I received this following from a wonderful friend of mine who is a local lender in the Sedona Real Estate Market - Lindar Rogers (928) 301-0822 and I would like to share it with all of you.
I was talking to two agents today about how we have come to view our homes as an investment and not just as a home anymore and how that has led to so much discontent and upset over the real and perceived losses in home values. People are seriously wondering if they should invest in real estate at all. I thought it might be useful to bring a little historical perspective to the conversation.
Houses in this country have lost substantial value over the last five years. And if you bought property in 2006 and need to sell it today you could have lost as much as 25-30% of its value.
What we forget is that people who invested money in the Dow in 2007 and sold it in January 2009 would have lost 49.3%. Even if they sold it today they would still be at a 27.7% loss. Does this mean that we should never again invest in stocks?
Is someone bought gold at the end of 1987 and sold it in 2000, they would have lost approximately 50% of their investment. I am sure there are people who swore they would never buy gold again when it dropped to $250 an ounce, but look at it now…over $1200 an ounce.
Why do people look at just the monetary price of a home? Its value is so much more than that. A home provides shelter and a place to spend time with family and friends. Yet we expect our homes to provide a return on investment. What other big ticket item that we buy do we expect that from? Surely we don’t expect our boats and cars to appreciate.
But let’s say you want to know where the largest returns are on your investment dollar, not in the short term but over the long term. Here is the percentage return you would have on May 31, 2010 if you invested money in each of these investments on January 1,2000.
Real estate was the best investment even throughout one of the most difficult decades in America homeownership.
Spread the word!!!!!
For all you buying and selling needs in the Sedona Homes for Sale marketplace I can be reached via the web - just click here, or become a FAN of my Sedona Real Estate Page on Facebook, or the old fashioned way - 928-301-0669. Happy Buying - Happy Selling
Latest Market reports show that the Medain Sold price in Sedona is ONLY down by 10% from this time last year. That number is better news - for previously it had been down by 30 - 40%. Since 1/1 - 58% of those solds were motivated seller's keeping up with Foreclosed prices. 40% of those solds were a foreclosure or short sale property. Our active inventory has fallen - and I know from the market that the properties that "appear" to be bargains are being snapped up in record time. The jury is still out in my opinion whether the
Sedona Homes for Sale market is stabilizing. However it does appear that the Vacant Land in Sedona is gaining stronger legs after being paralyzed last year. Currently there have been 45 vacant land sold this year with a median sales price of $160,000. Those are far better stats than this time in 09 when only 33 lots had sold for a median price of $120,000. So it appears that there are sectors of the Sedona Real Estate that are stabilizing somewhat. Stay tune for more. I can be reached via the web, via email at
barbara@barbarabaker.com, on Facebook at Sedona Real Estate, on Linked In, or the old fashioined way - 928-301-0669. Happy Buying! Happy Selling!
Here is a GREAT article about "The Shadow Inventory" of Foreclosures that many people are talking about. Now I have taken this DIRECTLY from Realtor.com and I am sharing it cause I find it quite useful. For all your buying or selling needs, text or call at 9283010669or email me at Sedona AZ Homes for sale.
Here is the link to the Video on the SHADOW FORECLOSURES
By Robert Freedman, senior editor, REALTOR® Magazine
You often hear talk within real estate about the shadow inventory that looms over markets. These are the homes that are at risk of going into default or are already owned by the banks and that can come onto the market at any time. They pose a problem because a flood of these properties can put enormous downward pressure on prices as inventories rise far above what can be absorbed by demand. Of course, the properties tend to sell for quite a bit less than other properties, and that’s good for buyers, particularly investors who can scoop up properties in bulk. But the discount inventory isn’t friendly to sellers whose properties have to compete with them.
All this notwithstanding, there really isn’t a hard and fast rule of what properties actually comprise the shadow inventory. This lack of definition is important, because one analyst who reports a big, scary number in the news might be thinking something very different than another analyst who uses very different assumptions. So, whether 7 million properties are looming over markets or something closer to 2.5 million is an important distinction.
To get a handle on what properties NAR considers part of the inventory, I sat down with NAR Research Economist Selma Lewis. In our 5-minute video interview, she walked me through how she calculates the inventory size. She also talked about the pace at which banks appear to be unloading their properties.
What it all boils down to is opportunity. After getting off to a very slow start, banks appear to be looking at the short-sale portion of the inventory differently than they did before and want to get them done. You would know whether that’s actually happening in your market or not, but that appears to be the direction in which banks are heading now that the short-sale guidelines from the federal government (and Fannie ad Freddie) are in place.
