Urban Life

PROTECT OUR HOMES A STEP CLOSER TO STOPPING REAL ESTATE TRANSFER TAXES

Protect Our Homes, an organization founded to put an amendment to the Arizona State constitution prohibiting real estate transfer taxes, has filed their petitions.

Talking with Craig Stanford, past president of the Arizona Association of Realtors,  I was told  they had over 370,000 signatures and most of them had been certified. WOW!  These signatures were delivered to the Secretary of State's office this past week.

Clearly, the people are making a statement to our legislature that they do not want an additional tax burden placed on the sale of their home.

We've blogged about this initiative before, however, many still wonder what's the big deal. Let me explain what has happened in other states that have imposed a sales tax on homes.  Thirty-six (36) states have imposed a real estate transfer tax. In such states, many counties and cities have jumped on the band wagon and added their own transfer tax. The result is a sales tax that ranges from under 1% to over 8% of the value of the home.  The real kicker is it is based on the sales price of the home, not the actual gain a homeowner has received. So, if you purchased a home for $400,000, put in $50,000 in improvements and sold it for $425,000 (not an uncommon occurrence these days) you would still pay a tax even though you lost money on the investment.

When the approximate 230,000 needed signatures are verified by the Secretary of State's office, the Protect Our Homes Initiative will go on the November 2008 ballot. A "YES" vote will pass the amendment and home owners in Arizona will be protected.

Gene Urban
The Urban Team
www.urbanteamaz.com

REALTY EXECUTIVES... THOUGHTS FROM THE URBAN TEAM

I've never posted an article about Realty Executives, the brokerage to which Ron and I belong. I find myself compelled to do so now. We are so fortunate to be a part of this organization and it is time we tell the world.

When Ron and I thought about what firm we wanted to build our future with we interviewed and studied the many options. It didn't talk long to make our choice. Realty Executives stood head and shoulders above the competition.

So, what's so special about Realty Executives? It's a long list. Our president and designated broker, John Foltz, is an amazing man. His passion and knowledge are internationally renown. He's a very decent man who believes it is his honor and duty to provide an environment where good agents become great and great agents can shine. 

The results of his efforts along with the foundation laid by Realty Executives founder Dale Rector, are staggering.  Just click on the chart below to see the market dominance of our firm's agents.

People often ask us the difference between our brokerage and others we looked at. Experience and commitment to very high standards are probably what we noticed first. I don't know of any other agency that makes new candidates wait to be hired until all the other agents in the firm have had an opportunity to vote that person's acceptance. If an existing agent has had a bad experience with a new prospect, that Realty Executives agent can give a thumbs down on the candidate and he or she can be denied. 

The training and extensive support services offered adds much to our competency. We have a 24/7 broker hot line agents can call for help with highly complex and unusual issues. The experts manning the phones have decades of experience and have reviewed hundreds of thousands of contracts and transactions bringing a wealth of knowledge few others can offer.  Even though Ron & I have nearly a collective 24+ years in the business, knowing we have these experts to turn to is comforting.

In addition, Realty Executives offers ongoing classes in all aspects of the business. Today, for example we were treated 7 hours of specialty training. The morning started with Leon d'Ancona, the president of Real Estate Statistics, a leading provider of powerful market statistics and analysis. Next Jerry Rossi, one of the nation's top business trainers, taught a class on goal setting and how to maintain emotional strength during tough times. Finally, we had a three hour session on contract law and specific issues associated with the dynamics of our current market including short sales, bank owned properties, lease with option to buy and more.

Thanks for letting me expound on something that makes me proud and happy... the relationship Ron and I have with our brokerage, the best in the business, Realty Executives.

Gene Urban
Ron Urban
The Urban Team at Realty Executives
www.UrbanTeamAZ.com

IGNITE PHOENIX MEETS AT CHEZ NOUS

Ignite Phoenix, the non-traditional downtown activists group gathered
at the new Chez Nous lounge on Grand avenue for their June meeting.

Rolling Stone magazine once described Chez Nous as, "Unchanged since the early '60s, this low-lit cocktail palace comes complete with a lava-rock waterfall behind the bar.

