Opportunity knocks for buyers in our beautiful Scottsdale AZ real estate market.  Until December 1, 2009, the U.S. government is offering an $8,000 tax credit to first-time homebuyers and to buyers of principal homes in Scottsdale and Phoenix, who have not owned primary homes in the last 3 years.  The tax credit applies to taxpayers throughout the nation.

It is truly a buyers’ market trumping the last eight years.  First-time buyers have the opportunity to buy Scottsdale real estate on scenic golf courses and homes in other neighborhoods that were previously out of reach.  Alternately, they may desire to purchase larger Scottsdale AZ homes in medium-priced neighborhoods, homes with more space such as an extra bedroom or office or garage.

Families looking for real estate in Scottsdale are also highly motivated by great prices for homes and loans.  With reduced sales prices, flexible sellers, and increased inventory, now is the time to buy.  Interest rates are still quite low and FHA loan products are enticing.  In February, the FHA Loan Limits in Maricopa County (Scottsdale, Phoenix and Mesa) increased to $346,250.  FHA conforming loan limits are $417,000.

Buyers with steady employment and reasonable credit scores can buy a home with as little as 3-percent down payment through the FHA.  In addition, the FHA opened up bridge vehicles that enable first-time buyers to borrow from tax-credit monies for down payments.  The tax credit also applies to purchasers who use revenue bond financing.

All principal residences are eligible.  That includes single-family homes, condominiums, townhouses, co-ops, and houseboats, which we do not see much of in the desert.

A tax credit is not a tax deduction. It is a dollar-for-dollar reduction in taxes.  If the homebuyers do not owe taxes, they will receive a refund after filing 2009 taxes.  Unlike other recent incentives, homebuyers who buy between January 1 and December 1, 2009 do not pay back this money unless they sell the qualifying homes within three years.

The tax credit starts phasing out for homebuyers with modified gross incomes above $75,000 ($150,000 joint), according to a formula.  Please consult your tax advisor for specific information.

For more information about the estate homes and luxury real estate in the area, contact the LUXE Real Estate Group at 1-888-900-LUXE.

Take note if you are or plan to be a real estate investor in Scottsdale, Phoenix, or any other part of Arizona.  On July 10, 2009, Arizona Governor Brewer signed legislation that as of September 30 changes the Arizona anti-deficiency law contained in the Arizona Revised Statutes – Section 33-814(G), the trustee’s sale statute.

Investors in trust property in Scottsdale or Arizona real estate need to find out how this ruling affects their situations, if at all, with regards to plans for foreclosures and short sales.  We strongly advise consultation with qualified tax professionals before deciding to do a short sale or foreclosure.  There are possible derogatory tax consequences resulting from Arizona  foreclosures, shorts sales, and loan modifications.

The current Arizona anti-deficiency rule keeps lenders from seeking a deficiency, or suing directly on the note, following a foreclosure or short sale of investment real estate in Arizona that meets certain criteria.  It is advisable for real estate investors to seek professional help analyzing each foreclosure or short sale to determine their rights and obligations.  The lender’s remedies under the Promissory Note and other loan documents spell out the terms.

Designed to limit the type of borrowers that will qualify for anti-deficiency treatment, the new Arizona law changes the criteria.   Criteria under the current laws are simple:  the anti-deficiency rules apply only if the foreclosed property is under 2 ½ acres and utilized as a single one-family or single two-family dwelling.

The current law goes something like this:  In Arizona, if a borrower fails to pay its loan, a lender can foreclose its Deed of Trust lien either judicially per A.R.S. 33-721 et. seq., or non-judicially by conducting a trustee’s sale per A.R.S. 33-801 et. seq.  If the foreclosure price does not pay a lender what it is owed, the lender may generally seek a deficiency against the borrower for the difference.  Arizona has anti-deficiency laws that bar a lender from seeking a deficiency in certain situations.  In both judicial foreclosures and trustee’s sales, anti-deficiency rules apply only if the property being foreclosed meets the criteria.

However, after September 29, 2009, there are additional criteria:  The trustor must have lived in the property for at least six consecutive months and must have a Certificate of Occupancy.  Investment properties sold at a trustee’s sale will not qualify for anti-deficiency treatment if the trustor has not lived in the property for the six consecutive months.  There are more details in the fine print.  Be aware.

