. Painful. Sad. Embarrassing. Within the past month, I have had conversations with sellers who have had to move to another state because the jobs they'd had - good jobs - either cut their hours or they were laid off. To get work, they had to move out of Arizona. Other sellers have had business reversals - the businesses they'd built up stopped being profitable and they couldn't pay their bills, including their house payments. Others have expensive medical issues. Losses in the stock market. Trouble with the IRS. Divorces. It's a long list, and emotionally-charged. The best I can do is my best - in preparing a short seller for next steps and taking as much uncertainty out of the process as is possible.

I still love the real estate business. I like houses. I REALLY like people - I think my clients are among the finest people anywhere, and I mean that from my heart. Right now, I'm still smiling when I'm working with buyers. And I am optimistic that one of these days - maybe really really soon - the pain suffered by sellers will be a long, forgotten memory. Better days are ahead.

Fund Raising and Fun

Yesterday afternoon my office bowled. The real deal - with bowling balls and shoes and pins. No, it's not the same as Wii bowling. It's more of a workout. We've done a bowling fundraiser three times this year, raising money for KW Cares and having fun while doing it.

I took my daughter and a couple of good friends, Denise and John. All together, there were two, maybe three dozen agents and friends of agents and supporting vendors. The bowling alley, Brunswick Zone at 59th Av just north of Bell, gave us a discount and we charged ourselves each $20 for over two hours of fun. We probably raised about $400 or thereabouts, and it is all for a good cause.

KW Cares (the KW standing for Keller Williams) is another positive aspect of the culture at Keller Williams. Each office has a fund-raising goal every year, and how we raise funds is up to the ALC (Agent Leadership Council), as approved by the business owner and supported by all agents. It's a collaborative thing, and the funds raised support agents in crisis.

Some days the biggest crisis I experience is a broken fingernail (which happened at bowling). I'll take a broken fingernail any day ....

The fun part of this fundraiser is spending a little time with people in an activity outside the norm. I see my daughter every week or two - but we never bowl. I see my friend John at church every week, and my friend Denise helps me with my business paperwork every week - but bowling is different. It's not socializing over dinner or at church and it's not work. It's full of the unexpected - like my designated broker bowling backwards, rolling the ball between her legs and knocking down nine pins. Or me falling down (what do they use to make the lanes so slick??!!). Or laughing with colleagues laughing at themselves when they finally get a strike after all those gutter balls.

I'm so glad for the freedom to be able to take a couple of hours out of my day to raise a little money for a good cause and have some fun.

Are There Tax Advantages to Having an LLC?

This morning I asked my CPA, Vince Murrietta, whether there are tax advantages for me, a realtor, in forming a limited liability corporation (LLC). His response was immediate, and I think it is of so much value that with his permission, I'm sharing it. Here's what he says:

"The answer is No, there are no tax advantages to having an LLC. The reason is because deductions are not created by the entity you operate a business under. Expenses are deductible based on the purpose of the expense. If you spend a dime and it is for the purpose of promoting, maintaining, supporting the business you operate, then it is deductible whether you are an LLC or not. The question that you ask yourself about whether an item is deductible when you own a business is "Why did I spend that dime?". If it is for a business reason, then it is deductible regardless of the entity. Any expense, when the purpose is for a business reason, is always deductible.

"The challenge is that there are professionals telling real estate agents that having an LLC will create more deductions. This premise is totally false. Home office expenses are deductible if they are for a direct purpose, i.e. a fax machine, a separate business line, maybe a file cabinet and a desk. These are deductible because the sole purpose for the expenses is to support your real estate business. The indirect home office expenses, i.e. the interest on your mortgage, utilities etc. are not deductible because as a home owner, those expenses would exist whether you had a real estate license or not. The other main reason the indirect home office expenses are not deductible is because the real estate brokerage where you hang your license is usually required to provide office space for the agents. The regulations in the IRS code state the home office deduction is allowable if the home office is used "exclusively." Real estate agents who hang their license in a brokers' office do not use their home office "exclusively." When it comes to automobile expenses, I believe that an agent can deduct from the minute he leaves his home because of the nature of the business. Most agents go to the office for meetings etc. All of their work is on the phone and on the road. You do not need a home office (LLC) to support this expense.

"There is no 'TAX ADVANTAGE TO AN LLC'; however, there are asset protection advantages that should be considered. Let me know if you have any questions."

Thanks, Vince. For more information, contact Vincent M. Murrietta, CPA at 602.241.3306 or vince@mycpataxes.com. Vince's office is in Phoenix, AZ.

Sarah's Short Sale Shop Talk

My experiment with convening a Monday evening forum at my church to talk with people who have questions about avoiding foreclosure has gotten off to a great start!

I was ready for the crowd at 6:30 pm - and 100% of attendees went away with their questions answered.

I was the only attendee. Will try again - the goal is a good one, but the advertising left something to be desired.

Next Monday, October 18, and the Monday after that, October 25. 6:30 pm at the Glendale Christian Church at 59th Avenue and Mountain View.

