Urban Life

Radiate Phoenix to Meet at the Downtown Phoenix Public Market

Radiate Phoenix, a gathering of downtown advocates, will celebrate its two year anniversary with a special meeting. The Radiate PHX gang will gather for a special preview of the all new Phoenix Public Market Urban Grocery and Wine Bar.

Radiate Phoenix brings together architects, urban planners, City representatives, downtown residents, business owners, and an Urban real estate guy like me. The purpose is to support the urban core, learn more about the downtown region, engage with like-minded others and influence development and policy. Gatherings are held on the last Tuesday of each month.

I am especially excited about our two year anniversary. It seems like just months ago it was just a thought and now it celebrating a milestone.

The specifics on the next meeting are as follows:

WHEN:  September 29, 2009
TIME:  5:30 -- 7:30
WHERE: The Phoenix Public Market at Central and Pierce

If you love the downtown region, love to gather with friends and want to make a difference to the community, please join us. For more info, visit the Radiate Phoenix Ning site.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Mayor Gordon Talks About Stimulus Funds at Phoenix College Talk

Dr. Anne Solley, President of Phoenix College, played host to Mayor Phil Gordon's monthly breakfast talk today at the 1st Avenue campus.

Dr. Solley opened with a few touts for her nearly 90 year old school including a fact I thought noteworthy from an Urban perspective: Phoenix College students come from over 100 different countries.

Mayor Gordon's talk focused on the stimulus money the City has confirmed getting as well as other monies they have made application. The entire process for receiving funds was interesting to hear about.

Initially, stimulus funds were slated for the States where much would have been used to fund budget shortfalls rather than stimulate job growth. The City of Phoenix joined other large cities to lobby for funds to go directly to the city projects that would create jobs and build infrastructure. Their efforts were rewarded with much money redirected to cities verses states.

The City of Phoenix was able to garner 240 million in stimulus funds that will be used on ready-to-go projects designed to create immediate jobs. Gordon, like many others, stressed the need for job creation if we are going to rise out of our region's economic crisis.

More funds are still available and the city has applied for them though the various Federal departments responsible for allocation. One such grant would provide the funds to expand the Airport Sky Train to cover all the terminals. The groundwork has already been done to expand this project and simply needs funds to make a reality. Phoenix and the State of Pennsylvania are working together on this project. Why Pennsylvania you ask? The trains for the system are manufactured by Bombardier, based in Pittsburgh PA, and Bombarier will benefit from our project. The initial Sky Train contract to Bombardier saved about 900 jobs. Tears and cheers came from the employees when the award was announced. I love creative use of partnerships and this one is pretty sweet.

Other projects stimulus funds will be used for can be found on the mayor's web portal. The next breakfast talk will be on October 15th with details to be announced on the mayor's site as well.

Wishing you a fantastic week,

Gene Urban
The Urban Team at Realty Executives
602-234-5777

The Urban Team Makes News on Channel 12 in Phoenix, AZ

I got a call from News Channel 12, KPNX, yesterday. They wanted to discuss the rental investment market in the greater Phoenix area.

Reporter Melissa Blasious came to my office at Realty Executives Center Pointe where we had a nice chat. Martha Zabala, a property management specialist, joined the discussion as we talked about the mistakes many novice investor make including:

• Failure to conduct tenant background checks also known as tenant screening.
• Waiving security and pet deposits.
• Not having a business plan in place.
• Lacking understanding of landlord/tenant law.
• Little to no financial reserves.
• Believing tenants will show up if you simply put a sign out.

The interview was written up on AZCentral.com and carried by video on the ten o'clock news. (see below)

I really like Mellissa Blasius' work. She asks thoughtful questions and has a charismatic zest that's compelling. This link below will take you to the video news article shown on September 14, 2009.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

For more information about the rental market and being a landlord, visit our Real Estate Investing 101, our investment blog site.

What is the Phoenix Real Estate Market Doing?

Here is a mid-September 2009 update on the Phoenix real estate market. This post is for Phoenix only.

The news is generally good for the Phoenix market. As our readers know, I am a supply and demand guy with an emphasis on the foreclosure market. Supply and demand tells us a lot about market health and gives good short to mid range market predictions. The foreclosure market tells us a lot about pricing and appreciation.

A number of factors indicate demand is outpacing supply. Both Days on market (DOM) and the months of supply have been falling. According to Micheal Orr of Cromford Report fame, Phoenix has about 3.5 months of inventory. This is a rather low number since normal figures would be in the 4-6 month range.

The lowering of DOM and low number of available homes suggests a sellers market and we are seeing some appreciation of lower priced homes.

The image on the right details the price per square foot sales price info on Phoenix home sales. $/sq.ft. is the dominant factor when valuing homes. You can click on the image to enlarge for easier viewing. As you can see, monthly values appear to be coming back from the dead. 

