The Avalon Team Blog

CURRENT CONDITIONS IN THE PHOENIX MARKET

Avalon Team (The Avalon Team @ Keller Williams) — Fri, 25 Sep 2009 13:48:15 -0500

According to the Cromford Report, the listing success rate Valley wide (the number of listings that sell rather than expiring or canceling) is 63.8% this year, which is encouraging when you consider that last year at this time, it was 41.5% and two years ago it was 29.3%

The vast majority of the sales are currently taking place in the West Valley where Glendale has a 2.7 months supply Peoria has a 3.6 months supply of inventory; versus Scottsdale at 9.2 months, and Fountain Hills at 14.4 months.

Breaking down the data, there is of course a direct relationship between the number of distressed properties in the areas with the lowest supply of inventory, versus the areas with higher supplies of inventory. For example, distressed properties account for approximately 55% of listings available in the 85308 zip code of the Glendale area, versus approximately 16% in the 85258 zip code of Scottsdale.

The market demand remains in the price range under $400,000.

CURRENT CONDITIONS IN THE PHOENIX MARKET:

* There are 24,044 single family detached listings actively on the market today. That is an increase of 27 listings for the week.

* Total listings, including condos, patio homes, and town homes active in MLS today is 31,266.

Absorption rates and months of supply are still varying widely from one area of the Valley to another. Please, let me know if you have questions regarding a specific area.

Foreclosure Bargains Are Disappearing...

Avalon Team (The Avalon Team @ Keller Williams) — Tue, 11 Aug 2009 15:01:13 -0500

Buyers of foreclosure have to be quick these days. Some houses go under contract fewer than 90 minutes after they are put on the market, says Brad Geisen, founder of Foreclosure.com.

"For every listing that comes out, we have 10 buyers," says Cesar Dias, an associate with Approved Real Estate Group in Stockton, Calif.

Dias had 15 minutes of fame after introducing foreclosure sales tours last year. Now the tours are defunct because there are not enough homes to show.

"We had a lot of inventory last summer. Now we're down to 1,500 listings - from more than 5,000," Dias says.

In Florida, real-estate investment companies, buying in bulk and paying cash, face competition.

Even in the hard-hit Detroit area, bargains are disappearing.

"For a good house that's not too beat up, in a good neighborhood, there's no lack of buyers in this market," says Andy Sakmar, founder of Century 21 Sakmar in Rochester, 20 miles north of the city. "There are a lot fewer of these properties than a year ago, and the super buys get multiple offers."

Source: CNNMoney.com, Les Christie (08/06/2009) We are experiencing similar multiple offers scenarios in the Phoenix area.

Mortgage Applications Rise for the Week

Avalon Team (The Avalon Team @ Keller Williams) — Wed, 05 Aug 2009 13:21:44 -0500

Mortgage applications rose a seasonally adjusted 4.4 percent last week compared to the week before, as rates on fixed-rate mortgages dropped, according to the Mortgage Bankers Association.

Total application volume was up 18 percent for the week that ended July 31, compared with the same week in 2008, according to the MBA's weekly survey.

Refinance applications rose an unadjusted 7.2 percent last week, compared with the week before, while refinance application volume has risen 35 percent
since its recent low at the end of June. The volume of applications for mortgages to purchase a home was up a seasonally adjusted 0.9% last week.

Refinance applications made up a 54.2% share of all applications, up from 52.6% the week before.

Interest rates were generally lower:

30-year fixed-rate mortgages fell to 5.17 percent from 5.36 percent.
15-year fixed-rate mortgages fell to 4.60 percent from 4.75 percent.
1-year ARMs were 6.67 percent, barely changed from 6.66 percent.

Source: Mortgage Bankers Association (08/05/09)

AZ Home Buyers, Sellers & Realtors®: Prepare for the Home Inspection!

Avalon Team (The Avalon Team @ Keller Williams) — Tue, 02 Jun 2009 18:46:02 -0500

A couple years ago, the real estate market was so crazy that many buyers were waiving their right to a home inspection just so the seller would accept their offer. But those days are over and in the current buyer's market, the inspection period is once again being used as a time to negotiate price. Although each contract is different, most Arizona home buyers have a 10-day inspection period. During this inspection period, buyers can generally cancel the contract based on their inspections and receive a refund of their earnest money.

