BlogArizona Category: Buying Commercial PropertyThis page contains all BlogArizona posts related to Buying Commercial Property. Read a specific post by clicking on a title below, or scroll further down the page to read through all posts in this category.Monday, August 16, 2010Commercial Real Estate Question...Here's a question for all the commercial real estate agents, brokers and developers out there. Why do commercial real estate developers always put these bumpy landscape tiles right by grocery store entrances and exits? There must be a good reason because all the major grocery stores have these. But they're such a pain because stuff starts falling off your cart as soon as the wheels hit these things. If you try to go over them slowly, the cart's wheels get stuck. If you try to go over them quickly, your cart bounces around and stuff falls off. Posted by Shannon Hubbard, AZ Realtor & Computer Guru on August 16, 2010 | Permalink | Comments (8) | TrackBack Friday, November 06, 2009They're Back... Zip Codes Come Back to AZ MLS!The Zip Codes Are Back! Thank you nice folks at Arizona Regional MLS (ARMLS®)!! Zip codes disappeared from AZ MLS sheets sometime in the past few weeks. I don't know for sure when the zip codes returned, but I noticed it yesterday, (ironically) right after I finished talking on the phone with another real estate agent who mentioned the missing zip codes! He was giving me an address and didn't have the zip code because it wasn't on his MLS printout! But now I'm happy to say that MLS looks like this again...
Posted by Shannon Hubbard, AZ Realtor & Computer Guru on November 6, 2009 | Permalink | Comments (10) | TrackBack Thursday, October 29, 2009Zip Codes Missing from Arizona MLSDear nice folks at Arizona Regional MLS (ARMLS®), What happened to the zip code? It used to be prominently displayed at the very top of the MLS printout (after the city & state where it belongs!). It looked like this...
It just disappeared in the past couple of weeks, so hopefully it won't be too hard for you to find it. I know you're usually very good about informing Realtors® when you make changes to MLS. So perhaps you did send out an email informing Realtors® the zip code would be disappearing soon. Unfortunately, I didn't get the memo. So here I sit wondering, what the heck happened to the zip codes? Please help. Thank you!
Posted by Shannon Hubbard, AZ Realtor & Computer Guru on October 29, 2009 | Permalink | Comments (1) | TrackBack Monday, October 19, 2009Extending or Expanding Tax Credit for First Time Homebuyers: Good for the Real Estate Market?Knowing that I'm a Realtor® and that much of my income is dependant upon the real estate market, you might be surprised as you read my opinion on extending and/or expanding the Homebuyer Tax Credit. For starters, I'll say that I believe the free market can almost always solve problems better without government involvement. Unfortunately, the real estate market has not been allowed to operate without government interference for some time. I'll even go one step further and say that government interference caused the real estate market bubble and resulting crash, and the same idiots who created the problem should not be trusted to fix it. Politicians, who wanted to buy votes by forcing banks to give loans to people who could not afford to pay them back, are the primary cause of the real estate bubble and ultimate crash (which I believe also caused the current recession). This effort was driven by bleeding-heart liberal Democrats, but many of the so-called conservative Republicans shamefully went along with it for many years and many administrations. We all know what happens when banks are forced to lend money to people who can't afford to pay it back... eventually they don't pay it back and the banks lose money. The banks then have to make up these losses somewhere else: either by charging good customers more, or by (the new trend of) getting billions in bailout dollars from taxpayers. So either way, hard-working taxpayers lose when government forces businesses to make bad bets. But instead of recognizing that government is the problem, our brilliant bureaucrats instantly (and without any real thought) decided that more government is the answer. So they offered $8,000 refundable tax credits (aka govt handouts) aimed at first time homebuyers who otherwise could not afford to buy a house. HELLO? These are the people whose loans are currently foreclosing at astronomical rates. Incentivizing people who can't really afford a house into buying one anyway isn't going to fix the real estate market or the banking situation. This is what caused the problem! Repeating the same mistake will only prolong the agony and further stress the financial institutions that finance these properties. Not to mention the fact that it's inherently unfair to ask some taxpayers to pay higher taxes so the government can give their money to others for a down-payment on a new house they can't really afford. And then add insult to injury by forcing those same taxpayers to bail out the banks when these loans foreclose, as if it were not foreseeable (right!). So like cash-for-clunkers, I believe the First Time Homebuyer Tax Credit was a stupid idea, and therefore extending or expanding it will ultimately do more harm than good to the real estate market. It may cause a short-lived spike in sales like cash-for-clunkers did (at the cost of future sales, by the way). But do we really want manic ups and downs in the real estate market, or do we want a slower but sustainable growth? I think anyone who owns real estate or works in the real estate industry would agree that a slow, sustained growth is better for all of us in the long run. Some lawmakers and various Realtor® associations