Lender owned homes are still dominating the sales. Sixty-three percent of home sales in the past month were REO's. We do not expect too much change on this front as bank owned homes generally offer the best value for buyers and are pretty easy to negotiate. In addition, the number of trustee sales (when the bank takes back the property) rose steadily through August and is only showing a small decline this month.

In addition to bank owned homes, short sales are seeing a rise both in numbers for sale and actual closed escrows. This is good news on many fronts. Short sales tend to sell for higher prices than bank owned and can help stabilize neighborhood values. In addition, the rise in closed sales indicates the banks are getting their act together by working with homeowners prior to the home going into foreclosure... a win win for all in most cases.

In general, we see some optimistic numbers going into Fall. Once again, we have to say, most of the good news centers around homes priced under $200,000 with the sub $125,000 market seeing the best results. If tradition means anything is this crazy market, the stability/appreciation we're seeing on lower price homes should work its way up to the mid-price market during the coming year.

Thanks again for your support of Urban Life... our readers are the best!!

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Banks Often Ask Home Buyers to Sign an As Is Addendum. What is an As Is Addendum Anyway

Many home buyers are attracted to bank owned homes and short sales for their low prices. As part of the purchase offer, most of the banks/sellers are asking the buyer to sign an AS IS addendum to the contract. So what the heck is this AS IS thing?

We've created a short video introduction to the As Is addendum created by the Arizona Association of Realtor's and used in AAR Purchase Contracts. The video highlights parts of the addendum. We recommend you read and understand the entire document before signing. If you have questions or concerns, we encourage you to seek qualified counsel.

We hope this video has been of help. Please look for other educational videos on this site and check back often as we update the site several times per week.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

What is an LSR, Loan Status Report, used in Arizona real estate purchases?

Many people ask us, "What is an LSR?" We could answer lipolysis stimulated lipoprotein receptor, however, we think most people are referring to a real estate addendum called a Loan Status Report.

Simply stated, the Loan Status Report (LSR) is a standardized pre-approval letter a lender provides for purchasing residential real estate in Arizona. Prior to the creation of the Loan Status Report lenders would supply a pre-qualification letter that varied in content and quality of information. The LSR provides a form for information deemed important to both buyers and sellers of residential real estate.

Some ask if having an LSR is mandatory when financing the purchase of residential real estate in Arizona. It is only mandatory if one is using the ADRE Purchase Contract to write and submit your offer. Since most residential real estate purchase contracts are written using the ADRE form, a LSR is commonly required.

Below is an introduction video provided to help you better understand the LSR document. If you have questions about this or any document used in a real estate transaction, we recommend you contact qualified counsel.

We hope this post and video have been of help. If you have questions, know we are delighted to be of help.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

What Is An AS IS Addendum Used in Real Estate Contracts?

The AS IS addendum is used in many real estate transactions these days, especially for bank owned homes and short sale transactions.

The Arizona Department of Real Estate (ADRE) has created the As Is addendum that accompanies the Arizona Purchase Contract. This addendum modifies some of the language of the Purchase Contract and notifies the buyers and seller that the home/property is being sold in "AS IS" condition and many of the warranties offered in the Purchase Contract are being waived. The video below goes over this addendum and provides a brief explanation of the document.

We hope this video will be of help to you.

Ron Urban & Gene Urban
The Urban Team at Realty Executives
602-234-5777

The commentary provided on this video is not intended as legal advice. If you have legal questions concerning an "AS IS" addendum or other aspects of real estate contracts, we recommend you contact a knowledgeable attorney.

When You Feel Overwhelmed... think about this lesson

This post is a bit off the normal path. Hope you don't mind... it just seemed right.

Just about everyone I know is feeling stressed.  Ron and I are no exception. Some days we feel completely exhaperated tying to deal with banks, short sale transactions and the wild changes in the market. Today was one of those days for me and then I got the following email. It really put things in persective. Today we'd like to go philosphical and share this message with you.

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When things in your life seem almost too much to handle, when 24 hours in a day are not enough, remember the mayonnaise jar and the 2 Beers.

A professor stood before his philosophy class and had some items in front of him.
When the class began, he wordlessly picked up a very large and empty mayonnaise jar and proceeded to fill it with golf balls.

He then asked the students if the jar was full.

They agreed that it was..
The professor then picked up a box of pebbles and poured them into the jar. He shook the jar lightly.

The pebbles rolled into the open areas between the golf balls.

He then asked the students again if the jar was full.

They agreed it was.
The professor next picked up a box of sand and poured it into the jar.

Of course, the sand filled up everything else.

He asked once more if the jar was full.

The students responded with a unanimous 'yes.'
The professor then produced two Beers from under the table and poured the entire contents into the jar effectively filling the empty space between the sand.

The students laughed...
'Now,' said the professor as the laughter subsided, 'I want you to recognize that this jar represents your life.

The golf balls are the important things---your family, your children, your health, your friends and your favorite passions---and if everything else was lost and only they remained, your life would still be full.
The pebbles are the other things that matter like your job, your house and your car..
The sand is everything else---the small stuff.

