Maricopa County Arizona Rising Real Estate Values 2011-2012:

As I’ve seen it in the past couple of years, we are seeing a huge shift in recovery in our real estate market inMaricopa County, Arizona. Considering the inventory was low as it was, which I stated in an article dated on Jun 21, 2012, the current active on the market inventory throughout the Arizona Regional Multiple Listing Service (ARMLS) was only 12,842 properties back then. Today, the active real estate on the market is 17,116 properties, a 33% increase from last June. As mentioned before in the recent February 13th article, ARMLS indicated trend in increasing prices. Yes, the inventory is still low and the demand is up while interest rates are still low.

Low inventory, the demand, and price increases result more residential development. I read a recent Bloomberg Businessweek article that Pulte Homes is swamped with buyers at their respective valley locations. The same goes with Lennar Homes. I spoke with a sales representative at Lennar, and he indicated they are limited on what they can sell at this point in their Stetson Valley location. They only have five spec and move in ready homes available at their location. Many more homes are going up to fully develop one area of the subdivision. Obviously with the growth, low inventory, and the demand for more home building, home values had to go up.

In Maricopa County, all communities but one had an increase in home values from 2011 to 2012. According to the Maricopa County Assessor’s office, 11 Maricopa County communities had an increase in value by approximately 20% or more during the time frame. Yet, 7 of the 11 communities in Maricopa County still averaged of $100,000 or less in value for 2012. You think about it, it’s still affordable to buy homes in communities including Avondale, Buckeye,Gila Bend, Youngtown, and Phoenix.

Within the highly populated communities, Scottsdale’s home values jumped 11.5% with a 2012 value at $244,800, ranking behind Carefree, Cave Creek and overall highest Paradise Valley.  No statistics were released for Fountain Hills. Gilbert also had a significant increase of 26.1% at $159,000, and Chandler’s 14.6 at $146,800 in values. Both of these east valley communities are showing signs of growth with new employment, including Intel. Phoenix averaged at $83,300 in value after a 20.2% increase from 2011.

So, with home values rebounding after a housing market crash in recent years, it’s now a great time for sellers to sell and buyers to buy.  If you are looking to buy, let me do the work for you in finding your dream home. Sellers, I have all the marketing resources to assist you in selling your home fast. When you think of real estate, think of me as your #1 source!

Jim Plummer, Scottsdale

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Jim Plummer, Scottsdale

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As an agent, we strive to work to our full diligence to not only support ourselves and families, but it’s the time and the spirit to give those who deserve best this holiday season. I have supported many charities over the years in volunteering, giving items they need, or make a small donation.  I feel there is more work to be done for charities we support. That said, I want to make a generous offer for my future clients.

Sellers in Scottsdale Real Estate:  

As your listing agent in the municipality of Scottsdale, if you list real estate with me in Scottsdale, and you mention “Jim Plummer Charities” as of today’s date through January 15, 2013, and anytime we close, I will donate $250 of my commission to the charity of your choice. (Rentals excluded)

Buyers in Scottsdale Real Estate:

As your buyer’s agent in the municipality of Scottsdale, if you buy real estate from me and the seller agrees to the contract as of today’s date through January 15, 2013 in Scottsdale, and you mention “Jim Plummer Charities”, I will donate $250 of my commission to the charity of your choice. (Rentals excluded)

Scottsdale Proud:

As a resident in the City of Scottsdale, I am proud to call Scottsdale home. I want to support the foundations here in Scottsdale as we work together to assist those in need. For you and me, we become one to work together to serve this community and the foundations we deeply support.

In order to achieve our goal and support our community, there are many Scottsdale homes to choose from!

Scottsdale Real Estate and Homes For Sale

 James W. Plummer III (Jim), Scottsdale

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Shopping? Check
Art Galleries? Check

Library? Check

Employment Destination? Check
Entertainment? Check

Restaurants? Check

Watering Holes? Check

CLICK HERE to complete your check list! Old Town Scottsdale Condominium Homes and Real Estate For Sale

James W. Plummer III (Jim), Scottsdale

(480) 788-9212

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It also has potential in tight spaces as well as creating a different perspectives in many settings.

