This is a summary of the notes and information that I have been including for the past five years or so on the maps that I prepared
and made available "for Public Use" in the information boxes at the two signs I have in Whispering Ranch. One is located by the mailboxes at
299th Avenue and Patton Road, and the other is at 347th Avenue and Carefree Highway, so depending on which way you come in, there are
maps and current information near each entrance. Originally, I was just putting out maps with the listings of properties for sale, but I broadened
the scope to give more people an idea of what was happening in the market, and how market changes were affecting Buyers and Sellers in the area.
Since there is more space available here on this site than on the maps, I may go into more detail or more fully explain events. If you have any
questions or comments, please feel free to send me e-mail to me by clicking here.
If you are looking for the newsletter information from earlier years, please check at the bottom of this page for the links to the earlier Diaries starting in 2005.
To review the headway we are making in our efforts to bring electrical service into Whispering
Ranch Electrification Efforts click here. And - we ARE making headway.
With a couple of family vacation commitments I had to fulfill, it was not in the cards for me to hold our monthly "Open Lot" in Whispering Ranch in
June. A one-week stay up in the cool climate in the Lake Tahoe area with one of my Granddaughters was too good to pass up as the summer heat began
to plant its feet firmly in the Arizona desert. It was a nice change, but there's no place like home. So we are back at it !
Sales Activity . . .
With no recent perceivable change in the economy I didn't expect to see any significant change in activity in the Whispering Ranch market - or the overall Real Estate market in the Phoenix area. Wall Street took a tumble backwards and we are now back under the 10,000 mark again, the housing market reports indicate that now the tax credits are drying up sales are drying up too, and despite all of the government stimulus efforts, the economy is not "stimulated". The banks are allowing folks to short sell homes, but they are then going to the Federal Government for the funds they lost, while at the same time suing the a lot of the homeowners for the deficiencies . . in essence, trying to collect the shortage twice. This is also becoming problematic for Owners who bought land parcels when the market was hot and financed their parcels. Many of these properties are now worth less than the amount owed and properties are going back to the Lenders. So, as taxpayers, we are subsidizing the banks that will no doubt make it more difficult to qualify for a loan in the future - for everyone.
While I was on vacation I received a call from an agent I have worked with for the past few years on the electrical power issues, zoning issues and
roadway improvement plans. He had a Seller who just wanted to liquidate a parcel - basically to just walk away with $5,000. So I put the word out
to some Buyers I know. This week the deal closed. $6,400 for a five-acre parcel in Whispering Ranch. This is the lowest sale price transaction I have
handled in Whispering Ranch in seven years. Until there is more consumer confidence, the job market stabilizes and/or improves and the economy
overall shows signs of improvement things will remain sluggish or possibly get worse. All we can do is work hard, live within our means and economize
as best we can until we see that the times are changing.
Bureaucracy on the Move . . .
One of the Owners in Whispering Ranch is in the process of gathering petition signatures to present to Maricopa County Department of Transportation to demonstrate that there are enough residents in this area to warrant a study on the feasibility of a bridge across the Hassayampa River at Patton Road. For years, when there is significant rainfall in the area, the Hassayampa River floods and the County closes Patton Road for a few days or longer. With more folks living in the area, the County needs to be given notice that the residents want something done. If you want to add your name to the petition, call Enrico D'Eugenio at 480-784-7010 and he'll tell you what to do. Or, you can go to the Whispering Ranch web site, click on the paragraph header for "Electrification and Roadway Improvements", and scroll to the bottom of the page. You'll see more information there.
The Arizona Corporation Commission has been holding hearings for the past few months toward the goal of re-instating the "1000 Foot Free Zone"
that was taken away in 2007. If this benefit is re-instated, it will go a long way toward making properties in the County more valuable since it will be more
economical to bring power to a rural home site. This will help development throughout the rural areas as the economy regains strength. Arizona Public
Service was the moving force behind removing this consumer benefit and has been pretty much at the wheel of this States power policy for years. They
are the 800-pound gorilla in the room, with plenty of money and political influence to get their own way. While doing some reading on vacation I came
to the revelation that those who control energy also control the economy. But I was also pleased to see the Corporation Commission voted to exclude
small solar power generating entities from the wide array of government requirements. Maybe this will also help area development in the future. All the
members of the Arizona Corporation Commission deserve to be applauded for their work toward helping Arizona's citizens in their quest for a level playing
field against the power monopolies.
What's Next . . .
