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.
Well First, Happy New Year to All. It is going to be a heck of a ride this year in the Sedona Home Sale Market. My title doens't really speak well for seller's who own their own homes. I can tell you that 40% of the homes sold in Sedona - were FORECLOSURES. Foreclosures in Sedona at 40% . Unbeleiveable. And I believe that trend will continue for 10. What a way to start off the decade. If you are a buyer - you should be buying now. Inside sources tell me - that the FEDS will be raising interest rates in the first quarter. So unless, you have a bucket of cash under your mattress. Get off the fence and start buying these opportunties. If you are a seller - take a deep, deep, deep breathe - and price your Sedona Home, Sedona Land, or Sedona Condo - to sell. You have to be ahead of the market in these times... for "We are not in Kansas Anymore". Available for all your buying and selling needs - I can be reached at barbara@barbarabaker.com, www.barbarabaker. facebook at Barbara Hooyman Baker, or the old fashioned way - 928-301-0669.
The average interest rate for 30-year mortgages has fallen to the lowest level since Freddie Mac began compiling its weekly survey in 1971, declining to 4.71 percent this week from 4.78 percent a week ago. That is great news for the entire real estate market and should help the Sedona Real Estate Market with it's continued buyer frenzy. Also, the Feds have FINALLY put in guidelines to motivate Lenders to deal with the whole Short Sale Situation. That will also help Sedona AZ Home Seller's move their inventory so that a home doesn't go to Foreclosure. Hopefully it means that we will be seeing less Foreclosures and more Short Sales going through. For all your buying needs contact me via the web at www.barbarabaker com, email at barbara@barbarabaker.com, twitter at sedona home, facebook at barbara hooyman baker, and the old fashioned way - 928-301-0669.
• 1,829 sq. ft., 2 bath, 3 bdrm single story "SANTE FE STYLE" - 
MLS® $347,500 USD - SHORT SALE
Michael's Ranch, Sedona - Yavapai County - I'm nestled in a cluster of trees on a big lot in a gated subdivision out in the middle of nowhere - yet 7 minutes to town. The sun pours through a WALL of windows in my main living area that looks out into a walled backyard patio, finished with an outdoor fireplace for chilly nights. Imagine hot apple cider and marshmallows. Stargazing is the best from my outdoor hot tub with total dark skies. I'm designed for the outdoors to be part of my makeup with all 3 of my Bedrooms having their own separate outdoor patios. My compact kitchen has poured cement counters with embedded patterned tiles. Enjoy your coffee from my extended front patio as hot air balloons sail across the sky. Current Owner is finishing building a 2 car detached garage. Mullioned windows, curved corners, cherry wood flooring & Saltillo Tiling compliment my appeal. I'm a little worn, a little messy, but if you look beyond...you will see my glory. I'm listed as a short sale but feel very tall in what I have to offer.
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Well, I never thought I would see it! Sedona will be having a GREEN Christmas this year. Bing Crosby and White Christmas will have to step aside for the color of Green $$$$ is the theme this holiday spirit. And I say that with a relish and a touch of zest - for the Sedona AZ Home marketplace had a stellar Thanksgiving season. There was no black Friday for us - the day after Thanksgiving.. Oh no! the place was filled with buyer's scooping up tremendous opportunities in the Sedona Real Estate Market. Neither the Grinch, nor Scrooge, will be making their appearances this year. And Rudolph's nose will shine very bright to lead all to that birghtest star in the sky shining over - Sedona. And Visions of Sugarplums this holiday season will be replaced with Visions of Happy Buyer's opening up bright shining front doors on their long awaited Dream - A home in Sedona. So for all you buyer's out there - your market will continue in Sedona and you will be in Santa's sleigh driving the reins - this holiday season. and perhaps next holiday season as well. As always, I can be reached at
www.barbarabaker.com, email at
barbara@barbarabaker.com, on facebook at barbara hooyman baker, on linkedin, and the old fashioned way - picking up a cell phone (hard to beleive that is the old fashioned way) and texting me... or calling me at 928-301-0669.