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Why? Because…

Time is running out on tax amnesty for short sales and foreclosure

A couple of years ago, Congress decided to give homeowners who were losing their homes a break from the additional tax hit they would normally sustain when their lenders forgave part of the debts they owed.

Now with a federal government annual deficit well above a trillion dollars and an ever increasing federal debt, we don’t know if there will be much enthusiasm  to extend this break for homeowners.

As an example, if you purchased a home at the height of the real estate bubble in a fast growing real estate market like the Metro Phoenix Area, you might have seen your home value drop in half. Suppose you purchased a home for $300,000 with a mortgage of $240,000. And lets say now that your home is now worth $150,000. If you sell that home in a short sale, your lender may forgive $90,000 of debt.

BUT…if the short sale happens after December 31, 2012, that forgiven $90,000 will be added to your income tax liability and you will most likely climb the income tax bracket ladder. You also may have to pay a higher state income tax rate.

The $90,000 forgiven debt from your lender could end up costing you upwards of $30,000 in additional income taxes. So not only would you have lost your initial down payment in the home …but you could also take an additional hit of $30,000 on your income taxes.

Here’s a heads-up to all homeowners facing foreclosure or a short sale:

You have the common the goal of closing your deal by the end of 2012.

Most short sales take months to complete. SO NOW IS THE TIME PEOPLE! Call me to talk about YOUR situation and let’s see what makes the best sense for you.

Could congress extend the “gift” they have given us of forgiving the taxes on the forgiven debt? Yes. Will they? Who knows.

I have a terrific record of getting the banks to agree to short sales. Not all agents are qualified and experienced in this specialized area.

Call me at 602-504-3898 or send me a text… or e-mail Adele@AdeleCoffman.com  AND HURRY…let’s get going!

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Prior to being a real estate agent, I had well over 10 years of residential real estate appraisal experience, and I utilize my experience in the real estate sales profession. Most importantly, of all the three approaches to value, among the cost, sales comparison, and the income approach, for real estate agents, the sales comparison is biggest role. Why? It’s the most reliable. It’s what market is willing to pay for the property. It’s you, the buyer. Most agents don’t look at the cost other than for renovation purposes. In an appraisal, you need a feasibility study while doing these improvements, by forming an opinion of value “as is” and “and subject to completion of the improvements” of an appraisal.

If you look at the cost approach, many people don’t understand the breakdown in that approach. As an experienced appraiser, I’ll give you a better explanation what we do. The cost approach is generally used and most reliable for construction procedures. What is the cost to build a home?  The main reason is, there’s no depreciation on the home as opposed to others that have been existing for many years, where long and short lived components have their differences in useful lives.

From an physical standpoint, the bones of the home including the foundation, the studs, floor joists, and roof trusses would last forever. Those are long lived items. Those are the backbones of the structures. Some short lived items including shingles, floor coverings or a furnace would last roughly 10 – 20 years and need replaced overtime. The physical lives of these components are not the same.

Economically, if you look to buy a home, the key factor is how long will the home last? It’s usually shorter than its physical life. It’s based on the period over which improvements can contribute to the property’s value. The more you update and renovate, the longer the home lasts.

How is the Cost Approach conducted?

In the cost approach, you’ll need the land value first. You buy land in Scottsdale, let’s say at McDowell Mountain Ranch for $100,000, that’s the land with no improvements, and no depreciation is involved. Never is there depreciation for land.

Just to pretend, if the $100,000 land in McDowell Mountain Ranch in Scottsdale has a 3,500 Square feet home that cost $120 per square foot before depreciation. The home is worth $420,000, the cost new for the dwelling.  By the way, the home has no basement. Not here in the valley. Plus, you have an attached 3-Car garage at 650 Square feet at $40 square foot mounts up to $24,000. So, the building total estimate of costs new for the home is $444,000. The appraisers would get these figures from Marshall and Swift.

We figured out cost new for the home, but it was built in 1998. Yes, the owners have maintained the home. Physically, it’s in great shape, but needs some updating physically for interior improvements. Lets say of the total economic life of 80 years, we’ll split the home economic life from 1998 to 2012, a total of 14 years in half. The home has depreciated 7 years physically due to normal wear and tear. Physical depreciation can be cured.

Functionally, the furnace and kitchen appliances were replaced, and the floor plan is still perfect for today’s living standards. There’s no functional obsolescence. Functional depreciation can be cured.

