The Tucson area is home to a multitude of active adult communities which range in price and amenities available.
Some communities require that buyers be age 50 and others age 55. Some communities stipulate that the owner meet the age requirement. This means a child less than 50 or 55 cannot purchase a property for a parent who meets the age restriction.
Other communities have no restriction on who can purchase a property as long as the occupant meets the age requirement. Some developments ask for proof of age, others don’t. When purchasing a property in an active adult community, the Covenants, Codes and Restrictions (CC and R’s) will spell out the requirements.
Price points run the gamut from $60,000 to more than a million dollars. Popular manufactured home active adult communities offer lower cost options and yet have many of the bells and whistles of the more expensive communities. Most have pools and recreation centers and offer the camaraderie of like minded residents.

Active adult communities built by production builders such as Pulte and Robson sport a beginning price point of the high $100’s.   Add ten to twenty percent to the base price for new home construction upgrades. When considering new home construction, use a Realtor®.  Make sure you make your first visit to that community with the Realtor® since he/she can often save you money and guide you in terms of what upgrades you should consider for future resale value.  You want to have representation and not be represented by the builder’s site agent who is working for the builder, not you.

Your Realtor® should check the inventory in the community to make sure you are aware of what is available.  Pre owned homes will probably have landscaping completed as well as window coverings, fans, and other upgrades which make a house a home and will save you money in the long run.  He/she can help you compare and contrast various communities.

Understanding your wants and desires and trying to match communities throughout the Tucson area is the function and job of your Realtor®.  There are many smaller communities within town; condos, townhomes, patio homes, manufactured homes, in addition to single family homes which may meet your requirements.  Not all active adult communities are golf course communities with hundreds or thousands of homes.

Think about what you want in a home, how you want to live your retirement, and tell your Realtor® who can help you translate that into reality.

So you are thinking about a retirement community…or in the proper parlance, an active adult community.  There are several questions you should consider and discuss with your partner.

You can do what is known as a “Ben Franklin”- take a sheet of paper, fold it in half lengthwise, and on one side write all the pros – reasons you want an active adult community- and on the half, list all the cons – reasons you may not want an active adult community.  Both parties should do the same, and the fun of the game is not to talk with each other about your lists.

Give yourself two weeks or so to do this.  As you go about your daily business, you will think of reasons for either column, then write them down.  At a previously agreed upon time, over coffee or wine, in a relaxed atmosphere, pull out your lists and discuss them.

You may want one thing and your partner another…this is a time to sit and discuss what is on the list and prioritize what you have created.  You will find that this exercise will help you both formulate what is important to you both, or what is important to one, but perhaps not another.  It will help you to understand what you features you can comprise.

Do you want a single family home?  And if so, what kind?  A regular Single Family home or a patio home?  Or do you want a town home or a condo.  In my last blog, I discussed the differences.

Are you looking for a community which provides a plethora of activities which are pretty much contained within the community?  Or do you want to participate in activities such as classes at Olli, classes and activities from Parks and Rec which run the gamut from learning how to play tennis to advanced pottery classes.  Or are you a volunteer type of person who would become a docent for the Symphony, for the Desert Museum.

This is your retirement and this is your opportunity to do what you have always wanted to do!  Unfortunately many people never think about this and just kind of stumble along in life.  Make this time for you, for you are the most important person in your world!  Do the hard work now so you can enjoy your time in retirement, wherever it is!

The blue skies of Tucson and the inviting warm climate beckon, especially during drizzly, cold and bone chilling December through March weather.  Thoughts drift to a condo or a town-home in warmer and more hospitable climate, where golf can be played year round, hiking and birding are within a few miles of the city, and dining al fresco at one of the many establishments may become more than just a dream.

Tucson, Oro Valley and Green Valley have many condo and town home communities, many of which are limited to active adults with a minimum age limit of 50 or 55.  Condos and town homes are legally and statutorily different animals.

The Arizona State Statutes define condominiums in Title 33 which is the section governing property.  Chapter 9 concerns condominiums and Charter 16 governs town homes.

Condos do not have to be physically contiguous.  Some condo units are free standing, but the legal description is what separates a town home from a condo.  The owner of a condo owns the unit, but anything exterior to the unit is common property and is governed by the rules and regulations of the Association, unless that exterior element services only that unit.

A town home on the other hand, is a unit whereby the owner owns the land in the front and the back of the property and is responsible for that land.  It is not considered common property.  However a town home complex can have common property such as a recreation center, walking trails, or open space, just like a single family home subdivision.

These types of properties are governed by an Association which is comprised of the owners of the units, each having a specified vote according to the declarations of the community.  That Association is controlled by a Board of Directors which is elected by the property owners.

Rules and regulations of the Association must comply with state law, but dues structure, what the Association offers, and the types of maintenance such as roofing, landscaping, building painting, are determined by the Board of Directors and voted on by the members of the Association.

Often an Association will vote to outsource the day to day maintenance and collection of dues to a Management Company.  Many Homeowner Associations (HOA) pay a management company and this also includes single family home subdivisions as well as town home and condo complexes.

The rules and regulations of the Association are in the documents called the CC and R’s, Covenants, Codes and Restrictions.  Purchasers of properties which have CC and R’s should read the restrictions carefully.  Restrictions regarding the length of time children under a specified age can state are the property are important considerations for people in an active adult community who may want their grandchildren to visit, the policy on pets and weight of pets may be of concern, as well as information on how and when the Association can place a lien on property for non-payment of dues.

Your Realtor® should help you decide whether a condo or town home or single family home is best for you, and should guide you through the paperwork and CC and R’s to make sure the property you are purchasing suits your lifestyle and needs.

For help with purchasing a property in the Tucson area which includes Marana, Oro Valley, Tucson, Green Valley, and Sahuarita, contact Terry Bishop Broker Owner of Terry Bishop Realty, 1802 West Grant Road, Tucson Arizona 85745-1232 – cell:  520-349-4785, office:  520-232-3911.  

Wafting through the air is the fragrant smell of turkey soup, simmering on the stove. The heat is cranked to take the chill off the house, and outside lies the beauty of the first snow…diamonds laden on the trees, undisturbed. The snow plows have not yet rumbled through the neighborhood, turning the pristine precipitation to an unappealing brown mess.  I am too old for this cold, this icy season where temps go to zero, when the wind blusters through the trees, and a foot of snow needs to be shoveled from the driveway.

Escape!  Escape to Tucson is the answer!  I will join the hundreds of winter visitors escaping from the northern climes to sun, temps in the 60’s and 70’s, to being able to take a walk outside without slipping and sliding on ice covered pathways.

Tucson is a haven for those who want to escape to a warm, dry climate.  Those arthritis sufferers suddenly find relief from the pain in the dry climate, and some come on the recommendation of their physician. Others swell the Tucson population because they want to golf and enjoy the myriad of outside activities, not spending  winter cooped up inside their northern abode.

Winter rentals are abundant, and Thanksgiving marks the influx of “winter visitors”, affectionately called “snowbirds”.  The majority however arrive after the Christmas holiday.  Many have purchased winter homes, often in active adult communities where activities range the gamut from book clubs to pool tournaments, from cooking classes to exercise classes.  Golf, pickle ball, and swimming is a draw for many of these communities, as well as restaurants on premises, community dinners, and group outings to various places in Arizona.

The cultural scene in Tucson is also a draw, the city is the home of the University of Arizona, and those who desire ongoing education can attend to Olli ( http://olli.arizona.edu/ ).  Broadway comes to Tucson at the many theaters, both large, and small and intimate, and the music scene encompasses all genres.

Tucson has several art museums as well as the Center for Creative Arts at the University of Arizona, home to the Ansel Adams collection. And Tucson is a gastronomical delight with the best Mexican food in the nation, as well as restaurants which represent all cultures:  Ethiopian, Indian, Chinese, Japanese, Italian, Spanish, plus a myriad of excellent food trucks.

How can you not want to escape cold, grey, dreary weather and exchange it for warm, bright, sunshine and a city which will welcome you with open arms?

Because people do not look at homes frequently, many view it as an interesting past time. Realtors® are more than happy to show property, but because they must manage their time carefully, good agents are careful how they spend their time.
The first step is to have a consultation with the client/customer to determine whether the buyer is qualified and for how much. It is not in the buyer’s interest to show properties which are higher in value than what the buyer can afford. That just sets the stage for ultimate disappointment for the buyer. At the same time, types of loans can be discussed: VA, FHA, Conventional, and Down Payment Assistance programs. The Realtor® can recommend lenders and discuss why local lenders are a better option than lenders out of area.
The agent should prep the buyer on what to expect and how the nine page purchase contract (Tucson) document protects the buyer and the seller. This is a legal contract; terms and conditions can be enforced by a court. The buyer needs to know what is in the contract and what can be enforced against him/her.
There are other documents the buyer will be asked to sign, and one is the buyer’s agency agreement. This in essence, is an employment contract whereby the buyer employs the agent to represent him or her and it extends for the length of time determined by the buyer and his/her agent. Many agents, myself included, do not ask a buyer to sign the Buyer Broker agreement until writing a contract. The buyer has no idea how I will represent him/her and whether they will find working with me beneficial. And the buyer should only sign one Buyer Broker agreement, otherwise he/she might be responsible for paying more than one commission.
Every state has different rules, regulations and statutes governing real estate. Many states are “attorney states”. In some states, negotiations are conducted on a verbal basis. Arizona is not an “attorney state”. The Realtor® – buyer’s agent -writes the contract, presents the contract to the seller’s agent, and both agents negotiate the terms and conditions of the contract on behalf of their clients. In Arizona, any verbal agreement concerning real estate will not stand up in court. All agreements must be in writing, signed by all parties.
If a person is from another state, his/her previous experience may color how he/she believes a transaction should be conducted. I had a client once from New York City who told me I was conducting the transaction all wrong. I pulled out my Real Estate Law book for Arizona and pointed out to him the statutes which governed. His previous experience colored why he believed I was incorrect. We must be cognizant of where people come from and what procedures they are accustomed.