I have based my plans for the future of Whispering Ranch on the recovery of the economy. If you go back and review my newsletters for the past few
years you will notice that there is optimism about our creativity and resiliency tempered with cynicism toward government helping in these efforts. I feel that
the area has great potential for a number of reasons. Those who have the ability to endure this tough market will reap the benefits in the future. So just hang
on as long as you can, and if I can help you, let me know.
Business News . . .
Earlier this month, a couple of the national homebuilders announced increased activity on new home sales and an optimistic outlook for the short
term. Stock ratings for the companies rose, and there seemed to be an accompanying surge in confidence about the housing market . . . everywhere
but in Florida, Nevada and Arizona. That's to be expected . . . we were one of the biggest "Boom" areas and as follows in the normal economic cycle,
we are now one of the biggest "Bust" areas. Just to make sure I'm not missing out on market movement in the area, I started checking with some of the
builders who are in the process of getting entitlements from the Cities and Counties (preliminary approvals for planning of roadways, electrical service,
sewer and water issues, etc.) to see what their current position might be with the planned developments. Some of the larger firms are moving ahead,
but at a slower pace, awaiting the word from above that the time is at hand to put the wheels in motion and start pushing dirt on these developments.
I don't think we will see any of these developments starting this year, but Pulte/Del Webb is still having pretty strong sales numbers in Sun City Festival,
about four or five miles south east of Whispering Ranch. This property targets retiree's since they tend to have more disposable income. And the
numbers bear out their success. Their plans to open newer areas within the subdivision are progressing, albeit more slowly than originally planned.
Those developers who are getting as much done as they can ahead of time by moving forward with entitlements will have about a two-year jump on
those who are waiting for the market to change before they start anything. Fear not . . . I'm watching for any significant activity on these developments
or in the area in general.
Sales Activity . . .
We're just closing escrow on the lot that was sold at $15K. Nothing else of any significance to report. The interest we saw at our earlier
"Open Lot" is still in the works and the prospective Buyers are doing their research and will be making a decision soon - hopefully ! ! I am still
adding a few properties to my property listings in the local Multiple Listing Service, but I'm also marketing additional properties as "Pocket Listings"
through my mailers, Maps and on the Whispering Ranch web site. But there has been minimal interest lately. As of this writing, there are 64
properties on the market in Whispering Ranch - different sizes, different prices, and different areas. You will notice that there are an equal number
of properties on the market priced under $50K, as there are over $50K. That's the first time we've seen that in a long time.
Bureaucracy on the Move . . .
Reports are that the County has been in touch with most of the folks who they identified as not being "in compliance" with their codes or having
the requisite permits. Some folks are working to get things resolved, and others are just ignoring them, thinking they will just go away in light of the
other issues they are faced with. And I guess there is some logic behind both of these positions. The up side of this sweep was that some of the
parcels that were littered with trash did get cleaned up. But nobody has moved either one of the cannibalized boat carcasses that are just sitting
beside the road in a couple of spots. Maybe those are in place as rescue vehicles in the event of a monster flood in the area. Who knows?
What's Next . . .
All we can do at this point is to keep our expenses to a minimum until the market makes its move and we start seeing some sales activity.
There won't be any significant activity until the economy improves and consumer confidence starts to come back. Those who are willing to wait
until that time - and can afford to wait until that time - will reap the benefits. Others who sell in this market are just making a decision to cut their
losses. Whichever decision you make will depend on your investment strategy. In different situations, the decision could be different, but either
one is correct.
So just hang on as long as you can, and if I can help you, let me know.
Business News . . .
Our last "Open Lot" weekend in Whispering Ranch may have been an anomaly, but we did have a marked increase in folks interested in buying property
in the area. I had two different prospects requesting maps, wanting to look at specific parcels and gather additional in-depth information. Steve Moore, my
co-worker at Coldwell Banker and "Open Lot" backup, also had two prospects that day as well looking at properties in the area. This is the first time in about
six months that we have seen this kind of interest. These folks also were in touch after these initial visits gathering additional information and making additional
tours through the area. I am seeing what I perceive as some renewed interest in investment activity in area parcels. There has also been an increase in web
site activity. I have a gut feeling that we're at the bottom of the market and we might be seeing the start of some interest in the area, leading toward some sales
activity. But prospects nosing around and gathering information probably won't turn into sales activity right away. This increase in activity is a positive sign though
we won't know if this will continue or was just a one time event.
Sales Activity . . .
Again this month there were no sales to report. I did have a property that was about to be auctioned that we put under contract just before the auction.
