Brad's Real Estate Blog

Christmas is still a couple of months away and most of you are not even thinking about the holiday season. I am a Christmas person because Christmas usually brings out the positive attitude in people.

Think about the people you know who have achieved outstanding results in life. They have personal qualities that have enabled them to attain their goals and aspirations. I believe that the "attitude" of an individual plays an extremely strong role in the successes achieved during their lifetime.

These people have had ups and downs in life. They have suffered disappointments, defeat, personal losses, and have dealt with similar discouragements that confront us all. This is the nature of life, and being human means that events regularly occur that throw us curve balls. It is how we react and respond to these events that makes the difference.

It has been said that difficult experiences are the ones that teach us the greatest life lessons. The market slowdown will be the undoing of some individuals, and others will learn and grow from the experience. What is the difference in those that get stronger and those that fail during tough times? One word…… ATTITUDE.

Your attitude affects many of your other personal qualities. An enthusiastic attitude increases your level of commitment, discipline, determination, and desire. Conversely, a negative attitude diminishes these personal attributes. Your attitude shapes every aspect of your life and how you live it. Too many people waste a great deal of time being negative. The simple fact is, you cannot always control what happens in life. There are certain things you can not avoid. You can, however, get through the rough spots easier if you force yourself to develop a positive attitude. When you get up in the morning, forget yesterday and realize today contains a brand new set of opportunities. Develop your mind not your emotion. Continually weigh and measure every situation, refining and keeping the good things, discarding the bad. You will soon discover that life really is about attitude.

So, let me be the first to wish you a happy holiday season. I hope that you choose not to be a Scrooge throughout the year. Choose to have a positive attitude everyday and you will find success in your personal and professional life.

If you have been watching the news lately, you'll keep hearing that it is a buyer's market. I thought I should give some insight on How Home Values Are Determined. Homeowners typically likes particular aspects of their home. It is important to remember these likes and dislikes have less to do with value that you might think.

• Value is truly a moment in time, and is based on what else buyers can buy, the day they go out and look at your house.
• Prices are not forever, because values are fluid. They go up, and they go down, depending what other sellers do with their prices.
• Value is never an isolated concept, its always relationship concept, value in relationship to what other people buy.
• Agents and Sellers set prices, but buyers determine value. This is critical because we can set prices all day long, but we don't have any control over the market. The buyer will tell us if the price is right.

What does not affect value?

• What you paid for the house
• Your remodeling costs
• The amount of cash you need to buy your new house
• What you want for your house
• What I say your house is worth
• What other real estate agents say your house is worth
• What an appraiser says your house is worth
• What the tax assessor said your house was worth

How is value determined?

It is determined by what a buyer is willing to pay in today's market, based on the comparison of your house with others on the market, both here and in other areas.

(Analogy: Buyers don't just say" I'm only going to buy in the Summit Ridge Subdivision in Sierra Vista." They don't look just in the Summit Ridge Subdivision; they look at a larger category of inventory, across many subdivisions in Sierra Vista. They screen price range, bedrooms, bathrooms, school zones, etc.)

Who determines value?

BUYERS -  I have never, ever spoken with a buyer who said, " I don't like that house on Elm Street, but let's go look at comparable properties to determine its value." Buyers don't care about comparables (nor the value of your home) unless they like your home. The most critical data you can operate off of when determining the value of your home is from the homes available in the marketplace the day the buyer goes out and shops.

UNDERSTANDING COMPETITION

People with their homes on the market are competing with the other people and builders who have homes on the market. The number of Buyers is limited and you have to be the best deal if you want your home chosen. Do not ever misunderstand that you are in a race; a competition to attract the best buyer for your home!

UNDERSTANDING CHANGE

If the market changes tonight and your competition all drop their prices $5,000, then you wake-up tomorrow over-priced. And you have to do something about it. This is the concept of "value is a moment in time." Do not ever think that you have "set" the price on your home and that you do not need to pay attention to value movements in your marketplace.

WHAT ABOUT COMPS?

"Comps"  is a real estate industry term, short for comparable property sales in the past, that many people errantly rely on to determine value. The critical error that they make is the assumption that markets don't go up and don't go down! BAD ASSUMPTION! No other commodity works that way! Why would houses?

"LIVING IN THE SONORAN DESERT"

As it applies to Cochise County, Arizona

Life in rural Cochise County holds many pleasures, but it also presents some unique challenges. We hope the following tips will help you decide if rural Arizona living is for you.

Introduction: It is important to become aware of the realities of living in rural Arizona. It is also important for you to know that life in the desert is different from life in the city.