are pushing to increase the tax credit to $15,000 and extend it to more than just first time homebuyers, with a higher limit on the buyer's income. To me, this is just the same dumb idea with longer lines of people taking the handout, and with a much higher price tag. So when will the real estate market start to recover if government stops interfering? It's already started to recover, in Arizona at least. Keep in mind that national statistics quoted in the news may not be applicable to Arizona's real estate market. Real estate is local. Arizona was one of the first and hardest hit areas of the country when the real estate bubble started to burst (for lack of a better term!). And I think Arizona was also one of the first to start recovering, because Arizona real estate prices were driven down faster and lower than other areas. And lower prices is what makes buyers start coming out. Don't get me wrong, the Arizona real estate market is not all sunshine and lolli-pops. Not at all. There are still tough times ahead, but people are buying despite the fact that banks aren't really lending like they should be (I guess it's more profitable for banks not to lend, and suck up taxpayer bailouts instead!). But if the government just stays out of the way, the market will slowly recover on its own - without unnecessary, artificial government stimulation that really just wastes billions in taxpayer's money.
Posted by Shannon Hubbard, AZ Realtor & Computer Guru on October 19, 2009 | Permalink | Comments (8) Is the Phoenix, Arizona Real Estate Market Recovering?Here's a snapshot of the current Phoenix metro area real estate market, as I see it: At the end of last year, the real estate market in the Phoenix metropolitan area started to pick up... not because of any government program, but because the free market works. When prices came down to a certain level, the investors came out to play. Some of those who were sitting on the sidelines waiting decided it was time. And people started buying again... not in huge droves like a few years back when people were fighting each other for houses. But then again, who wants that, really? (I was taught that slow and steady wins the race!). Since then, I've seen a steady flow of buyers into the market, and many banks/real estate agents are even creating bidding wars again. Of course, these bidding wars are driven by totally fabricated demand. The bank has a real estate agent list the house for a super low price to attract multiple offers. Then instead of rejecting any of the offers, they entice all of the propsective buyers into a bidding war and tell them to make their "highest and best offer". None of the buyers know what the other bids are, so they often times end up bidding higher than they should because they get sucked into the emotion of 'wanting to win the bid' rather than rationally determining what the house is worth without that emotion present. I always tell buyers to avoid bidding situations, even in a sellers market. But especially in the current buyer's market... there are still way too many houses available for sale right now to get into a bidding war. Go find a seller who appreciates your offer more and is willing to negotiate under your terms. In a buyer's market, the buyer should feel like they're driving the terms of the deal, not the seller. But realize that Arizona's residential real estate market still faces significant foreclosures, and this will continue for some time. Supply is good for buyers and you shouldn't let uncertainty scare you away from the market if you're buying an owner-occupied home that you plan to keep for at least 3-5 years. However, I would advise inexperienced investors to be very careful buying Arizona real estate right now, especially if you plan to do a short-term flip. There's money to be made, but you can also lose a bunch so just know what you're doing. In my opinion, Arizona's real estate market is recovering, but is not out of the woods yet. The biggest danger to this recovery (other than government interference) is the commercial real estate market. I'm not sure why nobody is talking about it, but the commercial market could create huge problems in the coming years, especially if banking problems are not addressed. Commercial real estate market trends lag the residential market, and I don't think we've even started to see the real impact of the commercial market yet. Here's why: Many commerical real estate mortgages are 5-year or 10-year interest-only loans with balloon payments due at the end of the term. So as those commercial loans made at the height of the real estate bubble start to come due (as they currently are), the property owner (probably a small business owner) will have only a few choices. They either have to pay off the entire balance, which is unlikely for most businesses since they're probably already struggling to make ends meet. Or they'll have to re-finance the loan, which is also unlikely because 1) property values are much lower now and the property is probably not worth the loan amount anymore, and 2) lending standards are tighter and commercial loans are very hard to get. So if these loans can't be re-financed or paid off, the only other option is to sell the property before the loan is due. Many property owners will wait too long, not realizing how long it takes to sell a commercial property in today's market and will consequently face foreclosure. For this reason, I believe the commercial market could be the next big real estate crisis. Of course, I don't have a crystal ball, and nobody really knows for sure what tomorrow will bring. Everybody with an opinion on the future of the real estate market is really just guessing :) So my advice is guess carefully, and as always, buyer beware!