This is a nice parcel, about ½ mile off the paved road, power on the parcel, at a bargain basement price. The buyers on this one will see a nice return on
investment when the market heads back up. There were a few foreclosures of interest that should be coming on the market soon. The Hudson property
was foreclosed by Bank of America a month or so ago and I'm waiting to see how they decide to price a property that has a huge house (partially completed
but livable), garage, generator, well, etc., but no permits from the County. I damn near cried when the County decided to make an example out of this situation,
and I'm interested to see who can pick up this "diamond in the rough" and work with the County to come into compliance. The Bank took it back for $306K
and it would be worth about twice that once it's done, but it's going to take someone who knows how to schmooze the County to make this work. And they
will need some $$$ to complete this 8000 square foot estate, but it's a gorgeous area with incredible potential. And then there's the Saldana property that they
just walked away from. Bank took this one back at $165K and it probably will sell in the $120K range. Everything is there - a triple wide manufactured home,
well, fenced yard, power (well, vandals did steal some stuff from inside) but this one is pretty near move in ready. Call if you want more information on either
of these or other properties in the area. And I still have the Taylor property on the market - house, well, barn and lighted corral right on Patton Road at the
entrance to Whispering Ranch . . . and this one could be a Seller Financed property with the right down payment. Call for more details.
Bureaucracy on the Move . . .
The Maricopa County Assessor's office has finally come to grips with the fact that they can't just do as they please without having to answer to taxpayers.
Things appear to have been worked out in regard to the Grazing Leases and Agricultural Exemption to help owners keep their taxes to a minimum until market
activity increases and property values rise. If your taxes are too high and you want to get into the group that are taking advantage of this exemption, you can
get the information from the Whispering Ranch web site or call or e-mail me and I'll get the information to you.
What's Next . . .
Being a "Pay as you go" businessman, I finally pulled the trigger and replaced the sign on the east side of Whispering Ranch near the mailboxes at 299th
Avenue and Patton Road. It was about time, as the old sign had been at that location for five or six years and was pretty well faded. I hope that in the next
month or so I can get the other sign at 347th Avenue and Carefree Highway replaced and stocked each month with current newsletters and property listing
information. I have been getting some complaints that folks are finding the 'information boxes' on these signs empty, and I promised to step up the replenishment
of these boxes. With new properties coming on line, I am doing what I can to keep pace - replacing the old signs with my new Liberty Southwest Realty signs -
as the new listings come on line. You'll notice that not all of my property listings are in the local Multiple Listing Service . . I have quite a few "Pocket Listings"
available if you are interested. There will be more of these "Pocket Listings" as more Owners agree to let me market their properties and I will avoid flooding
the market with a lot of listings in the local MLS. With a little luck, I can have more properties on the market without depressing prices due to excessive supply.
Information on these properties is available through the Whispering Ranch web site. Feel free to call or e-mail me if you need more information.
Business News . . .
Market research over the past month is a little more positive than I had seen in the recent past. There are some indicators that we are finally
at the bottom of the market . . . if this proves to be true, it's about time!! I expect we will spend a little more time bouncing along the bottom before
we see improvement. There are property listings as low as $1,500 per acre ($15,000 for 10 acres) and upward from there. There's a parcel that
was recently foreclosed that's on the market at $15,750. I handled the sale for an out of state owner in January of 2006 of this property at 306th
Ave and Dixileta which we sold for $106,000. So, in this case, the value dropped by 85%. This property has power poles on it, some flood impact,
on a road with easy access to the pavement (Peakview Lane), and it should be one of the first to sell when this crazy market stabilizes. But it is just
another example of what happens when a "Boom" goes "Bust". I have been through a number of these Boom and Bust cycles since I started in
Real Estate in the mid-70's, and the market has always come back, but it always takes time. I have about 150 or so Owners with properties that
are sitting on the sidelines until the market improves. These properties will come on the market as pricing increases to meet the Owners expectations.
When there is more consumer confidence in the economy, this area will thrive. The water is here, the land is available for development and demand
will drive the market. Most market prognosticators indicated that 2010 will be the turning point. But they said that about 2009 as well . . . .
Sales Activity . . .
There haven't been any sales reported through the local MLS since the first of the year. I have had a few Sellers who wanted to get whatever
they could for a parcel, so I put the word out and some of the Sellers did connect with a Buyer as a private sale, but I am not involved in the day-to-day
details. I have been contacted by a number of Lenders (Banks and investment firms) that are involved in foreclosing properties and I have been advising
them not to put the properties on the market. The last thing that's needed now is to flood the market with listings that won't sell. A few of these have
gone on the market, but there are quite a few properties that are just sitting on the sidelines, waiting until the market improves.
Bureaucracy on the Move . . .