So, with these and other shadow-inventory properties looming over markets and selling at a discount, there’s a place for you to help strapped sellers and hopeful buyers. But it helps to start with some concrete numbers on the inventory, and that’s what NAR Research has tried to provide.
Well, today the House approved the tax credity extension to give home buyer's until September 30th to close on eligible properties and still qualify for the home buyer tax credit. The current deadline requires buyers to close by June 30 (tomorrow) in order to qualify. The Senate must still approve the measure - however it will help shore up the staggering delayed housing crisis which continues to plaque this country. Foreclosures Represented 31% of ALL homes sold in the US. And those prices are 27% below the average sold price of non-foreclosures. Hold onto your hats... for we are in for a WILD RIDE. The feds have to do something. I predict that in the Sedona AZ Homes for Sale market place, the Sedona Real Estate Marketplace, and in fact the entire country you will see Foreclosures continue to bring the housing market spiraling down. Realtor com states that "Supporters in the Senate are planning to tack the bill onto one that would extend unemployment benefits, hoping that popularity of the tax credit extension will overcome the Senate's objection to extending unemployment". Basically, we are running out of money. For you seller's - sell, sell, sell, sell, sell. To buy a Sedona Home for Sale, please call or text me at 928-301-0669, visit my website at www.barbarabaker.com or find me on Facebook at Barbara Hooyman Baker.
So what is a seller and buyer to do? Listen to CNN, MS NBC, Talk Radio, NAR, or your local Real Estate Agent? Well, I would say, that a good real estate agent is worth their weight in gold - for Real Estate is local. Yes, it is affected by what happens in the National Arena. But comparing what is happening in the center of New York with Toledo Ohio or the Sedona AZ Real Estate Market is like comparing apples to pineapples to bananas! It simply can't be done. Buyer's come into the Sedona Real Estate Market thinking they will be able to pick up a single family home for $30,000 - because they have seen it happen in Phoenix - that "banks are giving away properties". Well, Sedona ain't Phoenix. The lowest priced home that has sold in Sedona since the beginning of the year was a 1971 2 bedroom home for $125,000. Podunk this ain't. If you have good representation, a buyer can significantly reduce the sale's price - however that is dependent on many factors - location of the property, time on the market, condition of the property, and on and on it goes. So buyer's do yourself a favor - and find a good Realtor - one who is in the trenches day in and day out - and LISTEN to them. Seller's would be wish to heed that same advice. Turn off the TV Morning Show or CNN News - those folks are in New York or LA and don't know the local real estate market. A good local realtor does. Remember that Foreclosures and Short Sales are the norm - not the exception and in order to sell your home in the next century - price it realistic to sell it. If you don't have any interest, and no one is showing it? Guess what? It's all about the price! For all your Sedona real estate needs and to find out more information about Sedona AZ homes for sale, I can be reached via email at
barbara@barbarabaker.com, texting or calling at 928-301-0669, on Linkedin or Facebook at Barbara Hooyman Baker. Happy Buying and Happy Selling
I am fortunate to be a member of the Sedona Luxury Real Estate Professional Associations. And ifyou remember the goodwill that came from Macy’s Santa recommending Gimbels department store to a parent wanting to purchase a toy that Macy’s didn’t carry in the classic 1947 film, Miracle on 34th Street, then you will have a hint of the motives of the Sedona Luxury Real Estate Professionals. Macys and Gimbels were vigorous competitors, as could be the members of our organization - warmly referred to as SLREP, each from different real estate brokerages and with individual real estate practices. Often times it seems that when times get tough, in any profession, competitors get more territorial, even ruthless. But in this challenging market, we have taken the highroad and are reaping rewards both personally and are obtaining tangible results for our clients.
Created in 2005, the group’s mission is to foster greater collaboration, educational programs, networking, the highest professional standards and quality of care for the clients twe serve. So as the effects of the economy trickled up to include those generally considered to be recession-proof, we have pooled our various expertise and mutual support, meeting twice a month to share market knowledge, use cooperative advertising and spent the necessary time to become intimately familiar with each others listings in the luxury marketplace. It works beautifully, last year 19 homes priced at $1 million dollars or more sold in Sedona and the agents of the Sedona Luxury Real Estate Professionals represented a seller or buyer in 45 % of those sales. An amazing percentage when you consider that the SLREP’s number 32 of the more than 600 real estate agents practicing in the Sedona—Verde Valley area.
