Thursday, December 17, 2015

Scottsdale shopping center sells for $8.5M



Just west of the intersection of Scottsdale Road and Shea Boulevard in Scottsdale, Shea 70 Plaza, trades hands for $8.5 million or $253/square foot.
Shea 70 Plaza is a 33,615 square foot retail center, built in 1988 and located on the southwest corner of 70th Street and Shea Boulevard.
ORION Investment Real Estate represented the Seller, an affiliate of Hedgewood Properties, based in Toronto Ontario, Canada and the buyer was an investment group out of Monterey, Calif.
Earlier this month, the same buyer purchased a shopping center in Glendale for $8.3 million, according to a press release.
Shea 70 Plaza was 92 percent leased at the time of sale with a variety of tenants serving the daily needs of the community, including Comfort Dental, VCA Animal Hospital, At Home Fitness, Sylvan Learning Center, DS Nutrition, True Rest Float Spa, Thai House, and more.
Ari Spiro, Sean Stutzman and Jared Williams at ORION Investment Real Estate negotiated the transaction, along with Greg Valladao at Cushman & Wakefield.
“This sale further illustrates the strong demand from out-of-state investors in the Phoenix market,”stated Mr. Williams in the release. “We’ve seen a significant uptick in buyer interest, especially from California, where buyers are unable to find the type of yield which is available in Arizona retail investments. ORION sold this same buyer Greenway Promenade earlier this month for $8,300,000.”

Phoenix Bus. Blog: EXCLUSIVE: Look inside the new Hilton Garden Inn Phoenix Downtown, formerly Hotel Monroe (Gallery)


After a few years of careful design and development, the historic building that once housed Valley National Bank is expected to open this Friday as the Hilton Garden Inn Phoenix Downtown.
The building was bought by Minneapolis-based hotel and real estate development company CSM Corp. in 2013 for $8 million.
The 12-story building was opened by Valley National Bank on Feb. 23, 1932, which bought the land in 1907 for $67,000.
It was listed on the National Register of Historic Places in 1993, and was featured in the opening sequence of Alfred Hitchcock's horror film "Psycho."
Though it will be opening under a new brand, the historic integrity of the building was maintained to the fullest degree.
CSM and Hilton brought on Minneapolis-based ESG Architects and LA-based Historic Consultants in order to keep the historic preservation of the building intact, or as close to the original designs as possible.
Designers and architects maintained as much of the original designs as possible, and recreated those that couldn't be preserved based off of photographs and documents.
The building was originally designed by LA-based architecture firm Morgan, Wells and Clements with the local direction of H.H. Green, who is responsible for the designs of the downtown YMCA building and the Heard Museum.
According to Roger Brevoort of Historic Consultants, the firm was very popular in Los Angeles and Hollywood, which was a big deal for Phoenix.
"At the time, that was the point of pride that a prominent firm got involved," Breevort said.
Brevoort has been involved with the historic recognition and preservation of the building since 2006.
Brevoort said the building is one of the only remaining Phoenix buildings with an Art Deco design, with the exception of Luhrs Tower, also downtown.
That style was altered slightly when Morgan, Wells and Clements added a 12th floor to the building.
Hilton representatives said two federal programs were used to help fund the hotel project: New Market Tax Credits and Historic Tax Credits.
Representatives said the project had to meet the Secretary of the Interior’s Standards for Rehabilitation, in order to utilize the tax credits.
As far as Art Deco style, the lobby is the main attraction.
Hilton representatives are calling the two-story, 24-foot-tall lobby the "hallmark of the building."
The lobby features original marble floors, Deco-era Corinthian capitals, bronze elevator doors and original wrought iron details. Some original signage is included as well, including the "Entrance" sign, which is missing an "e."
ESG also recreated the coloring and design of the columns.
The 170-room hotel will have a soft opening this Friday. General Manager Michelle Davis said that while the hotel is open to all guests, she's hopeful the opening will attract businesspeople and athletes who are coming to Phoenix.
The hotel will feature meeting rooms offering more than 2,600 square feet of flexible meeting space for up to 200 people.
Each meeting room is named after one of Phoenix's downtown streets. Davis said the team had debated between street names, names alluding to the building's history and business terminology, but ultimately decided to pay homage to Phoenix.
The roof will have terrace with a bar, outdoor Pergola and sun chairs, which will open around March, along with the 12th floor.
Each room has at least two windows, and some of the suites will feature massive floor-to-ceiling windows with expansive views of downtown Phoenix.
Davis said the basement of the building, which still houses the original bank vault, will have some sort of retailer in 2016.
The hotel also will feature Arcadia-based Nook Kitchen. Hilton representatives said it is uncommon for Hilton to feature a signature restaurant such as Nook.
The restaurant is also slated to open sometime in spring 2016.