Individuals move into these areas to experience the openness of the natural desert setting and the rustic feel.

You need to be prepared.

If you are looking at a home or land to build in rural Arizona, you need to be prepared. County governments are often unable to provide the same level of service that large city governments provide. You should think about transportation, communication, education, health care, employment and public services that are essential to our modern way of life. To that end, here you will find the following information to help you make an educated and informed decision before you purchase property or build a home in rural areas of Cochise County.

--------------------------------------------------------------------------

1.0 ROADS AND ACCESS: The fact that you can drive to your property does not necessarily guarantee that your guests or emergency vehicles can. Please consider:

1.1 Emergency response times (sheriff, fire, ambulance, etc.,) cannot be guaranteed. Under some conditions, you may find that emergency response is extremely slow due to circumstances beyond the control of emergency service providers.

1.2 There can be problems with the legal aspects of access, especially if your "access" crosses someone else's property. It is wise to obtain legal advice and understand that easements may be necessary.

1.3 Cochise County maintains only some of paved roads, and fewer of the dirt and gravel roads. There are public roads in this County that are not maintained (meaning no grading). Check with the County Road Office to determine the status of a specific road.

1.4 Cochise County experiences extreme weather conditions during the monsoon season which can damage or destroy roads and bridges. It is wise to determine whether or not your private access road was properly engineered and constructed. Even with proper engineering, annual road maintenance can be expected. This can require renting or owning special equipment (tractors, etc.).

1.5 Many large construction vehicles cannot navigate narrow roads and bridges. If you plan to build, it is prudent to check out construction access. Rural residences can be more costly to build due to delivery fees and cost required to get materials to your site.

1.6 School buses travel only on maintained public roads previously designated as school bus routes by the school district. Children may need to be driven to designated school bus pick-up locations.

1.7 In extreme weather even County-maintained roads can become impassable. You may need a four-wheel drive vehicle to travel on some washed out roads. Under certain conditions, roads become narrower. Yielding the right of way is not merely a legal concept, it is a critical safety issue. Living in a rural area means developing special driving skills and good judgment. Driving off road to avoid bad road sections can make a situation worse, tearing up road banks and accelerating erosion. (Don't do it.)

1.8 Don't expect neighbors to join a petition asking for improved service from the County. This includes, but is not limited to: road paving and maintenance, and animal and child advisory signage. Rural counties survive on volunteerism. Costs are kept down by the willingness of the populace to go without many things suburban and urban people regard as necessities. Rural people cherish their independence and willingness to take care of their own.

1.9 Natural disasters, especially floods, can destroy roads. Although Cochise County will repair and maintain County roads, subdivision and private roads are the landowners' responsibility. Rain and run-off can turn a dry creek bed into a raging torrent, washing out roads, bridges and culverts. Residents served by private roads and/or bridges have been hit with large bills for repairs and/or reconstruction after floods.

1.10 Unpaved roads generate dust and often lots of it. In our dry desert climate, dust is a pervasive problem. At the least, dust is an unpleasant and on-going fact of life for most rural residents. In some cases, health problems can result.

1.11 If your road is unpaved, it is highly unlikely that Cochise County will pave it in the foreseeable future. Check with the County if a seller of property indicates that unpaved roads will be paved!

1.12 Unpaved roads often "washboard" when dry and dusty, and become muddy and slippery when wet. Vehicle maintenance costs can go up with regular travel on rural County roads.

1.13 Sometimes it may seem we're still in the days of the Pony Express. Don't expect the same urban efficiency with regards to mail, newspaper and other delivery services.

1.14 Clearly display your address at your driveway entrance for use by emergency services and delivery vehicles.

--------------------------------------------------------------------------

2.0 UTILITY SERVICES: Water, sewer, natural gas, cable television, electric, telephone and other services may be unavailable or not up to par with urban standards. Also, be prepared for delays.

2.1 Telephone communication can be a problem, especially in Cochise County's outlying areas. Cellular phones may not work in all areas.

2.2 Sewer service is generally available only within municipalities. You will need to use an approved septic system or other treatment process. Soil type, depth to ground water or bedrock, wash setbacks, and slope are important elements in determining the cost and function of your system. Contact the Cochise County Environmental Health Department for requirements.

2.3 Most rural residents rely on wells for their water supply. You should know the differences between well and municipal water supplies. Costs to establish a well can be considerable, and water quality and quantity are often unreliable. Water quantity is becoming increasingly problematic in Cochise County and the west.