For those of you who don't know, this classic hang recently relocated to Grand Avenue, just above Polk. The magic of the move is that Amina Uben, Chez's owner since 2001, recreated the original lounge with incredible detail (even the classic wallpaper) so one thinks he/she is at the old place. Pretty darn amazing.

The Ignite Phoenix gathering began at 5:30 with the usual eclectic mix of downtown enthusiasts... architects. designers, activists and a many new faces including some from the City of Phoenix. Conversations about the future of downtown, suggestions to the City's representatives and dialog coursed the air until Amina gave a talk about the new Chez Nous.

Amina's underlying theme was to go for your dreams. Dare to live BIG and then surround yourself with knowledgeable, caring experts... oh yeah, listen to them too. In addition she praised the work of the Grand Avenue Merchants Association members and the inspiring change in the region.  (For more on what's happening on Grand Ave click here)

Next time you are wondering what to do, take a trip to Grand Ave.  It's a lot closer than you think, safer too. Chez Nour has live music and dancing 5 nights a week. Amina laughter is contagious and her daughters mix a great drink at a good price.

Gene Urban
The Urban Team
www.UrbanTeamAZ.com

HOUSING RECOVERY PREDICTED

CNN Money is one of the few news sources that offers optimism. Not always, but often enough to keep some hope alive.

Quoting a study from the Joint Center for Housing Studies at Harvard, they discussed the effect of population growth on the future of real estate and housing demand. Nicloas Retsunas, the center's director, says: "As long as you have more households, more people are going to need places to live."

Even a simple real estate kind-of-guy like me can see the sense in this logic, specially when they predict an annual increase in demand of 1.4 million households from 2010-2020.

Readers of our blog know we are generally optimistic. Realists too. We know the current market is only part of a cycle, albeit an ugly one. That which went up will come down and visa versa. It's all Newton's fault for prescribing his laws of motion.

We are still concerned by the number of foreclosures hitting the market... a number that has spiked upward this month. These homes will continue to cause a reduction in home prices resulting in reduced home equity positions for existing homeowners. However, there is a good side to this as well. Reduced home prices allow new people the opportunity to buy.

Out-of-state and first time buyers, who were forced out of our market by high prices, can now find homes to buy. Over time the prices will stabilize. Those who bought homes before 2004 and did not take all their equity out should be fine. Others, who saw their home as a cash cow and personal ATM machine will simply have to wait. Luckily, there are many more people who either own their homes outright or have loads of equity than those who don't.

Gene Urban
The Urban Team
www.UrbanTeamAZ.com

COPPER STAR COFFEE... A NEIGHBORHOOD WINNER

This post is part of an on-going series featuring Local First Arizona members.  I went to the Local First Arizona web site and choose a member at random. I was in the mood for a great Latte and choose Copper Star Coffee on 7th Ave.

You know a place must be good when, at 11:00 A.M. on a 110 degree day, it's packed to capacity. The place is a collective of funky stuff housed in a former gas station. It even has a working garage door that they open to the elements... well not on 110 degree days and a drive-thru lane. Don't you love creative business recycling?

At the counter I was greeted by Mike the Barista. I ordered a large Latte and moments later I was sipping on one of the best I've ever had. They say it is the locally roasted beans. Whatever the reason, it was darn good.

Not being the shy type, I sat down and asked a few of the patrons why they came to Cooper Star. The first answer was the coffee itself.  Second was the place... it's a neighborhood hangout. Bill Sandweg, the owner, features local artists on the wall, has a community bulletin board, offers free WIFI, hosts events and was out buying a new misting system during my visit.

Cooper Star Coffee represents all that is good in locally owned, neighborhood business. Likely, it is not near your neighborhood. Don't let that stop you from enjoying a fine cup of java, some fine local pastries and a good time.

Copper Star Coffee
Just North of Indian School on 7th Ave.
4220 N 7th Ave. 
(602) 266-2136

CITY OF SURPRISE IS DOING SOMETHING ABOUT FORECLOSED HOME BLIGHT

My wife, Amy, loves to hear me bring up an issue that sparks my juices. However, she is quick to ask what I am going to do about it. This is a good thing. Words are great but action changes things.