Thomas Jefferson stated: “This time, like all times, is a good one, if we but know what to do with it.” That may never have been truer than it is for luxury homebuyers and sellers in Sedona AZ right now. Our current market activity is running well ahead of last year and we believe that Sedona’s luxury market is perfectly positioned for a stable and successful luxury market for both buyers and sellers as we move through 2010 and 2011. Luxury home buyers have options and so does Sedona offering uniquely scenic views, and all of the amenities, hiking, biking, golf, art galleries, top rated schools, theaters, entertainment and exquisite fine dining. The area enjoys 4 mild seasons and close proximity to high end shopping and the best in medical care. The most savvy, knowledgeable and experienced investors are moving back into the real estate market. Many of the wealthiest buyers are capitalizing on the incredible affordability in prices and interest rates to buy that dream home or luxury vacation home
A dues based group, SLREP is available to all real estate professionals in Sedona and the Verde Valley and as the group has become more known, many clients ask if their agent is a member. If you could work with the most connected, knowledgeable and committed network of luxury real estate professionals why wouldn’t you?
If you are interested in purchasing a home in the luxury marketplace please contact me at 928-301-0669 for more information, or email me at barbara@barbarabaker.com
Well so far the stats for this spring are wonderful in all sectors. In our single family homes the number of Solds were up by 86% from this time last year. With 44% of those solds being either a foreclosure or a short sale. The median price point has dropped by 8% from this time last year to $390,000. Prices are starting to stabilize a bit. I am still skeptical as I don't think prices are going to rebound anytime soon - I think they will hover around the bottom or close to the bottom - since we haven't seen that huge drop in prices as reflected from 08-09- when the median sold price plunged from $528K to $424K. The stabilization of price is also showing in that the median price of homes under contract is around $389K - which goes along with the median sold price of $390K. But I say that with a grain of salt - for as we have all seen, and continue to see, the housing market is paramount to the fragile US economy which is slowly showing signs of recovery from many sectors. I still feel the FEDS are going to have to do something drastic about the shadow inventory of Foreclosures that are plaguing and will continue to plaque all housing markets. However, if you are thinking of purchasing any sedona homes for sale the opportunities are here - as many happy New Sedona Home Owner's will attest to. I can be reached the old fashioned way at 928-301-0669, email at
barbara@barbarabaker.com, website at
www.barbarabaker.com or on facebook at Barbara Hooyman Baker. Next blog - Vacant Land - Sales are up!
I found this very interesting article on Realtor.com site and wanted to send it out to the Internet. I found this very interesting considering the amount of folks going through the whole foreclosure and short sale process. Everyone is always talking about how these defaults will effect a seller's credit score- however, no one has ever really pinpointed how... So here is the article from Realtor.com. However the ORIGINAL Source is CNN - Les Christie.
Fair Isaac, which developed FICO scores, used a comparison between two people to explain how mortgage delinquencies affect credit scores.
Fair Isaac derived these numbers from a theoretical calculation based on hypothetical borrowers – one with an initial score of 680 and one with an initial score of 780. FICO scores range from 300 to 850.
The hypothetical person behind the 680 score had six credit accounts, while the person with the 780 score had 10. The consumer with the 780 score had no missed payments other than the mortgage; the 680 example had two late payments before they failed to pay the mortgage.
After a mortgage delinquency, the two scores would look like this:
• After 30-day delinquency, 680 score drops to 620 to 640; 780 score declines to 670 to 690.
• After 90-day delinquency, 680 score falls to 595 to 610; 780 score goes to 645 to 665.
• After foreclosure, short sale, or deed-in-lieu, 680 goes to 575 to 595 and 780 drops to 620 to 640.
• After bankruptcy, 680 drops to 530 to 550; 780 declines to 540 to 560.
Meanwhile, the Sedona Real Estate Market continues to be back with a steady spring. May is looking very, very good. Let's hope that June is good as well.
For all your buying and selling needs I can be reached via phone at 928-301-0669, on the web at www.barbarabaker.com, on Facebook at Barbara Hooyman Baker.
Well, pack the car and head up to Sedona this weekend for the National Open House! What a great opportunity for buyer's to see the Sedona Homes for Sale throughout the area. If you would like me to email you a map and the list of homes on tour just email me at barbara@barbarabaker.com and let me know which town and/or area you are interested in. Remember, it's happening all through the Verde Valley so there will be other homes outside of Sedona available as well.
