Brad's Real Estate Blog

Here is what NAR statistics say:

FSBO Methods Used to Market Home:
Yard Sign . . . 51%
Friends/neighbors . . . 53%
Newspaper ad . . . 31%
Open House . . . 29%
Listing on the Internet . . . 22%

Most Difficult Tasks for FSBO Sellers:
Getting the right price . . . 11%
Understanding paperwork . . . 16%
Preparing/fixing up home for sale . . . 18%
Attracting potential buyers . . . 9%
Having enough time to devote to all aspects of the sale . . . 9%

What do the statistics say about the Home Buyers:

Information Sources Used in Home Search

Real estate agent - 85%
Yard sign - 63%
Internet - 80%
Newspaper - 55%
Home book/magazine - 34%
Open house - 47%
Builders - 26%
Television - 11%
Relocation company - 5%

 Statistics provided by NAR

Makes it kind of hard for a For Sale By Owner to sell on their own.  FSBO Seller, are you fighting against the trends? Fighting a market with measurably fewer buyers than in previous years?  Perhaps you should think about your strategy more.

I have many people and family members who ask me why I love Arizona. I am from Pennsylvania, and lived in Ohio, Florida and Texas before moving to Arizona when I was a teenager. I now have lived here for over 20 years and could not imagine living anywhere else. I know, everyone thinks that their state is the best state and the best place to live, but Arizona is truly a unique state. Here are some things you might not know about Arizona: 

1. Area, 113,909 sq mi (295,024 sq km).
2. Pop. (2000) 5,130,632, a 40% increase since the 1990 census.
3. Capital and largest city, Phoenix.
4. Nickname, Grand Canyon State, Copper State.
5. Motto, Ditat Deus [God Enriches].
6. State bird, cactus wren.
7. State flower, blossom of the saguaro cactus. State tree,paloverde.

The state's principal crops are cotton, lettuce, cauliflowers, broccoli, and sorghum. Cattle, calves, and dairy goods are, however, the most valuable Arizona farm products. Manufacturing is the leading economic activity, with electronics, printing and publishing, processed foods, and aerospace and transportation leading sectors. High-technology research and development, communications, and service industries are also important, as are construction (the state is rapidly growing) and tourism. Military facilities contributing to Arizona's economy include Fort Huachuca, Luke and Davis-Monthan air force bases, and the Yuma Proving Grounds. Testing and training with military aircraft and desert storage of commercial and military planes are both major undertakings.

Arizona abounds in minerals. Copper is the state's most valuable mineral; Arizona leads the nation in production. Other leading resources are molybdenum, sand, gravel, and cement. Between 1940 and 1960, Arizona's population increased more than 100%, and since then growth has continued. By the 2000 census the cumulative increase since 1940 amounted to more than 1000%, and Arizona was ranked among the fastest growing states in the nation. The mountainous north, however, has not shared the population growth of the southern sections of the state. Over 80% of the people are Caucasian and nearly 20% are Hispanic.

Arizona Name Origin:
Arizona derived its name from "Aleh-zon", two Indian words meaning "Little Spring." The land southern Arizona was acquired in 1848 when Mexico relinquished it after the war with the United States. The balance of the state was acquired in 1853 through the Gadsen Purchase. On February 1912, when President William Howard Taft signed an act passed in 1911, Arizona became the Nation's 48th state. Thus Arizona is sometimes referred to as the "Nation's Valentine" or the "Valentine State."

State Bird:
The cactus wren, one of the largest members of wren family, builds its nest in the thorny cactus throughout the desert lands. The cactus wren is woody-brown in color with a speckled breast.

State Flower:
The blossom of the saguaro, the largest cactus in the United States, is the state flower. This cactus may grow to a height of 50 feet and as old as 200 years.

State Gem:
Turquoise is a blue green waxy-surfaced stone used for centuries in Indian jewelry.

State Tree:
The Pale Verde which means "green stick" is of the most beautiful trees of the desert with springtime yellow blossoms.

State Seal:
The state's original major enterprises are symbolized on Arizona's official seal - reclamation, farming, cattle raising and mining. The center depicts mountains with a rising sun, a reservoir with a dam, grazing cattle, orchards, fields, a quartz mill and a miner with a pick and shovel.

State Song:
Clifford and music by Maurice Blumenthal. Arizona March Song, words by Margaret Rowe

State Flag:
Blue and gold are the state's colors. Thirteen rays of red and yellow make up the setting sun on the upper half of the flag. The lower half is blue, with a copper color star at the center symbolizing the state's copper industry.

Official Neckwear:
The bola tie originated in Arizona. The official style is the silver bola with turquoise.

Motto:
Ditat Deus -- "God enriches."

State Nicknames:
Grand Canyon State / Copper State / The Nation's Valentine.

Capitol:
Phoenix.

Population:
4,647,900 and growing

Total Area:
113,909 square miles

Highest Point:
Humphreys Peak at 12,633 feet near Flagstaff

Lowest Point:
Colorado River at 100 feet, SW of state

Average Daytime Temperature:
87 degrees

Average Nighttime Temperature:
64 degrees

Average Number of Days of Sunshine:
306 days

As many of you know, we live in a desert and we must all conserve water, local water Utilities have been encouraging local residents to try to be conservative in our water and utility usage. We have been getting an increase in rain lately due to the monsoon but we are still far below where we should be at this point in the year. We should conserve water so that our water usage will not have to be restricted. I have been encouraging you to try to save in any way you can. I tried to find a way to see how I can help spread the word about water conservation. I have found these tips on how we can save water.

INSIDE WATER SAVING TIPS

1. Check all toilets for leaks. Leaks into the overflow pipe and through the flush valve are the most common and wasteful.
2. Repair dripping faucets by replacing washers.
3. Don't let water run continuously while shaving or washing your face.
4. Brush your teeth first while waiting for water to get hot, then wash or shave after filling the basin.
5. Avoid flushing the toilet unnecessarily. Dispose of tissues, insects and other such waste in the trash rather than the toilet.
6. Install energy efficient shower heads. You will save on energy, water and sewer bills if the new shower head reduces the flow to less than two gallons per minute.
7. Install aerators with flow restrictors on faucets. New replacement faucets should have aerators and flow restrictors built-in.
8. Operate automatic dishwashers and clothes washers only when they are fully loaded or properly set the water level for the size of the load you are washing.
9. Hand wash dishes wisely. Wash dishes in soapy water in one sink and rinse in clear water in the other sink.
10. Store drinking water in the refrigerator rather than letting the tap run every time you want a cool glass of water.
11. Insulate water pipes. You will get hot water faster plus avoid wasting water while it heats up.

OUTSIDE WATER SAVING TIPS

1. Don't over water your lawn.
2. Water lawns during the early morning hours when temperatures and wind speed are the lowest. This reduces loss from evaporation.
3. Position sprinklers so that the water lands on the lawn and shrubs, not on the street, driveway or sidewalk.
4. Install sprinklers that are the most water-efficient for each use. Micro and drip irrigation and soaker hoses are examples of water-efficient methods of irrigation.
5. Regularly check sprinkler systems and timing devices to be sure they are operating properly.
6. Avoid overfertilizing the lawn. The application of fertilizers increases the need for water. Apply fertilizers that contain slow-release, water-insoluble forms of nitrogen.
7. Mulch to retain moisture in the soil. Mulching also helps to control weeds that compete with plants for water.
8. Raise the lawn mower blade to at least three inches. A lawn cut higher encourages grass roots to grow deeper, shades the root system and holds soil moisture better than a closely clipped lawn.
9. Use a broom to clean driveway or sidewalks. Using a hose to clean a driveway can waste hundreds of gallons of water.
10. Outfit the hose with a shut-off nozzle which can be adjusted down to a fine spray so that water flows only as needed. When finished, turn it off at the faucet instead of at the nozzle to avoid leaks.
11. Use hose washers between spigots and water hoses to avoid leaks.
12. Do not leave sprinklers or hoses unattended.
13. Check all hoses, connectors and spigots regularly.

I hope these tips have been helpful for you. Don't think that you are just one person because everyone making small changes can equate to big changes for all of us. We can all work together to help us make it through these hot, dry days!

Does your home need to be updated or revamped? Here are some important tips before you hire a contractor:

1. Get at least three written estimates.
2. Get references and call to check on the work. If possible, go by and visit earlier jobs.
3. Check with the local Chamber of Commerce or Better Business Bureau for complaints.
4. Be sure that the contract states exactly what is to be done and how change orders will be handled.
5. Make as small a downpayment as possible so you won’t lose a lot if the contractor fails to complete the job.
6. Be sure that the contractor has the necessary permits, licenses, and insurance.
7. Be sure that the contract states when the work will be completed and what recourse you have if it isn’t. Also remember that in many instances you can cancel a contract within three business days of signing it.
8. Ask if the contractor’s workers will do the entire job or whether subcontractors will do parts.
9. Get the contractor to indemnify you if work does not meet local building codes or regulations.
10. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage.
11. Guarantee that materials used meet your specifications.
12. Don’t make the final payment until you’re satisfied with the work.

"Why do I need a buyer's agent?"

Buying a home is probably the most important purchase you'll ever make. Do you want to go about alone? Until a few years ago, home buyers had no choice. They decided upon a home to buy and negotiated the contract without representation.

Traditionally, all residential real-estate agents represented the home seller. That was true of the "listing Agent" who put the home up for sale, as well as the agent who found the buyer. That agent who helped the buyer find the right home actually worked for the seller! Under that traditional system, all agents were legally bound to represent the seller, leaving the buyer with no representation.

Now buyers have a choice.

If you are a buyer, you no longer need to represent yourself. During the home search and purchase, smart buyers can receive undivided confidential attention by choosing a "buyers agent".

In fact, 71% of home buyers surveyed in a recent call up poll for the National Association of Realtors said that they would use a buyers agent the next time they purchased a home!

At last, you do not have to buy a home alone! Now you, like the seller can have someone on your side looking after your best interests!!

Bypass the Wrong House - Many people make the costly mistake of buying the wrong house! It might be too large, too small, or in the wrong location. Bypass this problem by working with a Real Estate professional to determine your current and future needs. A Realtor will help you define which size is suitable, what location is best, if a fixer-upper is right for you, and what your budget can handle.

Know your Market - Too many buyers make offers above the market value of the property or miss a value because they don't know the housing market. Ask a Realtor for a comparative market analysis so that you can avoid underbidding or over paying for a home.

Inspections - Avoid surprises by having a professional home inspector check the home and property. Ask the inspector to provide a written report that lists any items that might need repair, the approximate cost to repair, and the consequences of leaving them alone. The contract settlement should be contingent upon the inspector's report.

Avoid Seller Slip-up - Take a list of the items that the seller has agreed to repair or otherwise deal with to the pre-settlement walk-through. Check the list carefully. But be prepared to set a dollar amount for an escrow fund for items that might have fallen through the cracks.

Beware of Junk Fees - Some lenders may try to add questionable fees and charges at closing that aren't noted on the Truth-In-Lending form. These could include "underwriting fees", "loan disbursement charges", "tax service fee", "courier fee", or markups on court documentation costs. Ask the lender when you apply for your loan exactly which fees and charges are included on the federal settlement forms and what additional fees will be charges at closing. Sometimes the fees can be negotiated down or even waived if a customer complains.

Closing Rush Surprises - Insist in seeing the settlement sheets the day before closing. You will avoid last minute problems, such as incorrect interest rate points, or other surprises.

Remember, sometimes missing a settlement date because of a last minute snag will endanger the lock-in interest rate. Avoid being trapped by a closing date that is too tight. Get a 60-day lock-in for your loan interest rate. Whenever possible, give yourself that much time to close the sale.

So, I keep reading in the newspaper, on the cable news shows, and even here on AR that the market will be down for a while, and I have even heard the talking heads recommend that buyers wait another 6 months. What for? 

I think this is as good a time to buy as ever, the sellers who are on the market are more motivated (they're the ones who have hung on through the fall). I'm seeing some nicely priced houses that are fixed up now and look better than they did when they first came on the market.

