Trust and the Real Estate relationship / Tucson Home buyers

Though it's not in the forefront of our minds most of the time, trust is one of the most significant aspects of any relationship. It starts when we're young, when we trust our parents to love and take care of us. As we become independent teenagers the roles are reversed, and our parents trust us to make wise decisions. In our relationships, whether personal or professional, trust impacts every decision we make and every emotion we feel. And though it's not something we consciously think about when buying a home, trust plays a very central role in every real estate transaction. Trust and real estate are rarely discussed but often implied. That's why I felt the need to bring up the two. In this blog I'll discuss trust and the home buyer; trust and the home seller will be a future entry.

Trust in the real estate relationship begins before a potential client and a real estate professional even meet. As 80% of home buyers begin their initial home search online, they trust that the real estate agent they locate online is professional and reputable. The home buyer trusts that this agent will help them to meet their needs; to help them find the right house in the right location at the best price while protecting them throughout the transaction. Then trust moves into a more significant role as emotions take over. Often when a person finds their dream home, logic goes out the door and emotion controls their every decision. With this the individual trusts that their agent will "guide" them to make logical and rational decisions and protect their best interests. Unfortunately this is not always the case. Though building a real estate relationship with someone you trust is very important, home buyers must remember to take the emotion out of the situation and take the initiative in making decisions. Below are just a few examples of how trust has played havoc on the lives of home buyers.

• My bother in law had exponentially increased the size of his family and needed a bigger home in California. He enlisted the help of a buyer's representative and found a home that would be perfect for his family and lifestyle. This real estate professional suggested he just offer full price if he really wanted the house. Mind you this is a house that had been on the market a LONG time, so there was room for negotiation. Under the guidance of this agent he also chose not to have any home inspections; he was told that the house seemed to be in fine shape and there wouldn't be any problems. After the closing was when the nightmare began. First there were numerous electrical problems with the house. The previous owner had been a "handyman" that had made several updates and changes to the home and none were up to code. Still today there is a never ending list of issues with the plumbing and roof. Unfortunately my brother in law trusted his emotions without using his better judgement and ended up on the short end of the stick.

• After getting married my sister in law and her husband decided it was time for a bigger house in Portland. Hoping to save money, they chose not to enlist the help of a real estate agent in their home search ( I know, I know.....but my attempted guidance fell on deaf ears). After several months of looking they finally found a home in the perfect neighborhood which was for sale by owner. They decided to make an offer, and at this point they put their trust in the home owners. After negotiating and agreeing on a price, they had successful inspections and finally closed on the house. Eagerly they picked up the keys to their new home, raced over and entered to find that the sellers had left the house a total disaster. Beside being just plain filthy, there were holes in the walls, stained carpet and several other issues. Unfortunately these home buyers had placed their trust in the home seller; they assumed that since he was a corporate executive with a big company that the home would be left in good condition.

• My father decided to buy a house back in Kansas. The home was for sale by owner, but my father was wise and followed my suggestion of having a real estate agent represent him. He contacted the city's top sales agent, one he had sold a home with in the past. They sat down and determined that both the home seller and buyer would contribute towards the commission, then wrote an offer on the house. During escrow the real estate agent referred my father to a so called reputable home inspection company she had used on numerous occasions. The home inspection came back with minor issues which were resolved by the seller. My father closed on the house, received his keys and moved in. Right away he began to notice problems with the house; problems that the home inspector was responsible for but missed. After much harassment on his part my father received reimbursement from the inspection company. Unfortunately he had trusted and relied on the real estate agent to refer an inspection company that was reliable.

My point in this blog entry is not to say that real estate professionals cannot be trusted; we already get a bad rap for that. As usual a few bad apples spoil the bunch. In all the above scenarios the buyers could have been more proactive in investigating and decision making. My point is that though there are many real estate agents you can trust your life with, you shouldn't trust anyone but yourself when it comes to making important decisions. As a real estate professional my job is to help buyers and sellers make informed decisions; I give clients all the information they need to make decisions that are best for them. But I still encourage my clients to investigate every avenue before making a decision, because in the end they are the ones that will have to live with the result. My final words are just this, remember that working work with a real estate agent is just like any other relationship; at the end of the day make sure you've trusted your own judgement first.

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October events in Tucson

Since Fall is officially here in the Old Pueblo, I thought I'd mention some of my favorite October activities that occur in and around the Tucson community. Temperatures generally start to cool down quite a bit this time of the year, and some of us native Tucsonans even need jackets in the early morning hours. It's this weather that really entices folks in cold weather climates to consider Tucson for a second home. Nothing better than spending your winters in Tucson, enjoying 75 degree temperatures and no snow! Anyway, on to my list......