The City of Surprise must have an "Amy" in their midst. As we all know, one of the outcomes of the high volume foreclosure market is blight. Once nice neighborhoods are filled with empty homes, dead yards, broken windows, trash and such.

Most cities are talking about the problem. Surprise is taking action.
Click here to read the article. I say, Great Job and good leadership.

An article in Fast Company Magazine this month talked about the best cities in the world. Chicago was mentioned and a great statement was made.

When asked why he lived in Chicago, a top musician replied... In Los Angeles people talk about the great projects they are planning; In New York people discuss the music they are going to produce; In Chicago they just do it.

Congrats to the Mayor of Surprise for just doing it.

Gene Urban
The Urban Team
www.UrbanTeamAZ.com
602-234-5777

Cats, Real Estate and the Future

I have a couple of pets. They teach me a lot... especially Rosie the Cat. What she believes to be true is true for her and she is incredibly reluctant to change. 5:30 PM is her evening feeding time. Not 5:40 or 6:00... 5:30!!  I think people can be like that.

During the real estate frenzies of 2004-mid 2005 people sat awestruck at how home values increased. It was clearly insane. Homes that sold for $400,000 in 2003 were fetching over $700,000 in mid 2005. Then the cat thing happened. We started to believe our homes were really worth that much; No one was going to tell us different.

2006 and 2007 came as affront to our senses. People, prospective home buyers and appraisers, started telling us our homes were not worth what we thought. Our mean Realtor told us to lower our expectations and our listing price. We meowed loudly and didn't. Change doesn't come easy to a cat.

Late 2007 and early 2008 the pressure built. Home buyers refused to buy high priced homes. The buyers became cat-like in their stubborn price positions and they found a new source of food... the foreclosure market. It was 5:30 PM and the home buying cats were happy.

Sitting in their sand boxes after reading countless news articles, having conversations and disappointments, today's home selling cats realize dinner time is way over due. So, with heads raised high, dignity is important to a cat you know, they are lowering their asking price and hoping dinner, in the form of an accepted offer, comes soon.

Meow...

Gene Urban
The Urban Team at Realty Executives
602-234-5777
www.urbanteamaz.com
www.greatinvestmenthomesaz.com

BUILDPROOF OFFERS A REMODELING SAFETY NET

One of our new Ignite Phoenix members, Sarah Merritt with Buildproof,  has an interesting product for those of us doing remodeling projects.  I asked her to write a little article about their services... hope you enjoy.

Gene Urban
The Urban Team at Realty Executives
www.UrbanTeamAZ.com
________________________________________________________________________________________________

For many people, home repairs or remodeling can be a very stressful experience.  We hear about the scams and pitfalls others have endured nearly every day in the news and it’s hard not to believe that it’s all part of the process.  Unfortunately we do not hear about the positive experiences often enough but they do happen.  The how’s and why’s are simple.  Good communication.  Knowing and understanding the work involved.  Knowing and understanding who you are working with.  This is true for both home owners and contractors.

There are plenty of excellent resources out there.  The Registrar of Contractors, the National Association of the Remodeling Industry, and the National Kitchen and Bath Association to name just a few.  Homeowners look to them to find advice on choosing a contractor while contractors can become members and make a clear statement about their ethics and dedication to their work.  The Registrar of Contractors webpage has a long list of associations for all types of trades in the construction industry.  Affiliation with any of these organizations is a good indication of a contractor’s commitment to delivering what is promised.
 
There is also a new service available that was created specifically to help contractors and home owners communicate better.  It’s called Buildproof.  It is a web based secure payment system that protects a homeowner and a contractor from financial risk during any type of home improvement project.  It functions as an online escrow account which safely holds the money for a project until the work is finished.  If a home owner wants to feel sure the work will get done and done right and a contractor wants to be sure that he will be paid for his hard work at the time it’s completed it is a unique and simple tool.  It allows both parties to focus on the project and not whether they’ll lose money.
   