Race for the Cure

My friends Sally and Nancy and I joined about 30,000 other walkers and runners in downtown Phoenix this morning in celebration of the progress made toward treatment and early detection of breast cancer.

This is ten years for me - my surgery was October 13, 2000, and my first time to participate in Race for the Cure was a few days prior to surgery. It was pretty emotionally draining - seeing all the pink shirts and pink hats. A diagnosis is the beginning, not the end - sometimes it takes a look at all that pink to let that sink in.

We did the 5K walk this time - maybe next year we'll see if we are up to the 5K run (that's optimism!!)

There's still time to donate to this worthy cause - just google the Susan G Komen site and see what opportunities there are to donate and volunteer.

Hail in Glendale

What a mess! Glendale fell victim to what is - I guess - a microburst yesterday around 5pm. Our neighborhood looks pitiful - felled trees, green leaves plastered to houses and streets, broken (now boarded-up) windows, shredded screens. We had water and broken glass - and wood from the window blinds - in the family room, the great room and our bedroom. The front of the house - which is on the west - even the front patio, seems to have been pretty well protected.

We have five broken windows, seven imploded window screens, just one - maybe two - broken roof tile, still a pile of hail this morning. The storm came from the east and south - we have some pitting on the patio trim and am not sure about the house itself.

I'd post pictures but it's kinda depressing. Will be calling about window replacement later this morning but have an appointment at 8:00, another at 10:00, another at noon and another at 3:00 and need to sandwich in some tasks - so if I'm not careful I'll be out of sorts. Time to reexamine priorities (again) - and keep doing it til I get it right.

Building on Strength

I was challenged yesterday at the Women of Faith Conference about what I'm doing to play to my strengths. The speaker - a man (at a women's conference!!) - is Marcus Buckingham, the author of several books and an expert in the subject of helping people to be all they can be. And what a big subject that is.

His premise - or one of them - is that we spend more energy on trying to build up what we consider our weaknesses than we do improving on our strengths. He says there are three reasons we don't play to our strengths:

1. We think we're supposed to sacrifice for the good of others.
2. We're more afraid of our strengths than we are our weaknesses.
3. We may not see our strengths as anything special.

You can take an on-line test to see what your strengths are at http://www.stronglifetest.com/

There are nine "roles" - and most of us will have a primary and a secondary role. They include advisor, caretaker, creator, equalizer, influencer, motivator, pioneer, teacher and weaver. And, of course, those role labels aren't all that clear - at least not to me.

A big point is that developing your strength is NOT about self-esteem. It IS about taking responsibility for making a contribution.

Definition of strength: something that invigorates you.

Definition of weakness: an activity that depletes you - even if you are great at it.

A sign of strength: S - you feel successful and effective; I - instinct - you positively look forward to it; G - growth - when you're in the zone, time speeds up, your brain is growing; N - needs are met - at the end of the activity you are invigorated.

When you figure out what activities are draining you, depleting you, there are four coping strategies to stop: S - stop doing this activity and see if anybody cares; T - team up with people who ARE invigorated by the activity; O - offer your strengths and steer your job toward them; and P - perceive your weakness from a different perspective.

I like the idea of thinking about what I love to do - and am glad - so very glad - I'm in the business I'm in.

Tip from the Plumber

What do you do when your kitchen sinks runs slowly - and there is back-up when you run the garbage disposal?

My never-fail solution is CALL THE PLUMBER.

My plumber (the world's finest) is Don Williams, and after he unclogged the sink today using mysterious plumber tools, he gave me this tip:

Fill your garbage disposal with ice cubes - maybe enough to fill a couple of tall glasses - and run it til all the ice is crushed up and washed away (okay - turn the water on too). It cleans out the disposal, eliminates any built-up odors, and will make the disposal last longer.

You heard it here: for good garbage disposal health, run your disposal with ice cubes once a month. If you need to CALL THE PLUMBER, you will get terrific service, quality work, great attitude and fair price with Don Williams - 623.806.0593.

Credit and What You Can Do About It

I'm about the farthest thing from a credit expert that you could find. So when I got a chance to learn more last week, I took a class - and am glad I did. Lenders know about credit and how to improve it - and the class instructor is a good resource. His name is Elvis Saloum and he is with Arizona Wholesale Mortgage. His phone is 480.797.1560 and his email is Elvis@AZWM.com. These notes may help me to remember - and if they can help you, good.

The three credit bureaus have a different range of scoring.

Experion - 330 to 850
TransUnion - 400 to 925
Equifax - 300 to 850

Don't ask me why - I didn't get that. But generally speaking, an 850 credit score is higher than you'll ever need and a 720 score is outstanding. A 680 score isn't bad, but borrowing money with a 680 score is likely to cost you more than a score that is higher. A 620 score is not good.

70% of credit reports contain errors. Depending on your score and what you need to do, getting rid of errors on your credit reports could be a smart thing to do.