The issue of Mark Lee and B&J Cattle not being on the County's Approved Rancher List for 2011 appears to have been solved. The Assessor's
Office is currently working on notifying the 200 or so Owners who were under grazing lease that their Agricultural Exemption will be honored for the
2011 tax year. Or at least, that's what they have indicated to me. If you want more information on how this mess got started or how to contact the
appropriate folks at the Maricopa County Assessor's Office to make sure your property is still going to be approved for the Agricultural Exemption
for the 2011 tax year, send me an e-mail and I'll get the file out to you.
What's Next . . .
The biggest reason that folks are not buying in Whispering Ranch (other than a sluggish economy) is the lack of area infrastructure . . . roads are poor,
but more importantly, there is a lack of electrical service. This has been the case as long as I have been showing properties in the area. Very few people
are willing to live in the area since there is no electricity. The power companies are not willing to bring service into the area until it is paid for by someone . . .
and I don't know anyone who has that amount of money. Until this deficiency is overcome, I don't see Whispering Ranch reaching its full potential. The area
will grow, but the growth will be hampered. In this economy, there is no possibility of any cooperation from the County, State or Federal governments, so I
am looking into a number of alternatives. At our last "Open Lot" outing, we had visits from a couple of the "Off the Grid" home group. A few weeks later, I
was watching a 60 Minutes segment about a free standing "Bloom Box" that generates enough energy to power a house from different fuel sources. This
"Off the Grid" home group is a loose assemblage of 'outside of the box' thinkers. So far, we have a surveyor, a civil engineer, an architect, two alternative
energy researchers, a builder, a couple of land owners willing to put their land into the mix as part of a joint venture, and some input from two companies who
are currently building "solar farms' in Arizona to see if a modern, energy efficient off the grid home is possible. If this does materialize, not only would it rejuvenate
the Whispering Ranch area, it will present opportunities for property owners throughout the sunbelt states. This idea might seem outlandish, but we need to start
somewhere. Watch these newsletters or go to the web site for more information.
Business News . . .
There's really not too much sales activity to report this month from Whispering Ranch. The number of listings has dropped into the 60 or so range -
down markedly from the 150 or more that we had seen on the market for the past two years - so more folks are thinking they will hold off trying to sell
until prices start to head upwards. If the economic signs stay stable, we will probably continue to bounce along the bottom a little while longer, then start
to see signs of small, gradual price increases. What will cause this area to boom will be announcements - when the market is ready - that some of the
larger area developments are officially underway. Right now they are still doing the "prep work" until the time is right to announce they are going to start building.
Arizona Department of Real Estate and Subdivision Public Reports
When Whispering Ranch was subdivided and being sold to the public back in the late 60's an early 70's, there were a few problems. Actually, it turned out
to be a huge land scam not only here in Arizona, but in New Mexico and Texas as well. The company (Horizon Development) was selling the same parcel to
different individuals in different areas. How would the lady in Maryland know that her parcel was also sold to a businessman in Florida and also to a family in
Oregon ? ? Well, that's what happened. The parcels were sold multiple times. But that was not the only issue. Purchasers who bought parcels were not advised
that there were no paved roads, no electrical service, no public water supply, no sewer service, no streetlights or sidewalks, nor any plans for any of these items
on the horizon (no pun intended). The State of Arizona realized there was a need to put some controls on development since it would have a significant impact
on items such as responsibility for water availability, emergency services (Police and Fire protection, Ambulance service), groundwater pollution (septic tanks)
and other items which would impact the use of land as our population and land use and density increased. To clean up this mess, legislation was passed that
outline what is required to be disclosed to a prospective purchaser of property about all of these infrastructure items. It put the responsibility for a Subdivision
Public Report on the shoulders of any owner of six or more parcels within a subdivision. This process is expensive ($100K estimate) and time consuming (9
months to a year) and there are quite a few owners who innocently and unknowingly fell under this regulation by purchasing multiple parcels. These owners are
now restricted from selling their individual parcels until they produce this report on their property. There are some exclusions - selling properties in bulk as six
or more parcels from one Seller to one Buyer in one escrow - but in most cases, you are stuck until you complete all the information required by the State of
Arizona under this Statute, submit the application to the Arizona Department of Real Estate for approval, produce the report and get signatures by any prospective
Buyers prior to their entering into an agreement to purchase the property.
