Foreclosure and Auction at Rancho Antigua Condominiums

Located off Mountain View Rd just to the west of the 101, Rancho Antigua Condominiums are a conversion that didn’t get quite complete. The developer has 18 units going up for auction scheduled for November 6th, with prices from $200k to $395k.  (check out the auction site)

The foreclosure located in Scottsdale’s  Rancho Antigua is priced at $244,900 this 3 bedroom 1609 sq ft condo conversion doesn’t stand a chance of selling for a while.   The developer has just placed all unsold units on the auction block.  at an absolute sale.  The list price on the developers units for this sq. ft. is $200k.    

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So here is another one that just doesn’t make the cut.

If you would like more information on these properties or any others contact me Irene@I-Hammond.com

 

 

 

The Foreclosure Transaction and what to know – part 1

Foreclosures are sold “as is”, which translates to “the seller is gone and we (the bank) don’t know anything about this property and we will not do anything if we find something amiss, you inspect it and either take it or leave it”.

It is the giant red flag telling sellers to be very careful and to get the best help they can in purchasing this home.

The basic home inspection:

You are permitted to do whatever inspections you wish on the foreclosure property.

The purpose of these inspections is not to find items for the seller to repair, but to find out what you as the prospective owner will have to repair.  Will the repairs found to be needed exceed your budget?

The general home inspector may suggest that a specialist in a specific field be called upon to further evaluate a situation.  It may be the air conditioner, the roof, the plumbing or wiring or any other system or situation. The home inspector does not give estimates for repair so if you require replacing or repairing anything, you will need time to get a tradesman in for an estimate.

In your purchase contract the standard default for inspection time is 10 days, we suggest you amend the contract to give you 15 days to complete your inspections and determine if you will go thru with the sale.    With the possibility of needing time to contact a specialist, get them to the house and come up with a report, you will want every extra day you can get.  The day count starts with the date of the last signature on the contract.  You may be responsible for turning on the utilities for the inspection, even though the contract may say that it is the seller’s job.    That takes a few days.  The gas company will not turn on gas unless someone is at the home to allow them to light the pilot lights, the water company will want someone there for turn on as well.

The bank as sellers will not do anything to correct any problems that have been found, nor do they warrant that there are no additional problems. They may occasionally,  but rarely,  agree to a decrease in price to compensate for the cost of a major repair needed.  They are totally washing their hands of anything to do with the condition of the property.  If termites are found, it is your problem, and it is still your problem even if your lender requires a “clear termite” report or a “clear roof report” (clear meaning that if termites were found they have been treated and if roof leaks were found they have been repaired).

When all the inspection reports are completed and estimates done you will have the opportunity to accept or decline purchasing the property.   If you decline, your deposit will be returned .  If you accept you do so with knowledge of what has been found and no warrants from the seller that there are not problems that are yet to be discovered.

Be sure to read these other posts as well:

The Foreclosure Transaction and what to know – part 2

The Foreclosure Transaction and what to know – part 3

Paseo Village foreclosure home, in Scottsdale’s McCormick Ranch

Posted by Claudina:

100_1456In the McCormick Ranch community of Paseo Village there is a foreclosure with 2564 sq ft for $399,900  with 4 bedrooms and 2 baths.  I don’t know what to say about this one. The location is great, it has greenbelt on the rear and side, from the outside and the photos, I was sold, which goes to show you that not everything is as it looks.  You enter to a large formal living room on one side, dining room on the other, there is a fun sunken “conversation pit” in the family room with a beehive fireplace, there is still enough room for another seating area and a big TV.

100_1458  The kitchen needs everything.  The master bedroom is very large and the bathroom is big enough for a great remodel and you would have a super master suite.  You have good sized rooms to work with in this home.    The back yard is private and well treed with a diving pool.  The garage needs a new door. But the turn off is that it smells like someone had a whole herd of cats living in it.  The rugs are stained all over with cat urine.  (as you can see in the photo above) If there is anyone out there who has a cat urine removal trick, then this house could be a good buy for them.  I wish them luck. 

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We compared this home as best we could with the next closest comparable with 2462 sq ft, 4 bedrooms.   The comp is listed for $474,900.   It is a corner lot, siding to Paseo Del Sur which is a fairly busy interior street.  The most stunning thing about this home was the real wood floors throughout the home.  The kitchen was remodeled, but it really looks like they just put on new doors. The countertops are epoxy cement.  The fireplace in the family room is an artwork in tile.  It has a large back yard with a diving pool.   The two homes are similar in sq. ft., rooms, diving pool and lot size.  I may be prejudiced because of my experiences, but  it is worth $75k to me not to deal with cat odors and I would take on this one.