As a result, the inspection period is a very nerve-racking time for many real estate agents and sellers. While most experienced Realtors® want their buyers to have a thorough home inspection, some real estate agents are scared to death that an experienced home inspector like myself will 'blow the deal' and cost them a commission.

But in my experience, most buyers don't want to cancel their contract when the inspection reveals problems. Some buyers do, but usually the buyers will ask for major problems to be repaired, or for monetary compensation in lieu of repairs. Sometimes, sellers will be offended or will refuse to negotiate based on the inspection and it does blow the deal. But usually, the buyers and sellers come to a reasonable compromise and the deal closes.

I'm often asked by sellers and real estate agents if there's anything they can do to 'prepare' for the inspection. Here are some things that can be done to make the home inspector's job easier:

SELLERS & SELLER'S AGENTS:

1. Make sure ALL utilities are on prior to the inspection. Most sellers keep the utilities on while their home is for sale, at least the electricity anyway. But sometimes the gas or other utilities will be off if the home was vacant for an extended period of time. Foreclosures and bank owned properties usually do not have the utilities on. If the gas is turned off, the inspector cannot operate gas appliances such as the heater, water heater, stove, etc. There are still many items that can be inspected, but you will not get the best inspection possible if any of the utilities are off. If the water is off, I will not be able to properly evaluate the plumbing or anything else which uses water. If the electricity is off, I cannot inspect anything that requires power.

A good home inspection company always asks the client or Realtor® who makes the inspection appointment to verify that all utilities are on, but sometimes the gas or water company doesn't have it on when they say they will. If I'm unable to inspect something due to the utilities being off and I need to come back to the property, I have to charge the client a re-inspection fee (currently $100, and likely to increase soon due to gas prices). Even when it's not the buyer's fault, the buyer is the one who usually ends up paying it. A good buyer's agent will insist that the sellers reimburse the buyer for this re-inspection fee since it's usually the seller's responsibility to have the utilities on for the inspection (I believe the standard AAR contract requires this). But this is a cost that can be avoided altogether with some prior planning.

2. Unlock gates and remove locks from electrical boxes, sprinkler timers, pool equipment or fences, etc. Basically, unlock everything that's locked so the inspector can access it.

3. Secure your pets if necessary. I love animals and I frequently have animal friends accompany me through the house as I do my inspection. One time, I even had about a half-dozen weiner dogs follow me through a two-story house I was inspecting (have you ever seen a weiner dog try to run up stairs!) I realize I'm in their territory and I try to introduce myself to the pets in a non-threatening way. I don't mind being followed and I even enjoy interacting with the animals. But if you have a large or aggressive pet that needs supervision or restraint, please do so! In the thousands of home inspections I've performed, I've never been attacked by a pet - but I've had a few big dogs I wasn't sure about that were definitely a distraction. Also, if you have a pet that likes to sneak outside when the door is opened, please make me aware so I can watch out for him/her!

4. Move ALL items that may limit the home inspector's access. And please don't stuff everything in the garage or in closets, because I have to inspect in those areas too! Home Inspectors are not going to move personal items to inspect behind or underneath them. If access or visibility is obstructed, that area will not be inspected. This isn't because we're being lazy, but moving things really isn't a home inspector's job. In fact, the state standards specifically say home inspectors are not required to move personal items, furniture, equipment, etc. And it's really best for the homeowner that we don't move their stuff. Most homeowners wouldn't want us to, and we don't want to take a chance of breaking something (which sometimes happens when you start moving stuff).

5. Replace bad light bulbs. This makes the inspector's job easier and he won't call a light fixture bad when it's really just the bulb. I have a tool I can screw into the light bulb socket to test the light if it won't come on, but it will only fit regular light bulb sockets.

6. Don't try to hide stuff with last minute paint or repairs! This never works and will likely call more attention to the area. For example, painting the ceiling to cover a water stain doesn't keep inspectors from knowing about a roof leak. They'll still see the evidence on the roof and in the attic. Likewise, fresh caulking in the shower may cause them to look more closely at that area.

