My associates at Smart Arizona Foreclosures  have designed a streamlined website with a number of fail-safe devices (title search, photographs, minimum/maximum bids, etc.) to minimize the risk. In addition, my clients will have my assistance in double-checking property values, resale estimates, rehab charges, and other details.

Here’s how it works:

•             We have a preliminary conversation to establish your maximum purchase price, city/neighborhood preferences, hold-and-rent or fix-and-flip intentions, etc.

•             You send $10,000 to be held in escrow for each purchase. (You also need to be able to wire the balance within 24 hours of a successful bid.)

•             You sign up at the website for a buyer name and log in. You are now ready to select from a short list of properties coming up for auction in the next couple of days. (I will work with you to establish your parameters and set up your search.) We will request a title search and photos of the selected properties at this stage.

•             When you find a property that fits your specifications, you enter your starting bid and your maximum bid, click ‘submit’ and wait to see if you are successful. Monday’s bids will be auctioned on Tuesday, Tuesday’s bids on Wednesday, etc.

Of course, this opportunity is not for everybody but this is a way for ordinary investors to get access to the ‘county steps’ auctions of bank owned properties which are normally not accessible to the general public. Bidding at these auctions has historically been a closed shop, with participation limited to a few experts who take all the spoils.

If you’re interested, email me at pwalsh@kw.com  or call me at 602-369-3224.

As I have been saying for some time now, prices bottomed out in March of 2009.

On Wednesday we learned that Phoenix is one of 91 major cities out of 152 nationwide to post an increase in home prices during the past year.

This National Association of Realtors survey showed that prices of existing homes climbed 9.1% in the Phoenix area for the year ended March 31, 2010.  You might have expected that kind of good news would have been a headline — but no.

On Thursday, the following day, there was even better news … yet again buried on page D-2 of the Republic’s Business section:  The median resale price for a single family home in April was $144,000, up 15.2% from $125,000 a year ago.

So there you have it. In historic terms, that is a huge increase.  Several of my clients who have recently purchased homes at great prices realize that, if they had started nine months earlier, they might have realized even more of an increase. I had to confirm their speculation.

So what does all this news mean?  It means the real estate market has officially bottomed out and that home prices are rising. Good news for homeowners hoping to sell in the not-too-distant future. And some homeowners may no longer be upside down.

To investors, I would say “the train is leaving the station.”  A conversation yesterday with one of the top REO (bank-owned property) realtors in our office confirmed that the number of foreclosed properties coming his way has slowed down to a trickle. At a recent national conference several of the large banks indicated they are severing their relationship with thousands of realtors. Apparently the banks are actively pursuing every possible alternative before going the foreclosure route. So MLS investment properties will be diminishing and those that do appear will create a bidding frenzy and prices at the wholesale end should start climbing again.

Attention investors:
My next blog will cover a new option for bidding on line for bank properties and getting them before they hit the MLS listings. Stay tuned.

Arizona homeowners can easily save money and increase the real estate market value of their residencies by simply sealing air leaks commonly found in many areas around the home. Sealing air leaks is one of the least costly (and least complicated) ways to begin or continue the process of “greening” a home. The task requires only a minimal investment of time and supplies, yet it yields a substantial payoff that can last many years. Sealing leaks keeps hot summer air out of circulation in the home and less air conditioner energy is needed to stay cool. Later on in the year when the cold winter air is also barred from entry, less heat is needed inside the home. This will save the homeowner money on electricity bills and will also make the home more attractive to buyers willing to pay more for an energy-efficient or green home.

To locate a leak, wait until there is wind activity outside, then hold a lit stick of incense up to any area in which a leak may occur such as doorways, windows, electrical outlets and switches. If the incense smoke moves in a horizontal, rather than vertical direction, a leak is present. Sealing windows with weather stripping and caulk will stop air leaks, as will the installation of foam gaskets behind outlet and light switch plates. And when air passes under closed doors because there is a space between the door bottom and the floor, a flexible sealing gasket can be attached to the door bottom. These really are easy fixes.

Your Tempe realtor and National Association of Realtors ® Green Designee, Patrick Walsh, is available to assist you with any step in the process of greening your home. The Tempe real estate market is warming up and if you are planning to sell, there is no time like the present to increase the energy efficiency and market value of your home through greening. Patrick Walsh can connect you with local green appliance, home improvement suppliers and contractors to help you get started on larger projects. Contact Patrick Walsh today at pwalsh@kw.com to let him know how he can be of service.

Further low-cost energy tips:

www.energysavers.gov

Oprah- Green Home Improvements

Loan modification can help you reduce your monthly mortgage payment. While not all homeowners qualify, it doesn’t hurt to look into pre-qualification.

To qualify, you must be employed and able to demonstrate that your household income has been reduced. As your Tempe realtor, I would be happy to help you determine if you are pre-qualified for assistance – at no charge to you. No upfront fees, no charge for the results. If there is a way to help you save your home, I want to help.

The pre-qualification process can be cumbersome – having a professional assist you can make the process less overwhelming. If you are pre-qualified, you are in no way obligated to continue the qualification process with me.

Loan modification isn’t always the best solution – in some cases, a short sale is the best course of action. The loan modification process is ideal for those who are unable to make their monthly mortgage payment – but can, with a little tweaking to their budget. Short sales are the better option for those who cannot pay their bills. A short sale can even be beneficial for some, taking away a massive source of financial stress. I will help you determine which avenue you should pursue.

Before you decide to hire someone to help you save your home, be sure to do your research – there are predatory companies taking advantage of those seeking assistance. Arizona Republic Real Estate reporter Catherine Reagor reported in Sunday’s paper that families across the Valley are being victimized by scam artists who are taking advantage of the uncertainty surrounding loan modification. Reagor said if the company you are dealing with guarantees that it can get your lender to reduce your monthly mortgage payment or tells you not to seek outside assistance, you may be the victim of a scam. Some victims have reported that the scammers have offered to fill out the paperwork for them, demanded payment in advance and rushed them through the process.

If you are concerned that you have been the victim of a scam, or suspect a company of wrongdoing, you can report it to one of the following organizations:

• The Arizona Attorney General’s Office
  602-542-4266
  
• Arizona Department of Financial Institutions
  602-255-4421
• Federal Trade Commision
  877-382-4357

Remember, you are not alone in this – together, we will find a solution.