Posted by Shannon Hubbard, AZ Realtor & Computer Guru on October 19, 2009 | Permalink | Comments (5) | TrackBack Monday, July 06, 2009Did your AZ Representative Help Defeat the Anti-Sanctuary City Bill?Before adjourning July 1, the Arizona House defeated a bill (HB 2280) by Senator Russell Pearce that would have cracked down on pro-illegal alien “sanctuary” laws and aided in immigration enforcement by expanding the state’s trespassing law. While the Senate approved the bill 16-11, the House was five votes short of the 31 needed for passage. Democratic politicians usually oppose illegal immigration enforcement, as they need the pro-illegal money and votes to get re-elected. But three Republicans also opposed this bill even though the State Republican Party unanimously passed a resolution supporting it and numerous law enforcement organizations endorsed it (at least those who haven’t had long-standing ties with open-borders groups and cheap-labor business lobbyists). The 3 Republicans and 12 Democrats who opposed this bill were:
What's really disturbing is that 19 members of the House (listed below) did not even vote on the bill at all. Shame on them. I was told the six Republicans listed below physically left the Capitol building so they didn’t have to go on record as opposing HB 2280 (sadly, my Representative was among them):
Is this really what we pay our elected officials to do... play both sides of the aisle and hide their true beliefs so nobody knows what they support or oppose? I know I didn't vote for that. I expect my elected representatives to help Americans, not illegal immigrants. And no, I'm not a racist although the pro-illegal immigration crowd will say anyone who wants our immigration laws enforced must be a racist (so go ahead and send the emails anyway - my delete key is ready!). I simply want our laws to be respected by all. You and I must obey the law or pay the consequences. Why are illegals getting a free pass at our expense? Our immigration laws have been ignored for long enough, and selective enforcement of some laws results in lack of respect for all laws. If all laws are not enforced, how do you know which ones they're really serious about? So what does this have to do with real estate? PEOPLE DON'T WANT TO LIVE IN SANCTUARY CITIES. Eliminating sanctuary city policies will not only aid law enforcement and make our cities safer, but this bill will also alleviate some of our financial problems. Sanctuary cities are plagued with increased costs and decreased quality of education, healthcare, law enforcement and all other social services. Sound familiar? Our current budget mess reminds us that Arizona can't even afford the services it's currently providing. So do we raise taxes, reduce services & quality of services provided to legal residents, or eliminate services for those who are here illegally mooching off the rest of us? Seems kind of like a no-brainer to me, especially considering that many legal Arizona residents are currently unemployed and in need of assistance. But then I'm just a lowly taxpayer so I don't have all that special "State Representative" knowledge that's required to make such important decisions with other people's money. The defeat of this bill means that sanctuary policies, like those in Mesa and other Valley cities, will continue to:
When public assistance agencies are prevented from inquiring about an applicant's immigration status, benefits are distributed to ineligible illegal aliens. Sanctuary policies directly violate Federal law and make it easier for illegal aliens, including criminal aliens, to live undetected in Arizona. How many citizens, including police officers, have to die or be maimed before we decide to enforce our immigration laws? ATTENTION STATE LAWMAKERS: If you oppose a bill, at least have the backbone to stand up and say so. Otherwise, don't ask for my vote next time you run for re-election... because I will show up to vote against you (and I'll encourage everyone I know to do the same). And by the way, illegal immigrants don't vote, but angry American citizens do. If your AZ Representative is listed above, be sure to email them and let them know how you feel about their vote (or lack thereof) on this issue. Just click the email address of your Representative to send a pre-written letter, or edit the email to say whatever you'd like. Click here to look up your Representative.
