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.