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REAL ESTATE
AHWATUKEE FOOTHILLS NEWS | MARCH 4. 2020
Buyers and sellers need caution with ‘flippers’ BY PATRICK MACQUEEN AFN Guest Writer
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opular shows like HGTV’s Flip or Flop, Desert Flippers, and Music City Fix make the fix and flip process look exciting and lucrative to viewers. The finished homes are aesthetically pleasing and the “flip” is almost always profitable. According to a 2018 study, more than 200,000 homes were bought and re-sold within the year. It’s almost 6 percent of the single-family homes and condos sold in 2018. I’ve personally seen nearly 250 “fix and flips” gone bad and, in most instances, a little planning and correctly satisfying disclosure obligations could have saved all involved from a nightmare. In the last six months alone, I have seen two separate situations in which the failure to provide adequate disclosures in
connection with the sale of a home result in an award of punitive damages to the homebuyer. Therefore, it is imperative both “flippers” and buyers understand exactly what they’re doing. For those “flippers” out there – i.e., investors purchasing an under-valued home needing a little TLC and then turning the home into the latest and greatest version of itself – here are a few tips to keep the cash coming and the lawsuits at bay. First, always use an entity; do not own the property in your individual name. Failing to own the property through an LLC or other legal entity can result in the loss of personal assets and could spell financial disaster. Second, when advertising the home for sale after it has been redone, choose your words carefully. You’ll want to avoid using words like “completely,” “entirely,” and/or “totally.” These words may mean one thing to you, but something “entirely” different to
Leading Luxury Home Experts
a potential buyer. Third, the seller disclosure form is your friend, so use it to your advantage. Oftentimes, “flippers” insist they not be required to make certain disclosures about the property being “flipped” because the “flipper” never resided there. This could spell disaster. In many instances, “flippers” actually know more about a house because of the extensive remodeling done to the home. Additionally, in this seller’s market, many buyers will continue with their home purchase, even if significant issues with the home have been disclosed. If you are purchasing a home that has been “flipped,” there are certain things you can do to ensure you aren’t buying a flop. For starters, you should obtain an inspection by a licensed inspector. Do not rely on warranties or statements made by the “flippers” or their contractors. Instead, consider obtaining a basic home inspection, a termite inspection and, if
applicable, separate roof and pool inspections. Be sure to read the inspection report and ask questions. Second, request a fully completed and executed sellers’ property disclosure statement. There is usually no valid reason for a seller to deny the request. At the very least, the seller can tell you when the home was purchased, the address of the home and the work completed. Next, pull an insurance claims report on the home. This will help to determine whether there have been claims related to the home and the extent of an insurance loss. Request contractor information, receipts and warranties the “flipper” obtained from various contractors. Upon receipt of these items, you will soon learn whether the “flipper” used a licensed contractor (which are required in many circumstances) or
see FLIPPING page re7
Real estate investing in metro Phoenix is hot BY TONY JULIANELLE AFN Guest Writer
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he Fed intends to keep interest rates stable for the foreseeable future, though the possibility of modest rate cuts in 2020 is not out of the question. This interest rate environment presents a particularly viable opportunity for those looking to invest in real estate. Lower rates mean reduced interest payments, meaning potential buyers can afford more. However, to have long-term success in real estate investment, potential investors must select a location very carefully. The Phoenix real estate market offers affordable and achievable investment opportunities. A strong job market keeps rental demand high so landlords can generate regular cash flow. Arizona also offers low property taxes and landlord-friendly regulations, making Phoenix a market every potential investor should strongly consider.
NEW LISTING
AHWATUKEE CUSTOM ESTATES
THE SANCTUARY
SALE PENDING! .
