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Using some common sense when traveling back and forth between your properties July 10, 2010

Posted by mkuhbock in Arizona Vacation Property.
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Now that you have purchased your dream recreation or vacation property there are a couple of simple things to keep in mind but are far too often overlooked.

When you are not using your vacation property:

  1. Make sure the blinds are closed, and that the instructions to the cleaners are to close the blinds upon finishing their work. Never assume they will…
  2. Unplug small appliances (just in case)
  3. Unplug your router so that it cannot be hacked into
  4. Adjust the thermostats so that the pipes don’t freeze in the winter or things don’t get too hot in the summer and everything starts melting. I have seen candles and paint do strange things at 100+ degrees F.
  5. Add some vegetable oil to the toilet bowls, slows down the evaporation.
  6. In dry weather climates put out a pail of water, it helps, but I am not certain what for other than keeping the humidity up a little which probably helps on wear and tear of the house and furniture.
  7. Unplug your TV’s, some of the models still draw power and have a small fan running full time.
  8. Unplug your cable box, it is always drawing power regardless if it is on or not.
  9. Get some timers for your inside lights and/or radio or some light sensitive night lights. I had a neighbor call me one night as he though there was someone in our vacation home and wanted to make sure one of the owners wasn’t there prior to calling the police, he is a great guy, and he soon learned that it was our light sensitive night lights.
  10. Turn down your hot water heater.
  11. Buy and install some security stickers.
  12. Get someone to pick up your mail on a weekly or once every 2 weeks.
  13. Lock everything including your electrical panel and exterior water if you can, believe it or not people will steal your water.
  14. Check with your insurance agent about your policy and how long the property can be vacant without some dumb ass clause kicking in that stops your coverage.
  15. See if a neighbor will use your driveway for one of their cars.
  16. Don’t advertise to the world that you are not at one of your homes, somethings should just not be posted on Facebook, MySpace or LinkedIn. You wouldn’t post your credit card number as you never know who will hack into one of your social website accounts and are just waiting for you to announce where you will not be for an extended time period.
  17. Make sure you either throw out anything that might go bad, that includes dry goods in the pantry and for that matter use sealed bags to store everything. This keeps the ants and cockroaches out of your house and lives.
  18. Hire a landscaping company, management company and or a security company when needed.
  19. Hire a pest control company or make sure you give the entire inside and outside facing entries to your home a good spray with a pest control product. We use Orthomax which runs about $14 and lasts 6 months. I spray the entire frame of the doors and garage door plus the patio doors and main floor windows inside and out. I also spray any vents, water and electrical outlets inside and out of any exterior wall plus all the floor areas around the kitchen and bathrooms where pipes and drains allow access. We never have had a bug problem since we started doing this. It only takes 15 minutes for a 3000 Sq Ft house. Supposedly the product is good for 12 months and will kill anything that crosses the barrier and is safe for mammals once it drys.
  20. Hire someone to go through the house every couple of weeks (typically when they pick up mail) and flush toilets to refill them if needed. It helps the place look less abandoned or vacant.

There are a few other things that I am probably forgetting and please comment if you think of any of those points that I have missed.

The above should also be done for your principal residence when you are away on an extended vacation also.

Hope everyone is enjoying the heat of the summer! 🙂

Cheers,

Michael

Check out my video and slide presentation, An Introduction to Joint Ownership, at www.azjointownership.com

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How the Real Estate Community Benefits from Vacation Home Joint Ownership May 8, 2010

Posted by mkuhbock in AZ Real Estate News, Uncategorized.
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Hello Real Estate Community,
Some of my colleagues in the real estate industry have asked me what value does the Joint Ownership model have for them? Luckily there is an easy answer for that question.

With Joint Ownership, purchasers do what many partners have already been doing for years, they share in the purchase and title of a property. What we do is provide the consulting, templates for usage and ownership agreements protecting the owners from possible pitfalls that could occur.

With a well developed Joint Ownership model a group of buyers can now purchase the property they want, in the area they desire, with a fraction the capital investment, of the monthly expenses and the carrying costs.

Real Estate Joint Ownership makes the purchase of vacation property possible for your clients!

