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Tucson Real Estate & Golf Properties

Douglas Trudeau , Assoc. Broker
Prudential Foothills Real Estate
64 N. Harrison Road, Suite 160
Tucson , AZ 85748
Mobile: 520-954-2209
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Archive for February, 2008

What Tiger Woods and Tucson Have In Common

February 25th, 2008 categories: Tucson Golf Community, Tucson Golf Events

What could Tiger Woods and Tucson possibly have in common? Both like the Accenture Match Play Championship. Tucson for the pleasure of seeing the top players play golf in person. Tiger for winning the 2008 Accenture Match Play Championship. Tucson has a number of golf courses to accommodate players of every level. Even Tiger would find some of the courses, especially the desert courses, challenging. The Pines in Marana is great course for finesse and control. Imagine playing golf in an old rock quarry. Some of the elevation shots require more than usual consideration. A lot of the holes require on target shots or you will never see your golf ball again. Starr Pass is another a prime example for target shooting. A great mountain course with challenging shots. Accuracy and control is the key on this course.

Tucson has a wealth of golf communities to compliment its many golf courses. Some are private course, some semi-private. Many are open to the public. Tucson has a love for golf as anyone can tell. The PGA has been no stranger to Tucson. In the past we have supported the Tucson Chrysler Classic and the Welch’s LPGA Tournament. Players like Ben Hogan and Arnold Palmer have graced some of the courses of Tucson. It was natural that the Accenture Match Play Championship come to Tucson. Tiger loves golf, Tucson loves golf. Tucson loves Tiger, we hope Tiger loves Tucson.

Visit some of the golf communities throughout Tucson and you will see what Tucson has to offer golfers.

Authored by Doug Trudeau | Discussion: No Comments »

What Does Golf and Rodeo Have In Common In Tucson

February 14th, 2008 categories: Tucson Golf Events, Tucson News & Events

February is a big month for the greater Tucson community. Thousands of visitors have been coming to Tucson from around the State of Arizona, Sonora, and many other areas. The Tucson Rodeo was an annual event before I moved to Tucson some 34 years ago.

Last year the Accenture Match Play Championship moved to Tucson. Replacing the PGA Chrysler Open. Tucson has been a host to the PGA since 1945. Welcoming players over the years like Ben Hogan, Arnold Palmer, and now Tiger Woods.

Rodeo lovers flood the streets near the Rodeo grounds every year to watch the nations largest non-mechanized parade. When our boys were little we took them several times to see the horses and wagons go by. Newcomers to the community find lots of cowboy hats and boots to dress for the occasion. Many businesses allow employees to dress western for the multiple day event.

Having been to PGA Open events at Tucson National Golf Course, and then the Accenture Match Play last year I can say that the later is a much bigger event. The crowds around Ernie Els, Mike Weir, and Phil Michelson are huge. The crowd following Tiger Woods were unbelievable.

So what do these two events have in common? Both bring thousands of visitors to Tucson. Many for the first time. Many who see the advantages of the mild winters in the desert and who look to move here in the near and distant future. Both events help stimulate the local hospitality business and the local economy. Both the rodeo and the golf tour are welcomed by thousands of Tucsonians. So, welcome to Tucson and have fun. Don’t forget our other sights while you are here.

More Attractions

Authored by Doug Trudeau | Discussion: No Comments »

What Makes Up A Contract

February 13th, 2008 categories: Tucson Real Estate

A couple days ago someone asked me the components of a contract. As an experienced Realtor you would think that I could rattle it out without thinking. Brain freeze, embarrassment, and a lot of thinking afterward. Contracts are a critical part of real estate. Sometimes we write contracts, knowing what is required without thinking about all the parts. I must say, I feel good about how much I put into contracts. Beyond the requirements, making sure that expectations are clearly written. We have all seen some contracts that questionably written, vague about expectations, or are confusing as heck.

I started wondering about buyers and sellers who may not know requirements of a contract. There are a lot of home buyers and sellers, some who use a Realtor, some who don’t who understand even less about contracts and liabilities. So what makes up a contract?

Performance and Expectations:

In any transaction requiring a contract there are certain expectations from both sides. I n real estate, Sellers expect to get paid for the sale of their home with minimal or no problems. Buyers expect to buy a home with minimal or no problems. Mutual agreement so far. Sellers expect to surrender possession of the home, buyers expect to take possession. If only it were this simple.

