April 2012 - Blog post

What You Need to Know About Buying Foreclosures

If you are thinking of buying foreclosed Show Low Homes for saleor other similar distressed properties, it’s always best to be aware of the risks and benefits of these kinds of homes in order to ensure that you are making a worthwhile investment.

Basically, a foreclosure occurs when a homeowner defaults on a mortgage and the lender places a lien on the property for the amount owed. The lender then takes possession of the property and sells it to recover the value of the loan as much as possible.

While the term “foreclosure” usually has some kind of negative connotation, it simply means that the homeowner was incapable of paying their debt to the mortgage holder. Most of the time these foreclosed properties are in great condition and are comparable to homes on the market facing a traditional sale.

However, keep in mind the following:

- Homeowners who actually lost their home in foreclosure very likely couldn't afford to properly maintain it, so be prepared for a poorly-maintained home that will need electrical, plumbing, or even roof repairs. Disgruntled residents might even deliberately damage the house to get back at the lender.

- Lenders are less likely to repair problems or damages before they list them for sale, and in some cases, the property is not available for inspection, which means that you may not be able to view or evaluate the property.

- If the foreclosed property is open to inspection, you will need to hire an inspector for evaluating any necessary repairs or improvements.

- If the owner still occupies the property and the lender has not taken the title outright to the property, you might face considerable legal risks by having to pay unpaid back taxes on the house, or even process the eviction yourself.

When dealing with foreclosures, your best option is to work with real estate professionals who know more about these properties. These experts can provide you with advice like detailed property histories, types of mortgages, current market data and other useful information that you’ll need in order to make an informed decision before you go ahead and make that purchase.

February 2012 - Blog post

Types of Mortgages

For most homebuyers, purchasing a home will involve getting a mortgage, and choosing the right type of mortgage is a crucial part of the home buying process. It's important to consider that the best type of mortgage for you would depend on your financial situation and how long do you plan to stay in your home.

Fixed Mortgages

Fixed rate mortgages are the most common and popular type of mortgage with many homebuyers, mainly because the interest rate and monthly payments remain the same for the duration of the loan. Options include mortgages for 15, 30, and 40 year terms.

Shorter terms require higher monthly payments, but you get to own your own home in less time. Longer terms have higher interest rates, but monthly payments are lower. Having a fixed rate mortgage protects you from increasing rates, particularly if you plan on staying in your home for a good many years.

Adjustable Rate Mortgages

Adjustable rate mortgages, known as ARMs, feature an interest rate that changes periodically, which also means that your monthly payments will rise or lower accordingly. The rate on this loan is adjusted to the market annually, or a period of three or five years.

ARMs generally offer a lower initial rate than fixed rate mortgages, and become less expensive over time if interest rates decline. However, if the rates increase, then you will have higher monthly payments. ARMs are recommended if you plan to stay in your home for less than three years.

Government Loans

Government agencies such as the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs, and the Rural Housing Service (RHS) of the U.S. Department of Agriculture all administer various mortgage loan programs that have lower down payment requirements and can be easier to qualify than conventional loans.

Other Options

There are many other mortgage options available, such as the hybrid mortgage, which combines the features of both fixed rate and adjustable rate loans; the balloon mortgage, which offers low payments for a certain number of years, but the principal must be paid as a lump sum after the fixed period is over. As always, the key to keeping your home is to select the mortgage option that best suits your needs.

If you're planning to purchase Show Low Arizona homes and need to know more about the right type of mortgage that's best for you, get in touch with me, Sheri Kvamme of All Seasons Properties today.

December 14, 2011

The Home Buying Process

If you are keen on purchasing that White Mountains Arizona real estate property that you've been eyeing, keep in mind that there are many steps involved in the home buying process, so it's a good idea to understand them thoroughly to avoid problems along the way.

