A few years ago I began hearing about the economic changes that were looming in our future. How the economy just couldn't sustain itself and how we'd look differently at our lives and how we live them. I'm now convinced that the new world is here.
People are simplifying their lives. When the economic bubble burst it often erased years of savings that may never be recouped. Many lost their jobs and are now doing work they never thought of doing just ten years ago. People tell me they have a better view of what's truly important. They seem to have a simpler view of life and how the simpler things can be just as beautiful.
People are cutting their losses and charting a new course into the future. They survived the worst of the economic crisis, although tattered to varying degrees. They are becoming calm, clear-sighted, and focused on what needs to be done.
People are looking at risk differently. They're looking for real value and taking the time to compare. The sheep mentality is gone and has been replaced with strong independence and individual responsibility.
So what does this have to do with my real estate business? Nothing really .. or possibly everything. I'm fascinated with the change we're enduring and the impact it's having on people. It may be uncomfortable, it may be difficult, but I'm beginning to think we'll be better for it.
I'm very interested in what others have to say on this subject.
Friday, August 6, 2010
Friday, July 9, 2010
Arizona’s Amazing Monsoon
July has arrived and southern Arizonans wait in anticipation for the annual Monsoon. If you haven’t had the opportunity to experience it yet, you’re in for a treat. If you’ve lived through at least one, you’ll understand what I mean.
It’s a magical time of year. The weather stabilizes in April followed by almost three months of clear, blue skies. The temperature rises during these months until, around the 4th of July, you’re convinced that you’re living in an oven.
Then it begins. At first, you see afternoon clouds. They’re puffy and white. They don’t produce any rain yet they provide welcome shade if only for a few minutes. In a couple weeks the clouds start showing up in their dark gray suits. It’s easy to think it’ll rain but it doesn’t. If you look real closely you’ll see that rain is coming from some of the clouds, it’s just evaporating before it hits the ground.
I’m not a meteorologist but I enjoy listening to our local weather forecasters as they describe the technical aspects of the Monsoon. Based on the calendar, we enter the Monsoon on June 15th. Based on Dew Point, the Monsoon begins when the dew point rises to 54° and remains at least that high for three consecutive days. Regardless of the date or the dew point, you can begin to feel the humidity in the air and you just know that the Monsoon rains are not far behind.
The best way for me to describe the Monsoon is to say “It’s the most wicked thunderstorm I’ve ever experienced”. The sky turns very dark. It’s different than the greenish darkness you’ll find in tornado alley. The Monsoon skies are dark, dark gray. When this happens, the birds make their last dash for cover as the outside world becomes very still.
Then the thunder arrives with vengeance. It builds in the distance, getting louder and louder as it rolls across the land. It’s often so powerful that it rattles the windows in the house. You can feel the thunder as it gets closer and closer.
Along with the sound of thunder is the lightshow created by the Monsoon. Do you like lightning? I hope so because you’ll be absolutely amazed at what you see. Lightning dances across the sky, bolts upward from the ground, and lights up your home like a strobe light. It’s not uncommon to lose power during a Monsoon storm. This just makes the experience more dramatic as your darkened home turns bright as day when lightning strikes close by. What a beautiful contrast between moments when your world goes from darkness to brightness and back to darkness so quickly.
The wind is the force that pushes the Monsoon storm through the area. It helps you smell the rain long before it arrives. What a refreshing scent after months of ever-increasing heat. You soon learn to enjoy the scent briefly because the dangerous lightning and drenching rains come quickly.
Rain falls hard during a Monsoon storm. It’s as if the clouds build-up with water and don’t let go until they can’t hold it any longer. Monsoon rain often begins with a gusher rather than a few drops. It’s as if you get two days of rain in one hour. The wind blows very hard as the storm passes through. It sends the rain sideways making umbrellas useless. You can expect your covered windows to be dirty from top to bottom.