Thursday, November 19, 2015

24/7 Wall Street: This Arizona city is one of the 50 best places to live in America

If you're looking for a great place to live in Arizona, you can't do any better than Goodyear.
That's according to the financial blog 24/7 Wall Street, which ranked the West Valley suburb No. 7 on its newest ranking of America's 50 best cities to live.  
To determine its list, the website reviewed data on the 550 U.S. cities with populations of 65,000 or more as measured by the U.S. Census Bureau. It looked at a range of variables such as crime rates, employment growth, access to restaurants and attractions, educational attainment, and housing affordability.

Things to do in Phoenix this weekend

Events

Brahms Symphony No. 2
Fri. 11/20 & Sat. 11/21, times vary
Phoenix Symphony Hall
The lilting Symphony No. 2 is generally regarded as the most genial and relaxed of Brahms' four works in the genre, but its finale is jubilant and electrifying. $18-$79

Goodguys 18th Southwest Nationals
Fri. 11/20 - Sun. 11/22, 8am
WestWorld of Scottsdale
View over 3,000 rods, customs, classic, muscle cars, and trucks through '72.

Creative Designer's Holiday Classic Boutique
Fri. 11/20 & Sat. 11/21, times vary
Trilogy at Power Ranch, Gilbert
The event features uniquely designed and handcrafted items perfect for your holiday gift giving.

Author Walk with Third Friday Art Walk
Fri. 11/20, 6pm-10pm
AJ Chandler Park
View local artisans displaying and selling their wares, and meander to the north area of the park where local authors will be selling their books.

By Golly, Be Jolly Holiday Boutique
Fri. 11/20, 5pm
Mesa Community College
The evening's events will include live entertainment, a car show, food trucks, auctions, magicians, shopping and more.

The Wizard of OZ
Fri. 11/20 - Sun. 11/22, times vary
Phoenix Theatre
Enjoy this adaption by John Kane for the Royal Shakespeare Company, based upon the Classical Motion Picture The Wizard of OZ. $35-$50

MCC's 50th Anniversary Finale
Fri. 11/20, 5pm
MCC Rose Garden, Mesa
Celebrate MCC's multicultural history and heritage with festival style booths, food trucks, arts and crafts, live music, dance, and storytelling.

Legends of Country Music Show
Sat. 11/21, 3pm
Farnsworth Hall, Mesa
Legends of Country Music is the largest country tribute show touring today, featuring the music of more than 20 legendary entertainers. $30

Woofstock
Sat. 11/21, 9am-1:30pm
Tumbleweed Park, Chandler
The 8th Annual Woofstock includes Pets on Parade, a mini dog park, free booth activities, pet adoptions and more.

Desert Discovery Day
Sat. 11/21, 10am-2pm
Jewel of the Creek Preserve, Cave Creek
The day includes stations along the Harry Dalton Trail with live animals, crafts, goody bags, and free food and drink.

Sunland Village Arts and Crafts Events
Sat. 11/21, 9am-3pm
Sunland Village, Mesa
Browse over 100 crafters selling unique, one of a kind, all handmade items.

