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There’s one thing I do know…That during uncertain times we MUST provide massive, unexpected value to our Tribe (our sphere of influence). They are counting on us to lead, guide and protect them. |
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The Federal Reserve recently cut interest rates to Zero. Most homeowners and prospective homeowners believe that means mortgage rates are falling. What most people do not understand is that the Fed cut short term rates, not mortgage rates, and there is not necessarily a correlation. Of recent, due to fears of the impact Coronavirus will have on not only the US economy but the global economy, mortgage interest rates experienced a significant drop. Unfortunately, it created so much refinance activity, that the industry as a whole could not keep up with the volume. Simply not enough manpower or liquidity to handle the surge of volume. To counter this surge in business, the industry has artificially raised mortgage rates. Long term mortgage rates have been rising over the last week.
The silver lining is that the Fed is also purchasing $700+ billion in treasuries and mortgage backed securities (MBS), which will ultimately lower long-term mortgage rates; just a question of when. In the near future nearly, all homeowners will be able to take advantage of lower interest rates. All this will require is some patience. |
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CORONAVIRUS STAT REPORT Supply is extremely low. Demand is above normal. We’re still in a full-blown seller’s market. I’m not expecting any surprises when the March closing numbers are reported. Tom Ruff CLICK HERE |
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LANGUAGE TO SEND VIA MAIL FOR PASTE IN ADDENDUM
SAMPLE PROVISION 1 Notwithstanding any other provisions of this Contract, the parties agree and acknowledge that in the event either Buyer, Buyer’s lender, Seller, Escrow Company or appropriate county recorder’s office becomes the subject of a voluntary or mandatory COVID-19 virus quarantine or closure prior to or at the time of Close of Escrow, or if in the event of a Buyer Contingency Addendum pursuant to which Buyer or Seller is a party to another transaction that is delayed due to a voluntary or mandatory COVID-19 virus quarantine, that results in a party's inability to perform on the Close of Escrow date, the closing may be automatically extended by either party for a period of up to ten (10) business days after such quarantine or closure order is lifted unless the parties otherwise mutually agree to extend Close of Escrow.
SAMPLE PROVISION 2 Notwithstanding any other provisions of this Contract, the parties agree and acknowledge that in the event either Buyer, Buyer’s lender, Seller, Escrow Company or appropriate county recorder’s office becomes the subject of a voluntary or mandatory COVID-19 virus quarantine or closure prior to or at the time of Close of Escrow, or if in the event of a Buyer Contingency Addendum pursuant to which Buyer or Seller is a party to another transaction that is delayed due to a voluntary or mandatory COVID-19 virus quarantine, that results in a party's inability to perform on the Close of Escrow date, the closing may be automatically extended by either party for a period of up to ten (10) business days after such quarantine or closure order is lifted, up to a maximum delay of thirty (30) days unless the parties otherwise mutually agree to extend Close of Escrow. Upon the expiration of any automatic or agreed extension, either party may terminate this Agreement without any further liability to the other party, and the Earnest Money shall be immediately refunded to Buyer. |
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Hackers are using these fake coronavirus maps to give people malware
As people seek out information about the spread of COVID-19, hackers are circulating fake dashboards that purport to show maps tracking the spread of coronavirus but that actually infect people’s computers with malware when opened. People have flocked to COVID-19 dashboards maintained by media and health authorities that help track the spread of the virus as the number of confirmed cases. Maps published by Johns Hopkins University or The New York Times are examples of reliable, non-malicious trackers. The tactic starts with hackers circulating links to malicious websites disguised as COVID-19 maps, either on social media or through misleading emails. When people open the sites, they’re directed to open an applet that can infect their device with and steals data like login credentials. As always, be careful when seeking information from unknown websites.