Monsoon storms rarely last more than an hour, often times they barely last thirty minutes. When the thunder, lightning, and rain move off in the distance, it’s natural to want to go outside. The first thing you notice is that the temperature has dropped dramatically. The air is almost cool. You look in the wash and there’s actually water flowing through it, a sight that’s rarely seen. It’s easy to identify the low spots in your yard, something you’ll want to take care of later.
And then there’s the scent of the desert. The rain settles the dust and washes the plants and trees. It leaves behind a woodsy scent that’s difficult to describe. It’s sweet yet musky and very unique. You’ll only sense it after the rain and you’ll find yourself yearning for it the rest of the year.
The Monsoon storm leaves you with an evening that’s cool and somewhat humid. The air is fresh and the desert is moist. You’ll want to sit outside and recount the stories of Monsoons past and compare with the experiences of the day. What will tomorrow bring? Probably another storm and the chance to live it all over again. The Monsoon is truly a magical time in southern Arizona. It passes quickly yet gives us such a different world for ten short weeks each summer. I hope you have the opportunity to be in an Arizona Monsoon at least once in your life. It’s an experience you’ll never forget.
It’s a magical time of year. The weather stabilizes in April followed by almost three months of clear, blue skies. The temperature rises during these months until, around the 4th of July, you’re convinced that you’re living in an oven.
Then it begins. At first, you see afternoon clouds. They’re puffy and white. They don’t produce any rain yet they provide welcome shade if only for a few minutes. In a couple weeks the clouds start showing up in their dark gray suits. It’s easy to think it’ll rain but it doesn’t. If you look real closely you’ll see that rain is coming from some of the clouds, it’s just evaporating before it hits the ground.
I’m not a meteorologist but I enjoy listening to our local weather forecasters as they describe the technical aspects of the Monsoon. Based on the calendar, we enter the Monsoon on June 15th. Based on Dew Point, the Monsoon begins when the dew point rises to 54° and remains at least that high for three consecutive days. Regardless of the date or the dew point, you can begin to feel the humidity in the air and you just know that the Monsoon rains are not far behind.
The best way for me to describe the Monsoon is to say “It’s the most wicked thunderstorm I’ve ever experienced”. The sky turns very dark. It’s different than the greenish darkness you’ll find in tornado alley. The Monsoon skies are dark, dark gray. When this happens, the birds make their last dash for cover as the outside world becomes very still.
Then the thunder arrives with vengeance. It builds in the distance, getting louder and louder as it rolls across the land. It’s often so powerful that it rattles the windows in the house. You can feel the thunder as it gets closer and closer.
Along with the sound of thunder is the lightshow created by the Monsoon. Do you like lightning? I hope so because you’ll be absolutely amazed at what you see. Lightning dances across the sky, bolts upward from the ground, and lights up your home like a strobe light. It’s not uncommon to lose power during a Monsoon storm. This just makes the experience more dramatic as your darkened home turns bright as day when lightning strikes close by. What a beautiful contrast between moments when your world goes from darkness to brightness and back to darkness so quickly.
The wind is the force that pushes the Monsoon storm through the area. It helps you smell the rain long before it arrives. What a refreshing scent after months of ever-increasing heat. You soon learn to enjoy the scent briefly because the dangerous lightning and drenching rains come quickly.
Rain falls hard during a Monsoon storm. It’s as if the clouds build-up with water and don’t let go until they can’t hold it any longer. Monsoon rain often begins with a gusher rather than a few drops. It’s as if you get two days of rain in one hour. The wind blows very hard as the storm passes through. It sends the rain sideways making umbrellas useless. You can expect your covered windows to be dirty from top to bottom.
Monsoon storms rarely last more than an hour, often times they barely last thirty minutes. When the thunder, lightning, and rain move off in the distance, it’s natural to want to go outside. The first thing you notice is that the temperature has dropped dramatically. The air is almost cool. You look in the wash and there’s actually water flowing through it, a sight that’s rarely seen. It’s easy to identify the low spots in your yard, something you’ll want to take care of later.
And then there’s the scent of the desert. The rain settles the dust and washes the plants and trees. It leaves behind a woodsy scent that’s difficult to describe. It’s sweet yet musky and very unique. You’ll only sense it after the rain and you’ll find yourself yearning for it the rest of the year.
The Monsoon storm leaves you with an evening that’s cool and somewhat humid. The air is fresh and the desert is moist. You’ll want to sit outside and recount the stories of Monsoons past and compare with the experiences of the day. What will tomorrow bring? Probably another storm and the chance to live it all over again. The Monsoon is truly a magical time in southern Arizona. It passes quickly yet gives us such a different world for ten short weeks each summer. I hope you have the opportunity to be in an Arizona Monsoon at least once in your life. It’s an experience you’ll never forget.
Thursday, June 3, 2010
Selling your home in today’s market
We’ve all heard how it’s a buyer’s market today, which is very true. If you want to sell your home this summer, we’ll need to deploy strategies that you may not have thought about in several years.
The first hurdle is deciding if you have the stomach and will to work with today’s buyer. Thanks to the Internet, buyers are better informed about market trends, available homes, and home values. If they purchased a home during the long-running seller’s market, they still remember the stress and frustration of buying quickly based on skyrocketing prices rather than real value. Today they have time to look at value and they’re using it.
Buyers are looking for a nice home they can purchase at a fair price. A few are looking for distress sales where a low-ball offer might get accepted but this is rare and it’s easy to reject an insulting offer. Most buyers just want to get the deal done quickly and with minimal stress.
Third, with plenty of homes from which to choose, the typical buyer gives more consideration to homes that are move-in-ready vs. homes that need updating. Buyers typically look at the kitchens and bathrooms as indicators of value. They want a home that makes them feel comfortable during family dinners and while entertaining. Think about it for a moment … a nice home with an updated kitchen and fresh bathrooms makes you feel better than the same home that’s still in the ‘80s. Feeling good equates to value.
Our job, as seller and Realtor, is to offer the home in a way that appeals to a broad market of highly selective buyers. We have access to the same information that the buyers see. We need to analyze this information, identify what makes your property truly special, and deliver a value statement, or marketing message, that gets your home on the must-see long-list. A strong value statement, including price and lifestyle, compels prospective buyers to see your home. A nice home with updated kitchen and bathrooms helps them feel good when they visit. Getting on the must-see long-list and feeling good in your home are two important steps to getting an offer.
Creating a value statement for your home is nothing new. However, in today’s market buyers easily get overwhelmed with the number of available homes and the lack of competition from other buyers. The enormous amount of information provided over the Internet makes it easy for buyers to focus on price and location rather than the values delivered by the neighborhood and lifestyle. Our job is to differentiate your home from the masses by showing the total value.
So let’s get to the strategy. First, determine if you want to sell, how quickly you want to sell, and if you’re willing to sell at today’s market value. Overpriced homes with several price reductions give the impression that you really don’t want to sell. It’s easy for prospective buyers to keep these homes off their must-see list. Remember, buyers want a nice home at a fair price with minimal negotiation and a smooth escrow process.
Next, take a good, objective look at your home. What updating is needed prior to offering it on the market? Can you re-coup this investment? What is your competition based on location, age, amenities and price range? If you can get your home market-ready before offering it on the market, you’ll stand a better chance of attracting potential buyers during the first critical sixty days.
After you’ve updated your home and priced it competitively, create a marketing message that compels buyers to look at your home by highlighting what makes your home special. Most marketing messages talk about the number of bedrooms and bathrooms. While this may be important, it’s far from compelling. Let’s highlight the long evenings on your shaded, private patio. Or the pleasure of entertaining with your kitchen that’s right off the main living area. What about the pride you feel when guests comment on the comfort of staying overnight in your guest room complete with an awesome guest bath? Maybe you live on a quiet street in an established neighborhood that’s also close to shopping. These are the true values of home ownership.
There’s an old adage … sell the sizzle, not the steak. This is a must in today’s market. The good news is that a large portion of your competition is still marketing as if they’re in a seller’s market. They’re not going to “give their home away” nor show weakness by catering to the buyer. Let’s try another strategy. Take care of the necessary updates, price your home competitively based on what’s selling in the market, and cater to the buyer’s need for value. We can get it done this summer if you’re ready.
So tell me … what makes your home sizzle?
The first hurdle is deciding if you have the stomach and will to work with today’s buyer. Thanks to the Internet, buyers are better informed about market trends, available homes, and home values. If they purchased a home during the long-running seller’s market, they still remember the stress and frustration of buying quickly based on skyrocketing prices rather than real value. Today they have time to look at value and they’re using it.
Buyers are looking for a nice home they can purchase at a fair price. A few are looking for distress sales where a low-ball offer might get accepted but this is rare and it’s easy to reject an insulting offer. Most buyers just want to get the deal done quickly and with minimal stress.
Third, with plenty of homes from which to choose, the typical buyer gives more consideration to homes that are move-in-ready vs. homes that need updating. Buyers typically look at the kitchens and bathrooms as indicators of value. They want a home that makes them feel comfortable during family dinners and while entertaining. Think about it for a moment … a nice home with an updated kitchen and fresh bathrooms makes you feel better than the same home that’s still in the ‘80s. Feeling good equates to value.
Our job, as seller and Realtor, is to offer the home in a way that appeals to a broad market of highly selective buyers. We have access to the same information that the buyers see. We need to analyze this information, identify what makes your property truly special, and deliver a value statement, or marketing message, that gets your home on the must-see long-list. A strong value statement, including price and lifestyle, compels prospective buyers to see your home. A nice home with updated kitchen and bathrooms helps them feel good when they visit. Getting on the must-see long-list and feeling good in your home are two important steps to getting an offer.
Creating a value statement for your home is nothing new. However, in today’s market buyers easily get overwhelmed with the number of available homes and the lack of competition from other buyers. The enormous amount of information provided over the Internet makes it easy for buyers to focus on price and location rather than the values delivered by the neighborhood and lifestyle. Our job is to differentiate your home from the masses by showing the total value.
So let’s get to the strategy. First, determine if you want to sell, how quickly you want to sell, and if you’re willing to sell at today’s market value. Overpriced homes with several price reductions give the impression that you really don’t want to sell. It’s easy for prospective buyers to keep these homes off their must-see list. Remember, buyers want a nice home at a fair price with minimal negotiation and a smooth escrow process.
Next, take a good, objective look at your home. What updating is needed prior to offering it on the market? Can you re-coup this investment? What is your competition based on location, age, amenities and price range? If you can get your home market-ready before offering it on the market, you’ll stand a better chance of attracting potential buyers during the first critical sixty days.
After you’ve updated your home and priced it competitively, create a marketing message that compels buyers to look at your home by highlighting what makes your home special. Most marketing messages talk about the number of bedrooms and bathrooms. While this may be important, it’s far from compelling. Let’s highlight the long evenings on your shaded, private patio. Or the pleasure of entertaining with your kitchen that’s right off the main living area. What about the pride you feel when guests comment on the comfort of staying overnight in your guest room complete with an awesome guest bath? Maybe you live on a quiet street in an established neighborhood that’s also close to shopping. These are the true values of home ownership.
There’s an old adage … sell the sizzle, not the steak. This is a must in today’s market. The good news is that a large portion of your competition is still marketing as if they’re in a seller’s market. They’re not going to “give their home away” nor show weakness by catering to the buyer. Let’s try another strategy. Take care of the necessary updates, price your home competitively based on what’s selling in the market, and cater to the buyer’s need for value. We can get it done this summer if you’re ready.
So tell me … what makes your home sizzle?
Friday, April 9, 2010
Are Investors returning to Real Estate? –
Several clients are interested in REOs (Real Estate Owned foreclosures) hoping to snag a great buy in this down market. This week, while researching two neighborhoods hit especially hard with REOs, I noticed a few interesting signs that show investors returning to the market.
First, several REOs closed escrow at prices higher than the asking price. This could be a sign that some homes are listed below market value. It could also mean that investors who want to leverage this down market will make a fair offer in an effort to avoid wasting time in a bidding war. Investors know this down market won’t last forever.
Second, REOs appear to be selling quicker, as good deals should. Prices have been dropping and may have reached the point of becoming compelling. Investors think long-term and often look at the market holistically. They’ve see the drop in available rentals, they’ve seen the drop in home prices, they see the opportunity for positive cash flow and future equity … they strike.
Last, several REOs were purchased with cash. As the market begins to improve, cash purchases drive a stronger return for investors. The hotter the market, the more likely investors will use other people’s money in the form of a loan. Cash sales of REOs could mean that investors believe the market is improving but not yet the hot market of years past.
So what does this mean for the person or couple looking for a good deal on a primary residence? It means competition, not just from other homebuyers but also from investors who want to make a quick deal. Competition means that prices will likely stabilize or even increase a bit. With investors in the market, low-ball offers become less effective. Homebuyers should determine an offer that is fair enough to be considered. If you really like a home and plan to own it for a good length of time, you may want your offer to not only be fair but also somewhat compelling.
The goal is to help you purchase a home you want, at a fair price that builds equity for you in the future. I hope you’ll search for a Realtor that enjoys doing research and provides the data and insight you need to make decisions that are best for you.
Happy House Hunting …
First, several REOs closed escrow at prices higher than the asking price. This could be a sign that some homes are listed below market value. It could also mean that investors who want to leverage this down market will make a fair offer in an effort to avoid wasting time in a bidding war. Investors know this down market won’t last forever.
Second, REOs appear to be selling quicker, as good deals should. Prices have been dropping and may have reached the point of becoming compelling. Investors think long-term and often look at the market holistically. They’ve see the drop in available rentals, they’ve seen the drop in home prices, they see the opportunity for positive cash flow and future equity … they strike.
Last, several REOs were purchased with cash. As the market begins to improve, cash purchases drive a stronger return for investors. The hotter the market, the more likely investors will use other people’s money in the form of a loan. Cash sales of REOs could mean that investors believe the market is improving but not yet the hot market of years past.
So what does this mean for the person or couple looking for a good deal on a primary residence? It means competition, not just from other homebuyers but also from investors who want to make a quick deal. Competition means that prices will likely stabilize or even increase a bit. With investors in the market, low-ball offers become less effective. Homebuyers should determine an offer that is fair enough to be considered. If you really like a home and plan to own it for a good length of time, you may want your offer to not only be fair but also somewhat compelling.
The goal is to help you purchase a home you want, at a fair price that builds equity for you in the future. I hope you’ll search for a Realtor that enjoys doing research and provides the data and insight you need to make decisions that are best for you.
Happy House Hunting …
Friday, April 2, 2010
The Magic of Green Valley, AZ
Green Valley Arizona was started way back in the 1960’s, before I-19 was built, when two brothers dreamed of a retirement community in the Sonoran desert. Through the help of a land grant the town was born. Villa condos were the first to be built followed by townhouses and single family homes. About half of our residents are snowbirds that come during the winter months while the other half reside here full-time. Most people that have spent time in Green Valley would agree that it is addictive. The question is why.
People make Green Valley special. Since everyone is from somewhere else, we all have something in common. Winter visitors come and go so friendships are renewed each year. It gets almost difficult to see everyone while they’re here because we only have so many days in a few short winter months.