'If you put the sand into the jar first,' he continued, 'there is no room for the pebbles or the golf balls.

The same goes for life.

If you spend all your time and energy on the small stuff you will never have room for the things that are important to you.
Pay attention to the things that are critical to your happiness.

• Spend time with your children.
• Spend time with your parents.
• Visit with grandparents.
• Take time to get medical checkups.
• Take your spouse out to dinner.

Play another 18..

There will always be time to clean the house and fix the disposal.

Take care of the golf balls first---the things that really matter.

Set your priorities.

The rest is just sand.

One of the students raised her hand and inquired what the Beer represented.

The professor smiled and said, 'I'm glad you asked.'
The Beer just shows you that no matter how full your life may seem, there's always room for kicking back with a friend.

Have some great moments and a more inspired day...

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Remodeling Your Home? You May Need to Remodel Your Insurance too.

Our good friend, Kimberly Adams with Liberty Mutual Insurance, mentioned a problem that has arisen with many homeowners choosing to remodel rather than sell their home. It seems people’s homeowner’s insurance policy may not cover the replacement costs of your spiffy new place, especially in down market conditions.  Below is an article she wrote for Urban Life.  Enjoy.

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Homeowner spending on remodeling projects is projected to increase by 44 percent between 2005 and 2015, according to a recent Harvard University study.[1] Yet, as you plan that kitchen upgrade with new cabinetry, tile and appliances, remember to also remodel your home insurance policy.

Your property insurance limits are tied to your home’s replacement cost - the amount needed to rebuild your home with the same quality and type of materials in the event of a total loss – and not its market value. If you live in a region currently experiencing a cool real estate market, your home’s market value may have diminished. However, this does not mean the cost to rebuild the home after a loss will necessarily be less.

Many insurers have developed tools to help you determine a proper replacement cost estimate, and also offer a low-cost endorsement (an amendment attached to your insurance policy) that, in the event of a total loss, offers additional coverage up to 120% of your policy’s coverage amount.

Homeowners should review their home insurance coverage on a yearly basis, and it is especially important to do so before beginning any home improvement project. Increasing your coverage before renovations begin will protect you from the costs of repairing or rebuilding damage to the new addition. Your home’s replacement cost estimate should also reflect the price of the building materials and labor associated with residential construction in your community. This, of course, tends to fluctuate due to inflation and other factors, so be sure to ask your insurer if they offer inflation protection coverage. This coverage, which automatically adjusts your policy limits to keep pace with inflation, is usually free.

Whether you are renovating that master bath, laying down wood floors, or tricking out your patio, be sure a complete home insurance review is on your checklist. However, adjusting the coverage limits of your policy isn’t limited to major renovations. Any special changes to your home might make your protection inadequate, such as finely crafted doors, moldings, and counter tops, uniquely pitched or vaulted ceilings, or stained glass windows.

If a home improvement project isn’t in the near future but you haven’t reviewed your home insurance policy in the past year, call your insurance agent for a professional consultation on your limits, endorsements and to make sure that you are receiving all the discounts available to you.

Feel free to call, text or email with questions. I really like to teach people how to best protect themselves. You might call it a passion.

Kimberly Adams
Liberty Mutual Group, Arizona
480-205-1783
Kimberly.Adams@LibertyMutual.com

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[1] “Foundations for Future Growth in the Remodeling Industry” report. Joint Center for Housing Studies press release, Harvard University. Feb. 8, 2007.

Downtown Phoenix Locals... Your full service grocery store is coming.

Wow... it's really happening; A grocery store for downtown Phoenix residents is soon to be reality. The Downtown Phoenix Public Market is expanding to become the Downtown Phoenix Public Market Urban Grocery & Wine Bar. We like that our name is part of their name but it's quite a mouthful to say.

The market has a planned opening date in late September and will offer expanded operating hours and a lot more merchandise. Shoppers will still enjoy the highly successful farmers market open on Wednesdays and Saturdays, plus they will be able to food shop five days a week from 11:00 am to 8:00 pm.

Speaking of shopping, patrons will find a fine selection of food stuffs from local farmers, ranchers and suppliers. Buy Local First is not just a statement, but a way of doing business at this downtown market. Some non-local items will be brought in where regional products are not available.

Adding to the excitement will be some very sweet additions to the market:

• Royal Coffee Bar will be opening a place in the market.
• Take out foods will be offered at the deli counter including yummy sandwiches, fresh salads and special soups.
• Wine, Wine, Wine... in back where the parking lots is (soon to be was) will be the new patio/wine hang out. Patrons can enjoy an appetizer, glass of wine and friend time.

We are both excited and proud of the hard working people who for five years have fought to make the Phoenix Public Market happen. We can't wait to experience the next chapter in your food book.

The Phoenix Public Market is located at 1st Street & McKinley. We urge you to visit them soon and often.

Gene Urban
The Urban Team at Realty Executives
602-234-5777