Posted by Shannon Hubbard, AZ Realtor & Computer Guru on July 6, 2009 | Permalink | Comments (7) Sunday, July 05, 2009Federal Reserve Keeps Interest Rates Low... No Worries About InflationI'm really sick of looking at this really old post about the Federal Reserve and interest rates so I'm posting an update! At the end of June, the Federal Reserve met and decided to keep the federal funds rate the same at 0 - 0.25%. The federal funds rate is the rate banks charge each other. This was really no big surprise, as most economists expected the Fed to leave the rate alone. It hasn't changed since December 2008 and isn't likely to increase anytime soon. The Fed says that the pace of economic contraction is slowing and there's evidence of household spending stabilizing, but inflation does not seem to be a worry to the Fed right now.
Posted by BlogArizona BlogMaster on July 5, 2009 | Permalink | Comments (5) Tuesday, August 05, 2008Federal Reserve Leaves Interest Rates AloneEarlier today, the Federal Reserve decided to keep its main interest rate the same. The federal funds rate, which is the rate banks charge each other, will remain at 2.0%. This was really no big surprise, as most economists expected the Fed to leave rates alone during today's meeting. In fact, even despite fears of inflation, many believe the federal funds rate will remain unchanged for the remainder of the year. Keep in mind that the federal funds rate does not immediately affect long term mortgage rates, but the Fed's decisions can affect consumer confidence in the real estate market right away. Wall Street investors sure loved today's news, and the stock markets went crazy! Although inflation is becoming a very real worry, the Fed obviously thinks the fear of economic slow down is greater. I tend to agree (not that any economists care what I think!). But the housing and mortgage markets really need to improve before the Fed starts raising interest rates again. Higher rates could really hurt an already slow real estate market.
Posted by Shannon Hubbard, AZ Realtor & Computer Guru on August 5, 2008 | Permalink | Comments (27) | TrackBack Sunday, April 06, 2008Selling a Home in AZ and Not Sure What to Disclose to the Buyer?I recently received an email with this question about disclosure of sex offenders when selling a home in Arizona:
First, I have to say that I'm not an attorney so I can only address this question in the general sense and from a Realtor's perspective. So do not consider my answer as legal advice, and ALWAYS consult an attorney for questions about your own specific situation. Second, don't believe everything you read in the mainstream media! Of course, you can't believe everything you read on the internet either. But I do know bloggers who are much more thorough about checking facts than some of the major media outlets. Arizona legislators are constantly updating our laws, and real estate disclosure is a hot topic. However, I don't think a change to the law is the source of confusion in this case. From my experience, I'd say all of the sources quoted are technically correct. I think this is the USA Today article that was referenced in the question, here's the AZ real estate attorney who was mentioned, and here's the Arizona Association of Realtors (AAR) Residential Seller Advisory form. The AAR Residential Seller Advisory does indeed state, "By law, sellers are not obligated to disclose that the property is or has been... located in the vicinity of a sex offender." But if you keep reading, it goes on to say, "However, the law does not protect a seller who makes an intentional misrepresentation." And then the top of the next page says, "Sellers are required by law to disclose all known material (important) facts about the Property to the Buyer". So what is considered to be "material" or "important"? Generally, anything that may affect a buyer's decision to buy is definitely material and should be disclosed. To be safe, I tell sellers that EVERYTHING is material to the buyer. At least, a seller has to assume that everything is material because they don't know what's material to the buyer. Every buyer is different... what seems minor and unimportant to the seller may very well be minor and unimportant to one buyer. However, that same item may be extremely important, and thus material, to another buyer. If it ends up in front of a judge, I would guess that anything and everything the buyers find out later, that the seller knew and didn't disclose, will be considered material! The AAR Residential Seller Advisory reinforces this idea with it's heading, "When in doubt, disclose!". If the sellers know there's a sex