For more information about the estate homes and luxury real estate in the area, contact the LUXE Real Estate Group at 1-888-900-LUXE.

For the first time in Arizona, data is available to track the affect foreclosures are having on home prices across the valley. A new system tracks the median prices of foreclosure homes versus resale homes by zip code. Although bank owned homes are historically sold for less than resale homes, the new data shows that banks are trending to sell homes at bargain rates; sometimes 10-30% below resale median prices.

Arizona foreclosures are at record levels, but it likely has not peaked. We will assuredly set record highs and in a short time, there will be over 1 million bank owned homes on the national market. Banks will need to get this inventory off of the books.

What does this mean for buyers in Arizona? It means that there has never been a better time to buy a home in Arizona when comparing value of median priced resale homes. However, very few real estate agents are “bank-owned” experts or deal exclusively in real estate owned, better known as “REO” property.

The Luxe Real Estate Group represents numerous bank and lending companies, such as Bank of America, Countrywide, HSBC Bank, M&I Bank, GMAC and many others. We deliver our bank owned inventory to our clients first. Please call us at 480-948-6260 or email Jay Martinez at Jay@Luxerealestategroup.com for more information or a current bank owned inventory list.

The lifestyle at DC Ranch is unrivaled.  The DC Ranch community was designed for an affluent lifestyle and promotes the ability for its residents to not have to ever leave its boundaries to enjoy North Scottsdale and the best amenities in town.

The award winning DC Ranch Marketplace is a place to be seen and to enjoy the valleys top eateries and even wineries.  It is an upscale marketplace built and designed by DMB. It offers neighborhood shopping convenience with a chance to wine and dine with family and friends at a wine bars like Armitage and multiple high end dining options like Eddie V’s.

If you like golf, you can enjoy the DC Ranch Countryclub and its 18 hole, par 71 golf course designed by DC Ranch resident Tom Lehman.  This award winning golf course sits at the foot of the McDowell Mountains and features views of North Scottsdale to Camelback Mountain.

As for DC Ranch Real Estate, few communities can compare to the spacious elevated floor plans and home on and around the DC Ranch Mountains.  It features a unique opportunity to connect with family and friends with various community amenities and even the Village Racquetball Club and Spa.

Housing ranges from the low 400s to well over $1 million.  However, one of its greatest attributes is that DC Ranch offers housing for all levels of income, from top level condominiums to multi-million dollar estates in Silverleaf.

For more information, please call your local DC Ranch Real Estate experts at the Luxe Real Estate Group at 480-948-6260.

According to all of the recent articles and tv shows, you might think it’s a bad time to buy real estate in the Phoenix metropolitan area. That is not necessarily true – especially when you have the right information before buying and don’t panic in bad markets. Buying a home and real estate is always a great investment for someone who plans to live in it – not a short term investor. And with Phoenix area real estate inventories as high as they currently are, this is actually a great time to buy real estate in the Valley. Obviously other experienced investors feel the same way as they are coming back into this market looking for investment properties in the Phoenix-metro area. Many ask all the right questions and have all the right resources. But others are new to real estate altogether and have very unrealistic expectations that will inevitably result in a bad outcome.

As a long term investment, real estate always makes sense. In fact, anybody with a significant amount of money invested in the stock market might be re-thinking real estate as an investment right now. Just as with the stock market, as long as you are willing to wait out the bad times, you will always make money. I don’t know anybody who lost 3-5% in their real estate values last week, but people heavily invested in the stock market saw instant, huge drops in their net worth because of real estate fears. In reality, whether your money was invested in real estate or stocks last week, you didn’t lose anything if you didn’t panic and sell. In other words, both stocks and real estate will always increase in value over time, making them great long term investments, so there is no need to shy away from real estate, even in the bad times. Short term investors, however, have to really know what they’re doing or they end up buying high and selling low, which is exactly what you DON’T want to do. Anyone who ‘flips’ properties knows that you generally set your profit when you buy the property, meaning that if you don’t buy it for the right price, there’s not much you can do to make money. And to know the right price, you have to know the market and know what you’re doing overall.

Like anything in life, if it seems too good to be true, it probably is. The people buying into get rich quick schemes are the ones bailing out now and being foreclosed on. The smart real estate people and experienced real estate agents thrive even during the bad times.