• Visit a farmers market - You can find a farmers market almost anywhere and on almost any day of the week in Tucson. One of my favorites is the St. Philips Plaza farmers market, which is located in Tucson's Catalina Foothills. It's great to wander thru the market under a canopy of mesquite trees as the breeze is blowing. It's even better when you eye all the breads and pastries that are available. It's worth checking out; lots of fresh goodies and the produce during the Fall months is much better in my opinion. For a full list of Tucson farmers markets visit the Arizona Daily Star.


• As I've mentioned before I'm a runner, so I love October in Tucson; cooler temperatures and a few great races that lead up to the big daddy run in December. Get Moving Tucson is a 10 mile race that's a perfect training run for the Tucson Marathon and Half Marathon. The route takes you through scenic downtown Tucson and there aren't a lot of hills so I really enjoy this run. Last year there were about 700 runners in this 10 miler, so like most races you'll want to start off at the front of the pack or you'll get stuck in the crowd and lose your time. It's a competitive race so you are provided with a chip to wear, and remember that that are some SERIOUS runners using this race to train (a 4.51 minute mile? Believe me it's possible) . There's also a 5K run and non competitive family fun walk. Great way to enjoy the cool temperatures and get fit in Tucson.

• The SAHBA Home and Garden Show is a huge event in Tucson. With over 400 merchants in this expo, you'll get ideas for a million little "household projects" that you can put on your husband's to do list. I'm really glad that this event is held in the Fall because parking can be difficult to find and the cooler temperatures make it easier to walk three blocks to the expo. Still it's worth it when you get to check out all the cool new gadgets and trends for your home and garden.
  
• Since I'm still a kid at heart and Tucson doesn't see the same seasonal changes that other parts of the country do, it sometimes hard to believe that we've transitioned into Fall. Nothing says Halloween to me like picking my own pumpkin at one of the local pumpkin farms. I like to go to the Buckelew Farm just SW of Tucson because they have wagon rides and other fun stuff. Really great for kids as well as adults who are looking to feel a little of that Halloween spirit. I also like to visit the Reid Park Zoo for their Howl-o-ween celebration. Lots of trick- or- treaters and decorations. Pretty spooky!


• I think my favorite Fall activity in Tucson actually involves leaving Tucson! We love taking road trips, which is exactly what we'll be doing this weekend. Tucson is located close to so many different scenic areas and attractions; when cooler temperatures hit it makes for great weekend trips. And most of these trips allow you to see those seasonal changes that we lack in Tucson. I'll be taking lots of photos so that I can begin my official Tucson Road Trips entry once I get back.

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Simple answers to simple questions make the expert

Just an observance on my part. A lot of my business comes from people relocating to or buying vacation homes in Tucson. One of my favorite things about these types of clients is that I get to introduce them to everything that the Tucson community has to offer. I often feel like a tour guide as I explain that you can't really get lost in Tucson as long as you're familiar with the mountain ranges that surround our city. One couple was extremely grateful when I explained that their small dog should be kept inside because of the wildlife in the area (visualize Red Hawks circling in the sky). Other clients were impressed when I could identify the plants in their potential home's yard and explain the growth cycle (they didn't want anything that bloomed or was high maintenance). It's those simple little answers to simple little questions that seem to impress some clients. I take all this "knowledge" I have for granted; it's just comes from knowing the desert lifestyle and community. If this makes me a pro, than I'll take it. I guess I'm just trying to say that I really love this part of my job.

I think the general public underestimates the knowledge a real estate professional needs to be successful. Sure we're all educated in the "rules and regulations" of our industry, and we continue to educate ourselves each year, whether it's because we're passionate about learning or because we need a few more credits under our belt. Still I think it takes a little more then knowing the legalities of real estate to be successful. Having a thorough knowledge of your community is very important, and I'm not talking about neighborhood sales statistics. A lot of people just want to know the ins and outs of daily living. When trying to decide if Tucson was the right place to relocate, many of my clients wanted information about common, everyday things;

• Where's the best place for Mexican food that's close by ?
• Do you need to worry about wild animals? Do you see very many snakes?
• How far of a drive is the airport/downtown?
• Is there a Trader Joe's here? How far away is it?
• What's a typical heating/cooling bill run?
• Does Tucson have any restrictions on water usage?
• What kind of pests/insects do homeowners have problems with? Are they dangerous and how do you handle them?

Now these are not complicated questions that only an educated person can answer. If you've lived in Tucson for any amount of time you know (hopefully) and can answer these questions. I've just found, in my experience anyway, that if you're familiar with the everyday, common aspects of your community and you can answer questions like these, clients are impressed. I guess they feel that if you can answer similar questions off the top of your head then you know your community and are an expert. Of course it's not going to do you any good if you know your community but haven't got the faintest idea of how to write and negotiate a successful contract; there's more to it then that. I just think in some peoples eyes a well rounded real estate agent tends to stand above the crowd and shine as the expert.

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Number of new NW Tucson listings appears strong

Just snooping early yesterday in the Tucson MLS and noticed that NW Tucson had the largest number of new listings to start off the month. Northwest Tucson, including Oro Valley and Marana, had 59 total new listings on October 1st, with North Tucson following in second with only 19. I say total because I'm including SFR, SFNC, Condo/TH, MSFR and MH's. Considering there were only 158 new listings on Monday, and NW Tucson made up 37% of that total, it seems that homeowners in NW Tucson may not be too concerned about the so called "housing slump". Still it's too early to tell, we'll have to see where we end up for the week. The number of new listings have been slowly declining, as Northwest Tucson had 132 new listings for the first week of September, down 10% from the number of new NW Tucson listings for the first week of August. Tucson MLS will release the September real estate sales stats early next week so we'll have a better view of market activity then.

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Check out the Tucson Culinary Festival!

The Tucson Culinary Festival starts this week so don't forget to buy your tickets! The event begins Thursday October 4th at 8pm with the Margarita Championship at Cuvee World Bistro and runs through the weekend, ending with a BBQ Brunch and lives Blues music at Loews Ventana Canyon Resort. There are several different tastings and seminars scheduled so if you already have a busy weekend planned you can just pick your favorite event and stop on by. Sample goodies from Tucson's best chefs as they're paired with rare wines , or check out a seminar and learn how to make the perfect mojito. These events are always a lot of fun and a great opportunity to meet other Tucson Foodies while experiencing incredible food that's original to Tucson. Attire is dressy casual as most of the events take place at Loews Ventana Canyon , so dress appropriately! Festival proceeds go to several local groups including the Tucson Community Food Bank, New Beginnings, and great bunch of locally owned and operated restaurants, the Tucson Originals , so make sure you try to stop by and support the Tucson community!

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Take advantage of a Tucson Buyer's Market

Tucson has A LOT of homes for sale right now; there are currently 6191 active listings (single family residence) in the Tucson area. With the abundance of homes currently for sale and interest rates still historically low, it's the perfect time for home buyers to come out of the shadows and start perusing the inventory. Unfortunately many seem to be hiding, waiting for prices to drop even further. I've heard a lot of naysayers out there preaching that "It's crazy to buy right now" and "Home prices are going to go lower so wait to buy". It's always tempting to try to predict what the future real estate market holds, but it's also detrimental. It's a great time to buy whenever everyone else is scared. That's when the inventory is at it's best and there's not as much competition, giving you more ability to negotiate with a motivated seller.

If a home is priced correctly in it's market, buyers will make offers. I search the Tucson MLS daily looking at new listings as well as those that have gone contingent, and I notice that nice homes priced correctly to the Tucson market generally accept an offer within 2-3 weeks. I explain this to my buyers, and some realize that I'm watching out for their best interests and move forward with an offer. Others remain wrapped up in the "doom and gloom" media frenzy, finding homes they like but refusing to make an offer because they're holding out for a better deal. I try my best to explain that if they find a home they really really love, it's a good idea to make an offer now and negotiate terms that are going to benefit them before they lose it to the next buyer that comes around. The home seller is most likely also trying to buy a home, so it's in their best interest to work with a potential buyer to make a successful deal. There's a variety of requests a buyer can make and negotiate into a purchase contract. This is the time to ask for what you want......

• Request a contingency, including appraisal, loan or a contingency to sell your own home.
• Ask for a home warranty
• Ask for an allowance or credit. Don't like the blue carpet? Ask for a replacement allowance. Just remember to ask the lender how the request should be worded prior so it will be accepted in the contract.
• Request that the seller pay for or contribute to buyer closing costs. They typically amount to about 2% of the sales price so it can be a significant amount of money.
• Renegotiate after the home inspection - Most any home will need some type of repair work. If the repairs are minor ask that a specific dollar amount be credited back to the buyer at closing.

Again I emphasize the word "Negotiate". There are still some out there that assume this means "low ball offer" and "stick it of the sellers". The Tucson real estate market may be in a slump, but it's going to remain strong enough that most sellers will sell their home for a price and terms that are very reasonable. So for all those home buyers out there, make your requests, but be rational about it.

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Can't beat a Tucson sunset!

Another amazing Tucson sunset. Just another reason I love living in Tucson!

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