What to do first:  Visit the Auction.com website and find out if you can submit a pre-auction bid or if you can bid online.  They only allow certain homes to sold in a pre-auction form or to be bid for online.  I an not sure how that is determined.  In both of my situations we either missed the pre-auction bid date or online bidding was not available.

Preparing for the Auction:  Lets just assume that you were unable to bid in the pre-auction.  If that is the case, you will need to do a couple of very important things before showing up to the actual Auction.com auction.  First, you need to understand that a home bought at auction is bought AS-IS with NO inspection period.  If you want a home inspection, you must do so before hand.  The listing agent is supposed to hold a few open houses in the weekends prior to the auction.  This is the time to have an inspector go in there look the place over.  Or better yet, if you are working with a good Real Estate Agent, they will insist that an inspection is conducted and they will arrange it and be there with you.

Ok, the inspection is complete and you feel that you can live with the condition of the home.  Now you need to register online at Auction.com.  If you are working with a Realtor and they have agreed to be there with you on auction day, you will need to ask them for their Real Estate license number because that will be required on the form.  PRINT THIS FORM!  That way, if you computer at check-in is saying that you have not yet registered, you will have all the info on the form that the check-in person will need to re-register you… Yes this has happened to me before!  If you do have a Real Estate Agent, they will also register ahead of time and they will need to bring along a copy of their RE license and a W-9.

What to bring on Auction Day:  This is IMPORTANT… If you do not bring the following items, you will not be able to bid on a home during that auction.  First, you must bring a $2500 cashiers check made payable to yourself.  You must also bring a personal check to pay the remainder of the balance for the required 5% earnest deposit.  These amounts change if you are planning to purchase mulitple homes.  See the webside for additional information.  Secondly, unless you are planning to acquire financing through available lenders at the action, you must bring a Pre-Qualification form from your chosen mortgage company.  If you would like to acquire financing at the auction you will need 2 years of tax returns, W-9s and 30 days of pay stubs. Finally, you will need a valid photo ID.

What to Know:  IMPORTANT IMPORTANT IMPORTANT… You must know about the required 5% premium charged by Auction.com.  This is howAuction.com makes their money.  Let the math do the explaining….

Your Winning Bid $200,000

Buyer’s Premium 5% = $10,000

Total Purchase Price = $210,000

5 % Earnest Money will look like this- $2,500 Cashiers Check and $7,500 personal check due on auction day.

What to Expect:  Expect competition!  You almost always will be bidding against an investor.  They have cash and they know what that house is worth to them.  Don’t expect a deal!  The investors are keeping it fair.  You may get the house below appraised value, but don’t expect go get a move-in ready single family-detached home for $20,000.  The investors want the quick flips or easy rentals and they will do their best to win the bid.  Ask your Realtor to run comparisons of the home and discuss what the home is worth and what it will appraise for.  If you were willing to make an offer on the home before you knew it was pre-auction, then make that offer price your highest bid (don’t forget to add in the buyer’s premium).  I would feel safe guessing that more then half the winning bids will go to the investors.  Be prepared to pay what the home is worth, then you will set yourself up to be pleasantly surprised if you get it for less!

If you do have the winning bid, a nice lady dressed in black will come get you and take you “behind the curtain.”  There you will pay your earnest money, sign your purchase contract and provide them with your lender information.  It is my understanding that all sells will be given a 30 day Close of Escrow.  Please talk to your lender about this before hand and be sure that they will be ready to close in 30 days.  For most this is doable but can be difficult if a holiday weekend falls in to that time frame.  They have a lot to get done in that short amount of time.

Okay, I believe I have covered the important stuff.  If you have questions… Auction.com has Live Chat agents available all the time to help you out.  They have walked me through the process a couple times.  Also, if you live in the Phoenix area and feel overwhelmed by the whole Auction.comprocess, please contact me at the phone number below and I will assist you through the whole process.  Good luck bidding!

Are you shopping for a new home?  My name is Tiffany Pettit and I am the Peoria, Arizona Real Estate expert.  My husband, Eric, and I live and raise our two boys in this beautiful west Phoenix suburb.  We love everything about our little city and think you will too!  Please contact me anytime at 602-614-6493, toll free at 888-897-7821 x.132 or at tiffany@tiffanypettit.com.  Please check out my website, www.CometoPeoriaAZ.com, where you can perform an MLS search just like an agent would do.  I look forward to assisting you in finding your perfect Peoria, Arizona home!

How about another solution for some of you agents?  There exists a company built exclusively on the premise of utilizing cutting edge technology, cost effectiveness, education and revenue sharing while providing leads, coaching/mentoring and most importantly, Leadership.  This company is:  eXp Realty.