Fall Girls on the Run 5k
Sun. 11/22, 7am
Wesley Bolin Plaza, Phoenix
Girls on the Run features medals, scenic and flat 1-mile and 5k courses, music, snacks, a free photo booth and more. $60

Bistro's 5th Annual Wine Festival
Sun. 11/22, 12pm
My Wine Cellar, Phoenix
Five distributors each pour four wines perfect for Thanksgiving and other holiday dinners. $25

Thursday, November 5, 2015

The Home Peril That's Hiding in Plain Sigh

The Home Peril That’s Hiding in Plain Sight


1:00 pm ET
October 7, 2015
October 7, 2015

1:00 pm ET
October 7, 2015
October 7, 2015



Electrical outlets and wall plates don’t exactly command a lot of attention. In fact—and we’re going out on a limb here—we’re guessing you may not even remember the last time you took a second look at your wall plates. The last time you likely thought about them was when you were plugging something in—and it was fleeting.
But as boring as those wall plates may be, you do need to check them regularly to see if they need replacing—or you could be setting yourself up for some very bad news down the road.
According to the National Fire Protection Association, electrical outlets cause roughly 2,590 home fires every year in the U.S. And fires started by malfunctioning outlets result in $94 million in property damage each year.
OK, we have your attention now? Let’s take a quick look at some of the most jolting ways your electrical outlets can cause damage.

Cracks can kill, really

Cracked wall plates on electrical outlets can turn into dust traps and, ultimately, fire hazards. Same with undersized wall plates (with gaps of more than 4.5 millimeters). Lint, dust, and hair can act as kindling when they accumulate around the outlet behind the plate, increasing the chances of a short circuit.
And that fire could smolder or spread in your walls, making it hard to put out.
“Just like lint built up on a candle sparks a little bonfire when lit, the same can apply for an outlet,” says Charley Curran, who designed Living Plug, a system intended to improve the safety and energy efficiency of the electrical outlet.

Paint in all the wrong places

Sometimes when a room is painted, edges, outlets, and other nonwall surfaces are taped off and remain paint-free. That’s good! But sometimes everything, including hinges, doorknobs, wall plates, carpets, household pets, and so on, gets painted. That’s not so good. If your electrical outlets and wall plates were covered by paint, you may want to replace them.
“Outlet face plates and outlets that have been painted are dangerous, because the stuff can get into the slots and put the blades and pins that go into them in direct contact with the electrical charge,” says Curran. “Paint is simply not designed to withstand that amount of heat and can cause a fire in the right—or wrong—conditions.”

Charred outlet? Yeah, that’s a bad sign

Thomas D. Horne, an electrician for 60 years and a volunteer firefighter in Takoma Park, MD, says if your outlet cover looks burned, brown, or gross, it’s time to check the wiring system for short circuits or other conditions that could cause overheating and, potentially, a fire.
Shorts can occur when even a microscopic piece of a hot wire hits any metal part of the outlet and transfers a current. It’s not something to play around with and could require the outlet to be replaced by a professional, says Horne.
“The nominal cost to replace the outlet outweighs the cost to replace a house,” he says. This can be classified as an understatement.

It’s getting hot in here

Speaking of overheating, outlets and their plates should always be cool to the touch, says Horne. It’s a good idea to check them every now and them for scorching or soot around the connection slots, and to make sure they don’t feel hot or warm.
Even the screws that hold the plate to the wall should not feel hot at all, Horne says. “If they are, that’s a sure sign of overheating.”
And what does “hot” mean to Horne? “Palpably warmer than the interior air temperature,” he says. Test for heat by placing the back of your hand gently against the surface of the plate. Got a live one? You’ll need to take steps right away.
“That much heat indicates a fault in progress that is very likely to progress to a fire,” Horne says.

What to do if you find a problem

The first thing to do is gently unplug all devices from the outlet and turn it off, if controlled by a wall switch. Then feel the wall around the outlet to check its temperature. If the wall is cool, recheck the outlet in a minute or two after you turned if off to see if the temperature goes down. If so, the outlet shouldn’t be used until it’s replaced (preferably by a professional electrician).

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But if the wall itself also feels warm, call 911 immediately and get out—a fire may have started. If the outlet alone remains warm or hot to the touch several minutes after being shut off, you should still call the fire department (on a nonemergency line).
“Most fire departments are equipped with thermal imaging cameras that can view the wall’s temperature and check for the heat of a hidden fire,” says Horne.
And never feel like you’re overreacting.
“You can’t be too careful when it comes to preventing a fire in your home,” says Horne. 

