Have you heard of a HECM?

Have you heard of a HECM?

Home Equity Conversion Mortgage?

Are you or your spouse 62?

You could live in your home without any mortgage payments.  Did you know that?

Its true.

 

Jacqui Hamilton
Concord Mortgage
jacqui.hamilton@concordmg.com
623-900-1935

What do Harvey and Irma mean for you and having your new home built?

As Irma heads to Florida, Houston is in the early stages of picking up the wet pieces and trying to look forward to sunshine filled and dry days.  

One area that is affected nationwide after a disaster like major Hurricanes is building supplies.

Building time frames will get longer in Arizona, and other states not affected by Harvey and Irma.   

Suppliers prioritize their materials to those locations hit hardest. (and it is mandated by the government that they do)  Builders in other areas and states have delays in their construction due to lack of materials.  This also means that the builders don’t require as many employees to just hang around and wait to swing their hammer.  The combination of lack of materials and fewer on hand workers result in delayed construction build times.  

If you are already contracted with a builder for your new home, plan on your closing date being pushed out.  If you are about to have a builder start your home, and they previously informed you of a 5-7 month build time.  That just got extended to 7-9 months.  

The builder purchase contract has a clause to allow them up to 2 years to get your home built.  Now they don’t want to take that long, but they have the right to.  That clause exists for times like these.

Many of the construction workers will leave states where they have resided and move temporarily to the areas that have been ravaged by nature.  Creating another challenge of not enough construction workers available when the supplies are once again readily available.  

Our prayers and donations are directed to helping so many recover from unimaginable loss.  

 

An update for Trilogy at Vistancia

Are you interested in building a home at Trilogy at Vistancia?  They are close to the end of construction, but may be expanding.  Take a look at my update to get the details.

Predictions for the Greater Phoenix Real Estate Market

This is a portion of an article written by our broker, Jim Sexton in the Arizona Journal of Real Estate and Business for December.   The first half of the article deals with variables to be resolved post election by the president.   Jim’s predictions follow:

 “2012 will have around 90,000 sales reported by ARMLS, which will be a 10-12% drop from 2011 numbers, but the overall dollar volume of those sales will be up almost 6% from 2011.  The average price per square foot will be up over 13% for 2012.  Using these trends, I believe that the number of sales in 2013 will remain around 90,000, although if I could give a range it would be 85,000-95,000 sales for the year.  I think prices will continue to bounce back.  I don’t expect another 13% increase, but I see a price improvement in the 5-8% range.  I expect active inventory to rise from the current less than 3 month supply to the more balanced 3-4 month supply.  Both short sales and REOs

will continue to decrease.  Distressed properties made up 70% of the market 2 years ago, 65% 1 year ago and currently are at 41%.  Look for that downward trend to continue to under 30%, with REOs below 10% and short sales dropping to around 20%.  Also expect to seeArizona’s population continue to grow and the building industry inPhoenix‘rise from the ashes’.  Both will continue the positive steps we’ve seen to our economic recovery for the region.”

 Based on Jim’s experience, knowledge and his great batting average we are expecting that 2013 will be a successful and positive year for real estate in our Valley of the Sun.

 

 

How the “fiscal cliff” might impact you as a home seller.

How the “fiscal cliff” might impact you as a home seller.

One of the “Bush tax cuts” that might be falling off the cliff could hurt you as a home seller.  Until Dec 31, 2012  the formula for paying tax on the sale of your principal residence is very favorable.

You take the ‘basis’ which is what you paid for the home initially plus major improvements you have made. (my very simplified explanation)   Then subtract that ‘basis’ from today’s sale price.  We think of that as profit on the sale.  The existing tax break lets you take $250k off that profit if you are single and $500k if you are married (again simplified).  The overage remaining is taxed as a capital gain, the rate depending  on your tax bracket.

If that tax cut falls off the cliff, you will be paying capital gains tax on the entire proceeds over your ‘basis’.  There will be no more $250k or $500k reduction.  There is to be a raise in the capital gains tax from 15% to 25% (% is variable per your tax bracket).   Plus there is a new medicare tax of 3.8% on capital gains.

PLEASE understand that my explanation is super simplified !

There are so many ins and outs and dozens of pages in the IRS books defining this formula that only your tax person will understand it fully.   I am in no way qualified to explain more than the simplified basics to you.  My purpose is to give you a heads up for your future home buying plans if they depend upon the proceeds from the sale of your existing home and to make the strong suggestion that you have a meeting with your tax person at your soonest.

What does the typical seller accept for price on their home?

 

A client of mine, recently  asked me a great question; they asked me “How much a seller is willing to sell their home for, less than asking price?” To start the answer… there is no typical seller….

Every person selling their home has a different reason for selling; every person selling their home is in a different financial position.

The more important question is to ask What are the market and the market conditions telling you about where homes are selling?

· you need to consider the purchase price of the home you’re looking at

· the neighborhood the home is in

· as well as the sellers and what did they purchase the home for and was it financed

These items together will give a little better idea of where to start with your offer; and what the seller is likely to accept.

 

I still wish I had a crystal ball….

Mountain Brook Village, an Arizona Active Adult Community

MountainBrook Village Active Adult Community is nestled into the foothills of the Superstitions It has detached single family homes, patio homes and twin homes. In addition to an award winning golf course with phenomenal views, there is a recreation center with a full time activities director, a community pool, spa, fitness center and tennis courts.  

Sunland Springs Village

Sunland Spring Village Active Adult Community in east Mesa is one of the few communities offering a choice of block construction or 2×6 construction. It is also one of the few Active Adult Communities in the valley building condos as well as single family homes. Sunland Springs is convenient to shopping malls and local attractions. The communities location provides beautiful  views of the Superstition Mountains, a 27 hole executive golf course, pools, tennis and amenities galore.

PebbleCreek, an Active Adult community in Goodyear, Arizona

PebbleCreek is listed as one of the top 100 best master planned communities in the country.  Resort living every day! For more information on PebbleCreek head over to ArizonaActiveAdult.com

Market update for June

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Here is the Market update for June.  Have a great day, Irene