• First and foremost is to get your finances in order. Your credit reports and financial history will be important in the mortgage approval process and in determining the loan interest rate and other terms that lenders will offer you.
• Work with professional, experienced real estate agents who can best fulfill your needs, as a good agent will be crucial to the success of your transaction. Your agent can refer you to mortgage brokers, who can get you pre-approved. It's important that you know how mortgage works, and choose a mortgage type that you can understand, with a payment level that you feel comfortable with.
• When looking for homes, narrow your search to the ones that suit your needs, which can include distressed properties. You can browse the latest real estate news to find updates on available homes for sale, or ask your agent to access reliable MLS listings. It's also a good idea to ask for their opinions on the homes you're interested in. Your agent can also arrange for you to attend open houses or to personally look at these homes first before showing them to you.
• Once you've found a home you want, make an offer. It helps to put yourself in the seller's shoes and ask, "What is my home worth?" Give a price based on the amount you feel the seller will accept. Be prepared for counteroffers and further negotiations.
• If you're offer is accepted, you agent will handle the necessary paperwork and other transactions, and will schedule a home inspection. If some health and safety or repair issues turn up during this stage, ensure that these are taken care of before you finalize the deal.
• When everything is ready, you're on your way to closing, which is the final step that transfers ownership of the property to you. Congratulations on being the owner of your new home!

Should you need more details and information on Pinetop AZ properties, Show Low Arizona real estate and more, please don't hesitate to contact me, Sheri Kvamme, at All Seasons Properties.

October 20, 2011

Home-Buying and Selling Checklist

So you've decided to buy or sell your home in the White Mountains. Buying or selling a home is never an easy process, but you can save yourself some confusion when you have an outline of the important steps in the process. Take a look at the checklist below, an invaluable Show Low and Pinetop, Arizona homebuyers and home-sellers resource:

If You're Thinking of Buying a Home?

• Take stock. You need to examine your finances and your situation thoroughly so that you can be sure that buying a home is the right move to make at this point in your life.
• Improve your credit score if you can. Lenders like to see good credit scores and this is a good way for you to ensure that you get offered the best possible interest rates and lowest monthly mortgage payments.
• Know what you want. List down the features you require in a home; be clear on which ones are absolutely necessary and which ones you can do without.
• Shop around for financing. As with any major purchase, it's always a good idea to compare loan products with each other. Don't just look at the interest rate, also consider the length of the loan, what the monthly payments will be, and so on.
• Get pre-approved. This way you?ll know how much house you can afford before you start your search and sellers will know that you're a serious buyer.
• Hire a professional. The help of a Pinetop and Show Low real estate agent who knows the local market and the communities is invaluable.

If You're Selling Your Home?

• Take a look at your local market. Find out if it's a good time to sell a home in your particular neighborhood. Research recent sales and see if there have been too many foreclosures or short sales.
• Consult with an expert. Considering today's economy, now is not the time to make a go at selling your home on your own. Get help from a real estate professional who has a good track record and an up-to-date knowledge of market trends.
• Determine your goals. Your marketing strategy will depend on whether or not you have to sell your home quickly or you can afford to wait.
• Get a home inspection. This is best done before you get your home listed so that you know ahead of time whether or not you need to get any repairs done.

The Closing Process Explained - August 26, 2011

Excited about finally closing on your Show Low real estate purchase, but feeling nervous about closing day? Not quite sure what happens during what you've probably heard is a complex process? While you'll need to be prepared to sign more than a few papers?as well as checks?you can breathe a little easier knowing that you can rely on the support of professionals whose job it is to ensure that everything goes smoothly. Here are a few insights from me, your Realtor Sheri Kvamme, on what you can expect during closing.