The Best States For Future Job Growth!

Arizona was absolutely hammered during the financial crisis of the late 2000s. Median home prices in the state plummeted 53% over five years from $250,000 in 2006 to $117,000. The foreclosure rate was the second highest in the U.S. for three straight years as construction ground to a halt. Unemployment peaked at 11.2% at the end of 2009 and net migration into the state fell sharply.
But Arizona has emerged from the wreckage to be one of the brighter spots in a slumbering U.S. economy thanks in part to renewed migration. Arizona’s projected job growth is 3.1% annually though 2019, best in the U.S., according to forecasts from Moody’s Analytics.

The Best States For Future Job Growth

“Baby boomers retiring to Arizona is the main driver for Arizona’s employment growth,” says Kyle Hillman, an economist at Moody’s focused on Arizona. This migration fuels jobs in healthcare and consumer services. Net migration into the state is projected to total 679,000 over the next five years. Only Nevada is expected to enjoy a faster migration rate.
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Companies and workers are also finding their way to Arizona as a more affordable option to West Coast locales like the Bay Area and Seattle. The state offers a diversified economy with a skilled workforce.

Financial service firms have a heavy presence in Arizona with Wells Fargo WFC +0.00%, JPMorgan Chase JPM +0.00% and Bank of America BAC +0.00% among the 10 largest private employers in the state. In February, Northern Trust NTRS +0.00% announced plans to expand in Arizona by opening a new operating center in Tempe that will house 1,000 employees by 2018. “This step will provide us with access to significant talent pools and a strategic location that will help us efficiently serve our clients,” said CEO Frederick Waddell in a statement announcing the news. 

Tuesday, October 27, 2015

Another Arizona innovation: The multigenerational house



Multigenerational housing is drawing more metro Phoenix homebuyers as parents and kids move back in together.

Edward and Christine Leydon weren’t looking for a new home. The couple and their three children were happy in the Gilbert house they bought in 2009.
But the Leydons had been thinking about where their 16-year-old son with special needs would live after he graduated from high school. They want him to have more space and independence while still being close to them.
Then last summer, they found a new home built with an apartment tucked inside. The multigenerational house, from Lennar, is just five minutes from where they live now. So their son Jordan’s commute to Higley High School will be the same.
“We wanted to plan ahead, knowing Jordan may live with us forever,” Christine Leydon told me. “He is so excited to have his own space, but still just be a door away from us.”
The Leydons' new house is under construction. They plan to move in early next year.
The home is called the NextGen model.  It will have an attached apartment with about 750 square feet of space. The apartment has its own outside entrance, as well as a door to the rest of the home. A kitchenette, bedroom, bathroom, living space and laundry area are included. The apartment even has its own garage and backyard.
The Arizona division of homebuilder Lennar launched its NextGen home a few years ago for multigenerational homebuyers. Now the home-plus-apartment design is so popular, it's for sale in Lennar communities nationwide.
Arizona Lennar President Alan Jones told me about one-third of the builder’s home sales across the state are NextGen designs.
The multigenerational house is also another example of how metro Phoenix has long been a proving ground for new home designs.
Among other Arizona innovations:
  • Del E. Webb launched the nation’s first large, affordable retirement community, Sun City, in the West Valley more than six decades ago.
  • In 1960, John F. Long opened Maryvale, one of the first affordable communities in the desert offering homes with air-conditioners. 
  • Developer Lyle Anderson created some of the first upscale, desert golf-course communities with Desert Highland and Desert Mountain in Scottsdale during the 1980s and '90s.
  •  And there’s no denying that the red-tile roof, stucco homes built in Ahwatukee Foothills and other parts of the Valley during the 1990s shaped new home styles across the West. 
“Phoenix regularly sets housing trends for the rest of the country,” said Arizona homebuilding analyst RL Brown, who publishes the Phoenix Housing Market Report.  “It started with Del Webb and continues with Lennar’s NextGen and Meritage’s energy-efficient homes.”
In 2011, Scottsdale-based Meritage was the first big homebuilder to offer affordable net-zero homes. These houses use solar and other green building methods to generate more power than they use in a year.
Building for baby boomers was the big mantra for homebuilders a decade ago. Many have recently been trying to draw Millennials buyers. Both groups are interested in solar.
But multigenerational housing is the new buzz.
Analysis of census data from the Pew Research Center shows a record 57 million people live in multigenerational households. The trend grew during the recession when families, who lost jobs and homes, moved in together.
A growing number of baby boomers are living with their parents and grown children.
Lennar’s stats say 1 in 6 people in the U.S. already live in multigenerational homes.
Families are saving money by sharing a mortgage and cutting expenses on both assisted-living care and babysitting.
Arizona Lennar executives said one of their NextGen buyers is a father who moved into the apartment so his two daughters and their children could live in the main house.
Another house was sold to a couple who has their college-age grandson living with them in the apartment.
Prices for Lennar’s multigenerational homes in the Valley start in $250,000s. Pretty affordable, particularly when the mortgage can be shared.
Jordan Leydon is selling some books and old games to buy new furniture for his apartment.
“Many people might think these homes offer these apartment only for elderly parents,” Christine Leydon said. “But you have to think outside the box.”
She has already talked to three other families who have children with special needs who are buying the homes, too.
“Jordan can be independent, but we can still be close if he need us,” she said. “What more could a parent want?” 