A "hard" pull requires your social security number - and it will affect your credit score. A "soft" pull - one that does NOT require your social security number - does not.

There are five components that make up a credit score - and five things that you can do to increase your score by 50 points. Your credit history is 35% of your score, debt ratio is 30%, 15% is how long you've had credit (the longer, the better), the type of credit you have makes up 10% of your score (you want four to eight trade lines for 24 months or more), and the other 10% is credit inquiries.

You can improve your score by paying off your past due accounts, getting rid of late payments, increasing your credit limits, having late payments removed (in writing) by your creditors and - by NOT closing old accounts. Use them once every six months instead of removing them.

Derogatories stay on your credit report for seven years - for example, late payments, charge offs, student loans, foreclosures, judgments, bankruptcy, paid tax liens. Unpaid tax liens will show up for a minimum of 15 years.

Foreclosures and short sales may represent 85-105 points on a 680 credit score and 140-160 points on a 720 credit score.

A good lender knows all this stuff and can help you wade through it.

Buying Real Property After Bankruptcy, Foreclosure or Short Sale

At a class a couple of days ago, Elvis Saloum of Arizona Wholesale Mortgage talked about lender guidelines as to when a buyer may expect to qualify for a loan to buy real property again after going through a short sale, a foreclosure or a bankruptcy. I always refer my buyer clients to a lender - so they know for certain if they qualify for a purchase and for how much - but these notes give me some idea of what they may expect to hear, generally speaking. Individual circumstances will vary.

Conventional Loan:
4 years after bankruptcy (two years, with extenuating circumstances)
7 years after foreclosure (three years, with extenuating circumstance, with 10% down)
2 years after short sale with 20% down

FHA Loan:
2 years after bankruptcy (one year, with extenuating circumstances)
3 years after foreclosure
3 years after short sale - unless no mortgage payments late in past 12 months and buying in different geographic location

VA Loan:
2 years after bankruptcy (one year, with extenuating circumstances)
3 years after foreclosure
2 years after short sale

Again, individual circumstances vary. The better the credit scores, the better a buyer's ability to get back into the real estate market. I'm glad I work with good lenders who are willing to work with buyers to help improve their credit scores.

Tax Consequences of a Short Sale

I attended a good class yesterday on the tax consequences of a short sale. One of the biggest concerns a seller has in a short sale is tax liability on the amount of debt that the lender forgives. According to Marcos Goodman, the CPA who taught the class, here's generally the way it works:

Let's say the homeowner owes $250K on a property that sells for $150K. The $100K difference represents a cancellation of debt, or "phantom income" to the seller.

The first question to ask is, is the property a primary residence or an investment property?

If it is a primary residence, the Mortgage Relief Act allows for up to $2 million in debt forgiveness for purchase money and for refinance. The lender issues a 1099c to the seller, and because of the Mortgage Relief Act, no tax is owed on the phantom income.

If the property is an investment property, i.e. a rental, it will NOT qualify for the Mortgage Relief Act. The seller still gets a 1099c - that's the bad news. The good news is that the seller can show the loss on his taxes so he will net zero.

The second question is, does the debt represent non-purchase money (meaning that the seller took money out of the house to buy a boat, take a vacation, pay bills etc.) That's the big tax gulp in that non-purchase money is NOT covered by the Mortgage Relief Act.

When that sounds like your situation, a consultation with a CPA is definitely time and money well spent.

Near St Helen's Catholic Church

I just listed an especially nice Glendale home near 59th Av and Cactus - not too big, not too small, very good condition and right across the street from St Helen's Catholic Church and by Desert Palms Elementary School. It's not all that far from Ironwood High School - and of course that's not all that far from Glendale Community College.

Affordable - I'm guessing that someone making about $15/hr could qualify for this home. So - whether purchased by a first-time buyer, a retiree, or an investor - this is great value.

Drive by and see: 5515 W Cholla St, Glendale - and let me know what you think.

Writer's Block

I haven't blogged for a long time and promised myself - after returning from Mega Agent Camp in Austin last week - that I would. Why? Because blogging is a good way to share thoughts that might turn out to be useful to a blog reader.

I just signed two dozen letters that I've written to homeowners in Glendale and Peoria who recently received foreclosure notices. I'm asking each one of them to give some thought to selling their houses, avoiding foreclosure.

Is short sale short? No - it usually takes weeks or months.

Is it easy for the homeowner? Well, a foreclosure is easier - you simply put your blinders on and ignore it until your home is sold at auction. The damage to your credit from a foreclosure is likely to follow you around for about four years - more or less.

Whether a short sale is easy or not depends on the level of cooperation of the homeowner and the lender. The short sale agent works hard - collecting information from the homeowner relating to the hardship, marketing for a qualified buyer, communicating the offer to the seller's lender, keeping the buyer's agent informed - and at the end of a successful short sale, the homeowner has avoided foreclosure.

I'm planning a Short Sale Shop Talk on Monday evenings, starting soon.