BUYERS & BUYER'S AGENTS:

1. Buyers should be present at the inspection. The scariest way for a buyer to learn the results of their home inspection is by reading the report. If a buyer is at the inspection, they can ask questions about the problems that are found and the repairs that are necessary. They can ask questions like "is that common for a house this age?". As a home inspector, it's my job to make sure my clients learn as much information as possible from my inspection. I report on everything I see, but I'm not doing my clients any favors if I scare them unnecessarily. Sometimes, a big list of defects in the home inspection report can scare an unprepared buyer out of one deal, only to find the next house they put under contract has most of the same problems (because the problems are common for the age/type of house). So I make sure my clients understand as much as possible about the problems I find, and those problems are put in perspective. A client who comes to my inspection leaves with an understanding of what problems I found, and a good idea which ones are major expenses. When clients are not at the inspection, I often get frantic phone calls from buyers who are worried about something that's really no big deal. But when they read the report without the ability to be there, see it and ask questions, it's much more scary.

Many buyers are out-of-state and cannot attend the inspection. But if at all possible, the buyers should attend the inspection. A normal inspection takes several hours, and I know it's boring to sit around that long while the inspector inspects! So ideally, the client and agent should show up during the last half hour of the inspection (ask what time that will be when you make your appointment). That way, the inspector can give the client and agent a summary of what was found and address their questions.

2. Verify that all utilities are on.

3. Understand what a home inspection is, and what it is not. A pre-purchase home inspection is an opportunity for the buyers to learn more about the home's condition before they own it. Most buyers schedule their home inspection while they can still back out of the deal or negotiate repairs/money.

While sellers may agree to make some repairs, buyers need to understand that a home inspection report is not intended to be a repair list for the seller (except perhaps on new homes/warranty inspections). Even on brand new homes, I will usually find dozens of problems. So a home inspection report with only fifteen deficiencies is a pretty clean house. But when a first time buyer who's never had a home inspection and thinks they're buying the perfect house gets a report with fifteen deficiencies, they can be scared to death. Or they may expect the seller to repair every single item, which almost never happens in a re-sale situation. Unreasonable expectations from one party can blow a deal.

In short, buyers and sellers need to be prepared, and know in advance what to expect from the home inspection. From my experience, fear of the unknown is the primary reason most deals fall out of escrow after the inspection. But even when the home has problems, a home inspection should remove both the fear and the unknown, giving the buyers confidence in their purchase rather than scaring them away. Now don't get me wrong, if the house has several expensive, unexpected problems, there's no amount of preparation that can overcome that. But knowledge is power, and the home inspection goes much smoother when all parties are prepared and know what to expect.

Consumer Technology

Avalon Team (The Avalon Team @ Keller Williams) — Wed, 29 Apr 2009 16:11:59 -0500

"Never before in history has innovation offered promise of so much to so many in so short a time."
- Bill Gates

Each year, consumer technology gets smarter and more advanced. These days, you can control most of your house from a single remote control. New high-tech bathroom faucets allow you to select and save your personal shower settings.

Even if you aren't looking for the latest high-tech gadgets, today's smart appliances will save money on energy bills and help the environment.

In this month's Item of Value, I've examined the latest in smart home technology. You will find information about the whole-house remote control, energy-efficient appliances and innovative products that benefit the environment. I've also included a list of high-tech questions to consider when buying a new home.

Modern technology is revolutionizing the way we live in our homes, and I want to help!

"I DO NOT THINK MUCH OF A MAN WHO IS NOT WISER TODAY THAN HE WAS YESTERDAY." Abraham Lincoln

Avalon Team (The Avalon Team @ Keller Williams) — Mon, 16 Mar 2009 14:07:57 -0500

Now more than ever, it's important for our country's leaders to heed yesterday's lessons and make wise choices today for our banking system and the economy. There were several key developments that happened on this front last week - here are some highlights.

On Thursday, the Securities and Exchange Commission's (SEC) Chief Accountant, the Financial Accounting Standards Board's (FASB) Chairman and the Deputy Comptroller for Regulatory Policy in the Treasury Department testified in front of the House Financial Services committee on the "Mark-to-Market" accounting rule. This rule was created so that there would be more transparency in business dealings, but fell prey to the law of "unintended consequences", and has played a major part in our current financial crisis. If you've been receiving this newsletter for awhile, you know this has been discussed several times - and we've even sent you a great explanatory video that breaks down what it all means, and why it has been such a major issue.

Because so many of you have been asking about this topic and great video - I am including the information and video once again in this week's issue - keep reading for the full scoop in the Mortgage Market View article below.