I will be at 65 Alta Vista in Sedona, AZ. Directions: Hwy 179 to Jack's Canyon Road (the Village of Oak Creek), East on Jack;'s Canyon Road, North on Suncliffe. Go through Stop Sign (Pinon Drive and Suncliffe) and go to the next corner - Alta Vista and Suncliffe.Stop in for a cold drink, to discuss the market, and just to say hello!
It's BACK!!!!! I really think It's BACK!!!! From all indications, the Sedona AZ Real Estate Market is back in business. We are all busy - and that says alot! Homes are going under contract in droves in all sorts of price ranges. However, the market that is still hot and remains hot is the under $400,000 market. And the good news is that we are finally getting to see homes in the 600 - 900 and even over $1 Million Dollar range going under contract and closing. With Financial Institutions opening up their money it promises to be a busy and productive spring. And it all comes' down to PRICE! For both Buyer and Seller when buying a Sedona home for sale - it all comes down to what is it priced at. And if it is priced - aggressively -we are seeing multiple offers on the table. Seller's - price it to sell it. Buyer's - if it's priced good -jump at it, before someone else does. Spring is Sprung in more ways than one in the Sedona AZ Real Estate Market. For all your buying and selling needs - call or text 928-301-0669.
Foreclosures represent 37% of ALL of Sedona’s Sold homes and “Short Sales” representing 10% of our SOLD market. So in actuality, you could say almost ½ of our sold inventory is either a foreclosure or a short sale.
Foreclosure and Short Sale Home Listings only represent 14% of our active market. That is what is selling and those homes are in turn bringing the rest of the market down. For they have to be used as comparables – since they are the “Norm” and not the “Exception”.
Our Median Sold price in Sedona (taking into account the high and the low) is currently $390,000.
Our homes under contract have SOARED – and is currently at 82 (under contract). To give you a comparison – in the heyday of June of 05 – there were 74 under contract. Today? 82. Which tells us that buyer’s are back buying because the prices are now at a point where people are once again buying and feeling comfortable in the economy to be purchasing a second home.
However, once more the Foreclosures and Short Sales – DOMINATE the Homes under contract, with more than ½ being a Foreclosure or Short Sale.
2010 will remain a strong buyer’s market. Buyer’s don’t be overly cocky and offer anything. We have shown that the buyer’s are back, and back in droves – if you want the house – then be reasonable. For if you aren’t – someone else will be and will get it. Hire a good agent to negotiate the whole offer.
If you Selling your home – you need to be “COMPETITIVELY” priced AHEAD of the market. For it’s like going into a dark alley – you can’t really see what is in front of you, but you are carrying a big stick – assuming something bad could be ahead. Be competitive. Look at ALL offers – even low ones. You never know where you and a buyer will end up. And hire a great agent in these difficult times to get the place SOLD –so you can move on with your life.
For all your buying and selling needs I can be reached at 928-301-0669, or via my website at www.barbarabaker.com, or via email at barbara@barbarabaker.com
This article was sent to me by Stewart Title of Sedona. I found it very informative for any seller in Sedona who is faced with either shorting or foreclosing on their home and the legal implications that may follow. So I hope you find it helpful- Enjoy
Short sales and foreclosures are becoming common place in our market. We are consistently asked questions by owners and agents alike about the Arizona anti-deficiency statutes and the tax consequences of a foreclosure or a short sale and deed in lieu. This article answers the two most common questions we receive.
When do the Anti-Deficiency Statutes Apply?
For the anti-deficiency statutes to apply, three requirements must be met:
- The property at issue must be a duplex or a single family residence;
- The real property must be two and one-half acres or less; and
- The loan at issue must be a purchase money mortgage.
A purchase money mortgage is one where the loan proceeds are used to acquire title to the property. A refinance of a purchase money mortgage is also considered a purchase money mortgage for purposes of the statute. A HELOC that is obtained after the close of escrow is generally not considered a purchase money mortgage.
Assuming all three of these requirements are met, the Arizona anti-deficiency statutes apply. What this means is that the lender’s remedy will be limited to regaining possession of the real property at issue through a foreclosure process or otherwise. If the anti-deficiency statutes apply, even if the amount due to the lender exceeds the value of the property, the lender may not pursue the borrower for the difference or deficiency.
What are the Tax Consequences of a Short Sale or a Foreclosure?