If a lender is used, additional expectations will arise. Considering what has happened with the lending industry over the last 18 months, these expectations can be very strict with fewer buyers qualifying. For Sale By Owners (FSBO) have little protection in this area to confirm a sale if they are not savvy with writing contracts. Some sales can be very complicated and require very specific language to protect all concerned. In real estate only what is written is binding. If one side states something verbally, the other should insure receipt in writing.

Valid Consideration:

Sellers expect to get paid for the sale of their home. Buyers expect to pay for a home. Method of payment may be in cash, cashiers cheque, money order, bank wire transfer, or lender provided. The later is the most common. With a lender, they will want certain guarantees before releasing funds for the loan.

Offer and Acceptance:

Mutual agreement between buyer and seller. What is really accepted? As humans we all have different interpretations. Clarity in offers from both sides saves problems later. Manymisperceive that a contract is a contract once an offer is written. Not so, everything is an offer until there is mutual agreement in writing. Buyer can offer, seller counter offer, buyer counter offer the seller’s counter offer and so on until both come to a mutual agreement. Once both agree in writing, there is a binding contract with conditions defined within.

Time Frame To Perform:

Without providing time frames for performance and expectations a contract can go on and on for an unreasonable amount of time. In Arizona Realtors use a standard contract that has time frames for

Seller response,
Counter Offers,
Inspections,
Repairs,
Signing documents, and
Closing Escrow.

For failure to perform, there are cure periods to perform or the contract may be voided.

Warranty and Services:

What warranty does the buyer have that the home will be in the same condition as it was when an offer was submitted? What warranty does the seller have that the buyer will do what is needed to acquire a loan in time? What property must convey with the home? What is the seller allowed to take? What happens if repairs needs arise two days after the Deed exchanges hands?

Clarity for warranties and services early in the contract is essential to prevent problems after the transaction has closed. If the air conditioning doesn’t work when summer comes for a home purchased in the winter, who is liable for repairs? If the room addition is not up to code and the city or county insists it be corrected at the cost of thousands of dollars, who is responsible? If agreed repairs are not completed before close of escrow or in a reasonable manner, what action can be taken? Clarification in the contract will make this clear from the beginning.

Payment:

Time of payment is normally at Close of Escrow (COE). What about earnest money? If the deal fails to go through, who gets the earnest money? Standard contracts used by Arizona Realtors answers this question in the contract. Lender performance has always been the primary problem in this area. Until full payment is received, no transfer of the title. If not careful, FSBO contracts may not have this protection.

If repairs are not completed, how much money is held back? Rule of thumb one and a half times the estimated costs maybe held back for uncompleted repairs. Putting a time frame for completion or all withheld funds go to the buyer puts emphasis on getting repairs done quickly.

Conflict Resolution:

If there is a conflict in one side not performing as expected by the other side, what is the means of resolution? Are there penalties? Is there a cure period forcing performance? At what point does it go to litigation? What avenues are there for seeking resolution?

Communication:

Timely communication is important in all contracts. Letting the other side know progress of expectations solves a lot or problems, especially when unexpected interruptions occur. Holing back and not letting the other side know creates unnecessary conflict.

Competent or Authorized Parties:

One thing that can cause a deal to fall apart is having the wrong person sign the offer or contract. For investment groups, family trusts,LLC’s , etc. making sure that the person with authority to sign is the person who you get signatures from is important. When dealing with elderly home buyers or sellers, it is a good idea to get a family member for the client to review all documents and advise accordingly.

I may not have the quick witted answer to break a contract down into its essential components at a moments notice. But, I do know how to write good contracts. Each situation has its unique characteristics. Knowing what is best for the client and insuring those needs in clear, concise, precise understandable verbiage will prevent problems and misunderstanding. If it isn’t in writing it doesn’t exist. After all, buying a home is one of the biggest decisions most people make. Doesn’t it make since to take time to review the offer/contract and make sure it is written right before it is submitted?

Authored by Doug Trudeau | Discussion: No Comments »

Where Are All These Homes For Sale Coming From

February 8th, 2008 categories: Tucson Real Estate

Tucson Real Estate Home For Sale While talking to a Realtor whom I trust, she identified some interesting considerations when it comes to the number of listings on the market today. Thanks Theresa.