During Thursday's hearing, Congress demanded an answer for repairing this situation within the next three weeks, so right now, it looks like we will see some sort of coordinated action by both the FASB and the SEC to address the Mark-to-Market situation soon. Stocks certainly reacted positively to this news last week, as well as to Citigroup's announcement that it will not need more TARP money from the government. Stocks also liked the remarks from Federal Reserve Chairman Bernanke that the recession would be over by year-end if the banking situation is stabilized, and that major financial institutions would not be allowed to fail.

In other news, the Retail Sales numbers for February came in better than expected and the numbers for January were revised higher. This report is very volatile from month to month, but the last couple of readings have been encouraging. However, the job market continues to struggle as the number of people receiving unemployment reached a record 5.32 Million. And there was news that China is concerned the US may be spending too aggressively on the recession, which could lead to inflation down the road that would diminish the value of Bonds and China's investments in the US.

Overall, Bonds and home loan rates didn't worsen last week - even with the huge Stock rally - and ended the week relatively close to where they began.

Forecast for the Week:

The middle of this week will be action packed with both scheduled economic reports and the Fed's next regularly scheduled meeting, including their policy statement and rate decision being delivered on Wednesday. With all the actions the government has been taking to stabilize our economy, it will be especially important to hear what the Fed has to say.and to see how the markets react.

This week also brings news on the inflation (or deflation) front, with Tuesday's wholesale measuring Producer Price Index (PPI) Report and Wednesday's Consumer Price Index (CPI) Report. Given China's concerns mentioned above about US spending to combat the recession and what that could mean for inflation, it will be important to see how these reports come in.

Also this week, we'll get a read on the new construction housing market with Tuesday's Housing Starts and Building Permits Reports. On Thursday, the Philadelphia Fed Report will be released. This monthly survey of manufacturing purchasing managers conducting business around the tri-state area of Pennsylvania, New Jersey, and Delaware is one of the most-watched manufacturing reports. We'll also have another Initial Jobless Claims report on Thursday, and with the number of people collecting unemployment reaching record highs as mentioned above, it will be important to keep an eye on this report, too.

Remember: Weak economic news normally helps Bonds and home loan rates improve, as money flows out of Stocks and into Bonds. As you can see in the chart below, Bonds were helped by important technical support and were able to hold onto recent gains even with the rally in the Stock market. I'll be watching closely to see how Bonds and home loan rates react to all of this week's events!

The Mortgage Market View:

By popular demand, I am posting this highly sought after video and article, unpacking the "Mark-to-Market" accounting issue - with some help from Barry Habib. Barry is a highly respected expert on home loans, who serves as Chairman of MSS, an organization that helps me to stay informed as your trusted advisor.

With the help of some easy-to-understand terms and illustrations, you will learn what it has taken the media and politicians many months to take seriously and begin to address.

Link here now to get the real story: www.mortgagesuccesssource.com/go/markmarket/

*The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.

YEAR-END IS OVER... DO YOU HAVE FINANCIAL HOUSEKEEPING TO DO?

Avalon Team (The Avalon Team @ Keller Williams) — Wed, 11 Feb 2009 14:42:35 -0600

Between decorating for the holidays, shopping for the kids, traveling to see the relatives and enjoying the festivities, this month can fly by like no other. Taking just a few minutes to make sure your financial house is in order before the year wraps up is time very well spent. Here are a few simple suggestions to help
you prioritize your financial housekeeping over the next few weeks:

Review your Benefits. If your company holds "open enrollment" for benefits at this time of year, make sure you review all of the options available--as opposed to simply taking on the same choices as last year. This is especially important, if your spouse also receives benefits through an employer. That's because your situation or benefits may have changed over the year, and it may make more sense for you to switch coverage from one spouse's plan to the other's. And make sure that you take full advantage of pre-tax spending accounts, such as the ability to pay daycare and medical in pre-tax dollars! Pre-tax spending accounts are use-it or lose-it plans and many companies end their benefit plan year on December 31. Be sure to check with your plan provider.

Asset Allocation. Year-end is an ideal time to open up your 401k statement to examine how your individual funds have performed. We all know that the financial markets have been up and down quite a bit over the past couple of months, so don't be too surprised if your accounts aren't progressing the way you might have hoped. But rather than get discouraged or simply ignore your accounts, take the time now to meet with your financial advisor and discuss if you should re-allocate from the better performing sectors back to the under-performers. This concept is called "asset allocation" and has been around for several decades. Its value cannot be overstated. Most financial planners believe that proper asset allocation can be one of the most important factors in your overall return. So take this year-end opportunity to review your plans with your financial planner to see what, if any, adjustments you should make.

Automate your New Years Resolution. Many people make financial resolutions to save more or pay down debt. In today's economy, it's a safe bet more consumers than ever will be making those kinds of resolutions. The good news is that with online banking, it's never been easier to keep that resolution. Simply hop online to your financial institution's website. Chances are, with a few clicks of the mouse, you can establish an automated savings account that allows you to send a certain amount of money to a savings account on a regular basis. Most online banking websites also allow you to easily set up automatic payments to a loan or credit card. Automating your financial decisions dramatically increases the likelihood that you will follow through on your plan.

Analyze your Debt. Make sure you know what rates you are paying on all your outstanding debts. If you have trouble figuring this information out, just give me a call or send me an email. I can help you determine what rates are being paid and if your current overall debt structure makes sense. Working
together, we may be able to make changes that will put more money in your wallet or help you achieve other important financial goals.

Give. December is prime time for giving to charities, for both tax reasons as well as holiday spirit. For example, Toys for Tots is a great program that helps deliver toys to children for the holidays. Or, you can give to a local food shelf or soup kitchen that helps prepare meals for those who would not otherwise enjoy the holidays. Giving will put a glow in your heart this holiday season...and a glow in your wallet come mid-April.

By following these suggestions, you'll be better prepared for a happy New Year in 2009! If you have any questions about specific steps or need some help, please call or email any time. Have a great holiday season!

Do Your Homework Before Home Auctions

Avalon Team (The Avalon Team @ Keller Williams) — Mon, 15 Dec 2008 12:54:50 -0600

Do your homework before home auctions

by J. Craig Anderson - Dec. 7, 2008, The Arizona Republic

See a 3,000-square-foot home, built in 2005, on the auction block with opening bid set at $50,000. Or a possible rental property, built in 1962, with an opening bid of $10,000. It's enough to make your palms itch.

But before you raise your paddle, the auctioneer seems to be raising the price without any bids.

Or once you think you have a winning bid to score your bargain buy, the seller kills the deal.

Is this some kind of cheating? Not necessarily. But the auction process can be confusing, frustrating and disappointing to infrequent auction-goers who don't know the rules of the game.

The auction process itself is unregulated in Arizona, which means tactics designed to manipulate bidders - though frowned upon by most auctioneers - are not illegal.

Advocates both for the auction industry and for consumers say the best thing hopeful bidders can do is educate themselves about the way home auctions work before trying to participate.

"Don't let yourself get carried away at this sort of auction or in any high-pressure sales situation," said Anne Hilby, spokeswoman for the Arizona Attorney General's Office.

Pitfalls for bidders

Home auctions represent the fastest-growing segment of the Valley housing market, promising deep discounts to buyers and rapid-fire sales to lenders, home builders and other property owners desperate to reduce their inventory.

Auctions of varying sizes, from a handful of houses to hundreds, have sprung up, and industry insiders estimate that about 80 percent of prospective buyers attending are not frequent auction-goers.

The process can be tricky for the uninitiated.

Phoenix resident Jordan Rubenstein was looking to buy an affordable home for his young family, and a friend who had recently bought a bank-owned home at auction encouraged him to try it.

Rubenstein, 22, attended an auction held Nov. 16 in Mesa by Irvine, Calif.-based Real Estate Disposition Group, commonly referred to as REDC.

Before even showing up to place his bid, Rubenstein said he ran into a problem.

Two of the homes he chose from a list on REDC's Web site to inspect during a scheduled open house were locked when he arrived.

"You couldn't even go inside the house," he said.

Undeterred, Rubenstein settled on two of the auction's 500 advertised homes that he was able to inspect. He did some research to make an estimate of the fair market value for each.

Still, Rubenstein said his due diligence did not prepare him for the auction process itself.

"My experience was horrible," he said.

Rubenstein said he attended the event with his father, and right away they both began to notice the auctioneer was raising the bid on some homes when no one in the audience appeared to be bidding.

Even though the starting bids on most homes were extremely low, Rubenstein had learned that in order to actually buy a home, the bidder would have to reach a certain, undisclosed price set by the seller, called a "reserve price."

In the end, he said, there were some bargains to be had, particularly on homes priced below $150,000.