Be sure to check out the post "The Cat House"… or when a good home goes bad 

 

 

Foreclosure in the town home community of Pleasant Run

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This bank owned property is located in the Pleasant Run subdivision of Scottsdale’s McCormick Ranch.   It is a 195 town home subdivision with 2 pools, spas and tennis courts and is an entrance to the Camelback Walk.

The foreclosure is priced at $302,900. It is a   single level with a 1  car garage There are three other properties with identical floor plans in the complex with full 2 car garages and assessor measured sq ft of 1590.  The most comparable one is priced at $333,000, the next at $369,900  and the last at $425,000.   The foreclosure listing erroneously says it has 3 100_1454bedrooms and 1702 sq.ft.   The 3rd room is an office built into half of the garage, no closet, and still has the garage step down.  The floors are tiled except for the bedrooms.  The bathrooms and kitchen are original, the kitchen cabinets are painted and have a Corian type countertop. The big skylight is original.  Roof and A/C system conditions are unknown.  The appliances were stainless and black mixed, the refrigerator is absent. The patio is covered and backs to the community of Santa Fe’s exterior wall.

100_1453The most comparable listing to it, priced at $333k has an identical floor plan, tile in the same places, carpet in the bedrooms. The patio on the foreclosure is more open, with half walls.  The comparable has enclosed walls.  Both units are placed well back from Hayden Rd so noise is not a factor.  In the unit for $333k the bathrooms have been updated.  The bathrooms and kitchen have maple cabinets, the kitchen has matched Kitchen-aid appliances and a granite tile countertop.  Since this is not a foreclosure, we have information from the seller saying that the roof , a/c and skylights have all been replaced.

So is this Foreclosure a good buy?   I say not.  The work needed to upgrade it to the level of the comparable will far exceed the $30k price difference.

To find out more about one of these properties, or any other please contact me Irene@I-Hammond.com

Foreclosures in the McCormick Ranch area

I have been getting calls about foreclosure homes.  What a surprise, with what the media talks about all the time.  So I thought I would focus on Foreclosures for a while.  Lets find out if they are a great bargain, or are they too much work and effort for the price. 

Currently in Scottsdale’s McCormick Ranch area, the zip code of 85258, there are a whopping 19 foreclosure properties with a total of 571 active listings currently in the same area.  That is 3.3% of the market.

There is  a wide range in these foreclosures as well.  9 are single family homes, 5 are patio homes and town homes, and 5 are apartment style condos.  They range from a 1 bedroom, one bath 727 square foot condo listed at $113,900: to a 6,584 square foot, acre and a half estate home, with private tennis court, pool, and all the goodies you would expect to find in a $3,150,000 home.

So lets explore the details of the foreclosure market…

 

Foreclosure in McCormick Ranch’s Belcara condos

The Belcara condo community was renovated and went from a renal 100_1441apartment complex to a condominium complex in the past 5 years.  This condo conversion is certainly priced nicely at $132,900 for McCormick Ranch. It is a 2 bedroom ground floor end unit with 901 sq. ft.

The closest comparable 2 bedroom  is an end upstairs unit.  It is 250 sq ft larger and has a second full bathroom.  It is $37k  more.  At $169,900 with 1,157 sq ft.  It has stainless appliances, the foreclosure has white appliances. 100_1447

Both units have all of their appliances, even a washer/dryer, both have a 1 car carport.

True, the foreclosure  is only a 1 bath arrangement, but that bath is a dual entry, with separate sinks at each side,  Jack and Jill as we call them.   It is an end unit, ground floor with nice views of landscaping and the fountains.

It is a very pleasant setting for a condo.

I think it is a good deal if you don’t absolutely have to have the 2nd bathroom.

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To find out more about this property, or others send me an email

Irene@I-Hammond.com

 

 

 

 

 

 

McCormick Ranch Foreclosure in the Santa Fe community

A town home in Scottsdale’s McCormick RanchSanta Fe subdivision  for $409,900  with 2046 sq. ft.  This two story town home has the master bedroom and bath upstairs, a second bedroom and bath with a den downstairs.  It has travertine tile throughout. The home is located on a cul-de-sac  just off McCormick Parkway so has a noise factor to consider.

100_1418I compared it with the next 3 bedroom property in the same community of Santa Fe, also a foreclosure, bank owned property,  priced $45k higher at $455,000 and 2295 sq. ft. but an identical floor plan.  It too is on a cul de sac and is one lot off Hayden Road so it also has a big noise factor.   Both homes have south exposure back patios.