Normally there are two types of homes on the market. Traditionally the majority of homeowners sell their home between five to seven years; the first type, normal market. Then there are those who have a life change (job relocation, got married and need a bigger house, have more family than home, have more home than family, moving up in life with a higher income and can afford more home, etc.) who sell their homes, normal market. Using the current numbers, these accounts for approximately two thirds of the homes on the market. Which, if they were the only ones on the market we would have a very healthy and balanced market.

Buyers Market So where is the other one third of the homes coming from? They come from buyers who took it to the edge, pushed the envelope, took a risk, and just got in over their heads. Now we have two more layers, so to speak, to add to the number of homes on the market. First are those trying to get out from under the unmanageable mortgage they agreed to two to three years ago. Many are ending up in short sales. The next level are those poor souls who gambled too high and lost their homes. Bank sales are an ever increasing number of homes on the market today. Both have created an unhealthy market.

Add to the mix the reduction in buyer confidence and you will see that homes are not moving as fast as they could, and I mean “could.” Slowing down the sale of homes on inventory.

Lets compare it to a dam. Designed to handle a certain amount of water flow to meet electrical power needs as well as control the water demand needs of communities down stream. A drought hits and reduces the amount of water flowing to the dam. Demand increases for more water downstream and for more power. More water flows through the dam.

Levels are low, and demand is high. Power company increases prices. Now we have a high demand low supply situation. The value of water is artificially driven to unbelievable levels.

New technology is introduced and water conservation is stressed down stream. Less need for water and power results. Demand decreases.

Winter comes and the mountains upstream have much higher than normal snow fall. At lower levels upstream there has been more rain than winters past. Water levels at the dam increase (buyers who took too high of a risk). Then comes spring, the snow melts, streams become rivers, rivers flow above flood levels (banks with repossessed homes). The level at the dam is increasing hourly. Demand downstream has not increased. Communities are decreasing dependency on power and maintaining water conservation. One flood gate is opened to relieve the pressure. Water flows freely downstream, but communities don’t want to increase demand for fear of another drought (buyer confidence remains low). Raging rivers upstream are adding more water than flood gates a relieving.

Another flood gate is opened (banks willing to work with sub prime loans and adjustable rate loans to help homeowners save them). Some pressure is relieved, but not enough. A warmer than usual spring is increasing snow melt. Another flood gate is opened (Feds reduce interest rate and the effect trickles to home loan rates). Another gate is opened, but not enough to reduce the rising water. More melt, more rain, more water rushing to the dam.

The power company reduces their fee for electrical power. It is now cheaper to use their power than pay for alternative power (cheaper to buy than remodel). Communities are tired of dry brown landscaping, water demand increases (buyer confidence returns). Another flood gate is opened to meet the demand. Water levels return to normal, everything returns to what it was before the drought.

When buyer confidence returns, and home inventory levels balance out, we will see a great market again. One ready for the next wave of buyers. Those babyboomers looking for a comfortable community with comfortable weather.

Authored by Doug Trudeau | Discussion: No Comments »

Tucson Real Estate January 2008 Preliminary Home Sales Report

February 3rd, 2008 categories: Tucson Real Estate

On January 18th I predicted that residential home sales for January should fall between 546 and 610. As of February 1, that number is 568. Mid point within the range. Not bad for predicting. Reporting will continue for the next couple of weeks. The official numbers will be collected on or around the 4th of the month. As of now the highest being $3,100,000, lowest $35,000 and median of $199,695.

Thirteen Golf Properties were recorded as sold for the month, for an average price of $462,110. The highest being $1,939,000, lowest $114,000 and median of $332,500.

Considering today is Superbowl Sunday, the deadline for reporting could be extended. The TAR/MLS official report won’t be out until some time between the 14th and 19th. So, watch for all the blogs from Dave (Tucson AZ Real Estate), Kelly (House Chick) and me around that time. Each giving a slightly different spin on the market. Between the three of us, you will get a good picture of the market.

Since last month interest rates have dropped in an attempt to stimulate the market. How long interest rates will remain this low depends on a lot of things. Lets all hope it stays low.

Watch for: