Gilbert Real Estate Blog

Actual Photos seen in Gilbert Real Estate Listings that make you say, “What the…”

March 19, 2011 // 2 Comments »

I’ve been way too serious in my recent posts, so I thought you might enjoy seeing a couple of impressive photos that I saw this week in the Arizona Regional MLS.

I’m still amazed at how many listing/seller’s agents restrict botch the quantity and quality of pics on their listings, but some of them are downright hilarious.

I’ll protect the identity of the houses, listing agents and brokers, but if your agent ever uploads photos like these to the listing for your home, you might want to have a serious discussion with him/her about Marketing 101 and the hiring of a professional photographer.  

Now, ladies and gentlemen, boys and girls, I present to you my two favorite marketing beauties photos from this week:

If any of you run across any others that you find as deliciously tasty, I would LOVE to see them!

Posted in arizona market conditions, fun

What do you mean you won’t show me houses unless I have Mortgage Loan Pre-Qualification?!?!

March 16, 2011 // 1 Comment »

Before I dive headlong into a subject that all too few Gilbert real estate agents and home buyers avoid like the plague, let me tell you a quick story.

6 months ago, an out-of-state client asked me to take some extra photos of a dozen or so high end ($750K – $1.5M) homes in various parts of the greater Phoenix area.  The client assured me he would be paying cash for a second home, and that I shouldn’t worry about a POF (Proof of Cash Funds).

I tend to take people at face value, so I took my client at his word and met his requests.  The project resulted in my taking pictures of some very nice properties, but they were scattered from Cave Creek to Queen Creek and included a couple of very nice Gilbert foreclosure real estate houses.

I spent no less than 14 hours on the project, took over 500 photos, and drove over 300 miles. I uploaded all the pics to him via Dropbox, and encouraged him to have fun.

A few days lapsed, and I hadn’t heard a word from my client.  After emailing and calling him a couple of times, he finally confessed to me that his ‘CASH’ had actually been coming from a second mortgage loan (HELOC) on his primary residence.  Unfortunately, after 3 long, hard weeks of trying to negotiate the loan, he had just been formally and officially declined by the underwriter.  As remorseful as he was for having wasted my time, he would not be able to move forward with the home search.  The feeling for me was quite similar to taking a direct kick to the solar plexus.

I really wish I could tell you this was the first time I’ve experienced something like this, but alas, it’s not.  I’ve lost count of the times home buyers have told me they had plenty of cash reserves, only to ultimately find out days, weeks or months later that they couldn’t live up to their representations and expectations.

I tell you all of this not to whine or complain – but to hopefully help you understand one of the reasons a POF or Pre-Qualification Form has become an upfront requirement for so many professional real estate agents and brokers in the Gilbert real estate market.  I fully believe that home buyers have the very best of intentions, but in keeping their real estate agent/broker in the dark, ultimately end up in a very costly and time-wasting situation.  My personal and professional feeling is that a POF or Pre-Qual Form should be required by every real estate agent and broker from every new client prior to viewing homes with them.

Now let’s fast forward to current times.  Just last week, yet another new client asked me to take them at their word that they are solid people with excellent credit, low debts, plenty of assets and substantial income.  All they wanted to do was fly in to Phoenix Sky Harbor Airport and have me show them homes throughout the Valley of the Sun – for two days, maybe three.  IF they like the Phoenix area and IF they find a home they love, they’ll go back home and secure a mortgage loan Pre-Qual Form.

Here’s how I responded:

“In a sense of fairness, professionalism and good faith, can we meet in the middle?  I’ll gladly show you as many homes as you like.  All I ask in return is that you send me an advance copy of your POF or Pre-Qual Form. Does that seem fair??”

Now I ask you, my friends … Is that a fair and equitable arrangement between a Buyer’s Agent and a client? Seriously, what do you think?

What does a POF or Pre-Qual Form do for a Buyer’s Agent? It provides the agent with evidence that the Buyer can indeed finance a home purchase, and lets him/her move forward with great confidence that when the ‘right’ home is located, their buyer client will indeed be able to write the offer, secure a contract and otherwise complete the purchase.