4627 E Rocky Slope Drive
$459,900
2,387 sqft, 4 bedrooms, 3 bathrooms. This Absolutely Amazing Corner Cul-de-Sac Home has just had a Magnificent Make Over! All new exterior and interior paint, new roof, new flooring in EVERY room! Kitchen has newly refinished cabinets, new granite counter tops, new appliances and a new sink! Bathrooms have newly refinished cabinets, granite counter tops, fixtures, sinks and tubs/showers so many UPGRADES! This 4 Bedroom 3 Full Bath 3 Car Garage (with brand new epoxy flooring) also offers a large grassy backyard with mature trees and a big covered patio! Just a beautiful home with vaulted ceilings, lots of natural light, nice sized rooms...This one won’t be around long...it is just too awesome! Fantastic remodel done through out. Great single level open floorplan!Conveniently located near local shopping and restaurants, only minutes from Sky Harbor Airport or Downtown Tempe/Phoenix. Come see this one while you can! Ahwatukee Foothills Voted #1 2019 Best Places to Live in the Phoenix Area by the Phoenix Business Journal!
602.369.1085 BONNY HOLLAND Ahwatukee Resident and Realtor since 1995
Bonny@LeadingLuxuryExperts.com
1930 E Brookwood Court
$866,745
3,703 sqft 4 bedrooms, 3.5 bathrooms. Single Level Magnificent Custom Luxury Home located in the Mountain Side Quaint Gated Community of The Sanctuary. Enter into this beautiful home through a lovely private courtyard, once inside take in the openness and gorgeous views of South Mountain. Boasting a Great Room complete with surround sound, a Gourmet Eat-In Kitchen with a grand kitchen island, Split Floor Plan with a spacious Master en Suite, Large Secondary bedrooms and a Dedicated Office with Beautiful Wood Built-In’s. The lake front backyard offers amazing views of South Mountain, with a large covered patio and sparkling pool. A perfect place to call home!
WOODLAND VILLAGES
NEW LISTING!
In real estate, it’s more important to be patient. Rental properties are less liquid than stocks, it takes time to improve properties and rental units located in the right markets provide cash flow worthy of a long-term hold strategy. As with stock market investors, real estate investors know it is likely property values will be higher in 20 years, despite short-term ups and downs. The difference between Phoenix and an oversold market like Southern California is in 20 years, Phoenix has enormous room to appreciate. In a market like Phoenix, 20 years of cash flow can be followed by a highly profitable sale. PwC ranks Phoenix as one of the top real estate markets in the United States. The Phoenix market provides ample opportunities for homeowners and toplevel investment properties for landlords. Phoenix’s rental market ranks number one in the country, which factors in a region’s economy and rental affordability.
Because Arizona boasts a 4.2 percent economic growth rate, plenty of newcomers flock to its biggest metro area to find work. When they arrive, they find affordable rental units located in the downtown metro area and across the larger valley. From the landlord’s perspective, this means profitability. The cost of rental properties is lower and units are filled faster; hence, there is a greater assurance of positive cash flow. Arizona offers a landlord-friendly environment. The state puts fewer onerous restrictions on landlords making compliance less expensive and timeconsuming. For example, San Francisco hurts landlords with highly restrictive zoning regulations, making it impossible to develop new and affordable rental units in certain areas. As part of its landlord-friendly philosophy, Arizona passed a January 2017 law prohibiting any city or town from re-
SALE PENDING!
3302 E Tonto Drive
$1,349,900
6,606 sqft, 7 bedrooms, 7.5 bathrooms. This pristine and elegantly crafted Santa Barbara style custom home sits on an enormous half acre lot and boasts spectacular mountain views. Nestled in the highly sought after Ahwatukee Custom Estates, this home is an entertainer’s dream! With a spacious layout, gorgeous expansive and updated kitchen, stainless appliances, oversized island opening to a fantastic family room, and a tremendous stack stone fireplace, the space is both comfortable and classically sophisticated! From the moment you enter the front door, this home has both elegance and style!
$394,900
2,234 sqft, 4 bedrooms, 2.5 bathrooms. This home is a must see! Pristinely maintained, highly updated, you will not find a home of this quality in this price point that has all of the amenities and upgrades with modern interior finishes. The backyard oasis is not only serene and relaxing, but a perfect entertaining spot.
NEW LISTING!
14649 S 4th Avenue
$630,000
3,322 sqft, 4 bedrooms, 3 bathrooms. Located in the mountainous gated community of Montana Vista, this beautiful single level 4 bedroom with a dedicated office 3 bath split floor plan is the perfect house to call home. Very spacious, with a Gourmet Kitchen to die for! So much storage and counter space, the open concept keeps everyone together while entertaining or just relaxing by the fireplace. The backyard is accessible from all main rooms in the home, with a sparkling play pool, covered patio and views of the mountain it is a space you will want to enjoy!