If you, as a Seller, should be found to be in violation of this Statute, you can be fined by the State for the violation. The parcel will be put under a "freeze",
meaning that you can not get a permit to drill a well, or any kind of a building permit until all of the requirements under this Statute are met. Additionally,
the Purchaser of the property will have the right if they so choose to rescind the transaction, getting all their money back and returning the Title to the property
back to you. This can be a real kick in the teeth. And any licensed agent involved in the transaction could lose their license. That's even more of a kick . . .
and in a more tender spot. I have recently been getting e-mails from quite a few property owners who find themselves in this spot, and I 'll help you out
wherever I can. I have met with the staff in the Investigations and the Subdivision offices of the Arizona Department of Real Estate on a couple of occasions
to get a better handle on the specific regulations. Still, I am confused in some areas. Attorneys, Legislators, Government officials, Developers, Land Planning
professionals and Educators I have met with all have widely divergent views of the requirements under this State Statute. The best advice I can give you at
this point is to read the information on the issue. If you own, or have owned in the past, six or more parcels within a subdivision (plat), be VERY careful
when you go to sell. If you are concerned about this as an issue involving a property you have bought or sold, please feel free to get in touch with me and
I'll look into the specifics. I'll probably direct you to contact the Arizona Department of Real Estate staff to provide specific information on your situation.
I'm not an attorney, so I don't have a legal opinion, but I do have a Real Estate License in Arizona that I feel is important to protect.
Business News . . .
Even though 2009 didn't live up to many of the expectations we had hoped for, there seems to be a light at the end of the tunnel. Hopefully we are looking at a
little more consumer confidence as the Real Estate market hits bottom, unemployment stabilizes - and possibly decreases - and a recent slow but steady rise in stock
market (Wall Street) gives us hope that things may be getting back to normal. Normal means market activity like we had in 2002 and 2003, not the wild "Boom"
market of 2004 through 2006. During the "Boom" years, I knew things would slow down (they always do), but I never expected the "Bust" would be as long or as
deep as it has turned out to be. Our legislators have been borrowing money from all of us taxpayers to avoid a worse economic situation, but at some point, this
money will need to be paid back. And this will slow our future growth unless we all become more frugal in our philosophy toward spending and investing.
Someone asked me a while back how all this started and after thinking for a few minutes, I replied "We didn't listen to our Grandmother". I remember my
Grandmother telling me, "Make a budget and live within your means. If you go to the store and don't have the money to buy something, don't buy it. Credit
should be a last resort. Save for a rainy day. Make the things you have go as far as you can, repair before you throw away." I know that all of you have heard
that before as well. But, over the years, Madison Avenue convinced us to ignore that advice and to spend more than we made, consume as much as possible,
buy the latest and biggest because that's what's good for our economy. I am reminded of the phrase "What's good for GM is good for America". We now see
where that economic road leads. We are wiser now, and we are creative and adaptable. And we will see our way out of this mess. Hopefully it will start to happen in 2010.
Sales Activity . . .
There was only one sale in the 4th Quarter of 2009, and that was a purchase that I negotiated for a Buyer. There were two side-by-side five acre parcels at
Lone Mountain and 299th Avenue that had been foreclosed by a Bank (subsequently taken over by the FDIC) listed at $52,900. The final purchase price was $41,000
or $20,500 per parcel. These parcels are "high 'n dry" and only about 1/2 mile from power and paved roads. I have information on parcels that could be bought for
$12K for five acres, and larger parcels (80 acres) for $2K per acre, but with no Buyer interest, all I can do is get the information out to my network of folks. There
are properties listed for $90K as well, but currently there is no interest at this price point. Listing the property and putting it into the Local Multiple Listing Service
just costs everyone time and money, and until there is Buyer interest it doesn't make sense. Unless you are willing to wait until the market comes up to you price point.
If I know that you are interested in selling, I'll have your information available should I have any serious Buyer get in touch with me. And I definitely will contact you in
the event there is any significant change in the market that would benefit you as a Seller.
Bureaucracy on the Move . . .
There still hasn't been any movement on the part of Maricopa County to cite or fine any properties found to be in violation of codes that have been reported to me.
All I can guess is that they don't have the money or manpower at the moment to do much. There are other more pressing issues, so Whispering Ranch has been put on
the back burner. For now.
What's Next . . .
Until the economy improves and Maricopa County is able to balance the current budget deficit, we can count on watching our property valuations go lower and our
property taxes rise. Once the unemployment numbers begin to show improvement and jobs are being created, consumer confidence will spur more growth and the economy
will improve overall. I don't expect we are going to see any significant cooperation from Maricopa County until the economy recovers, so I am renewing my efforts toward
putting together a "think tank" on how to design, develop and construct a modern "off-the-grid" house in this area. I am already working to see what resources are available
out there toward these goals. If nothing is happening, maybe I can make something happen. You never know.
Links to the Newsletters from previous years . . . .
Copyright 2004-2010, J. D. Liberty