As more and more investment properties (a.k.a “rental properties”) hitting the market, the increased number of Sellers claim no knowledge of property conditions on SPDS – Seller’s Property Disclosure Statement. This adds an additional uncertainty into the Real Estate transaction and hurts both, Buyers and Sellers. Buyers are more concerned with the conditions and soundness of the home they chose and more likely to walk-out from the deal. Which in turn affects the Sellers, who now have to wait for another Buyer to show up. In the current market conditions it most likely will cost them both, time and money.
One of the possible solutions in that situation is to ask Sellers to provide a history of repairs from the property management company. This could indicate problem areas and its severity to the Buyers (and to the Sellers).
Meanwhile, if you are a Short Seller or a potential Short Seller (A short sale in real estate occurs when the outstanding loans/obligations against a property are greater than what the property can be sold for. Short sales are a possibility for homeowners to avoid foreclosure on their homes while paying off their loans by settling with lender.), you might want to consider receiving counseling from one of the approved by HUD (US Department of Housing and Urban Development) counseling agencies: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm. HUD sponsors housing counseling agencies throughout the country that can provide advice on buying a home, renting, defaults, foreclosures, credit issues, and reverse mortgages.
QUOTE
A positive attitude may not solve all of your problems, but it will annoy enough people to make it worth the effort.
Herm Albright
Long Realty Agent’s tour:
MLS #:20804194: 56321 N Via Acacia, Tucson, AZ 85718. La Paloma Ridge Estates. $1,249,000.
MLS #:20800637: 2436 E Placita De La Victoria, Tucson, AZ 85718. Enclave at Pima Canyon. $1,795,000.
MLS #:20748957: 6651 N Campbell St, #255, Tucson, AZ 85718. Skyline Village Condominium. $210,000.
MLS #:20803103: 3820 N Via Avellana, Tucson, AZ 85718. Rio Cancion Estates. $1,295,000.
MLS #:20802550: 7050 E Sunrise Dr, #13201, Tucson, AZ 85750. Pinnacle Canyon Condominium. $219,000.
MLS #:20802011: 6091 N Golden Eagle Dr, Tucson, AZ 85750. Ventana Canyon Golf Villas. $529,000.
MLS #:20801316: 7203 E Stone Canyon Dr, Tucson, AZ 85750. Ventana Canyon Mountain Estates. $2,599,000.
MLS #:20801896: 6426 N Desert Wind Cirl, Tucson, AZ 85750. Ventana Canyon Estates. $2,350,000.
Filed under Catalina Foothills Real Estate, Foothills Insider News by
I missed this meeting, due to flu. This winter season was one of the worst in Tucson’s history, based on my conversation with a few doctors and multiple friends and colleagues. All of my son’s classmates were sick for a few weeks, some with complications like pneumonia, etc. I was lucky to take anti-viral medicine just in time to be back on my feet in only a few days. It is surprising to see such an outbreak in Tucson, where winter "cold" days are with the temperatures just below 60 degrees.
Filed under Catalina Foothills Real Estate, Tucson Health Care by
Today’s meeting started from the alert to follow Tucson MLS Rules and Regulations. Apparently, not all the listing agents follow the procedure of changing MLS property status from Active to Active Contingent, within 2 days of accepted offer. This not only irritates the Buyers, who feel that the listing agent is soliciting back-up offers; it creates unnecessary inconvenience to the Sellers, whose house can still be shown by real estate agents; and of course it affects those real estate agents and potential buyers who might be interested in the unavailable property.
Another point of discussion – subdivisions’ rules for "Home For Sale" signs. The GALLERY at DOVE MOUNTAIN Homeowner’s association requested use of a special subdivision sign when an agent lists a home in their subdivision.
Short Sale resources for agents and homeowners: www.hud.gov. Click on “At your service”, then “Talk to housing counselor”, “AZ”, “Tucson”. You will be provided web sites and non-profit companies that are funded by the government and will help in making a decision. Homeowners delinquent on their payments may not have to sell their home. The companies provided by this site also have better access to the lenders than real estate agents do, if the property ultimately needs to be listed.