World's largest Harley dealership to have grand opening


The much-anticipated grand opening of the new Harley-Davidson of Scottsdale has been announced for Nov. 7, 2015, to coincide with the 4th Annual Bob’s Biker Blast.
The event is hosted each year by well-known philanthropist and entrepreneur, Bob Parsons, and his local motorcycle dealerships — Harley-Davidson of Scottsdale, GO AZ Motorcycles and Spooky Fast Customs. Bob’s Biker Blast is a chance to have some fun while recognizing the positive impact bikers have on their community, with all proceeds benefiting Phoenix Children’s Hospital.
“Many people know my love of motorcycles, the biker community and helping the community where Renee and I can. This event brings it all together, which makes it very special for me,” Parsons said. “This year, I can’t wait for everyone to see the world-class dealership we’ve built.  It’s the biggest and the best.” 
Headlining this year’s event is The Doobie Brothers with Michael McDonald whose concert will cap off a day filled with live entertainment, food, drinks, giveaways, new merchandise, dealership tours and more. "Sons of Anarchy’s" Kim Coats — aka “Tig” — will also make a special appearance and sign autographs during the event. Grand opening festivities begin at noon and run through 10:30 p.m.
 
The largest Harley-Davison dealership in the world, this 150,000 square-foot facility was designed to be a true entertainment space. Bob’s Biker Blast guests will get a look at the dealership’s unique elements such as: 
  • Tattoo and piercing studio by Club Tattoo
  • Wedding Chapel
  • Movie theater
  • Arcade
  • Leather and lace boutique
  • Hundreds of motorcycles on display
 
Admission to Bob’s Biker Blast is free for anyone with a motorcycle endorsement and their passenger. Non-riders and families are welcome and tickets are $20 with 100 percent of proceeds going to Phoenix Children's Hospital.
The “I Ride 4 PCH” self-guided ride from Phoenix Children’s Hospital to Harley-Davison of Scottsdale will officially kick off Bob’s Biker Blast, with the hospital’s CFO, Craig McKnight, joining the pack to raise funds and support for the amazing kids at PCH. Ride registration includes complementary entrance to Bob’s Biker Blast 

Saturday, October 10, 2015

Don't Wait to Buy Your Dream Home!!

As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first-time or repeat buyer, you must not be concerned only about price but also about the ‘long term cost’ of the home.

Let us explain.
There are many factors that influence the ‘cost’ of a home. Two of the major ones are the home’s appreciation over time, and the interest rate at which a buyer can borrow the funds necessary to purchase their home. The rate at which these two factors can change is often referred to as “The Cost of Waiting”.

What will happen over the next 12 months?
According to CoreLogic’s latest Home Price Index, prices are expected to rise by 4.7% by this time next year.

Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30-year fixed mortgage rate will appreciate to 4.7% in that same time.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:




Thursday, October 8, 2015

Have you considered the savings offered by solar water heating?? (Check out the Federal and State incentives)


SOLAR WATER HEATING

 
Solar water heating is indisputably the most cost-effective method of reducing your normal household energy use. It will reduce 80% of your yearly gas bill or about 25% of your yearly electric bill depending of course on how you heat your hot water. In the case of electric it will typically save between $300 to $400 per year. It will also typically pay for itself well within its warranty period. As energy costs increase so will your savings.

As we mentioned earlier, there is not just one solar water heating system that is right for every situation or for that matter each person's preference or comfort level. This is another area where our experience and integrity works for you. We can guide you to the most appropriate system for your family.

SolaRay

This is an "active" closed loop system which circulates nontoxic antifreeze through the solar panel and back down through 3/4" copper tubing which is wrapped around the solar water tank. There is a heat exchange between the heated antifreeze in the copper tubing and the water inside the tank. (The heat exchange occurs beneath the outer skin of the tank and an R-16 polyurethane insulation blanket.) This system combines the simplicity of a single pump and the antifreeze protection against overheating or freezing with the safety of a double wall heat exchanger. It comes in different size systems, all approved for various rebates and tax credits.

CopperHeart

This is a "passive" system called an Integral Collector Storage, or ICS system. It both stores water and heats it at the same time. This heated water is pushed into a standard electric or gas heater by your normal household water pressure when you draw hot water. Since it is putting hot water into your gas or electric water heater, the gas burner or electric heating element does not have to fire up, thus saving you energy use. It requires no pump or control. While it has the advantage of no moving parts, it does produce a lesser volume of hot water than an active system.

Both of the above systems have solar panels with copper water ways in an extruded anodized box with a low iron tempered glass covering for maximum heating performance. Compare them to open plastic panels which have significantly lower performance and life expectancy.

We also have access to other types of systems such as thermosiphon, drainback, and external heat exchange systems, but we feel that at this time the above systems in various configurations will cover most, if not all, needs. However, being from the school of thought that the customer's wishes come first, we can install these other types of systems, and you can be assured of the best installation possible.


INCENTIVES AND SAVINGS

 
Both the Salt River Project and Arizona Public Service give incentives for installing solar water heaters even if you have a gas or an older style existing solar water heater. These incentives are based on the independently tested kilowatt savings per year in the Solar Rating Certification Corporation’s OG-300 standards. And since we use only the highest rated systems available you receive the highest amount of incentive money.

In addition to the electric companies’ incentives there is also a State Tax Credit that pays for 25% of the system cost (up to $1000.00). There is also a Federal Tax Credit that pays for 30% of the system cost with no dollar limits.

This combination of incentives can leave you paying as little as 15% for our system. It amounts to the same, or just a little more than, the cost of a replacement gas or electric water heater. Of course, after the installation you start saving money immediately. So at the end of the first year of use (standard water heater vs. solar water heater) you will typically have a positive cash flow or a complete return on investment plus savings. It really is the best guaranteed financial investment that you will ever make.

An issue that people rightly bring up is what happens to their savings if there are expensive repair costs. We feel so strongly about the products we use and the quality of our workmanship that we give a full five year warranty on the complete system and an option for a full 10 year warranty. By full warranty we mean that all material and labor costs are covered. You are absolutely assured that you will have zero expenses during that time period, only savings, as well as for many years afterwards.

When people hear the word "solar" they often think of solar electric or photovoltaic (PV) systems where the sun’s light is converted to electricity which seems like free energy. As a result many people get excited about it and somewhat dismiss the benefits of Solar Water Heating. But the facts demonstrate that Solar Water Heating is dramatically more cost effective than solar electric and virtually everybody can afford it. Let’s give this example:

A 2.5 kilowatt solar electric/PV system will actually save you a little less in electricity than our Solar Water Heating system, but cost you five times as much! Environmentally speaking both will have equal benefits. When you consider that our Solar Water Heating system is only slightly more expensive than a standard water heater after the incentives, you know you can afford it. But if it were five times the cost for the same benefits (monetary and environmental) as is the case with solar electric systems, you would probably not want to pay for or be able to afford that investment. Why would you pay five times as much for the same result?