SOURCE: aaronline.com |
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There is a lot of uncertainty right now as the world fights off the Coronavirus. I thought it would be good to ease your mind about the Real Estate market and share the latest Real Estate market observation for the Phoenix Metro from a service no other metro is fortunate enough to have called the Cromford Report. This is a service is run by statistician Michael Orr, who holds a Masters Degree in Mathematics from the University of Oxford. Mr. Orr and his team dedicate themselves to crunching Real Estate data for Realtors here in the greater Phoenix Metro in order to produce statistics and reports that help interpret the numbers and patterns giving us a clear picture of what's really happening in the Real Estate Market. I've had a lot of clients reaching out to ask if Real Estate is going to nosedive much like the stock market or like what we saw in 2008. We are very far from it and the following market observation will tell you why. Please feel free to reach out if you have any questions. A number of people seem to assume that we are heading for a recession and that home prices will fall. The first assumption is quite reasonable. The second assumption is based on fear and has little analytical data to back it up. Obviously anything can happen in a uncertain and disrupted world, but a fall in home prices is still looking very unlikely from today's numbers. In 2005 the housing industry started to sicken because homes were being used as speculative commodities not for places to live. In 2005 I met a man in his early 20s who owned 12 homes in the Phoenix area, all with no occupants. How had he been able to buy them? 100% loans from unscrupulous lenders who went bust between 2007 and 2010. The housing industry (and more particularly the lending industry within it) was the cause of the 2008 recession. Phoenix was a hot spot for the cause of the problem, as was Las Vegas. In 2020, housing is an innocent bystander to a probable recession caused by a pandemic. It has supply at extremely low levels and most homeowners have a large amount of equity. Even if they lost all their income and could no longer pay their mortgage, they could quickly find a buyer to release that equity. There is little likelihood of them facing foreclosure because the lender can be paid off with the sale proceeds. Only when demand collapses do the banks have to foreclose to get their money back. At the moment demand is still well above normal and has only shown very tiny signs of easing. In 2006 demand fell off a cliff yet home builders continued to build even more new homes because lenders continued to write ill-advised loans in huge numbers In 2020 builders are probably going to have to build fewer homes than they wish because of shortages of labor and materials. We are unlikely to see a glut of homes on the market for a very long time. A successful vaccine for the novel corona virus is more likely to appear before a surplus of homes could possibly develop. Because the virus has not been contained yet, except in several parts of Southeast Asia, we are likely to see a lot of people out of work. We do not yet know how long it will take to get control of the pandemic in Arizona, but many people may be out of work for quite some time. These people are more likely to be renters rather than homeowners. Landlords may find it much harder to collect rents and the yields from their portfolios are likely to fall. Some may decide to evict tenants and sell their properties. At the moment the extra supply would be welcomed and receive multiple offers, even in these troubled times. The evicted tenants still exist and therefore still represent demand for shelter of some sort. There will be hardship, but not a flood of homes with no-one to live in them. Housing demand is created by the existence of people and increases when more people turn up and decreases if they go away. In 2005 the people we were building new homes for were largely imaginary. In 2020 they are very real and migration trends have been very favorable with families and individuals moving to Arizona from other parts of the USA. All the indicators for the Central Arizona housing market remain very healthy at the moment and we will report any change as soon as we spot one. There is no cause for panic and if you are delaying a purchase because you think the price will come down, you are probably making a poor decision." Michael Orr The Cromford Report ©2020 Cromford Associates LLC |
Coronavirus Creates Homebuyers’ Opportunity even as some valley builders close sales officesBy Angela Gonzales | Phoenix Business Journal Mar 18, 2020, 12:00pm EDT The coronavirus pandemic is causing some homebuilders to close their sales offices in the Valley at a time when low mortgage interest rates are creating a window for homebuyers. Given the current COVID-19 pandemic, Scottsdale-based Taylor Morrison Home Corp. has closed its sales offices, but will conduct business and schedule model home tours by appointment only until further notice. Los Angeles-based KB Home also has temporarily closed its sales centers, model homes and design studios across the country, including in Arizona. Instead, the company is offering virtual tours and assistance by phone and email. Scottsdale-based Maracay Homes is still conducting business in its sales offices and offering model home tours by appointment only, said Andy Warren, president of Maracay. “Our sales have held up surprisingly well over the past few weeks,” Warren said. “Interestingly, our sister company in Seattle, which has been dealing with impact from the coronavirus in a much more significant way for a much longer period of time, also continues to see strong sales. My hunch is that people recognize that home purchase decisions are ones that will impact and improve their lives for years to come, so they are able to see past the immediate challenges we are facing right now. I think that is very encouraging.” Andy Warren, president of Scottsdale-based Maracay Homes. Phoenix Business Journal, SAAR Online |
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3/25/2020: See New AAR ADDENDUM! |
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CORONAVIRUS INFORMATION LINKS: Governor Ducey’s Office: HERE Essential Services: HERE
April 7, 2020: New Order Increases Restrictions for out of state travelers; HERE View the executive order on travel resstrictions: HERE
April 6, 2020: Governor Ducey issues executive order halting evictions for small businesses and nonprofits: HERE
April 3, 2020 News Release: Additional Guidance On Essential Services: HERE (Removed: Barbers, Hair, Nail, Tanning, tattoo parlors, spas, massage)
March 30, 2020 News Release: “Stay Home, Stay Healthy, Stay Connected” Effective Through 4/30/2020 View the news release: HERE View the executive order: HERE
What does Gov Ducey’s shelter order mean for REALTORS? HERE
March 23, 2020: Executive order prohibiting the closure of ESSENTIAL SERVICES: HERE (See sect e (xix) for real estate services)
March 26, 2020: FYI: Governor Ducey Executive Order helping licensed professionals stay licensed and deferring certain licensing requirements for six months HERE NOTE: Real Estate Licensees are NOT eligible and will NOT be deferred due to the wide availability of ONLINE CE distance learning courses. Confirmed with ADRE commissioner Judy Lowe March 27, 2020. (See executive order 1(a), 1(b), 3(x).
March 19, 2020; ADRE letter: COVID-19 AND ONLINE CE: HERE
March 30, 2020: ADRE Update; Read the ADRE Real Estate Education Update and view the Public Database for online CE Courses: HERE
March 24, 2020: Governor Ducey’s Website, Executive Order DELAYING EVICTIONS: HERE
EVICTION FAQ’S, HOW TO QUALIFY: For tenants, landlords, property managers: HERE March 24, 2020: View governor Ducey’s executive order to Delay Evictions: HERE Spanish: HERE
Rental Eviction Prevention Assistance: COVID-19 Rental Eviction Prevention Assistance or HERE
ARIZONA TOGETHER: Resources for families and businesses: HERE (All services, utilities, internet, cable, unemployment, senior services, meals, homeowners, tenants, AHCCCS. mental health, childcare, etc)
Arizona Department of Housing: Mortgage Help For Homeowners Impacted By The Coronavirus: HERE
Arizona Department of Housing: Save Our Home AZ – Foreclosure Assistance (SOHAZ) Program questions may be directed to the Dept of Housing, Monday through Friday, from 8:00 a.m. – 5:00 p.m. by calling (602) 771-1000 or by visiting housing.az.gov/save-our-home.
FEDERAL HOUSING FINANCE AGENCY(FHFA) (Fannie/freddie); Mortgage help for homeowners impacted by the CORONAVIRUS: HERE
Community Legal Services: (FOR TENANTS AND HOMEOWNERS): HERE Community Legal Services (CLS) is dedicated to providing legal assistance, advice or representation, self-help materials and legal education so people can know their rights. We focus on helping survivors of domestic violence; assisting victims of consumer fraud and abuse, protecting tenants from unlawful/unfair practices by landlords, foreclosures, legal problems affecting agricultural workers, wage claims and other employment matters, and federal and state programs affecting peoples’ health and economic stability. Office Locations: HERE Andrew Hull (Hull, Holliday & Holliday, PLC) (FOR LANDLORDS): http://www.doctorevictor.com/ Forms, articles, notices, service animals, etc. Combs Law Group, March 25, 2020 by Cameron Combs: Do I make lease payments during a “shelter-in-place” order? HERE A literal English translation of force majeure is “superior force,” but is better translated as an “unavoidable accident.” These force majeure clauses relieve contracting parties from performance when there is an unavoidable accident that renders the contract impossible or impracticable to perform through no fault of one or both parties to the contract. ***AZ UPDATES*** https://www.azdhs.gov/ AZ Department of Health Services: HERE
ARMLS COVID-19 STATUS PAGE: HERE Virtual Open Houses, Showings and More 3/31/2020 ARMLS: HERE
AAR: COVID-19 Updates: HERE TOP 10 open house precautions: HERE Sample AAR CORONAVIRUS Addendum: HERE
NAR: Open House Guidance During COVID-19: HERE
NAR: Guide for realtors: https://www.nar.realtor/coronavirus-a-guide-for-realtors
NAR: Transaction Guidance: https://www.nar.realtor/transaction-guidance-during-covid-19 May an agent require an individual complete a COVID-19 screening questionnaire before showing an individual a property? Yes, it is reasonable to screen individuals for COVID-19 prior to showing an individual a property, but be sure to require all individuals to complete the questionnaire to avoid fair housing issues.