And again, most of the agents were talking about Sellers’ needs. When are we going to see Buyers?
Quote: The optimist sees opportunity in every danger, the pessimist sees danger in every opportunity.
Winston Churchill
Here is the list of tour properties:
MLS #:20748914: 5615 N Wilmot, Tucson, AZ 85750. Cimarron Foothills Estates. $1,299,000.
MLS #:20749125: 4507 N Placita Del Tio, Tucson, AZ 85750. Fairfield Sunrise East. $499,000.
MLS #:20748260: 5833 N Golden Eagle Dr, Tucson, AZ 85750. Ventana Canyon Golf Villa II. $749,000.
MLS #:20801734: 4904 E Oakmont Dr, Tucson, AZ 85718. Skyline Country Club Estates. $1, 695,000.
MLS #:20801028: 5920 N Placita Del Conde, Tucson, AZ 85718. Haciendas Catalina Del Rey. $415,000.
MLS #:20800985: 3540 E Calle Puerta De Acero, Tucson, AZ 85718. La Puerta on Hacienda Del Sol. $2,695,000.
MLS #:20801637: 7981 N Barrel Cactus, Tucson, AZ 85718. Pima Canyon Estates. $2,595,000.
MLS #:20802122: 5227 N 1st Ave, Tucson, AZ 85718. Mescal Place Townhouses. $369,500.
Filed under Catalina Foothills Real Estate by
At today’s Long Realty meeting we brainstormed methods of increasing the visibility of homes for sale on MLS.
Our office manager made a case for the merits of range pricing.
Range pricing means sellers specify a range they are willing to except verses a static price. For example, instead of pricing a home at $800,000, a range price might be $780,000-$820,000
Even though range pricing is unpopular with both agents and Sellers, preliminary statistics suggest an increase in showings and a higher rate of open escrows.
The reason range pricing is unpopular is because in a seller’s market, the low price usually indicates the lowest amount sellers will consider, and the high price indicates "modest" expectations that include a somewhat reasonable market premium. Of course, a high price boundary doesn’t preclude a seller from taking a higher offer. On the other hand, in a buyer’s market, a high price is wishful thinking. Most sellers today would be happy to receive an offer considered low six months ago. In this market though, nothing will stop buyers from "going under" – offering less than the low boundary.
I am going to try this strategy on one of my listings, just to see for myself if it really does anything.
Here is the list of tour properties:
MLS #:20745725: 5338 N Paseo Sonoyta, Tucson, AZ 85750. Sunrise Presidio. $278,900. (Relisted 1/13/08. MLS: 20802341. $274,900).
MLS #:20800971: 6261 E Placita Del Nido, Tucson, AZ 85750. Alta Vista. $879,900.
MLS #:20745665: 4349 N Camino De Carrillo, Tucson, AZ 85750. Fairfield Sunrise East. $569,900. (1/10/08 – new price $549,000. 1/14/08 – Withdrawn).
MLS #:20800984: 6331 N Whaleback Pl, Tucson, AZ 85750. Whaleback Ridge Estates at Ventana Canyon. $278,900.
MLS #:2102203: 6570 N Placita De Tia Ro, Tucson, AZ 85750. Alta Vista. $1,195,000.
MLS #:20800983: 6551 N Longfellow Dr, Tucson, AZ 85718. Coronado Foothills Estates. $995,000. (Pending 1/15/08).
MLS #:20747697: 3333 E Cobblestone Pl, Tucson, AZ 85718. Cobblestone. $2,950,000. (Relisted 1/17/08. MLS: 20803150).
MLS #:: 20801465: 7601 N Calle Sin Envidia, Unit 39, Tucson, AZ 85718. Villas at Rancho Sin Vacas. $279,500.
Filed under Catalina Foothills Real Estate by
January 1, 2008.