If you have any questions about solar water heating, give my friend Jim Combs a call at :



Conservative Energy Systems, Inc.
Phone:  480-835-9549
Toll-free:  866-531-2500
Fax:  480-827-9460
E-Mail:  jcsolar@aol.com

Licenses
Residential:AZROC #064601 C37R
Commercial:AZROC #109008 CL78
Bonded & Insured

Sunday, October 4, 2015

How to Spot a Bad HOA




September 2015 | By Jill Schweitzer
What’s the difference between a good, mediocre, and downright bad homeowner association? It’s not entirely a matter of opinion. There are specific items to look at and questions to ask that can tell your buyers whether they’re buying into an HOA that will only give them headaches. This information is particularly important in condominiums, where the HOA usually is responsible for maintaining the exterior of the buildings. If they aren’t careful, your buyers could face paying a big special assessment for years of neglected capital improvements after they close. The bill they’re typically stuck with could be anywhere from $1,000 to $30,000. (In some cases, they've gone over $100,000!) Help your buyers perform due diligence before closing by assisting them in identifying issues to minimize the element of surprise. While this isn’t intended to be legal advice and there may be other items to look at other than those mentioned in this article, this should give you ideas for how to advocate for your buyers when dealing with HOAs.

Look at the Community as a Whole

Is it run-down? Don’t solely focus on the one property your buyer is purchasing. When the HOA is responsible for maintaining the buildings, check out neighboring units and common spaces along with the home your buyer is purchasing. Here are some telltale signs of an HOA that isn’t on top of its responsibilities:
  • Are the fences rusting?
  • Are the building signs in disrepair?
  • Does the asphalt look like gravel?
  • Are the pool and other amenities clean and in good working order?
  • What is the age and condition of the roofs?
  • Do the buildings need to be painted?
  • Are there staircases and balconies in poor shape that the HOA is responsible for maintaining?
  • When were the buildings last treated for termites? Have they been neglected, with a higher risk of unknown termite damage throughout the community?
  • Are there problems with siding?
  • Are there grading issues causing flooding?
  • What is the condition of the gutters, fascia, and other fixtures?

Look at the Reserve Study

First of all, make sure you and your buyers know what this is. A reserve study details an HOA’s long-term funding plan, showing, most important, how much it currently has to offset maintenance costs. It’s the most important tool to determine the financial health of the HOA.
  • What is the percent funded? Zero percent to 30 percent means it’s at high risk of a special assessment; 31 percent to 70 percent is a medium risk; 71 percent to 100 percent is low risk.
  • How much does the reserve study recommend the HOA saves each year, and how much is the HOA actually saving?
  • Has the HOA been following the reserve study and making capital improvements?
  • How much money can you foresee being needed compared to what the HOA has saved?

Proactively Ask Questions

Encourage your buyer to call and ask the HOA or HOA management company questions. You may need to make it a condition of the purchase contract that the seller will provide the answers if the HOA management company won’t answer you or your buyer. Keep these questions in mind:
  • Have there been any special assessments before? Get the details and ask if there is discussion about having another one.
  • Have there been any lawsuits or are any expected? Check court records.
  • How many insurance claims has the HOA had?
  • If roofs are an HOA responsibility, are there plans to transfer the burden to the owner? How many roof repairs have there been in the last couple years?
  • Are there plans to change the HOA’s covenants, conditions, and restrictions?
  • Have there been any repairs from extensive water or termite damage in the last couple years?
Your buyer must review the HOA’s covenants, rules, meeting minutes, violation policy, collection policy, and other aspects. Make your buyers a checklist to help them do their due diligence. Help them become an educated buyer on HOA living.
Ignorance isn’t bliss for your clients — or you — when it comes to HOAs. Agents and sellers could potentially avoid lawsuits by making buyers aware of all issues before they close on a property in an HOA. Remember, approximately 70 percent of HOAs are underfunded and in poor condition due to lack of maintenance. These are not HOAs “protecting our property values.”
This problem is not going away by keeping our eyes closed. The first step in improving HOAs is having real estate professionals who will educate buyers on how an HOA should operate. Buyers need to be involved and concerned with the HOA business that they are becoming a part of before closing — and they need to stay involved after closing. 