Are there any advantages to a buyer in obtaining a Pre-Qual Form in advance of touring homes? You better believe it!  Here are a few of the benefits and values, in no particular order:

• Provides bona fide confirmation of the maximum buying power and price range of the buyer to both buyer and Buyer’s Agent.
• Provides confidence in viewing homes, knowing when the ‘right one’ comes along, the buyer can move quickly to purchase it.
• Puts a lot of the loan processing headaches behind the buyer, thus making the escrow and closing process much less stressed.
• Provides the seller with solid assurance that the Buyer can indeed perform.
• Provides everybody peace of mind that the money/financing is in place – so all we need to do is find the right home.

I’m fully aware that this is a very touchy issue with many home buyers and buyer’s agents.  My hope is that I’ve presented a fair and impartial perspective from both sides, but I’m always open to other perspectives, ideas and suggestions.

What say ye, good people?

Posted in arizona home buyers, gilbert market conditions

Arizona’s 2011 AAR Mortgage Loan Pre-Qualification Form

March 10, 2011 // 1 Comment »

If you run across any claims that the mortgage lending industry has in the past few years been (and still is) in a state of turmoil, I would heartily recommend you listen to them.  There’s no doubt that tremendous changes have taken place, most of them federally mandated, but in this post I’ll try to avoid discussing the relative merits pitfalls of the new restrictions and guidelines.

The purpose of this post is to update you on a previous post of mine from November of 2010 in which I defined the then-current mortgage loan pre-approval process in Arizona.  The new (effective February 28, 2011) terminology and form(s) have been released, so let the games begin!

Replacing the former Loan Status Report (LSR) is the Pre-Qualification Form.  The purpose of the new form, according to the Arizona Association of REALTORS®, is

“to provide information on the buyer’s ability to qualify for a loan without a Good Faith Estimate (GFE)”

Say what?!?! A GFE is a document issued to a home buyer by a lender that details the fees and costs associated with their mortgage loan, monthly payment, interest rate, etc.  But it’s also a document that is typically considered confidential between the lender and the home buyer.  The new Pre-Qualification Form requires the lender to furnish a LOT of additional information about the buyer, type of loan, amount of loan, interest rate, etc., and thus can provide a great way of evidencing to a seller that the buyer is indeed pre-qualified for the mortgage loan.

The proper use of the Pre-Qualification Form is that it should be attached to a 2011 AAR Residential Real Estate Resale Purchase Contract whenever a home buyer submits an offer on a residential property.  Here are a few highlights of the new form:

• The form is NOT property specific, meaning it can be issued without naming any certain property address.
• The form is to be completed and signed by the mortgage lender (loan officer), including their Arizona License number and NMLS number.
• The form is to disclose the marital status of the buyer(s), primarily because Arizona is a community property state and marital status can create contract issues and title requirements.
• The form is to disclose the property type, since different types require different loan programs, criteria and documentation.  A good example would be the difference between a loan for a single family detached house and a loan for a mobile home – the differences between the two loan programs are HUGE.
• The form is to disclose the maximum total monthly housing payment, loan amount and interest rate for which the buyer is pre-qualified.
• The form is to include an expiration, which is typically when the buyer’s credit report expires.
• The form is to be signed by the home buyer(s), which is basically granting permission for the buyer’s broker to submit the form with the offer/contract.  It also authorizes and instructs the lender to issue a Loan Status Update (LSU) to the seller and broker(s) within 5 calendar days of contract acceptance.

As I stated in my post in November 2010, my biggest beef with the Pre-Qualification Form is the form title itself, not the content.  That may seem petty to some of you, but for as many years as I can remember, the term ‘pre-qualification’ has always implied a quick, easy, over-the-phone activity with no application or documentation from the buyer.  But make no bones about it - this new Pre-Qualification Form requests and requires substantial documentation and commitment from the buyer and lender, and in my estimation is a giant leap forward in the world of residential Gilbert real estate and mortgage lending.

Of course, I’m always open to comments, supportive or dissenting.      What say ye, my friends?

Posted in arizona home buyers, arizona market conditions