I am starting a new series of posts – from the Long Realty Foothills Office Tuesday meetings. It will contain anecdotes and stories heard from other Realtors that indicate Tucson Real Estate market direction. If all the Foothills Office agents have home Sellers and none has home Buyers, it is easy to predict that Buyers’ market will force further price reductions. Meanwhile, if there is a sudden spur in the open escrows, it might signal market change. I will also include properties on Foothills agents tour with the updates on their status. It will help me to keep track of changes in the market inventory and provide unbiased statistics of Catalina Foothills Real Estate and homes for sale.
Filed under Catalina Foothills Real Estate by
Surprise, surprise, but Tucson, Arizona is definitely doing much better than the rest of the country at the top end luxury market.
At the end of October a new record was set for the highest priced home ever sold in Tucson. It is now set at $8 Million (including $1 Million in furnishing and art). The house is located right in the Catalina Foothills area, in one of its best subdivisions – Ventana Canyon Mountain Estates.
If you’ve never been in that area and you can afford those price tags – it is definitely something you might want to see. Hidden up top in the private Ventana Canyon Golf Club gated community, homes in Ventana Canyon Mountain Estates live up to the name – they offer panoramic views of the whole Tucson, straight to Mexico. Beneath them are the inviting greens of Ventana Canyon’s two spectacular Tom Fazio-designed championship golf courses.
If you’re up to the challenge, there is a $22 Million home in Cobblestone – Campbell Cliffs Estate. Give me a call and I’d be happy to get you in for a 3-hour excursion, if you qualify. Meanwhile, if you fancy Ventana Canyon unsurpassed views, there are currently three more homes and nine lots offered for sale in the same subdivision.
Read more: "The $8 mIllion home".
Filed under Catalina Foothills Real Estate, Luxury Life Style, Tucson News by
Yes, that’s right.
Ritz-Carlton is coming to Tucson! Moreover, it is going to be the largest and the best ever Ritz-Carlton.
Walking on the streets of Paris exactly 10 years ago, I was hoping to come back there one day to stay at Ritz-Carlton and dine at Maxim’s. To me it represented the ultimate luxury dream. "Imperiale" Suite in Ritz Paris is "only" €9,120 a night (approximately $13,275 as of today).
If you live in Tucson and ever have had a similar dream, you shall be excited to learn that Ritz-Carlton is getting closer than ever. If you want to be embraced by its luxury, you don’t have to fly to Paris. In fact, you don’t have to fly anywhere.
By the fall of 2009, just a few minutes of driving time will get you into the largest and most comprehensive of Ritz-Carltons. You even have an option to buy a house in the Ritz-Carlton Residences, so you can walk to the 17,000 square feet spa and have access to concierge service, catering, room service and even personalized home management.
The residential area of this best of the best projects will have about 300 homes and 20 custom home sites. The residences will all have the finest appliances, high-end kitchens, upgraded luxury wood and stone flooring, custom fixtures throughout, and much more, all included in the base price. Five models for the first phase of residences were designed by well know Kevin B. Howard Architects.
If you are considering buying a new luxury home in the next few years, keep this info in mind.
Read more: " Officially, official. Ritz brings largest project ever to Dove Mountain."
Filed under Catalina Foothills Real Estate, Luxury Life Style, Tucson News by
In the early 2003, as the market was recovering from the dot-com-bubble-burst, money was cheap and real estate looked like a safe haven. After all, people always need a roof over their heads. “Buying and renting” transactions with the mortgage being paid by the tenant became extremely popular, especially after property values began to meteorically rise. All over the States (with a few exceptions), especially on the Coasts, homes were being snapped-up by hungry investors.
Tucson got into this mad “real property fever” by the end of 2004. Some, who were challenged to pay their monthly rents in normal times, were acquiring primary residences with a 5%, 3% or even 0% down loans. The others, fortunate enough to own a home, were buying an extra one, two, or more…; getting as creative as their imagination and lender would allow. They agreed to negative amortization mortgages, 1, 3 and 5 year ARMs (adjustable rate mortgages), multiple loans and lines of credit, etc. Sooner or later that had to have an end… and it did.