Generally, when a lender is unable to collect the full amount due on a note, this forgiveness of debt constitutes a taxable gain for the borrower. The theory is that the borrower is paying less than the full amount originally received when the loan was funded. Thus, where a lender is collecting less than the full amount due on the mortgage, either through a short sale, a deed in lieu of foreclosure or because of the anti-deficiency statutes, there will typically be a taxable gain for the borrower. The taxable gain is the difference between the amount owed to the lender and the amount received by the lender. Many lenders have been and will be issuing a Form 1099 to borrowers for this debt forgiveness. Under certain limited circumstances the Mortgage Forgiveness Debt Relief Act of 2007 may eliminate the consequences of this gain.
Always remember to consult an attorney, your accountant, and your realtor when considering this decision. For all your buying and selling needs I can be reacehd at 928-301-0669. Thank you - Barbara Baker
As far as our Sedona Real Estate Market is concerned - I feel sorry for seller's. I do. It's hard being a seller today - trying to sell your home in Sedona with all the competition and with foreclosures representing only 7% of the active listings but 39% of the sold volume. And it's worse through the Verde Valley. If you include all of our little local towns... foreclosures represented a whooping 51% of our sold volume. 51%. So I truely feel the seller's pain. So - what's a seller to do in this market? Price. That's it. Price. It should be priced so well that it takes your breath away. It makes a seller gasp. That's the reaction you are trying to achieve with the Buyer! That GASP! Then only then - will you have the buyer's jumping all over your home. For remember your competition -that foreclosure around the corner, around the street, around the bend - it will be there for this year, and perhaps... next year as well. Price. Be ahead of the game - to win the game. For this is a game of roulette - and there are few survivors! Call me for more information about the Sedona Real Estate Market at 928-301-0669.
Sedona Homes continuing to be selling quite well since the prices have dropped. When buying, remember that you may qualify for a Tax Credit. Up first is the popular $8,000 tax credit for first-time home buyers. Originally scheduled to expire on November 30th, 2009, this valuable tax credit of up to 10% of the purchase price or up to $8,000 was extended into 2010 (purchase agreements must be signed by April 30, 2010, and closings must be final by June 30, 2010). The new program was also expanded to include a tax credit of up to $6,500 (or up to 10% of the purchase price) for qualified buyers of a second or "replacement" home under the same deadlines. To qualify, home purchasers must have owned and occupied a primary residence for five consecutive years during the last eight years. Most importantly, the new program significantly increases previous income requirements.
There are other important guidelines to meet in order to qualify, so be sure to discuss your situation with a tax professional. And don't forget, you can still buy a home before April 30th and qualify – even you've already filed your 2009 taxes. For all your buying and selling needs, I can be reached at 928-301-0669, or at barbara@barbarabaker.com, or the web at www.barbarabaker.com, on facebook at barbara hooyman baker
Well, with all the foreclosures surrounding our country - I have been saying for months that the only way out of this thing is for the FEDS to step in and re-tool everyone's current mortgage - otherwise, why should ANYONE Hang onto a home that they had bought in 2001 or after. To further my thoughts on this .... I have just read a great article on Realtor. Com and have am supplying it here.
Principal Cuts May Prevent Foreclosures
At least 7 million borrowers will lose their homes this year and next unless there is a broad increase in property values or lenders become much more willing to cut the principal on mortgage loans, an analyst with Amherst Securities Group told the U.S. House Financial Services Committee last month.That testimony has motivated Federal Deposit Insurance Corp. Chair Sheila Blair to consider incentives for lenders to cut principal on $45 billion in mortgages her agency has acquired from seized banks.“We’re looking now at whether we should provide some further loss-sharing for principal write downs,” says Bair. “Now you’re in a situation where even the good mortgages are going bad because people are losing their jobs.”While principal reductions are rare, some banks are doing them. In the third quarter of 2009, about 21,000 home loans were modified by reducing the principal, according to Mortgage Metrics, a government publication.Mark Zandi, the chief economist for Moody’s Economy.com, suggests that banks receive a federal match of $1 for every $2 in principal reductions they offer to home owners. “You’re not going to wipe out all the borrowers’ negative equity,” he says. “This just gives them enough hope to get them committed again.”Source: Bloomberg, John Gittelsohn and Prashant Gopal (01/07/2010)
I truely beleive this is the only way the Big F will stop beating down our prices. For all your real estate needs in Sedona and the Verde Valley... I can be reached at
barbara@barbarabaker.com, website at
www.barbarabaker.com, on Facebook at Barbara Hooyman Baker, on LinkedIN, or the old fashioned way - 928-301-0669.