• How long does it take? The actual closing or settlement, which is when ownership of the property officially transfers from the seller to the buyer, shouldn't take more than an hour or so if all goes well. Before you get to sign all those papers, however, quite a few things need to be done first?this is the escrow period?which is why the entire process itself usually takes at least 30 days and can last longer. The specific date of the closing is agreed on at the very start of the purchase process, upon the signing of the purchase contract.
• What are closing costs and how much are they going to be? Closing costs refers to the various fees and taxes that accumulate in the course of a home purchase, from the processing of your financing to the title insurance, the inspections, and so on. Your lender is required by law to provide you with a Good Faith Estimate (GFE), which will let you know how much the closing costs are probably going to be. With this in hand, you can shop around for quotes from other service providers and for other loans as well. This is important because closing costs can go as high as more than 6% of the purchase price.
• Ready to sign? Read the fine print. Go through everything thoroughly before you put pen to paper. Remember to compare the final closing costs to the GFE?if any of the fees varies by more than 10% then this is a tolerance violation.

Need more information? Please browse through the site and feel free to get in touch with me anytime.

Local School Ratings - June 25, 2011

Arizona's White Mountains area is generally more well-known for being a vacation destination. If you're investing in White Mountains, Arizona real estate because you intend to make a permanent move to the region, however, you will find that the communities here are real, working ones, with their own full complement of services, from healthcare to schools. In this post, my objective is to give you a rundown on the schools in the area and what their recent report cards say about their performances.

There are quite a few public and private schools sprinkled throughout the region, with public schools administered mostly by the Blue Ridge Unified, Show Low Unified, Round Valley Unified, and Snowflake Unified school districts. Arizona has an open enrollment policy which allows intradistrict and interdistrict choice. This means that owners of Pinetop, Arizona homes, for example, can choose to have their children attend any school in their district or even in another district (though this will require filing a request for transfer and has to be approved). Potentially then, you'll have more than a few choices available.

Public Schools

Pinetop-Lakeside

Children in the Pinetop-Lakeside area usually attend schools in the Blue Ridge Unified School District, which are Blue Ridge Elementary, Blue Ridge Intermediate, Blue Ridge Middle, Blue Ridge Junior High, and Blue Ridge High. For their performance in the 2009-2010 school year, the Arizona Department of Education (ADE) gave the elementary, intermediate and high schools a "Performing" designation, while the middle and junior high schools were identified as "Performing Plus." Some of the schools have also received "Highly Performing" and "Excelling" designations in the past ten years.

Show Low/Linden

If you're in the Show Low and Linden area, you're served by the Show Low Unified School District, which administers Linden, Nikolaus Homestead and Whipple Ranch elementary schools, Show Low Junior High School, Show Low High School and the White Mountain Institute. Linden Elementary earned the prestigious Blue Ribbon School designation from the US Department of Education in 2009 and was deemed "Highly Performing" by the ADE in 2010. Both Nikolaus Homestead and Whipple Ranch were designated "Performing Plus," while the junior high and high schools were rated "Performing Plus" and "Performing," respectively, in 2010.

Snowflake/Taylor

The Snowflake Unified School District serves the town of Snowflake and its nearby areas. It features Taylor Elementary, Highland Primary, Taylor Intermediate, Snowflake Intermediate, Snowflake Junior High, and Snowflake High. Taylor Elementary and Taylor and Snowflake Intermediate got "Performing Plus" designations in 2010. Highland Primary and the junior high lagged a bit behind with a "Performing," while the high school rated the best with a "Highly Performing."

Vernon

Vernon, which lies east of Show Low and west of the Eagar/Springerville area, has its own district?the Vernon Elementary District?which only has one school, the "Performing Plus" Vernon Elementary School.

Greer/Eagar/Springerville

In the Greer, Eagar and Springerville area, public schools are under the Round Valley Unified School District, which has four schools?Round Valley Primary, Intermediate, Middle, and High. The intermediate and high schools got "Performing" designations in 2010, while the middle and primary schools were rated "Performing Plus" and "Highly Performing," respectively.

Private Schools

Parents can also choose from a selection of private schools such as the White Mountain Montessori School in Pinetop and the Mountain Christian School and St. Anthony Catholic School in Show Low. Preschools and alternative and charter schools are also available. If you need more information, you can always get in touch with me, Sheri Kvamme, your Pinetop and Show Low Realtor.