For seasoned Realtors eXp Realty offers the opportunity to build your own Brokerage within a Brokerage.  The sharing of information is open, positive and creative.  All agents are able to communicate utilizing a multitude of mediums, i.e. e-mail, VOIP (voice over internet provider) tele conferencing, instant messaging or even sitting across from one another in a virtual office cafe.  The experience is unparalleled with anything you’ve ever experienced.  (Welcome to the age of technology….Welcome to eXp Realty!)

For new agents eXp Realty has a Mentor program.  When a new agent is brought on board there is someone within the organization who has brought him or her to eXp Realty.  This person is unofficially designated as the Mentor.   But no matter how you slice it, there is always someone who knows more about something than someone.  At eXp Realty there are informative meetings, education classes, message boards, online “how to do it” televideos and much, much more.  The importance of getting a new realtor off to a successful start is the ultimate goal of eXp Realty. 

Find out why agents are making a Smart Move to our Smart Brokerage.  Check This Out!

Did you know eXp Realty is changing the landscape of the Real Estate industry and getting a lot of attention from some of the leading industry publications.  Read More….  

For an invitation to one of our upcoming Xcamp sessions click here.  Make sure to add my name in the notes section (Michael Lopez) so we can meet…..Virtually!

eXp Realty was Founded October 2009, Now in 17 States.  Let me help you bring eXp to your Market….Virtually!

Stephen W. Brooks

623-202-3833

Clear clutter away from rooms, clutter make the rooms look smaller and of course the buyer will think that the rooms are small too. The kitchen counters should be clutter free also.  furniture that is not used put in storage.   Move your furniture around in your home, sometimes the dining room become the office.   Potential buyers need to see each room has a purpose.

Rent furniture or accessories to fill in empty spaces.  Most furniture will show wear  and tear you may want to rent some newer looking furniture, you can also rent accent pieces like vase, dishes and more.

I know you hear every day on the news that our market is recovering…right? I also know you hear every day on the news that our market is declining…right? What to believe? Who knows!

I can tell you the numbers. Like we can look at the Notices of Default (NOD’s) for the month of April and discover they were 30,799 units. That means that lenders have noticed property owners that they were in default and the lender intends on foreclosing on the home. That number is down from March 2011 (33,955) and much lower than our all time high in December 2009 of 47,606.

And actual foreclosures are also down. There were 5,451 in March of 2010…and 4,512 in April 2011.

Now let’s talk about my last week as a Realtor. I had two buyer clients make offers. One home was in the Central Phoenix area...a fix and flip…had been on the market for 32 days…and had three offers on it at the time we made our offer. List price was in the 130K range. We did end up getting this one…but still…we had to go in pretty high to make it happen. NOT an example of a “buyer’s market” is it?

The second was really interesting. The house had been on the market for 77 days. Listed in the high 200′s. My clients liked the home and were planning on paying cash. We offered $275K. The listing agent called and said they were “taking offers” through the weekend…and he already had two others…so a total of three. Mind you…this is NOT a bank owned home…where they typically make up their own rules…this was another fix and flip. A “traditional” sale if you will.

This morning we got a communication from the listing agent that they (the sellers) wanted 10K earnest deposit (this is HIGH from my experience in this price range). AND they wanted 5K of the money to go “hard” after the inspection period.  Hard really just means that it would be non-refundable. AND…they countered at full price. AND…they wanted us to cut our inspection period down to 5 days. Why? Because they COULD. They had a situation where the seller’s were in the drivers seat.

WHAT? But…it’s a BUYER’S market isn’t it? Well…this week my real life experience tells me no. It is NOT a buyer’s market.

Just because you hear on the news…or read in the paper… that prices in Arizona are “half-off”…that does NOT mean you can make an offer at 1/2 the listed price and expect to get the house. What this means…is that many homes are selling for 1/2 of what they sold for in 2006 or 2007. As a matter of fact many areas are priced at the level they were 10 years ago. They are ALREADY priced 50% off!  If you want a good house at a good price…make sure you know your market and LISTEN to your agent. They are experts at providing you data to help you make a reasonable offer…that gives you the BEST chance of getting the home you want.

As always… if you are looking for a GREAT agent to help with your real estate needs please e-mail me at Adele@GreaterPhoenixHomes.com or give me a call (or text) at 602-504-3898 or 888-897-7821 x 114. Plus, I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL!  Go to Metro Phoenix Homes and check it out! YOU can create and save as many searches as you would like…and it is THE SAME SEARCH I DO AS AN AGENT! You will LOVE it!