SHORT SALE
• 2,131 sq. ft., 2 bath, 3 bdrm single story "SWEET, CHARMING WELL CARED FOR" - MLS® $299,000 USD - GEM OF A HOME
Sedona Meadows, Sedona - Yavapai County - This is a Lovely Home with a 300 square foot Deck facing west so you can experience the beautiful Sedona Sunsets. There is an extra large Office/Studio with Double French Doors serving as a Private Entrance. Upgraded Kitchen with lovely Tile Backsplash and Accents, Oak Cabinets, Tile Floor, New Sink and Fixtures, and a Penisula Breakfast Bar. There are special touches like the Archway between Kitchen and Livingroom, the Livingroom has Vaulted Ceilings and a Skylight. This is a wonderful home.
Call Barbara For more details at 800-975-5943
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I feel like it's Christmas -in November. All through Sedona you see realtors bustling around with clients, their fingers busy writing contracts, submitting offers, homes being exchanged between happy buyer's and grateful and happy seller's - and all through the air you feel the wonderful, crisp sound of "Activity" in Sedona. Music to a grown up Realtor like me! Yes Virginia! There is a Santa Claus and it's name is "Activity". For that is what has really returned with a bang to the Sedona Market place - "Activity" in the Real Estate Market. Our solds are up by 46% since this time last year. That in itself is enormous. We are seeing those investors and homeowner's who got slammed in the Stock Market or who were waiting for prices to be driven downward back in our marketplace in - hoards. Our pendings are up by 174% since last year - and our active listings are down by 28%. Which means the old law of supply and demand is starting to creep back in...This is all good news for all. Prices through the market are down by 20% since this time last year. Seller's are finally realizing that to list and sell their home they have to compete with the rest of the marketplace which includes shorts (10% of the solds) and REO (30% of the solds). And good old regular "Sellers"? Well, they represent 60% of our sold marketplace. They are finally starting to see the true meaning of the whole thing - like Scrooge! They are finally seeing what this season is all about- PRICE! I am thinking that Christmas may be here for an extended season!
Happy Buying! Happy Selling! I can be reached via facebook at Barbara Hooyman Baker, on Twitter at sedonahome, via email at barbara@barbarabaker.com, and on my website at www.barbarabaker.com, and the old fashioned way - 928-301-0669... or just follow that bright star in the sky to - SEDONA!
I DON'T USUALLY RE-PRINT OUTSIDE SOURCE MATERIAL. HOWEVER, I FOUND THE FOLLOWING ARTICLE THROUGH MOVECOM AND WANTED TO SHARE IT. SINCE SEDONA IS PRIMARILY A SECOND HOME AND INVESTMENT MARKETPLACE... I FOUND THIS ARTICLE TO BE VERY ENLIGHTINING. THIS HOLDS TRUE IN SEDONA BECAUSE OUR PRICES HAVE FALLEN - WHERE INVESTORS CAN NOW COME BACK INTO THE MARKET - OUR SOLDS ARE UP BY 41% SINCE THIS TIME LAST YEAR AND OUR INVENTORY IS DOWN BY 28% SO OUR BUYER'S HAVE RETURNED!
Low Prices Draw Investors Back to Market
12.1 percent of home buyers today plan to buy a home as an investment property, compared to 5.6 percent in March 2009. The survey found that 15.8 percent of those interested in investment property were men and 8.1 percent were women and 52.6 percent of the investment buyers were between ages 35 to 49.
Of the 25.3 percent of buyers who are focusing on foreclosure properties, 42 percent regard the purchase they are considering an investment and don’t plan to live in the property themselves; 13.2 percent plan to rent out the property; 11.3 percent are going to fix up the property and resell it; and 17.4 percent plan to house a family member until the property can be sold profitably.
Of the 9.8 percent of buyers who say that they plan to purchase and live in a property in the next two years, 5.4 percent plan to purchase in the next 12 months; 48.3 percent are first-time buyers; 52.8 percent are women, and 44.1 percent are men.