While issues can and often do arise while doing a home renovation project it doesn’t have to be the terrible story that ends up in the papers or on T.V.  Knowing your resources, expectations and the services  out there to assist you beforehand is a small amount of effort to put forth to avoid a costly and lengthy legal suit.

Sarah Merritt
Buildproof
sarah@Buildproof.com

A Letter To the Editor of the Phoenix Business Journal

We love to publish items from Claudia Bullmore. Her insights about downtown Phoenix and its future are thoughtful and often provacative. This letter to the editor of the Phoenix Business Journal is no exception. All we can say is... you go girl. Tell em what you think.

Gene Urban
The Urban Team
www.UrbanTeamAZ.com

Letter to the Editor

Kudos to the Business Journal for stepping up and hosting the STRUCTURES event on June 10^th . It provided a wonderful opportunity for the design community to come together to discuss critical issues involving our growth. And one could see by the attendance there is tremendous interest in why great design matters to our city.

In my opinion, the forum sounded flat and one-dimensional instead of being provocative and engaging. By having a panel consisting only of architects you are limiting the conversation and it ends up sounding like a “preaching to the choir” scenario. Designers ought not be having this discussion in isolation. This is the time for real transformation and discussion that includes cross pollination of ideas and input. My suggestion for your next event is to include other disciplines and related organizations. Perhaps invite a city official, zoning attorney, landscape architect, someone from Morrison Institute, etc. I would also consider a “meet the press format” to make it more interactive between the participants themselves.

I would also suggest linking with related organizations such as the AIA, Valley Forward, Valley Partnership and ULI and address some of their key issues. For example, a few weeks ago I participated in an interactive workshop that ULI hosted called Reality Check AZ that identified some key concerns involving our cities future growth that included infrastructure, lack of regional vision, preserving open space and quality of life etc. I think building on the insights gained from that exercise and bringing it to the Structures panel would have been opportune and timely.

Again, I commend the Business Journal for recognizing the impact of design to the character of our community and inviting this dialogue. The next step is to educate others outside the “bubble” to see it’s relevance—for that is how you create a solid structure from which to build.

Claudia Bullmore
________________

Claudia Bullmore is chief strategist of SKY Marketing, a consulting practice focused on professional service firms including architects, landscape design and interior designers. Companies select from a menu of marketing and communications programs developed to achieve better business results by design.

www.Skymarketingaz.com or 602-909-0157

Claudia’s passion for anything forward-thinking, creative and urban was the inspiration behind IGNITE phoenix, a networking group aimed to stimulate spirited dialogue among cultural creatives who care about how

Phoenix

evolves. If you would like to learn more about joining this discussion group, go to IGNITEphoenix.net.

RELIEF FROM BUILDING PERMIT REQUIREMENT SOUGHT

Did you see the Article in the Arizona Republic about the Phoenix City Counsil consideration of am "Amnesty" for people who have remodeled their homes without permits. (Click here to read it.)

Man I hate it when the City Counsil gets wimpy. The excuse is the limited number of inspectors available to check out the problems.  Why, you ask? Principally, it is due to the huge increase in the number of violators. 

The team was put in place due to th rising number of unsafe remodels being performed in Phoenix. Ron and I have seen some of these project as we've viewed homes.  It can be pretty scary. Very poor wiring, stairs without rails or sidewalls, really bad wiring, water heaters without pressure relief valves, showers without drain pans (the people used plastic trash bags under the tile), additions built without above grade foundations (they become cute wading pools during the monsoons) and much more.

We have seen many homes with sub par remodeling fail inspection reports. These homeowners either have to fix the problems, reduce the price of their home or risk not selling at all. The cost to repair often far exceeds the cost to have done it right in the first place.

The Phoenix City Counsil needs to remember part of their job is to protect the public interest. We have code requirements to insure safety. I say "keep tough on quality and building codes." In the long run (something politicians often lack a concern for) we are all better off with safe, well-built homes.

Gene Urban
The Urban Team at Realty Executives
www.UrbanTeamAZ.com