The kitchen in number one has been gutted of all appliances, the cabinets are

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near bottom of the line. The bathrooms have been remodeled, but may not appeal to many.

The closest comparable has a nice kitchen,  cabinets, and counter tops, is clean and could be moved into with just a new refrigerator.

My opinion?  The noise coming off Hayden is a big problem in the house listed for $445k If the a/c and roof conditions are the same, $45k buys a new kitchen and new carpeting , painting and 100_1424redecorating the bathrooms.  The newly listed town home at $409,900 would get my vote.

   

Get more information on this or another property email me at

Irene@I-Hammond.com

 

 

 

It’s a Buyers Market. Or is it?

With over 6 months of inventory (the number of homes on the market divided by the number of homes selling each month) we are in a buyers market.  But if you are out there buying you may think otherwise. 

We currently have 3 housing markets.  

The Short Sale market: made up of people looking to sell their home and have the bank take the loss; The short sale market is slow (months & months)  check out my other posts on Short Sales for the scoop.  The purchase will be "As Is" meaning you can inspect, but the seller will do no repairs.  The bank can only accept an offer, not counter.  So don’t expect to go back and forth.

The Foreclosure market, made up of bank owned properties already thru the foreclosure cycle. The foreclosure market is a bit quicker.  You will most likely get a response back in a week.  You are still purchasing "As Is" and many times, since these properties are put on the market at rock bottom there will be several offers going in from different buyers.  This means, if you love it, put in your best offer at the start.  You will most likely get a request for "highest and best" and that is their version of a counter offer. 

The last group;the Resale Home market, you know, the section of the market made up of people who didn’t over extend themselves, have owned the property long enough to have equity, and have pride of ownership.   Wow, I miss the regular resale transaction. 

With multiple offers, banks taking their time to approve sales, and no option for repairs and many of the properties needing LOTS of work.  It feels like a sellers market. 

Understand the differences, know what you are looking for in the purchase, are you ok doing repairs, do you have the cash to get the repairs completed or is sweat equity enough to get the job done. 

Or are you looking for a home that has been maintained where the sellers are cooperative, and you move in and enjoy…

Foreclosures part 2

Yesterday I wrote about Foreclosures and a few thing to help understand the banks.  Today I am going to share a bit more. 

One of the things to be aware of is with every foreclosure, the bank has the buyer sign an addendum stating if the buyer delays the closing, the buyer will pay a per day per diem for each day the closing is delayed.  That per diem fee could be waved, if you use the bank that is selling to get your loan.  Here is their caveat – if they are the cause for the delayed closing, there is no compensation to the buyer.  So if there are delays in getting title (the most common reason for the seller to delay closing with foreclosures), you the buyer have to wait, no compensation or consideration given.   If you are doing a loan, not with the sellers bank, be sure to get your documents signed REALLY early, they have to be sent off and reviewed prior to funding, so be on top of it!

Some of the banks are on the ball, and get a home from the courthouse steps to the listing agent and on the MLS in hours, others take months.  So that house you have been looking at could take a while before it is back on the market.  Better to make your move when you find the right place and go thru the fun of a short sale. 

Purchasing a foreclosure home; things to consider

With so many foreclosure properties here in the Valley and around the country; I thought I would be useful for me to share a few things from the lunch & learn class I attended yesterday.  It was on how to write a good contract on a foreclosure property.  The training was given by Sandy Lezalla and Jeannie Regan  both with John Hall & Associates.  They have been working with the banks and doing foreclosure sales for years. 

The first thing they wanted us to share with our clients is the fact that the bank is only interested in the numbers.  The banks work with a one page automated submittal program that summarizes the offer details.  The listing agents fill in the desired details and pushes send.  The banks want to know the potential buyers names, offer price, down payment, earnest deposit, loan type, and what fees they are being asked in the offer to pay.  That is it.  It boils down to the best value for them.  The offers being accepted may not always be the highest price.  Closing date, cash purchase, possible complications with the buyers loan (based on fees the bank is asked to pay) all come into consideration. The bank is looking at their net, speed of closing, and lack of complications.

A few other things to know is many banks will not look at any offers until the property has been active on the market for a min of 5 days.  This allows for multiple offers to be received for their review.  So the early bird, and the first in line is not of consequence.

We asked what I feel to be the most important question: What price difference from the MLS asking price are the banks accepting? Their answer was 5% under list price or better.  Anything less than that, many times, does not get a response back from the bank.

Multiple offers are more and more the norm here rather than the exception, and many times the properties are going for over asking price.  Be sure to submit your highest and best price for the property, the bank rarely counters.