2.4 Electric service is not available to every region of Cochise County. It can be very expensive to extend power lines to remote areas.

2.5 Proper utility easements are essential. Be sure you know where your utilities come from and if needed easements are in place.

2.6 Electric power in single phase is standard, but a three-phase service configuration comes at a premium and is not available everywhere. If you have special power requirements, it is important to know what level of service can be provided to your property.

2.7 Electric service fees usually consist of a one-time hook-up fee and thereafter your monthly bill. It is important to know both costs before making a decision to purchase a specific piece of property.

2.8 Power outages are a fact of rural living. Be prepared. An outage can turn off your well pump, your freezer, your cooling source, computer, etc.

2.9 Trash removal is sometimes unavailable or inconvenient in rural areas. It is illegal to create your own trash dump, even on your own land. It is important to research your options regarding removal and recycling. Contact the Cochise County Environmental Health Department and the Cochise County Planning Department.

--------------------------------------------------------------------------

3.0 THE PROPERTY: Owning rural land means knowing how to care for it. Continual stewardship and land management are essential elements of rural life. There are many issues that can affect your property. It is important to research these items before purchasing land.

3.1 Encroachment permits may are required for access onto County-maintained roads. A proposed driveway may conflict with safety and traffic flow. If possible, please check with the Road Department regarding such access prior to purchasing your property. Existing easements may require you to allow construction of roads, power lines, sewer lines, etc. across your land. Some easements may not be recorded. Check these issues carefully.

3.2 Many property owners do not own the mineral rights below their property. Subsurface owners often have the ability to alter surface characteristics in order to extract minerals. It is very important to know the type of minerals under your land and who owns them. Be aware that adjacent mining uses can expand and cause negative impacts.

3.3 You may be provided with a plat of your property. Do not assume the plat is accurate unless the land has been surveyed and pins placed by a licensed surveyor.

3.4 Fences and outbuildings often straddle property lines. A survey of the land is the only way to confirm the location of your property lines.

3.5 Many subdivisions and planned unit developments have covenants or deed restrictions that limit the use of the property. It is important to obtain a copy of the covenants (or confirm that there are none) and make sure that you can live with those rules. Also, a lack of covenants can cause problems between neighbors.

3.6 Property owner associations are required to take care of common elements such as road maintenance, weeds, open space, etc. A dysfunctional property owners' association or poor covenants can cause problems for you and possibly involve you in expensive litigation.

3.7 Property owners' associations typically collect dues. The property owners' association bylaws will tell you how the organization operates and how dues are set.

3.8 Open land will probably not remain so indefinitely. The Cochise County Planning Department can help determine whether property is zoned and if there are plans for future development. The view from your property may change.

3.9 Portions of Cochise County are zoned differently. Before you buy or build, check with the Cochise County Planning Department to see if zoning restrictions apply to the property. You may need a land use permit prior to construction and certain uses may be restricted.

3.10 Your new home site is a particularly important decision because it is so permanent. New arrivals often build their homes on the highest ridge or hilltop. There can be numerous disadvantages to such siting. Weather and exposure can wreck havoc with hilltop homes. Access and obtaining water can also present problems. Plus such sitting can spoil everyone else's view.

3.11 Understanding the soil and its limitations can be very useful. Soil types can help determine appropriate building and road locations, septic systems and landscaping.

3.12 Cochise County landowners are responsible for controlling weeds on their property and can be held legally accountable if they fail to do so.

3.13 If you have a wash on your property, the wash owners have the right to access your property to maintain the wash.

3.14 Water rights that are sold with the property.

3.15 It is important to make sure that any water rights you purchase with the land will provide enough water.

3.16 You cannot assume you have a right to water.

3.17 Flowing water can be a hazard, especially to young children. Before you decide to live near an active wash, consider the possible danger to your family. Wash owners are not legally responsible for accidents. Also, flow levels may change abruptly without warning.

--------------------------------------------------------------------------

4.0 MOTHER NATURE: Rural residents usually experience more problems when the elements and earth turn unfriendly. Here are some thoughts to consider:

4.1 The physical characteristics of your property can be positive and negative. Trees are a wonderful environmental amenity, but also provide the fuel behind forest fires. Building at the top of a wash should be considered as dangerous as building in a flood area. Wild fires are not uncommon. Defensible perimeters are very helpful in protecting buildings from wild fires and inversely can protect the area from igniting if your house catches on fire. If you start a wildfire, you may get the bill to put it out. Contact your local fire district for more information.

4.2 Land topography can tell you where the water will go during heavy precipitation. Sometimes landowners fill a ravine only to find water running through their home during the next monsoon.