CDC: How to protect yourself: HERE
CDC: Cancelling or postponing air or cruise travel: HERE Avoid all nonessential travel in the United States: HERE CDC: Travelers returning from international travel should stay home for 14 days: HERE
Maricopa County: https://www.maricopa.gov/5504/Businesses Phoenix: https://www.phoenix.gov/newsroom
Scottsdale: https://www.scottsdaleaz.gov/news/coronavirus-update
World Map: HERE
How Brokerages & Teams Can Turn the Coronavirus Crisis into Opportunity: March 24th, 2020 HERE matterport.com 3D Virtual Tours:
CRES Insurance Services; CORONAVIRUS Articles, Safety, Working with Buyers, Working with Sellers: HERE
HomeSmart DB youtube video: HERE COVID-19 References: See HomeSmart DOWNLOADS link
Fair Housing: Actions prohibited under the fair housing act: HERE (Also NAR transaction guidance above)
Language for signature block: NOTICE: In accordance with Governor Ducey’s Executive Order 2020-12, real estate services are deemed essential in Arizona. The Governor has issued a “Stay home, stay healthy, stay connected" order wherein the identified essential services were not changed, rather functions of essential services are clear in that unless absolutely necessary everyone should stay home through April 30, 2020. What this means is open houses are now not considered essential. If you have a client that needs to list/sell their home or a buyer who must view homes at this time, you can conduct business under essential services. Please be certain to follow CDC and NAR recommendations as it relates to health, safety, physical distancing, etc. while conducting these activities.
HomeSmart remains 100% operational and here to support you and your business! The HomeSmart broker team is available by phone 602-889-2115 or by email at broker@hsmove.com during normal business hours along with after hours/on call broker access.
HomeSmarts position is that open houses are currently considered non-essential and should not be held. According to NAR, “the decision to hold an open house is up to the agent and seller, members should consult with their brokers, and consider how federal, state and local authorities recommendations and actions…impact the advisability, and even permissibility, of continuing to hold open houses at this time.”
The IRS has issued tax relief Notice 2020-18 pursuant to the President’s issuance of an emergency declaration in response to the COVID-19 pandemic. The Notice postpones the due date for filing Federal income tax returns and for making Federal income tax payments (otherwise due April 15, 2020) to July 15, 2020.
See Drop in showings chart on next pages
MARKETING: Everyone is at home, which means online searching is alive and well. I think Buyers are still seeing properties - just differently. The technology landscape has made it feasible to instantly communicate online, view 3D video tours of properties (via tools like Matterport), perform lifestyle searches of the surrounding areas, and even sign documents electronically and close transactions from the comfort of home.
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MLS PHOTOS AND PRIVATE REMARKS: 1) See attached INFOGRAPHIC. I have talked with ARMLS and they are ok if listing agents upload the attachment to the photos section of their listing. Please do not add any contact information or identifiers as this would violate ARMLS rules. Agents could also make it the primary photo for now if they wish.
2) In private remarks agents could add language such as: *****SHOWINGS BETWEEN 12-3PM ONLY. HOME IS BEING SANITIZED BETWEEN SHOWINGS. PLEASE USE THE HAND SANITIZER UPON ENTRY TO THE HOME. PLEASE DO NOT SHOW THE HOME IF ANYONE DOES NOT FEEL WELL***** |
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CASE STUDIES: 1) CAN TENANT STAY? Q: We have some un cooperative tenants at a listing I have. They are paying very low rent and getting all utilities included. They have been stalling so she wanted to go on the market and they will not let anyone in due to the COVID-19. I understand this, but before things got bad they did not want us to do anything either. Is 60 day notice same as eviction? A: Your client should seek the guidance of a real estate attorney as the governors emergency declaration could allow the tenants to stay in the home for 120 days. View the governors executive order HERE Unless of course the tenants agree to vacate, so she should keep pursuing that, but she can't force them out. Here is the link to a good landlord attorney, Andy Hull. Andrew Hull (Hull, Holliday & Holliday, PLC) http://www.doctorevictor.com/ Just not a good time to be having issues with tenants during this pandemic. Take care and stay safe, Jeff. 2) CAN I DEVELOP MY OWN FORM TO HAVE SIGNED? Q: As I am getting ready to list a new property, I wanted to ask if other agents are disclosing in writing to be aware of the COVID 19 and if so what forms are they using of if we have specific form to do so that our company is requesting us to use. A: Hi X, I have attached links here to NAR and AAR guidelines to follow during this pandemic. Please feel free to print them out and share with your clients, both sellers and/or buyers. AAR:Ten open house Precautions in the era of COVID-19 NAR https://www.nar.realtor/coronavirus-a-guide-for-realtors NAR https://www.nar.realtor/transaction-guidance-during-covid-19 At this time HomeSmart has not developed nor do we require any "signed" Addendums or Attachments to be used with clients regarding this pandemic and we don't want agents developing their own forms as this could create additional liability for the company. If we do decide as a company to have any additional forms for this they would be developed by our Designated Broker and legal counsel. As a note, AAR has developed a new addendum titled "CORONAVIRUS/COVID-19 ADDENDUM" which you are free to use with your purchase contracts. Take care and stay safe out there, JT |
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4/1/2020 Q: Hi Nancy, no we are not supporting Open Houses as being an essential activity, given the current stay at home order. Our Chief Industry Officer is working on a webinar for holding virtual open houses that will be coming out as soon as he gets it put together, but other than that open houses should not be scheduled.