And guess what.....there's very little competition right now from other buyers! So, you can wait like everyone else and then see what happens when you're in competition or get out there  because right now is an excellent time to purchase, there is a large selection of well priced properties on the market.  Interest rates are still low.  There are a lot of wonderful opportunities out there! 

So, Buy, Buy, Buy.

Mistake 1: Putting the home on the market before it's ready. Most times this happens because the seller gets impatient or is a procrastinator and has pushed himself up against a moving deadline without getting the pre-sale work done. So it comes on the market with the horrible carpet (that gets replaced during the marketing of the home); or they are painting it while it goes on the market. Presentation is everything -- so get the work done before marketing the property.

Mistake 2: Over improving the home for the neighborhood. This happens with additions, bump outs, and upgrades that make the home stick out from among its competitors so much that it's an anomaly, instead of a nice addition to the community.

Mistake 3: Pricing the home based on what the seller wants to net. This pricing strategy always ends in failure. Sellers can control the "asking" price, but they don't control the "sales" price. The market does. It doesn't matter what the seller wants, the price is determined by the black-and-white, matter-of-fact reality of the market.

Mistake 4: Hiring an agent based on non-business factors. It might be nice to hand over your largest asset to your nephew who just got his license -- but make sure you understand the consequences if your deal starts going south.

Mistake 5: Getting emotionally involved in the sale of the home. This is one of the biggest challenges home sellers face when putting their house on the market. Once you decide to sell your house, it's no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. It doesn't matter what you "want," only what the market can bear on pricing. People are going to come in to kick the tires, so to speak, and you can't get emotional about how they may or may not appreciate the nuances of your home of seven years.

Mistake 6: Trying to cover up problems, or not disclosing them. Most states have a property disclosure/disclaimer form -- use it wisely. Just because you disclaim doesn't mean you cannot be sued later for the leaky basement, or dilapidated heating/air system that's discovered 30 days after settlement.

Mistake 7: Not getting your ducks lined up before trying to sell. This would involve financing, reading the fine print on your current mortgage to ensure no pre-payment penalties, not listening to the particulars of your local market, etc. If your local market is dictating lower home prices, then lower it early, not later -- it will cost you more. If the local market dictates selling your home first, then buying second, do it in that order, or vice versa.

Avoiding these mistakes is not that difficult. Your REALTOR® is there to help you step over the pitfalls.

There are many reasons you should visit southern Arizona. I am beginning a series of posts highlighting the great beauty of our area.

Kartchner Caverns is limestone caverns located in Benson, Arizona just about 30 minutes (about 50 miles) southeast of Tucson. Kartchner Caverns offers it's visitors a stunning view of the "living" (still forming) limestone wet cave with many world-class features that have been protected since the cave was discovered in 1974. Inside the cave you will walk along a 1.2 mile "barrier free" trail viewing multi-hued stalactites and stalagmites. Ground water percolates through the limestone, leaching out calcium carbonate. It is then redeposited into all manner of exquisite formations.

This state park is worth a visit because it is such a unique environment. Unlike Carlsbad ... the caverns are still forming and are a breathtaking spectacle to be appreciated in person.

The history of the cave began in November of 1974 with two young cavers, Gary Tenen and Randy Tufts, who were exploring the limestone hills at the base of the Whetstone Mountains. In the bottom of a sinkhole they found a narrow crack leading into the hillside. Warm, moist air flowed out, signaling the existence of a cave. After several hours of crawling, they entered a pristine cavern.

It wasn't until February 1978 that Tenen and Tufts, told the property owners, James and Lois Kartchner, about their amazing discovery.

During the four years of secret exploration, they realized that the cave's extraordinary variety of colors and formations must be preserved.

The cave's existence became public knowledge in 1988 when its purchase was approved as an Arizona State Park. Extraordinary precautions have been taken during its development to conserve the cave's near-pristine condition.

Contact info:
Kartchner Caverns
Benson, AZ
(520) 586-CAVE (2283)

For more info visit: http://www.pr.state.az.us/Parks/parkhtml/kartchner.html

So what are you waiting for? Visit us here in southern Arizona.....who knows, you just might decide to move here!