Sunday, September 27, 2015

Do You Know What You Can Do to Save on Energy Costs??

Replace your incandescent light bulbs with fluorescent or CFLs. Doing so greatly reduces the energy consumed to light your home.

Open the windows on nice days to save on energy. This will give your heating and air conditioning systems a break, as well as let you air out your house.

In the cooler months, turn down the heat and wear long sleeves, pants and socks during the day. Also set your thermostat at a lower temperature while you’re sleeping. Wearing extra clothing or throwing another blanket on the bed will be worth it when you see a drop in your utility bills.

Have your heating and cooling systems serviced every year. Consider having your air conditioning system checked in the spring and your heating system serviced in the early fall. While you could save money by having both done at the same time, one will sit idle and unused for many months and may require additional servicing. Therefore, doing them separately may be more practical and save you money in the long run. Also, make sure filters are replaced regularly to keep your systems running effectively and efficiently.

Use high performance windows, screens and window films in your home. Not only will this help eliminate hot spots, it will also cut back on damage to wood furniture, artwork, and upholstery from UV rays. Also, high performance windows can cut back on the need to use your air conditioner.

Money Saving Energy TipsMake sure your attic is properly insulated. This will keep the house warmer in winter and cooler in the summer. You should also be sure that the attic has proper ventilation to allow for adequate and natural airflow.  According to the US Department of Energy, you can save up to 30 percent on heating and cooling costs by being sure your home is properly insulated.

There are many appliances and electronics that use energy even when they are not in use. This can be avoided by unplugging appliances when no one is using them. Some of the worst culprits are toasters, computer monitors, TVs, DVD players and microwaves. One way to keep from having to plug in and unplug these every day is to plug them into power strips. By using power strips, you can cut off the power to many of them at once with the flip of a single switch.
If your refrigerator has a power save switch, use it. Also, set your refrigerator temperature between 30 and 42 degrees. There’s really no need to set it any lower and doing so will only waste energy.

If you feel cold air or moisture around your refrigerator door, you need to repair the door seals. It’s not that difficult a task and every major hardware store has door seal repair kits. Doing so will help your refrigerator keep foods cooler while using less energy.

Dust your refrigerator and keep the coils cleaned by using a vacuum or a duster.
A full freezer uses less energy than an empty one, so try to keep it well stocked. Another option is to fill your freezer with old milk jugs filled with water.
Look for the Energy Star ratings when purchasing new appliances. The savings from these will be noticed quickly. Many federal and state tax credits and rebates are available for replacing your old appliances with newer, more energy efficient ones.

Energy Costs Got You Down?  The next time you’re looking to purchase a computer, consider a laptop. Laptops use less energy than regular desktop models.  Speaking of computers, set your computer to sleep mode instead of using a screen saver. This will help you to save on electricity when it’s not in use.

If you use battery chargers, make sure you unplug them once the batteries have a full charge.

When you’re doing laundry, wash and dry several loads at a time that way your dryer will still be warm when you change loads over and it will take less energy to heat it up.

Don’t over dry your clothing. Not only is this hard on your fabrics, but it also uses unnecessary energy. Many items can be dried until slightly damp and then hung up to dry.

When possible, wash full loads of clothing. If you need to wash less clothes in one load, make sure you adjust the water setting accordingly.

Consider hanging your clothes to dry outside on a line when weather permits. If this is not possible, you may also be able to air dry some items on a line inside, perhaps in the attic.


Whether you make large investments or use simple measures to make your home more energy efficient, your energy bills are sure to decrease when you follow the above tips. If you do decide to make a larger investment in becoming more energy efficient, the savings you reap will, in the long run, pay for the cost of any improvements you make. Not only will an energy efficient home help keep you and your family more comfortable and save money, in the future if you should decide to sell your home, the improvements you have made will make it more attractive to potential buyers.