Activities add to the magic of Green Valley. We have eight golf courses, thirteen recreation centers complete with tennis courts, swimming pools, hot tubs, weight rooms, exercise rooms, and more. On any day you’ll see dozens of people taking walks and riding bicycles. There are social clubs, such as the Colorado club and the Minnesota club, that meet during the winter months for pot-luck dinners, entertainment, and activities. We also have clubs for woodworking, lapidary, ceramics, chess, cards, and others. If you find yourself bored in Green Valley, it’s probably your own fault.
Volunteer opportunities abound. Green Valley is in unincorporated Pima County so we’re not an official city. We’re governed by a council of volunteers that are elected by the residents and interface with county officials. We also have Green Valley Recreation that oversees our rec centers and operates mostly through volunteers. Almost all of the homes belong to Homeowner’s Associations which are also run by volunteers. Many of us never had time to volunteer when we were chasing careers and raising families. Now we can invest a few hours each month and really make a difference.
While activities and opportunities are important, the magic of Green Valley still comes back to the people. We have such a variety of backgrounds, skills, and interests. People are here because they want to be here. They come to Green Valley for the weather and the activities. As always, friendships lead to people looking out for each other. The net result is a wonderful place to live.
My advice is to visit Green Valley at your own risk. You’ll probably find that you want to come back again next year. You’ll probably want to stay a little longer each time. Many of us realize that life is very short, friendships matter, and being in a happy place just feels good. Ah, the magic of Green Valley. It truly is addictive.
People make Green Valley special. Since everyone is from somewhere else, we all have something in common. Winter visitors come and go so friendships are renewed each year. It gets almost difficult to see everyone while they’re here because we only have so many days in a few short winter months.
Activities add to the magic of Green Valley. We have eight golf courses, thirteen recreation centers complete with tennis courts, swimming pools, hot tubs, weight rooms, exercise rooms, and more. On any day you’ll see dozens of people taking walks and riding bicycles. There are social clubs, such as the Colorado club and the Minnesota club, that meet during the winter months for pot-luck dinners, entertainment, and activities. We also have clubs for woodworking, lapidary, ceramics, chess, cards, and others. If you find yourself bored in Green Valley, it’s probably your own fault.
Volunteer opportunities abound. Green Valley is in unincorporated Pima County so we’re not an official city. We’re governed by a council of volunteers that are elected by the residents and interface with county officials. We also have Green Valley Recreation that oversees our rec centers and operates mostly through volunteers. Almost all of the homes belong to Homeowner’s Associations which are also run by volunteers. Many of us never had time to volunteer when we were chasing careers and raising families. Now we can invest a few hours each month and really make a difference.
While activities and opportunities are important, the magic of Green Valley still comes back to the people. We have such a variety of backgrounds, skills, and interests. People are here because they want to be here. They come to Green Valley for the weather and the activities. As always, friendships lead to people looking out for each other. The net result is a wonderful place to live.
My advice is to visit Green Valley at your own risk. You’ll probably find that you want to come back again next year. You’ll probably want to stay a little longer each time. Many of us realize that life is very short, friendships matter, and being in a happy place just feels good. Ah, the magic of Green Valley. It truly is addictive.
Thursday, March 25, 2010
Home Buyer Tax Credit
The Home Buyer Tax Credit will expire at the end of April and folks need to be in escrow by that date. It's a great deal for first-time buyers and people who are changing their primary residence. However, it hasn't been such a big deal in Green Valley Arizona. There are a couple reasons for this. First, Green Valley is, for the most part, a retirement community. The vast majority of our home buyers already own, or have recently owned, real estate and therefore don't qualify for the first-time buyer tax credit. Others will qualify for the current homeowner tax credit only if they're changing their primary residence. Roughly half of our residents are winter visitors and, if they purchase a home in Green Valley, it's often their vacation home, not a primary residence. Hence, a small percentage of our home buyers qualify for either tax credit. On the positive side, it's very easy to determine if a home buyer could qualify and should be interested. If they are, a good Realtor will manage the timeline to ensure that they get into escrow by the end of April with a closing date before the end of June.
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