One day, investors began to unload their properties… It could be for multiple reasons: ARMs were getting adjusted and the inventory increased, the price got too high, interest rates were rising. The fact is – one day the real estate market began its inevitable march south.
I still remember that meeting at Long Realty in September of 2005, after returning from vacation in Europe. Before I left, Tucson real estate was going berserk – the rare new properties hitting the market were priced higher and still were getting multiple offers on the first day. All agents had buyers; a lucky few had sellers. Then suddenly, the utterance, “Buyers’ needs” – and the room was quiet. I couldn’t believe it. Almost overnight agents were flush with sellers and not a buyer in sight.
As the chilling breeze of the fading Real Estate boom began reaching investors and sellers, more and more properties sported “For Sale” signs. The number of homes for sale in Tucson tripled within a year, which paled in comparison to the horror stories of Phoenix, Las Vegas, Miami and multiple Californian cities. The lucky ones got out first…
Over two years later it is still clearly Buyers’ market. The average number of days of inventory for Tucson has increased from just slightly over 50 days in 2005 to a record 404 days in September of 2007. The number of Active listings is fluctuating around 10,000, while the number of closed sales has gone down to under 1,000 a month.
Sellers of luxury homes are now inspired to include creative add ons like: a free cruise to Alaska, vacations in Rocky Point, a new Lexus, a $10,000 gift card to Home Depot.
If you’ve got your eye on that special home and need some lumber for your woodshop, now may be the time.
Filed under Catalina Foothills Real Estate by
We don’t know how many people are currently in foreclosure and mainly judge by the articles in the newspapers, stories on the Internet, signs on the street where we live and what we see in the neighborhood. Our view really depends on where we live.
Apparently, all those foreclosures are not random events happening to random people. They are happening every day and snowballing. The more properties on the market, the less percentage of them selling and the lower the prices buyers are willing to pay. More frequently, the sales price isn’t covering the investment.
People who got in in 2003-2004 with 3 year ARMs are now hit with the higher payments they can’t afford. The 5 year ARMs are coming next. Stated income loans and no income verification loans, that were given to the public by many mortgage companies now constitute a pool with a significant rate of default.
In my opinion, this situation is somewhat similar to 1998 Russian Default prompting Emerging Markets crisis and 2001 Enron collapse causing liquidity crisis in the energy markets. In both cases, the defaults drastically increased the spread over Libor / Fed Funds Rates or short-term borrowing rates, causing the ripple-effect on the economies and markets.
In a similar way, mortgage companies that don’t have access to the short-term financing are going bellies-up. So far, 70+ mortgage companies went out of business in the last few months.
This exacerbates the problem in the real estate market, creating a vicious circle.
Filed under Catalina Foothills Real Estate by
In 2000 I graduated from NYU with a Masters in Mathematics in Finance. I was eager to go to Wall Street and make money. I cared less about mathematics and more about real life.
At NYU we were given plenty of formulas. Our everyday language included: derivatives… random walk… stochastic processes… Monte Carlo simulation… Black-Scholes model… I was intrigued, but skeptical. “How can I make money with it?” – was my signature question those days.
After a graduation, I interviewed for multiple positions, but leaned toward returning to Credit Swiss First Boston where I had summer Internship. During the ten weeks rotation program within Fixed Income, I got attracted to Credit Derivatives and Mortgages.
Back in 2000, Credit Derivatives were a relatively new market with lucrative opportunities, while mortgages were as old as my husband’s grandparents could remember, yet had a fresh start in a developing area of CMO (collateralized mortgage obligations), IO (interest only) and PO (principal only) structured products.
Both of my picks tightly connect to the current Subprime defaults and Mortgage crisis. Ironically, I actually went to work as a Trader of Weather derivatives – another exotic product – at Williams Company, that was later struck by an “after Enron” liquidity crisis and barely escaped bankruptcy by borrowing from Warren Buffett at 30% annual rate. Now, I run my own Luxury Real Estate business, which in a wild twist is also related to the mortgages – the lifeblood of many real estate transactions.
Filed under Catalina Foothills Real Estate by