Tucson Real Estate Blogs » 2008

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 March, 2008

Sometimes You Have To Wonder

March 14th, 2008 categories: Tucson Real Estate

It doesn’t take a rocket scientist to figure out that its a buyers market, the market is far below desired level, and buyers are looking for deals. It’s not hard to figure out that pricing a home correctly in a market like this is critical if you are serious about selling. I take it you’re with me so far. Well, let me tell a story. See if you come to the conclusion, “What are they thinking?”

Working with a buyer who is a little more meticulous than others, we came across a FSBO. I know at least one person will ask what’s a FSBO, it’s For Sale By Owner. The homes in the area are selling for the high $400,000 to Low $500,000. I ran comparable sales on the FSBO for $489,000. Zillow has it, per sellers improvements, at $512,000. Off on the high side, but not terrible. The last same square footage home in the area sold for $485,000. Difference between that and the comps are not too far apart. Average per square footage for the community is $492,000.

My client is thinking offer $475,000 and see what the seller will take. Sound reasonable? Who knows, if priced right the seller may just take it. Well, its priced at $625,000. What do you think the chances were for negotiation? Let me tell you what happened, none.

This situation is a little extreme, I’ll admit. However, it points out a few things. It doesn’t matter what the seller owes or personally feels the value is. Buyers are not willing to pay more for a home only to find the value worth less down the road. Can’t blame them. Have to agree with them. Appraisers are getting beat up by lenders to bring in a reasonable appraisal. Any appraiser will tell you that the appraisal is good for the day it was written. If another sale is recorded 24 hours after the appraisal, its value diminished. If higher, God Bless that sale.

There are some good deals out there. There are a lot of over priced homes still on the market. The key is to look at the sales in the area, history of sales in the area, and determine a reasonable and fair market value. Depending on the area and volume of sales, you may have to go 3, 5 or 10% below average sales to attract attention and sell. In other areas you may get away with pricing right at the average price. A lot depends on location, location, location.

Trying to sell a home for over $135,00 above market reeks of insanity. Who in their right mind would want to pay that much? I can’t think of anyone. I don’t mean to pick on FSBO’s, there are plenty of over priced homes listed by hungry agents. In today’s market, what is priced right today may be over priced tomorrow. Being smart about pricing is the key.

Authored by Doug Trudeau | Discussion: No Comments »

Tucson Real Estate Peliminary Sales February 2008

March 9th, 2008 categories: Tucson Real Estate

Unofficially sales for February 2008 jumped to 722. Considering the officially reported sales of January, 598, this is a great increase. March sales, as season tradition continues, should be even higher. The lowest price was $26,000 for a 460 square foot unit. The highest sale was a 6,237 square foot home for $2.9 million. The average selling price for February was $262,161, median $199,945. Average days on the market 80, with a median of 63.

My favorite, golf properties, 21 sold in February with a low of $150,000 and a high of $870,000. The average was $390,857 and the median was $335,000. Average and median days on the market were 63. Still a better investment in my book. Considering more and more of my fellow Babyboomers are retiring in Tucson, welcome to our numerous golf communities. I am always looking for an excuse to golf. So if you are looking at Tucson…need I hint more?

Speaking of the January official report, 598 homes sold, with an average price of $266,450 and a median of $203,500. Active listings sat at 9,742. Need I say that the northwest portion of Tucson lead the market in sales as it has for years? What is impacting on that area now, which apparently isn’t killing sales, it the construction of the freeway through downtown Tucson. The infrastructure of the northwest supports the area so homeowners do not have to travel far for their needs.

Buyer confidence is still lower than what we prefer. New home builders are seriously reducing inventory and holding back on building spec homes. With those inventories diminishing, resale properties are expected to pick up. Appraisers are bruised and battered from the beatings they get from lenders. So, they are not willing to appraise a home for a penny more than what the market will support. Good news for buyers who are afraid to over pay on a home. The Residential Purchase contract clearly states “Buyers obligation to complete this sale is contingent upon an appraisal of the Premises by an appraiser acceptable to lender for at least the sales price.” Which brings me to another blog from what I experienced this morning in my searches for a buyer.

March will be more promising for sales, there are already up to 127 for the first week of the month. Not bad. March is always seasonally stronger than preceding month.

Authored by Doug Trudeau | Discussion: No Comments »

Tucson In Top 7 Places To Retire

March 2nd, 2008 categories: Tucson Real Estate

Tucson has been in top places for vacation, second home, and retirement living for many years. Smart Money has put Tucson in the top 7 Places to Retire During an Economic Downturn.

“7. Tucson, Ariz. A warm, sunny climate and rich cultural heritage have long kept Tucson at the top of retirees’ list of winter vacation destinations. However, with a cost of living that’s 3% below the national average, a strong job market and steady home prices, there’s plenty to enjoy about this city all year-round.

“Tucson is a dynamic, growing retirement spot, so there are plenty of job opportunities — although the pay is often low,” says Bland. While it’s not quite a college town, Tucson relies heavily on the University of Arizona as its second-largest employer. Technology and tourism (mostly from snowbirds) also provide plenty of jobs.

Steady expansion and new developments have kept housing relatively affordable, with costs at about 20% below the national average. The average sale price for existing homes dropped just 0.01% in 2007, to $244,800. Expect real estate prices to remain solid, thanks to increasing interest in the area as a retirement destination. The most popular areas are planned communities (retirement-specific and otherwise) northwest of the city, including Oro Valley and other towns in the foothills of the Santa Catalina Mountains.”

Tucson is a great place to live. The economy and real estate in Tucson is not perfect, no place is perfect. But, Tucson is definitely a lot better than other cities. Considering no tornadoes, no blizzards, no hurricanes, no earth quakes, we have a pretty good place to live. Interstate 10 passes through Tucson for easy access to Phoenix, San Diego, Los Angeles, Las Vegas, El Paso, and Albuquerque. Rocky Point and its many beaches are a few hours to the south. Tucson International Airport gives access to the rest of the world.

For golfers, Tucson has an array of golf courses for players of all levels. The rural areas around Tucson have variety of birds for anyone who loves our friends of flight. You can even join the Tucson Audubon Society. There Adult communities, golf communities, urban and suburban living. So what is stopping you from moving to Tucson?