Buyers of investment and personal property say they are motivated by these factors:
Follow me on Facebook at Barbara Hooyman Baker, Follow me on Twitter at Sedona Home, contact me via email at barbara@barbarabaker.com, or via my website at www.barbarabaker.com or the old fashioned way - 928-301-0669. Happy Buying
THE DEFINITION OF A SHORT SALE 101 - SELLER OWES MORE THAN THE HOUSE IS WORTH AND HIRES A REALTOR TO LIST THE HOUSE AND SOLICIT AN OFFER BASED ON THE CURRENT FAIR MARKET VALUE OF THE HOME. OFFER COMES IN AND SELLER PROVIDES FINANCIAL, OR MEDICAL DOCUMENTATION SHOWING HARDSHIP AND ASKS THE BANK IF THEY WILL TAKE "SHORT" OF WHAT IS OWED ON THE PROPERTY. IT IS UP TO THE BANK WHETHER OR NOT THEY WILL TAKE THE SHORT SALE. THEY SOMETIMES DO, HOWEVER, SOMETIMES THEY DON'T. THE 4 IMOST IMPORTANT CONSIDERATIONS FOR A BUYER IN PURCHASING A SHORT SALE ARE AS FOLLOWS: 1) TIME. MAKE SURE YOU HAVE ALOT OF IT - AND AREN'T IN A HURRY. GREAT FOR THE CASH BUYER. NOT SO GREAT FOR THE BUYER WHO IS DEPENDENT ON AN INTEREST RATE. THIS PROCESS IS NOT FOR THE FAINT OF HEART. FOR IT CAN TAKE ANYWHERE FROM 2 MONTHS TO 6 MONTHS TO GET A SHORT SALE THROUGH. IF YOU AREN'T IN A HURRY - THERE ARE SOME WONDERFUL OPPORTUNITIES. 2) FIND OUT HOW MANY NOTES ARE DUE ON THE PROPERTY. IF THE SELLER IS DEALING WITH ONE LENDER - THOSE SHORTS USUALLY GO THROUGH PRETTY SMOOTHLY. NOTICED I SAID SMOOTH - NOT FAST! IF THERE IS A 2ND LENDER, OR A PRIVATE INVESTOR - THEN IT CAN GET A LITTLE DICEY - FOR THE 2ND USUALLY WILL BE GIVEN MUCH LESS THAN WHAT IS OWED -AND MANY TIMES - THEY WILL REFUSE. THEY WILL DIG IN THEIR HEELS AND ALL THAT TIME HAS BEEN WASTED BY MR. BUYER WHILE OTHER GREAT PROPERTIES HAVE BEEN SOLD1; 3) KNOW WHO IS REPRESENTING MR. SELLER ON THE PROPERTY. THIS IS NOT REAL ESTATE 101 - THIS IS REAL ESTATE 1001. THE LISTING AGENT HAS TO BE A REAL ESTATE PITBULL. HAS TO BE CONSTANLY WORKING, BE ON TOP OF THIS FILE AND THE LENDER'S AND THEIR REPRESENTATIVES. SO MAKE SURE THAT AGENT KNOWS HOW TO GET THESE THINGS THROUGH. AND FINALLY; 4) BE WELL REPRESENTED ON YOUR SIDE. HAVE A GREAT AGENT REPRESENTING YOU WHO UNDERSTAND THIS PROCESS AND CAN CORRECTLY GUIDE YOU IN MAKING THE RIGHT CHOICE. FOR MANY TIMES THE RIGHT CHOICE ON BUYING A SHORT SALE ISN'T THE BEST CHOICE. I CAN BE REACHED ON TWITTER AT SEDONAHOME, FACEBOOK AT BARBARA HOOYMAN BAKER, EMAIL AT BARBARA@BARBARABAKER.COM, ON THE WEB AT WWW.BARBARABAKER.COM AND THE OLD FASHIONED WAY - 928-301-0669. HAPPY BUYING!