May 8,2009

This is information from our Manager which was included in our May Pinetop 411 newletter. If you would like to subscribe to our newsletter contact Me.

Real Estate Market update for the White Mountains

Evidenced by the calls and emails we receive, we know the state of the Real Estate market is forefront in the minds of the majority of those that receive the 411. In response to all those calls and emails, this month is dedicated to our current thoughts on the Real Estate market . First of all, there are some positive signs. There has been a marked increase in recent activity and a coinciding increase in properties going into escrow. We believe there is still a lot of pent up demand, albeit for smaller, more conservative properties.

The birds eye view of recent history and consequent effects of the financial crisis one the Real Estate markets varies from both country to country and community to community. The drops in Real Estate values is as divergent as the geography. The bottom line is areas that have seen the largest foreclosure driven increases in supply have also experienced the greatest declines in value. Econ 101 taught us the basic rule of Supply and Demand, when supply exceeds demand, prices go down. There are few places in the United States where this basic law has had more effect then the Greater Phoenix market. For the past 2 years, Phoenix has been on almost every Top 10 list of the worst markets in the U.S.

There are only 11 markets in the US that are predicted to show appreciation this year and they are almost all in the snow belt. In addition to being outside the sunbelt, those stronger markets share another common trait; they did not have the crazy run up in prices seen in the now hardest hit states like Arizona, California, Nevada and Florida.

How do we think this translates to all of you that own property in White Mountains or those that have been wondering if now is the right time to purchase a mountain retreat? First, we have come to realize that even though the White Mountains is very different than the metropolitan markets, the majority of our Buyers come from metro Phoenix or Tucson and are to some degree conditioned by what is happening in the communities they reside in. The result is that to a certain extent, perception becomes reality.

In the Pinetop-Lakeside to Show Low portion of the White Mountains 75 Residential (other than manufactured properties) have sold year to date. This is 19 shy of the umber of similar sales during the same period in 2008 and equates to about a 20% decline in sales volume. Again, there is glimmer of hope as there has been a recent increase in the number of people looking as well as the number of homes going into escrow. With that said, those that are buying are being more conservative and purchasing smaller and less expensive properties. This trend has led to a drop in average home sales prices of about 25%. The actual home over home sales price drop is closer to 20%. We are wondering if we are seeing a complete paradigm switch in American buying habits. The era of conspicuous consumption may morph into an era where it is more acceptable to have a $500K cabin instead of a million dollar one as well as to blow off the European vacation and instead enjoy the asset in the mountains. Only time will tell.

In summary, we are back to that basic Law of Supply and Demand. Property values in the Pinetop area are probably near the bottom. (When we are on our way up, we'll be able to tell you where the bottom was and who the one guy was that timed it perfectly). The values of new and like new homes with a modern cabin feel (i.e. log or cedar sided, woodsy in and out, hardwood floors, granite counters, etc) are doing fairly well. Older homes, especially those they may have had painted siding or didn't have interior wood finishes or forced air gas heat are in much greater supply and have experienced a more dramatic drop in prices. Please call us if you would like to discuss in detail a property you own or may be thinking about.

May 6, 2009

Here goes......my first blog. I will try to keep this an ever interesting and helpful place to check back for information on real estate and related issues here in the White Mountains of Arizona. My family and I moved to Pinetop from Glacier Park Montaina 13 years ago and have enjoyed our time here. The four season climate was an added benefit. In Montana they say there are only two seasons, 9 months of winter and 3 months of relatives. What is going on in real estate in Pinetop? The question everyone is asking......Not probably what you would think. Do we have good deals? Some Do we have foreclosures? a few Not like Phoenix and Tucson, though. We have mostly second homes and people are holding on. Prices have come down but Sellers are not giving away their cabins. We are starting to see more traffic and are looking forward to a wonderful summer. Hope to see you HERE!