Elizabeth Newlin - Arizona Real Estate Agent

I am currently working with three different clients who have radically different viewpoints on house repairs.

Client #1:

A first time buyer who is stressed about anything that appears to be broken in a house. Drywall cracks are especially disconcerting to the couple (and unfortunately, common in Gilbert, the primary location we have been looking in) but we’ve discussed several other issues that have made them uncomfortable with the idea of purchasing one property or another.

Client #2:

A buyer with much in the way of DIY skills, who wants to purchase a property with lots of potential in the ’sweat equity’ arena. We’ve looked at houses with partially finished additions, houses with doors that lead out to nothing but a 15 foot drop and houses with termite infestations. None of these issues have deterred him, just the complications involved in obtaining a mortgage on these houses.

Client #3:

A seller with a house that has great bones, but that cannot catch a break concerning the escrow in which we’re currently embroiled. This poor house has encountered in the last three months: pool equipment theft, inadvertent locking of a security door causing the house to be inaccessible, a slow leak into the kitchen cabinets causing water saturation and mold, pool pump leaks, a brand new garage door opener not opening, a bizarre leak/paint bubble in an exterior wall in the master bath and various other small issues/necessary repairs.

All of these home buyers/sellers have different motivations for their strong feelings about what needs to be repaired in the houses they’re dealing with. Client #1 does not have a lot of capitol to put into a house after purchase, so they need it to be pretty move-in ready. Client #2 wants something that he can put his own stamp on. He loves things that are not as attractive to other buyers, but that maybe he can polish from a stone into a diamond. Client #3 knows that his house isn’t a lemon, but is frustrated with the bad luck he’s had regarding repairs.

My personal view about home repairs is that anything can be fixed. Termites can be treated, mold can be re-mediated, leaks can be repaired, pools can be degreened and refinished. It’s all a matter of how much it will cost, and who is going to pay for it. And this is why you need a decent real estate agent, because those are the big questions in real estate. How much is it going to cost to make my house into my home… And who will pay to do it? Your agent needs to be there for you to get that answer and make sure that it is the one the will work for you.

Our new house is currently under construction and due to be completed and close December 23, 2008. Which, I know, is an insane date to attempt any kind of move. But I’ve decided that I’m kind of into it. I really do not love the whole ‘decorating for Christmas’ thing and I actually think it will be pretty special to spend our first night in the new house on Christmas Eve.

Anyway, we are building in a new planned community out in North East Mesa called Mountain Bridge. It’s a Blandford Homes community and I couldn’t be more excited. Check out the view from our balcony off of the master bedroom:

Yeah, that’s right; a green belt AND MOUNTAINS. I’m genuinely sick-to-my-stomach-ecstatic over the idea of mountain views from my own balcony. WITH ENOUGH BEDROOMS FOR ALL OF MY KIDS TO HAVE ONE OF THEIR OWN (yep, that’s how excited I am, I’m shouting at the Internet). Whee!

But enough of my own glee. My point is that building a new home is kind of an awesome option. I have several clients who have either gone this route, or at least considered it recently. I’ve shown 3,600 square foot houses for $299K out at Signal Butte and Elliot. I’ve sold 1,800 square foot houses in Maricopa for $114K (last month!). I currently have a client under contract to build at McQueen and Ray on an over-sized lot, 2,200 square feet, for $250K. There are fabulous deals to be had. There are great builders still in business.

Don’t however, make the mistake of going this route alone. The deals may be amazing, but the pitfalls are deep. Builders continue to declare bankruptcy without warning. Brown Family Communities, a local builder who was in good standing with all of their creditors, abruptly filed for bankruptcy, October 24 of this year, leaving buyers under contract high and dry. Keep yourself covered. There are things you can do to protect your earnest money. Hire an agent to show you the way and watch your back. And keep a close eye on this page.

Real Estate on TV is all the rage right now. The DIY shows seem to have given way to shows about ‘fixing and flipping’ or remodeling to sell for the most possible money. I am, of course, obsessed. It’s my two passions coming together (have I mentioned that I LOVE TV? I do. Feel free to sneer, I’m used to it. I still love it).

Unfortunately, for the most part I have to enjoy my real estate TV for its drama and the ridiculousness of it all rather than any resemblance to real life. In fact, I watch that show, “Million Dollar Listing” on Bravo primarily so that I can scream at the TV about how stupid, egotistical and cartoonish the agents on it are portrayed. And don’t let me forget to mention my very favorite pseudo-real estate show, “Flipping Out”. How can you not love a gay obsessive-compulsive narcissist with a fixing and flipping business whose primary hobby is driving his friends and employees sometimes literally insane? You can’t. He’s just so lovable.

However, I watched a new real estate-centric show on TLC today that I actually think has a lot of basis in what’s going on in the industry right now. It’s called “Hope for Your Home”. I’m not sure exactly how each episode is different, but this particular episode was about a family who had purchased a home with an adjustable rate mortgage that was just about to adjust. Their payment was going to go from $2000/month to $3000/month and they couldn’t afford the new payment. They needed to refinance their house to get a loan that would have a lower payment, but couldn’t without increasing the value of the house. A real estate professional came into the house and told them what renovations they should do to increase the value of their house and then brought in a team to help them.

I’m not sure how realistic the details of this process with the family were, but the general idea of a home owner in a mortgage with a payment that’s about to increase is a problem affecting way too many people right now. Addressing this problem with a solution other than: A) Suck it up and pay it, or B) Walk away from the house and let the bank foreclose, is inspiration I think this country can use.

Many, if not MOST of the people who purchased houses in 2005 and 2006 in Metro-Phoenix are underneath their loans. Of those people, the ones who got a loan with a fixed rate and who are staying in the house they bought for the next 5 to 10 years are fine and dandy. All of the rest are likely in trouble. That’s a lot of people who can use some solutions right now.

The family on the show turned a half-bath into a full, made the master closet a walk-in, repainted the exterior and generally uncluttered the house. It cost them $10K and according to a mortgage broker, upped the value of the house from $350K to $400K, allowing them to refi for a payment of $2300/month. The numbers were a little neat and tidy to be true, but the work they put into the house and the concepts behind the actions seemed extensive and noteworthy.

It’s a show I’m going to be keeping my eye on.