Joint Ownership is an acquisition model that allows the average family or investor the opportunity to participate in purchasing a vacation or investment property.

What is in it for the real estate community?

1. Use Joint Ownership to increase your vacation home referrals
2. Use a Joint Ownership model to increase your Prospects
3. Use a Joint Ownership model to increase your Sales
4. Provide your clients with a tool and service to fulfill their retirement dream
5. Tap into the 90% of the market that cannot afford a vacation home on their own but
have the desire to own one
6. Convert your fence sitting prospects into active clients
7. Provide your clients with the tools and services to fulfill their investment goals, now is
the time to invest in real estate!

AZ Joint Ownership has created the templates, processes and agreements geared for today’s real estate market and most importantly the proper joint ownership agreements up front allow friends and family to stay that way!

Together we can increase your prospect base, sales and referral income.

Check out the introductory video at www.azjointownership.com

and become a friend and fan on Facebook at http://www.facebook.com/azjointownership.

Cheers,

Michael

Video introduction to vacation home joint ownership May 4, 2010

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News, Uncategorized.
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Here is a quick introduction video and a PowerPoint on what vacation home joint ownership is and some of the perils and pitfalls you need to be aware of.

Enjoy but unfortunately I have a face for radio….. 🙂

There is only so much beach front property available… March 9, 2010

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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It has been while since I have ranted but I am having the same inane conversation with too many people lately and it has now allowed me to now see backwards due to all of the eye rolling I have done.

Yes the US resort property market (California, Nevada, Arizona, Florida & Hawaii) is still depressed.

Yes there are still great deals available and yes there will be a bounce along the bottom for another period of time (12 to 36 months) but the house that your friend/associate/partner/or friend of a friend bought out in the deep suburbs (middle of Podunk nowhere) 12 months ago from some smooth talking know it all Realtor has NOT increased in value due to brilliant property purchasing prowess…. The deal was probably OK as it is hard not to buy at the bottom 25% of the market over the last 24 months, but when a property does not come up on your GPS or on Google maps then you know it will not rebound in value quickly and will dramatically under perform centrally located real estate.

As I published in a previous Blog, there are 3 main variables that effect the value of property; 1. Location, 2. Features and 3. Local Amenities. A $200,000 home in the deep suburbs will cost you over 1 million+ in the center of a high profile area. Those numbers can now be adjusted to $75,000 and $450,000+. If it takes you 15 minutes to find a store that is still in business to buy a paper or carton of milk then guess what, you have purchased in the middle of nowhere…..

Real estate has been and always be about location, location, location and beware of anyone that tells you differently as they will be trying to sell you a time share in a central Florida swamp or prime piece of desert property 2 hours from Sky Harbor airport.

The market still has some amazing deals but make sure you conduct in-depth due diligence, hire or utilize educated and well seasoned professionals and educate yourself as much as possible, as any purchase, be it a primary residence or a vacation property will be a decision that requires a substantial investment of time and capital.

One final word of caution, the trustee sales are becoming crowded auctions and prices in some areas of the nation are being pushed up to just below retail by overzealous buyers and agents. Paying overinflated prices for properties which are, due to the nature of trustee auctions, completely Caveat Emptor is a fools folly. Make sure you either become a local real estate expert or use a service which is the best in the local market, otherwise you could… no make that WILL be over paying for property which could be a black hole where you will be shoveling all of your money into…

Best of luck in your real estate endeavors,

Michael

Arizona Vacation Home Strategies February 24, 2010

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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Arizona Vacation Home Strategies

Learn how to purchase an executive winter home fully furnished for the price of a car!

Vacation home strategies ~ An easy way to invest in undervalued real estate and enjoy it during the cold winters.

Ask us how at

Michael@Kuhbock.com or azjointownership@gmail.com

Why Phoenix?????

  • Nearly perfect year-round weather
  • The greater Phoenix area also offers visitors an array of impressive cultural attractions.
  • 200 + golf courses
  • Recreation, Major league sports – baseball, football, hockey!!!!!
  • Strong Canadian dollar!!
  • US Home Prices Continue to Tumble…
  • Sub-Prime mortgage buying opportunities!!

What is Joint Ownership all about?

Purchasing a vacation home in Arizona ~ Steps To Success

A little about Phoenix ~ Metro Phoenix Overview

A little about Phoenix Real Estate and Joint Ownership Considerations

A little about Golf In Phoenix

National numbers released and December wasn’t pretty January 25, 2010

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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The December numbers were released for home sales and the numbers were a little unsettling. A 17% drop in sales from the previous month, this is the largest monthly decline in the last 40 years.

In the Metro Phoenix area I am seeing properties listed at 1/3 off their peak sale prices in 05/06. The questions are how low can prices go and when will we hit the bottom?

December home sales down nearly 17 percent
Home sales plunge nearly 17 percent in December after tax credit deadline extended

By Alan Zibel, AP Real Estate Writer , On Monday January 25, 2010, 12:32 pm
WASHINGTON (AP) — Sales of previously occupied homes took the largest monthly drop in more than 40 years last month, sinking more dramatically than expected after lawmakers gave buyers additional time to use a tax credit.
The report reflects a sharp drop in demand after buyers stopped scrambling to qualify for a tax credit of up to $8,000 for first-time homeowners. It had been due to expire on Nov. 30. But Congress extended the deadline until April 30 and expanded it with a new $6,500 credit for existing homeowners who move.
“It’s ‘exit stage left’ for first-time homebuyers,” wrote Guy LeBas, an analyst with Janney Montgomery Scott.
December’s sales fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million, from an unchanged …….

January numbers will be interesting.

Michael

2010 Phoenix Real Estate Crystal Ball December 17, 2009

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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We all try to predict, guess, prognosticate … what is going to happen in the future. Whether it is the outcome of a game, Tiger’s future in golf and divorce court, the price of gas next week, when the economy is going to recover and of course one of the most popular water cooler discussions is the future of the housing market.

I came across an interesting article today titled ‘Foreclosure backlog estimated at 1.7 million’.

What caught my eye were the following facts from this article and other past articles;

  • 1.7 million homeowners were on the verge of foreclosure in the fall of 2009
  • This is up 1.1 million from the previous year
  • Distressed sale properties will flood the market in the next 12 months (banks have held a high percentage of properties off the market to try to mitigate the value free fall we have been experiencing over the last 3 years and will finally be forced to move these assets off their books)
    .
  • 6.7 million U.S. households with mortgages, or about 13%, are behind on their payments or are in the foreclosure process
    .
  • About 20% of owners of single-family homes with mortgages owe more than the current estimated value of their homes, according to Zillow.com, in the third quarter of 2009 almost 10.7 million households had negative equity in their homes
    .
  • Option ARM Silent Bomb: $189 Billion in outstanding option ARMs with $134 billion recasting in 2 years, 94% of the borrows made the minimum payment

My personal observations include an increase in short sale listings and aggressively price properties in fringe communities. I define fringe communities as great places to live but they are a bitch to commute from. I have seen listings for 2000+ sq ft, 4 & 2 or 4 & 3 with granite & stainless appliances, freshly painted, pebble tech pool, nice community with an historic sales price of $350,000 now listed in the high 100’s, which is only the asking price. If you go into a market that is above $250,000+ then it is more aggressive with houses that have been on the market longer. Jump to the high six figure or million plus and you can write your own ticket as it seems that half of Paradise Valley has a for sale sign on the property…..

Bottom line my crystal ball says now is not the time to sell but a great time to carefully observe the market and look at jumping in sometime in 2010.

Cheers,

Michael

Real Estate News Headlines…. Are you as Confused as I am?? November 24, 2009

Posted by mkuhbock in AZ Real Estate News.
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Well the newest real estate articles are posted below and once again they can educate and also add to our daily confusion on what the hell is going to happen to the real estate market in the US.

One thing is for certain, if you don’t like the market prognosis today you will only have to wait a couple of hours to have it change to your liking. 🙂

October home sales rise 10.1 pct from September
October home sales up 10.1 percent, beating expectations as tax credit spurs sales

* By Alan Zibel, AP Real Estate Writer
* On 4:18 pm EST, Monday November 23, 2009

WASHINGTON (AP) — Home sales surged for the second month in a row in October, climbing to the highest level in 2 1/2 years as first-time buyers rushed to take advantage of an expiring tax credit…  Link to full article

Home prices up slightly in September

Home prices up slightly in September; analysts expect declines as foreclosures rise

  • By Alan Zibel, AP Real Estate Writer
  • On 11:59 am EST, Tuesday November 24, 2009

WASHINGTON (AP) — The summer’s trend of rising home prices is ebbing as the traditional home shopping season ends, two reports Tuesday showed… Link to full article

10 Questions on the Volatile Housing Market

James R. Hagerty
Wednesday, November 18, 2009

Lower prices have spurred home sales, but looming foreclosures and high unemployment are clouding the outlook

The U.S. housing market has been in a slump for the past four years. When will it ever end?

In recent years, real estate has proven as jittery and unreliable as any other market.

Link to article and the 10 answered questions

1 in 4 Mortgage Borrowers is Under Water

Posted by David S Morgan

Nearly a quarter of U.S. mortgage holders owe more on their loans than their houses are worth, according to a report today in the Wall Street Journal.

Data from First American CoreLogic, a Santa Ana, Calif.-based real-estate information company, shows that in the third quarter of 2009 almost 10.7 million households had negative equity in their homes.

Link to the full article

Housing Bottom? “Not Even Close,” Barry Ritholtz Says

Posted Nov 24, 2009 02:07pm EST by Aaron Task

A fifth-straight monthly gain for the Case-Shiller Index Tuesday and Monday’s stronger-than-expected existing home sales report is giving renewed hope to the housing bulls.

“Disregard them,” says Barry Ritholtz, CEO of Fusion IQ,….

Link to video and article

New US home sales rise 6.2 percent

October new US home sales up 6.2 percent in sign of stability for housing

  • By Alan Zibel, AP Real Estate Writer
  • On 10:55 am EST, Wednesday November 25, 2009

WASHINGTON (AP) — Sales of new homes rose last month to the highest level in more than a year as strong activity in the South offset weakness in the rest of the country.

The Commerce Department said Wednesday that sales rose 6.2 percent to a seasonally adjusted annual rate of 430,000 from an upwardly revised 405,000 in September. Economists surveyed by Thomson Reuters had expected a pace of 410,000….

Link to full article

Arizona second in underwater loans

Phoenix Business Journal – by Jan Buchholz

Arizona has more homeowners who are underwater with their mortgages than any other state, save one.

About 48 percent of homeowners here owe more on their mortgages than the home is worth. That is second only to…

Link to full article

When will the market hit bottom??? November 16, 2009

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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The elusive question everyone is asking, ‘When will we hit the bottom of the real estate market?’ has no definitive answer but the tells point to the fact that we are still moving towards the bottom an not there yet.

Here is a decent video with Dan Alpert of Westwood Capital who sides with the real estate bears and puts the bottom in perspective with some economic fundamentals to consider when making our own guess.

Video and article

 

What is a real estate purchaser to believe???? October 21, 2009

Posted by mkuhbock in Arizona Vacation Property, AZ Real Estate News.
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I recently came across 2 separate articles that focused on the future of the real estate market. One was a national publication with grounded statistics while the other article was a local Phoenix publication that also was based on relatively hard numbers.

The funny thing is that both articles screamed the opposite opinion of where the market is going. The Phoenix based article speaks of a recovery and that the real estate slump is over while the national article talks about more pain and how real estate prices are about to go much lower.

My take is that the market will bounce along the bottom for another 36 to 48 months, great deals will be had and some insulated pockets in the Valley will actually see a decline in properties for sale and realize a marginal appreciation in value.

Check out the articles for yourself:

Phoenix-area consultants contend local real estate slump is over
Bizjournals.com – Charlotte,NC,USA
Two Phoenix real estate consultants are claiming the local residential real estate meltdown is over. Karl Guntermann, the Fred E. Taylor professor of real …

Housing Prices: Expected to Drop More in the Next Year?Home values are predicted to fall in 342 out of 381 markets in the next year, according to a new forecast. Learn why and find out which cities could buck the trend…