But winning bids on most homes in his price range of around $300,000 were barely below market value, Rubenstein said, once he factored in the 5 percent auctioneer's fee and what he estimated it would cost to fix damage from previous owners.

"I really didn't see any reason to bid on a home," he said. "On the positive side, it taught me the value of a real-estate agent."

Perception problem

REDC spokesman Rick Weinberg said Rubenstein's story does not reflect the typical auction experience.

Sellers are supposed to make sure a representative is present at each home to show the property during a scheduled open house, he said.

Still, Weinberg said, the auctioneer can only do so much to help sellers help themselves.

"We've heard the story - it's happened before," he said.

Weinberg took issue with Rubenstein's claim that the auctioneer pretended to accept bids on certain homes to raise the sale price, known in the industry as "ghost-bidding."

"He's totally wrong," Weinberg said. "It does not happen, and it will not happen."

Chris Longly, director of public affairs for the National Auctioneers Association, said ghost-bidding isn't illegal in Arizona.

Neither is a practice known as "shill-bidding," in which an agent of the seller poses as a bidder to drive up the price and foster a sense of competition among legitimate bidders.

The Arizona Department of Real Estate does require home-auction companies to obtain a real-estate license, but it does not dictate auction terms.

Still, Longly said he seriously doubted REDC, a large and well-known auction house, would allow either practice.

"If you get caught ghost-bidding or shill-bidding, you're not going to be in business very long," he said.

It's far more likely that the auctioneer was accepting phone-in bids, Longly said, or that Rubenstein simply didn't see the other bidders' cards being raised.

"These real-estate auctions, they move quick," he said.

New to the game

Most states have their own licensing processes for auctioneers that dictate to varying degrees the way auctions can be operated.

Arizona is one of 17 states that do not.

Hilby said the Attorney General's Office has not received many consumer complaints, but experts inside and outside the industry said the fast-growing home-auction business poses a unique set of public-relations challenges.

Unlike auctions offering cars, antiques, collectibles or artwork, home auctions are often attended by first-time bidders who are unfamiliar with the rules.

John McCann, president of Scottsdale-based National Real Estate Auction Corp., said undisclosed reserve prices are commonplace to anyone who attends auctions regularly.

"The reserve price is whatever the seller sets as the lowest acceptable price," he said. "The opening bid in some cases is lower than the reserve price."

While that may appear scandalous to the uninitiated, McCann said the purpose of an opening bid price is to let bidders know the general ballpark in which they're going to be playing.

Similarly, most auctioneers require bidders to bring a cashier's check with them, usually $3,000 to $5,000, and be prepared to pay a percentage of the home's value on the day of the sale.

"We want to make sure the people doing the bidding are actual, real bidders," he said.

Longly said the professional ethics of auctioneers require them to serve the interests of their clients, the sellers, without misleading or defrauding buyers.

"Our fiduciary role is to represent the seller, but we want to keep our bidders happy," he said.

The rules of every auction are readily available online and on site, but that doesn't always prevent sellers from bending them.

For instance, McCann said a competitor recently held a home auction in the Valley that was advertised as "absolute," meaning there were no reserve prices and the highest bidder would automatically get the sale.

However, when some bids came in lower than the seller expected, "they pulled the plug on the whole auction," he said.

Longly said auctioneers can't encourage sellers to lie about whether they have set a reserve price, but they also can't force an unhappy seller to accept every deal.

"If the seller does choose to call a no-sale on the auction, that's up to the seller," he said.

Sales on the rise

Despite the challenges, it's clear consumers have warmed up to the idea of buying a home at auction.

According to the National Auctioneers Association, gross annual revenue from residential real-estate auctions grew nearly 47 percent from 2003 to 2007.

Automobile auctions still dominated the industry in 2007, selling $87.8 billion worth of cars and trucks, but the fastest-growing sector was real-estate auctions, generating roughly $58.5 billion in sales.

In December, the association launched its own site for real-estate auctions, w.naarealestateauctions.com, which displays properties in a multiple-listing-service-style format.

Most major home-auction companies do business in Arizona. In addition to National and REDC, another big player is Williams & Williams Real Estate Auctions.

Among the three companies, there is usually at least one auction a month in Arizona featuring more than 100 homes.

Weinberg said REDC sold 386 homes during the two-day auction Rubenstein attended, bringing in about $38 million.