WELL, IT'S THAT TIME OF YEAR WHEN GOBLINS AND GHOULS ABOUND. BUT HEY THAT HAS BEEN HAPPENING ALL YEAR IN THE REAL ESTATE MARKET. IN FACT, IT'S BEEN HAPPENING FOR THE LAST 2 YEARS. THERE ARE MORE HOME DEATHS THIS YEAR THAN EVER. HOWEVER, I AM HAPPY TO REPORT THAT THE SEDONA MARKET HAS KEPT IT'S STREAM OF FORECLOSURES IN CHECK. CURRENTLY WE ONLY HAVE 22 FORECLOSED HOMES. OUR HIGH WAS 31 LAST NOVEMBER AND SINCE THEN WE HAVE BEEN HOVERING AROUND 21 TO 22. MANY BUYER'S ASSUME THAT BECAUSE MANY PARTS OF THE SOUTHWEST (MAINLY LAS VEGAS AND PHOENIX) HAVE SUCH A HIGH RATE OF FORECLOSURE THAT SEDONA WOULD FOLLOW. WELL, WHILE THAT MAY BE WISHFUL THINKING - IT HAS PROVEN TO BE ONLY THAT - A WISH. WE HAVE HAD RECORD SALES THIS YEAR - AND ONLY 30% OF OUR VOLUME IS IN FORECLOSURE BUSINESS. WE HAVE RECORD PENDINGS THIS YEAR - NOT SEEN SINCE 05! AND OF THOSE PENDINGS - ONLY 26% REPRESENT FORECLOSURED HOMES. I THINK THE MAIN THING THAT FORECLOSURES HAVE DONE FOR OUR MARKET - IS HELP SELLER'S PRICE THEIR PROPERITES MORE COMPETITIVELY AND REALISTICALLY TO COMPETE. AND THE STATS PROVE THAT. WE ARE HAVING BUYER'S RETURN IN RECORD NUMBERS. AND THE WORD ON CAPITAL HILL (NOW LET'S TALK ABOUT SOME SCAREY CHARACTERS UP THERE) IS THAT THEY WILL BE EXTENDING THE HOME TAX CREDIT. SO ALL IN ALL - DURING THIS GHOULISH SCAREY TIME - DON'T BE AFARID OF THE CLIMBING OFF THE FENCE AND BUYING. I CAN BE REACHED ON TWITTER AT SEDONAHOME, FACEBOOK AT BARBARA HOOYMAN BAKER, EMAIL AT BARBARA@BARBARABAKER.COM, ON THE WEB AT WWW.BARBARABAKER.COM AND THE OLD FASHIONED WAY - 928-301-0669. HAPPY HALLOWEEN!!
Sedona Real Estate Market Overall
The Sedona Real Estate market continues its buying frenzy in the mid to lower price sector. In this past 3rd quarter alone, our sold volume was up by a whopping 62% from last year, with Foreclosures or Short Sale accounting for 41% of that business. Even though Foreclosures and Short Sale represent only 12% of our active market- those segments continue to bring the market down and make the Once "Unreachable" Sedona Real Estate Market - an affordable place to own a home! Prices have come down to 03-04 levels.
The Vacant Land sector continues a downward spiral with the median sold price being $121,000. Compare that with 08 Sold pricing of $318,000 and you can see what opportunities exist. The Foreclosures have also hit this sector with 40% of the sold being a foreclosed property.
In the Luxury Marketplace ($1 Million and Over) there are 90 homes currently on the market with only 14 selling year to date, with a median sold price of $1,600,000. To put this in perspective – it will take 5 years to move the current inventory given the ratio of actives to solds.
The Condo Market has remained relatively consistent with a drop in price of only 2% year over year. With a median sold price of $298,500. Foreclosures represented 11%.
You can now reach me on Face book at Barbara Hooyman Baker, Twitter at Sedonahome, on LinkedIn, by email at barbara@barbarabaker.com or the old fashioned way at 928-301-0669.