External deprecation is something that’s incurable. It happens outside the boundaries of the property, including a major highway, and flight paths of a major airport. Lets pretend this home is on a quiet street and not on a flight path, though there’s nothing fancy about the property that doesn’t back to McDowell Mountains. There’s no external obsolescence.

So, the land is worth $100,000, with home as new $444,000 minus 7 years of depreciation of the 80 years of economic life (8.75% depreciation) with a total of $38,850 of total depreciation. The depreciated cost of improvements for the dwelling is $405,150. Again, land is not factored in the depreciation.

Plus, you need the “As is” site of improvements. The driveway is $10,000, the landscaping is $15,000, and the pool is $55,000 for the total  $80,000  for “As is” site of improvements.

What is the indicated value by cost approach? 

Opinion of Site Value: $100,000

Dwelling: $420,000 (New)

Garage: $24,000 (New)

Total Estimate Cost-New for Dwelling and Garage: $444,000

Depreciation:

Physical: (8.75%) $38,850

Functional: $0

External: $0

Total Depreciation: ($38,850)

Depreciated Cost of Improvements: $405,150

“As is” Value of Site Improvements: $80,000

Indicated Value by Cost Approach: $585,150

This is the step by step process in the cost approach, utilized in the 1004 form, the Uniform Residential Appraisal Report (URAR), and hope you have a total understanding about how the cost approach of an appraisal report works.

James W. Plummer III (Jim), Scottsdale

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The Phoenix area real estate market is beginning to shape up, and shape up fast! Yes, short sales have fallen significantly since the housing crash over the past several years, as investors and others who are willing to pay more than the actual list price have taken advantage in the housing market in the past several years.

Right now, the active inventory is slightly increasing with nearly 15,300 homes on the market according to the Arizona Regional Multiple Listing Service (ARMLS). On June 21, I observed that just approximately 12,850 homes are active on the market in the Phoenix Valley Metro Area. That’s a nice 19% increase as of today from the total active inventory from June 19th. It’s beginning to show that more real estate is becoming available to qualified buyers.

That said, what do we know? When the demand is high with multiple offers, and the inventory is low, it comes to show the Phoenix area housing market is on the rise again. A statistical survey was conducted by S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices. They indicated as of July 12th, the Phoenix real estate market has improved much better than most cities. New York, Cleveland, and Atlanta have struggled this year.  For us in the Phoenix area, we have have seen a huge contrast to those I’ve mentioned. We have risen 17.0% in positive gains since the end of 2011. San Francisco, Detroit, and Minneapolis all dealt with the similar crashes with Phoenix in previous years, and they have risen we well.

With all the positives coming from what occurred over the past several years, we are recovering. I am informing you if you are looking to sell a home quickly, this could be a great time to do so with me and my team. My team and I will work together on our strategic planning to serve you in selling your home fast. I have the analytical skills in understanding the market conditions from over 10 years of residential real estate appraisal experience, and the knowledge to work up marketing plans through many various marketing websites (Zillow, Trulia, AZValleyHomes4U), social media (Facebook, Twitter, Linkedin), blast emails, and ARMLS. Plus, we are connected with lenders and title companies who will assist us through the process. My team and I will work together with you in a friendly negotiating  process with the buyers and their valuable agents. I also conduct open houses so we can find you a buyer, FAST!

Please contact me at 480-788-9212 for a free and friendly consultation. My team and I strongly value your business.

James W. Plummer III (Jim), Scottsdale

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Well San Francisco is an extremely High End Real Estate Market. Here’s my opinion for my market in Fountain Hills, AZ.

We do have many homes that exceed six figures and that market is still difficult. But let’s set up a typical scenario for Fountain Hills.

1. Listing price of $1,500,000
2. 4 Bedrooms, 4 baths, pool, 3 car garage, 3,700 Sq. Ft with views and custom built in 2005
3. The home is occupied by 2 teens, 2 pets and mom and dad. We have a budget of $3,000 to prep the home.
4. My first advise is to pack as if you are going to move this week and hopefully you might have to. Cost Free!
5. Remove as much as possible from the counters, walls, pantry, bathrooms, closets and living areas. If you haven’t used it in the last 2 weeks pack it up. Cost Free!
6. This is important! Everything of value needs to be secured! You have no idea who is going to be going through your home. If you have valuables in your home you’re inviting a theft.
7. This is one of the most important detail in selling a home and it’s one of the most difficult particularly in the upper end price range. Availability to show! If I’m on a showing and can’t gain access to a home, that home might have just got crossed off. Having your home on a lock box and available is huge.