14621 S 1st Street
$1,740,000
7,303 sqft 6 bedrooms, 7 bathrooms. Located in the Hillside gated community of Summerhill, this custom luxury estate has it all! 6 bedrooms, executive office, 4 full bathrooms and 3 powder rooms plus a basement, a Chef’s dream gourmet kitchen with all the upgrades, formal living room with gas fireplace and a wide in-line pocket door that brings the outside in, an elegant master bedroom en suite has a gas fireplace with a sitting area which opens into a luxurious master bathroom with a 6 foot two person Jacuzzi jetted tub complete with spectacular mountain views!
www.LeadingLuxuryExperts.com
NEW LISTING!
2127 E Barkwood Court
$1,499,900
6,640 sqft, 5 bedrooms, 7.5 bathrooms. This is a breath-taking luxury all custom property sparing no expense, which is nestled on the mountain side in the highly coveted gated community of The Sanctuary. The exterior of this home is striking with a private gated and pavered drive that invites you into a spectacular courtyard with covered patios, open sitting areas, a negative edge spa which cascades into a roman style pool all situated to take in the amazing mountain views of South Mountain.
Each Keller Williams Office is Independently Owned and Operated.
NEW LISTING!
1643 E Desert Willow Drive LOT 60
$275,000
68,746 sqft/ 1.58 acres . Marvelous Hilltop Custom Home Lot with Priceless Mountain and City Light Views! With an overly generous building envelope of 18,948 sqft. One of the best lots left to build your Dream Home on in Ahwatukee! Gorgeous mountain views North, East and West. With just over an Acre 1.5 acres of Natural Beauty in the Highly Coveted Community of Tapestry Canyon. Surrounded by million plus homes!! Private, exclusive and relatively flat building site.
AHWATUKEE CUSTOM ESTATES
THE SANCTUARY
SUMMERHILL
16022 S 46th St
SOLD!
see INVESTING page re7
TAPESTRY CANYON
MONTANA VISTA
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stricting short-term rental services such as Airbnb, allowing Arizona landlords to benefit from the short-term housing boom. As a prime winter vacation spot, Phoenix has a regular influx of snowbirds, many of whom need rentals ranging from weeks to six months, a boon for landlords. In contrast to short-term rentals, clients tend to purchase their future snowbird homes now, but typically as an investment property. By renting it out for years leading up to retirement, they’re able to own a second home in a warm locale largely, if not entirely, paid for by the time they reach retirement age. They benefit from immediate positive cash-flow, pay down debt associated with the property and establish an appreciating asset they can either continue to rent full-time, or use as their own vacation home.
#1 Agent in Ahwatukee Closed Volume 2019
2016 & 2017 BREA Award for Most Sales in Ahwatukee!
MOUNTAIN RANCH ESTATES/VILLAS
REAL ESTATE
MARCH 4. 2020 | AHWATUKEE FOOTHILLS NEWS
3407 E Tere Street NEW $866,745 LISTING! Absolutely Gorgeous One-of-a-Kind Craftsman with a Basement Located in the Prestigious Community of Ahwatukee Custom
Estates. The Main floor offers a Gourmet Kitchen Upgraded in Re-Purposed Iowa Barnwood with a Large Farm Sink, Subway Tile Back Splash, Quartz Counter Tops and a Large Kitchen Island with Under the Counter Mounted Seating. Other Rooms include: Quaint Family Room, Formal Dining Room, 6th Bedroom/Den/Office with full Bathroom and a Massive Laundry Room which doubles as a Craft Room, Upstairs Loft Area, Master Bedroom en Suite with Private Balcony, Upgraded Master Bathroom plus 3 more roomy Secondary Bedrooms and Bathrooms. The Fully Finished Basement Boasts another Bedroom with Full Bathroom, Built-In Playhouse, Walk-In Pantry, Extra Large Open Flex Space for Game Room, Theater Room or Exercise Space the possibilities are endless! Huge Backyard with Tons of Outdoor Entertainment! Pool, Batting Cage, Half Court, Trampoline and Multiple patio and sitting areas! A Must See!!!