A: If Buyer's need to be looking, then that should be fine. There's a difference between having that need and just being "looky lou's", but I also know that we as agents aren't always privy to the Buyers true needs. I've attached a form if you do go out showing homes in case you get pulled over. I'd also print your license info off of AZRE.gov to have with you just in case. (Attach Covid-10 doc from A. Bowers)
EVICTION INFORMATION, NOTICE FORM SENT BY TENANT TO LANDLORD:
Maricopa County Justice Courts: Eviction Information: Q&A: HERE
AZCourts.gov (AZ Supreme Court) Due to the outbreak of the 2019 novel coronavirus (COVID-19), on March 24, 2020, Governor, Douglas A. Ducey issued Executive Order 2020-14, which permits tenants to qualify for delay in enforcement of eviction actions in certain circumstances.
TO QUALIFY A TENANT MUST NOTIFY THE LANDLORD OR PROPERTY OWNER OF ANY OF THE CIRCUMSTANCES LISTED BELOW ON PAPER, EMAIL, TEXT, OR THE FORM BELOW. THE TENANT SHOULD KEEP COPIES OF WHAT WAS SENT TO THE LANDLORD TO SHOW TO ANY PEACE OFFICER OR CONSTABLE WHO COMES TO THE RESIDENCE TO EVICT THE TENANT AND TO SHOW THE COURT, IF NEEDED.
NOTICE TO LANDLORD |
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Be safe out there! Jeff. FOR EMAIL HOW SHOW RESPONSE See attached flyer from AAR (attach aaronline.com COVID-19 flyer NAR: Guide for realtors: https://www.nar.realtor/coronavirus-a-guide-for-realtors AAR: COVID-19 Updates: HERE NAR: Transaction Guidance: https://www.nar.realtor/transaction-guidance-during-covid-19 May an agent require an individual complete a COVID-19 screening questionnaire before showing an individual a property? Yes, it is reasonable to screen individuals for COVID-19 prior to showing an individual a property, but be sure to require all individuals to complete the questionnaire to avoid fair housing issues. |
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Arizona Commerce Authority: COVID-19 AZ Buisness Resources
Access information on job loss, unemployment benefits, and childcare support. Workforce: HERE
Small business, including guidance on how to benefit from the CARES Act. (Coronavirus Aid, Relief, and Economic Secutity Act) known as the Paycheck Protection Program (PPP). Business Financial Support: HERE
Small Business Administration Help - Covid-19
US News reports on Ducey's Stay At Home Arizona Crisis Standards of Care Arizona Hospital and Healthcare Resources
Testing for Covid-19 in AZ: call Banner Health at 1-844-549-1851 National Suicide Prevention 1.800.273.8255
How to Apply for Unemployment Insurance Benefits Unemployment Insurance Fact Sheet Unemployment Benefits COVID-19 Q&As How to apply for Unemployment Insurance PDF Arizona work opportunities |
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Hey, Hector. As you know, the Governor declared our business an essential service. As such, we are allowed to carry out our duties to active buyers and sellers. HS has taken a position on Open Houses and does not want our ants conducting them for now. Meanwhile, selective showings, inspections, walk-throughs, etc are being done with precaution (ie: booties, gloves, masks, sanitizer) to mitigate risk. Hope that helps! |
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Always maintain a positive attitude: Many years ago, a large American shoe manufacturer sent two sales reps out to different parts of the Australian outback to see if they could drum up some business among the Aborigines. Some time later, the company received telegrams from both agents. The first one said, "No business here...natives don't wear shoes." The second one said, "Great opportunity here...natives don't wear shoes!"
Let us help you find opportunity in today's real estate market! |
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