It’s time to spend the budget!

Hire a professional landscaper.

Concentrate on curb appeal. Weed,trim and rake the yard and add granite if it’s thin. Also add color such as low maintenance Lantana. Fix any irrigation problems and get rid of any unsightly or over grown vegetation. Add a monthly maintenance fee. Cost…$500

Hire a professional floor cleaner and have every floor cleaned including grout between the tile. Cost…$500.

Hire a professional Pool Cleaner and add a monthly contract. Cost…$100.

Hire a professional Window Cleaner and have the windows cleaned inside and out. Cost…$400.

Hire a professional exterminator and add a monthly contract. There is nothing worse then finding a scorpion or a rat in a home that is being shown! That’s a deal breaker! Cost…$100.

This one, I think is the most important and most clients think they don’t need because most clients think they do a good job of housekeeping but they don’t. You want to hire a great Housekeeping Service. Not just a drive by Dust and Bust Cleaner but a meticulous house cleaner. In Fountain Hills I can recommend a team that if available will do an excellent job for you. They’re not cheap. You want a head to toe cleaning the first time and a weekly maintenance. Cost…$500.

So far we’re under the budget even if we need 3 months to sell the home and in my opinion money much better spent then hiring a stager. Take what’s left and paint everything neutral colors. I know you love your Pumpkin Orange Bedroom, but the average buyer isn’t going to have the same tastes.

So here it is in a nutshell:

Clean! Inside and Out.

Available to Show at a moments notice, free of pets and occupants.

No clutter and no mess. If your planning on moving, Pack it up!

Keep it Clean, Clutter Free and Neutral.

Forget the Stager, but hire professionals.

Hire a Professional Real Estate Agent that has marketing experience in your area. You need to check out their ability to effectively market on the internet sense 97% of all Real Estate Transactions begin on the internet. This is simple.

Do they have a Real Estate page specific to your area on Facebook?

Fountain Hills Real Estate

Fountain Hills Information

Live In Fountain Hills

Mark Gridley Fountain Hills, AZ Real Estate

Mark Gridley Rio Verde Real Estate

Do they have a website specific to your area?

Scottsdale Paradise Valley Real Estate

Fountain Hills Information

Live In Fountain Hills

Do they have a Twitter Account specific to your area?

Do they have a Youtube Account specific to your area?

Do they blog?

If they don’t you’re not getting noticed. Real Estate is still a numbers game, but the game has changed. We can now reach Millions of people through Social Media and the internet. Most Reators have ye to understand this concept and still concentrate on advertising on shopping carts, cold calling and annoying drop ins.

I and my company eXp Realty represent the future of Real Estate by exploring the vast cloud and marketing to the whole world rather then hanging a sign and putting an ad in the local newspaper. If you would like more info on my global approach contact me today.

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ON THE MARKET: 4639 E. Olney Avenue, Gilbert

My team and I have just placed this home on the market. This beautiful 2 story, 4 Bedroom, 2 and half bath home is completely renovated with new carpet and interior paint throughout the home. It features 1,913 square feet of living space with a kitchen containing tons of cabinets and counter space with a large island with breakfast bar. You’ll enjoy formal dining next to the kitchen. Plus, the home has a luxurious master retreat, with master bath boasts dual sinks, a separate soaking tub and shower. The master does have a walk in closet. You do not want to miss this opportunity to view and submit an offer on this home.

It is currently listed at $185,000, located in the La Aldea subdivision, just 2 miles south of the 60 freeway, west of Power Road, just south of East Guadalupe Road. The southern extention of the Loop 202 is also 2 miles from the home. You will have the convenience to freeway access, employment, restaurants, and shopping. The SanTan Village shopping complex is within 5 minutes from the home.

To have a look, please call me at (480) 788-9212. Offers are accepted by email. Simply email me at jim.plummer@scottsdaleparadise.com .

If you are looking to sell your home. I would like to be a service to you! 

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