4.3 A flash flood can occur, especially during the summer months, turning a dry wash into a raging river. Flash floods often occur without warning after heavy rainfall. Drainage, canals, streambeds, canyons, and washes are potential flood areas, and roads and trails that parallel these waterways may be swept away by floodwaters. Do no drive through the already flooded areas. Shallow, swiftly flowing water can sweep a car from the road and disguise a washed out roadbed. It is wise to consider this when building. Portions of the County have delineated floodplains or flood-prone areas where home construction is either prohibited or regulated. You may need a floodplain permit. Contact the Cochise County Planning Department.

4.4 Nature can provide you with some wonderful neighbors. Most, such as rabbits and are positive additions to the environment. Rural development encroaches on the traditional habitat of coyotes, javelinas, rattlesnakes, mosquitos, tarantulas, gila monsters and other possibly dangerous or nuisance creatures. It's best to know how to avoid them. In general, it is wise to enjoy wildlife from a distance and make appropriate accommodations for your trash and pets.

4.5 The weather is one of the most talked about things in Cochise County. If you plan to make Cochise County your permanent home, expect seasonal fluctuations (temperatures, winds, rainfall). Although the weather can be unpredictable year-round, recorded averages can give you an idea of what to expect. Many people have moved to Cochise County following a pleasant stay during the fall, experienced one or two hot summer’s then moved away.

--------------------------------------------------------------------------

IN CONCLUSION: Images of the Old West draw people to an area once filled with miners, farmers, ranchers, land other agricultural workers. Often newcomers are much more romantic about the West than the old-timers and have false hopes about bringing their urban lifestyles into the great outdoors. They come with false expectations. They believe they can fax and e-mail from the desert. In rural areas, the information superhighway is often a dirt road. The information presented here is intended as a guideline and an introduction to some of the realities of rural living. You may discover other issues that have not been covered. We encourage you to research and examine all aspects of desert living so you will enjoy Cochise County and not have any unpleasant surprises.

We offer these comments in the sincere hope you better understand how things work in the desert. Cochise County is a wonderful place to live, work and raise a family. We hope this information will help enhance the quality of your life. Respect your neighbors' livelihood and property, and be aware that your actions may have an adverse impact on your neighbors, human and otherwise.

But then isn't that why you came here?

Although many of the previous statements may sound discouraging, we believe the benefits far outweigh the inconveniences. Not only is it the way it is, but it is also the way many rural Arizonan’s like it. That's why they live here and hope that if you choose to be their neighbors; you will embrace the whole experience of living in the Sonoran desert.

I love being a Realtor® here in Arizona and helping people with buying or selling a home. Lately I have been wondering what are some sellers thinking? It is a simple fact that Correct Pricing is 90% of Marketing a Home for Sale. There are sellers who still don't understand that you have to price your home correctly from the day you list in order to sell for the best possible price. The real estate market shows that many homes are selling in just a few days on the market, but many more are sitting unsold with price reductions still not attracting a good contract. In some cases, the seller blames the listing agent and fires the agent, hires a new agent, sometimes is still unrealistic and the house still doesn't sell. Possibly on the theory that the 3rd time is the charm, another agent is hired, the house is finally priced to sell and lo and behold, months later, hopefully a sale.

The first several weeks is critical in terms of pricing. Start with the right price and the likelihood of accomplishing your goal is significantly better. The price of your home should not be what you personally think it is worth. Buyers simply don't care about what you think its worth. To sell your house fast, you have to find a price that is attractive to buyers. The best way to do this is to look for comparable houses in your neighborhood that sold fast. Find out how much they sold for and compare your price to the prices the other houses went for. If you are above those prices, you need to take a deep breath and lower your price. The proper price depends on current market conditions, competition, location and the condition of your home. If your home doesn’t compare favorably with others in the same price range, buyers and their agents won’t give your home serious consideration. When it comes to pricing your house for a fast sale, do not try to recreate the wheel. Just follow the lead set by neighbors in your area. It is important to let go of your emotional attachments in the home.

You need to generate traffic to view your home and only well priced houses will get traffic. Many people begin to wonder about houses that stay on the market for longer than 90 days. They start assuming that something is wrong with it or the seller is unwilling to negotiate.

I would like to be your real estate agent. Selling houses is my business and hiring a professional is the one of the best decisions you can make. Some agents tell you your house will sell for more than it will. Do your homework; ask to see comps for your area, check out www.zillow.com and www.cyberhomes.com for help with comps.

Brad Snyder
www.BradSnyder.com