offender living down the street and the buyers ask, I would tell the seller to disclose it, in writing, to protect both the sellers and the buyers. Even if the buyers don't ask, I would still tell the sellers to disclose it, in writing. It doesn't matter if the buyers are older or don't have kids. You cannot assume they don't care about a sex offender living nearby. They may have grandchildren who visit and play outside, or friends that come over and bring their kids. My point is, you shouldn't try to get inside the buyer's head and figure out what is, or is not material. Only the buyer can decide that. Just disclose it and let the buyers make that call... whether it's a maintenance problem, or something you know about the neighbors, homeowners association, schools, etc. Disclose whatever you know. I know many people are reading this thinking, "Disclose it, even if it they don't ask? That would probably kill the deal." Well, it's better to kill the deal now than end up in court later. And actually, being honest from the beginning by making full disclosure reduces the risk of a last minute deal-breaker, 29 days into the transaction. As a seller, if the deal isn't going to close, don't you want to know right away instead of AFTER your house has been off the market for a month? Full disclosure isn't just for sellers either. It's a two-way street. Buyers should also disclose anything that might be material to the sellers, like if they know something which may affect their ability to qualify for a mortgage. The "golden rule" can (and should) be applied to real estate transactions, just like anything else in life. Every transaction is smoother, less stressful and turns out better in the end if both parties are honest and upfront with each other from the beginning. But buyers, don't be naive! You should NOT rely on the sellers to disclose all material facts about the property you're buying. Even if the sellers are honest people, they may not know all the material facts. So buyers must also do their "due diligence" by investigating everything that's important to them. The AZ Department of Real Estate advises buyers to read and investigate the items on this checklist for Arizona home buyers. While the law may require certain disclosures, "Buyer Beware" is a reality!
Posted by Shannon Hubbard, AZ Realtor & Computer Guru on April 6, 2008 | Permalink | Comments (14) | TrackBack Monday, February 25, 2008AZ Home Inspector Licensing Board going away?Arizona Home Inspectors need your help! Arizona's home inspector licensing agency, the AZ Board of Technical Registration (BTR) is inefficient, expensive and allegedly corrupt. In fact, Arizona lawmakers are thinking about eliminating the BTR altogether (SB1171), and moving home inspector licensing to the Registrar of Contractors (ROC). As most of my readers already know, I'm co-owner of Homewerx Home Inspections, one of the Valley's leading home inspection companies since 1999. As such, I sincerely appreciate your support on this matter. While I do NOT support eliminating the BTR, it definitely needs some change - starting at the top with the guy in charge. It's unfortunate, but AZ home inspector licensing seems to be alot more about money and power and industry organizations than it is about quality home inspections. There are some real problems and conflicts of interest that have just been ignored at the BTR, and we all know that problems don't just go away when they're ignored...they get worse! Now, the BTR is so inefficient and lacking accountability that I think the whole idea of protecting homebuyers got lost somewhere along the line. Home Inspectors don't trust the BTR, consumers kind of laugh at them. And the cost of inefficient government regulation is real... look at how much it costs to be a home inspector in Arizona compared to other professionals licensed by the same agency. And look at how much Arizona home inspectors pay compared to home inspectors in other states. "Wow" is all I can say! Home Inspection companies inevitably pass these ridiculous costs onto the homebuying consumer, who is already strapped for cash in case the BTR hasn't heard. And a home inspection is an out-of-pocket expense - those are the ones that really hurt and will be a deal-breaker alot quicker than borrowed money will. So please Help support the 'little guy', and you will help keep Arizona home inspection prices down plus eliminate government incompetence at the same time. Thank you again for your support!
Posted by Shannon Hubbard, AZ Realtor & Computer Guru on February 25, 2008 | Permalink | Comments (3) | TrackBack |
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