THIS IS THE BEST MOST ACCURATE SEARCH OF OUR LOCAL MLS

ATTENTION AGENTS…Is your Real Estate Career or Company taking you where you want to go?
Need MORE business?  Need MORE leads?  What has your company done for you lately?
Ask Me Why… I joined eXp Realty.

10 Best Markets for Real Estate Investors

Data-driven analysis of hundreds of markets reveals opportunities in South, West

By Inman News, Friday, June 3, 2011.

Inman News™

In an in-depth, data-driven special report, “10 Best Markets for Real Estate Investors,” Inman News analyzed hundreds of housing markets nationwide to develop a list of those that may be best suited for investors.

  The data analyzed suggested that the 10 best markets for investors are: Indianapolis-Carmel, Ind.; Winchester, Va.-W.Va.; Gainesville, Fla.; Tucson, Ariz.; Tallahassee, Fla.; Hagerstown-Martinsburg, Md.-W.Va.; Salt Lake City; Richmond, Va.; Gainesville, Ga.; and Winston-Salem, N.C.

Seven out of the 10 markets are in the South, two are in the West, and one is in the Midwest. None of the markets are in the Northeast.

To read more and link to full article….

About the program:

America’s Home Buyer Solution Gift Program is designed to provide eligible homebuyers a gift of up to 2.5% of the sales price to be applied towards the FHA down payment and/or allowable closing costs for the purchase of a home.

Targeted towards quality affordable housing, approved homebuyers can purchase a home for as little as 1% down payment. The program also allows for the remaining 1% down payment to be gifted from any FHA allowable source.

The program is offered exclusevely through The Lending Company, a Direct Endorsed US Housing and urban Development lender. There is no requirement for the gift to ever be repaid. It is offered in concert with an IRS approved 501(c)(3) non-profit organization.

This is not a seller-paid down-payment assistance program and the seller is not required to participate.

Program Benefits:

• The program provides up to a 2.5% gift to FHA qualified home buyers
• Remaining down payment is as low as 1% (as above, if market conditions allow, down payment from borrower may be as low as 1/2%)
• Seller can and is encouraged to contrbute towards the closing costs to further assist the homebuyer
• Income requirements match USDA Income Guides
• Competitive interest rates
• Flexible FHA approval guidelines
• Not limited to first-time homebuyers
• Standard FHA appraisal
• Owner Occupied purchase only
• 1 units allowed
• FHA approved condominiums allowed
• Loan limits match FHA guidelines for each county
• Minimum credit score of 640
• Successful credit restoration allowed
• Automated AUS/DU approve/eligible determination required
• FHA qualified Non-occupant co-borrower/co-signer allowed
• No prepayment penalties
• Must complete approved Home Buyer Counseling Course
• Must meet income guidelines for approval
  Call Jeff Thomas (602-610-4030 jthomas@thelendingco.com) with the Lending Company to see if you qualify for this great program, and then callTheBrooksteamaz.com to find your “Dream Home”.
  Stephen W. Brooks
  623-202-3833
  www.thebrooksteamaz.com
  https://www.facebook.com/pages/The-Brooks-Team-AZ-Realtors/178283375540777

First a term you need to know. Notice of Default (NOD). In the simplest of terms…this is the legal document issued to inform the borrower that the payment terms they have agreed to have not been met. This is a very good indicator of how many homes are headed into the foreclosure pipeline.

The below numbers are according to Mike Orr, founder of the Cromford Reports.  This data may indeed be indicative of a recovery:

• Active Notices of default for residential properties as of the end of March 2011 were33,955 units. Down from last month of 37,533. Down from the all time high of February 2010 of 46,634.
• Foreclosures were at there all time high in March 2010 at 5,451. They remain steady at between 3,000to 4,500 units per month.
• The residential REO properties are sitting at 19,861 vs. last month of 20,076. Listed properties are 5,750units. That tells us that there are approximately 14,000properties that are foreclosed but not yet on the market.
  
  
  
  

What is encouraging about this? It shows the number of new notices have declined. If this trend continues it will definitely prove recovery is underway. In any case this is encouraging!

As always… if you are looking for a GREAT agent to help with your real estate needs please e-mail me at Adele@GreaterPhoenixHomes.com or give me a call (or text) at 602-504-3898 or 888-897-7821 x 114. Plus, I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL!  Go to Metro Phoenix Homes and check it out! YOU can create and save as many searches as you would like…and it is THE SAME SEARCH I DO AS AN AGENT! You will LOVE it!

THIS IS THE BEST MOST ACCURATE SEARCH OF OUR LOCAL MLS

ATTENTION AGENTS…Is your Real Estate Career or Company taking you where you want to go?
Need MORE business?  Need MORE leads?  What has your company done for you lately?
Ask Me Why… I joined eXp Realty