"Many of those deals were tremendous bargains," he said, adding that some bidders walked away with homes for $150,000 that had been valued previously as high as $400,000.

REDC President Jim Corum said the auction process can be intimidating to first-time attendees, but the best thing they can do is read the rules in advance and ask questions.

"The single most important thing is for the buyer to educate themselves," he said.

Rubenstein, however, said the bigger problem is that home auctions simply don't always offer the screaming deals they promise consumers.

Asked if he would give auctions another try, he said, "I would definitely not."

For more information on auctioning your home visit: www.avalon4homes.com

Our new Move to the #1 Office and JD Power Award for Keller Williams

Avalon Team (The Avalon Team @ Keller Williams) — Thu, 21 Aug 2008 15:31:37 -0500

The Avalon Team office location has recently changed and we are proud to announce that our new location is the #1 Keller Williams office in Arizona! We have also been nominated this year to compete for the top ranking in "The Arizona Business Journal". We are confident that our clients will revieve the same level of great service plus gain increased exposure from our new move!

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Amoung home buyers, Keller Williams ranks highest in customer satisfaction according to JD Power and Associates 2008 Home Buyer/Seller study. Despite popularity of online home buying and selling tools real estate agents are still key to customer satisfaction.

The study measured customer satisfaction of home buyers and sellers with the largest national real estate firms. Overall satisfaction is determined by examining three factors for the home-buying experience: agent (65%); office (21%); and service (13%). In the home-buyer segment, Keller Williams achieves a score of 831 on a 1,000-point scale, and recieves highest ratings from customers in all three factors.

"When buying a home, customers particularly appreciate agent professionalism, responsiveness to calls and e-mails and the agent's skill in locating and showing properties in the appropriate price range--all areas in which Keller Williams excels," said Jim Howloand, senior director of the real estate and construction practice at JD Power and Associates.

The study finds that despite the popularity of home-buying and -selling resources on the internet, real estate agents are key to customer satisfation with real estate companies. A large portion of both home buyers and sellers rely on the Internet to facilitate the buying or selling process, with 68 percent of buyers saying they used interenet tools to help them in the purchase process and 61 percent of sellers reported that they used a Web site listing to market their home. In addition, amoung home sellers, online methods are the most important aspect of marketing. However, the agent factor carries the greatest importance amoung the factors that comprise overall satisfaction amoung both home buyers and sellers.

What is the difference between Short Sale and Foreclosure Properties?

Avalon Team (The Avalon Team @ Keller Williams) — Mon, 28 Jul 2008 11:30:40 -0500

What is a foreclosure property?

The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that "the lender has foreclosed its mortgage or lien". If the promissory note was made with a recourse clause then if the sale does not bring enough to pay the existing balance of principle and fees the mortgagee can file a claim for a deficiency judgement.

What is a short sale?

In real estate, a short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale.

Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market climate and the individual borrower's financial situation.

A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history. Additionally, a short sale is typically faster and less expensive than a foreclosure.

In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount.

The Avalon Team

We specialize in REO and short sale properties. Many agents have jumped on board with this since the market conditions have changed dramatically in the past year but The Avalon Team really knows the banking system and can assist you in the sale of a property you can no longer afford OR finding a property that suits your needs at an unbeatable price! Call us today for more information 602-541-3949.

The Current Market

Avalon Team (The Avalon Team @ Keller Williams) — Tue, 13 Nov 2007 11:16:59 -0600

The media feeds us with bad news everyday, including news about the Real Estate market. The media says it's a terrible market and the bubble burst, but they don't give actual data or numbers to support their claims. IF they looked at the real numbers, they would be reporting that it is a normal market with homes selling and people buying. But that sounds boring, so why would they want to report that. They don't, the media only reports the extremes. If the media started interviewing full-time agents, like the Avalon Team, they would get the real story. Homes are selling and people are buying. Luckily, every once in a while the newspaper puts out stats on the Real Estate market. Like the article a couple weeks ago that showed all the zip codes and their appreciation from 2002-2007! It was awesome! Homes appreciated at record numbers like 70%-110% in those 5 years. Then they showed the depreciation from 2006 to 2007. Homes in some zip codes appreciated 3% and some were only negative 5%. If you look at those numbers, the Real Estate market is great! It is a great time to buy, because prices are competitive and there is a lot to choose from. You can get whatever you want in a home right now. Why wouldn't you buy? Now is the time to invest in Real Estate and your future.