Ask anyone to describe their image of a real estate agent and what do you hear?  I laugh when I hear big hair – the 1980’s; Cadillac, Realtor® car, Country Club lunches…because of course, the Realtor® belongs to a country club!  Oh and money… overflowing the pockets!

Real estate agents are not Realtors® but Realtors® are real estate agents.  Realtors® subscribe to the Code of Ethics of the National Association of Realtors® (NAR Code of Ethics http://www.realtor.org/policy/code-of-ethics-and-professional-standards ) and real estate agents do not.  There is a higher standard of care for clients when using a Realtor®.  Make sure your agent subscribes to a local Board of Realtors® because it offers you, the consumer, a higher standard of care.

When buying or selling what is probably your greatest asset, be sure you are dealing with a reputable person.  Generally that person will be a Realtor®.  He/she can guide you through the morass of paperwork and explain all that you are signing and why.  If that person shoves paper at you and doesn’t explain what you are signing, then you should not sign!  Ask to see the Code of Ethics.

Advanced designations are one way to cull Realtors®.  Beyond the normal continuing education units your agent must attend, that person understands the importance of knowledge which he/she can impart to the client and use to represent the client in a more professional manner.

Usually these designations are classes the agent must pay for out of his/her own pocket, take time to attend, and usually pass a test at the completion.   If your agent has a group of alphabets after his name, those are the designations.  Some are more prestigious than others.  Ask what these letters mean.

As the market begins to heat up, more and more people will go into real estate.  There is a perception that real estate is an easy career and the agent can make a huge income and just look at houses all day with people.  This is a myth!  Ask any successful Realtor®, the reality is far different!

So ask too, how long have you been in the market?  Remember, you are the employer and the Realtor is your employee.®

Tucson’s Active Adult Communities offer a plethora of activities. What activities do you, the active adult buyer, sincerely believe you will participate?
Are you planning on taking advantage of Tucson’s wonderful climate and surrounds? Would you rather snuggle on you patio with a cup of java and a great book? Perhaps you’re an artsy crafty person? Or are you longing to play golf and go out to eat at night? Planning on traveling to all the national parks in the Midwestern and Western states? Or taking classes to get another degree?
Think long and hard about what you want to do in retirement…and think too about your budget. We don’t like to admit it, but money governs much of what we do.
Active adult communities offer planned, structured programs with people from the same community participating. If you are an outdoors person, is it to your advantage and interests to join an “open” hiking club where people from throughout the city belong? What about arts and crafts? Would you consider joining Philabaum’s Glass Art classes in downtown Tucson, or classes at the Tucson Museum of Art, or the Sonora Desert Museum? Or perhaps you are a classic car enthusiast.
I knew a retired gentlemen, a Fortune 500 Executive, who enrolled in the University of Arizona for a degree in fine arts and graduated at the age of 76. He fulfilled a lifelong dream. Think about what you would really like to do in retirement. This is much like making New Year’s Resolutions, I’m going to do x, y, and z. But are you really going to do those things, or are those the things you think you should do in retirement?
The Homeowner’s Fees in retirement communities are expensive. In some communities there is a substantial fee which is paid when you purchase the house and the funds go to the capital reserves. There are monthly fees after that ranging from a nominal fee of $20 a month to more than $400 a month.
You want to consider that for every $5.00 you spend in HOA fees, you could purchase another $1,000 in a home. A $400 fee would get you an additional $80,000 in house. HOA fees do not appreciate like a home, and often they go up with inflation.
The purpose of these exercises I’ve discussed during the past few days is to get you to really think about what you want so that your Realtor® can help you get the most bank for your buck. It is pointless to pay for things you may never use, and there may be other options which suit your needs and wants more than an active adult community.
You are making an entire lifestyle change and you are committing a substantial amount of money to make this change. You will want to make sure you are doing what you really want to do, not what your friends, family, and neighbors think you should do!

http://www.meetup.com/tucsonhiking/
http://www.philabaumglass.com
https://www.tucsonmuseumofart
http://desertmuseum.org/
http://tucsonclassicscarshow.com/links/local-car-clubs

Tucson has a range of active adult communities which run the price gamut from the $80,000 range to more than a million dollars and likewise span a distance from Catalina down to Green Valley and Tubac, a distance of about 60 miles; and from the foot of the Rincon Mountains in the east, to west of the Tucson Mountains approximately 40 miles.
In each area, the topography is different and although many people believe the desert southwest is flat and barren like the Sahara, nothing could be further from the truth. Topography and landscape may be a factor in deciding where to put down roots. And there is the question of how urban one wants to be. This harkens back to our discussion yesterday why making the list of what is important for you when retiring is crucial.
There are town home communities as well as mobile home communities, condo communities, manufactured home communities, and single family residence communities. Each type of community offers different living conditions and different ammenities. There are golf course communities and non golf course communities, newer homes and older homes. And all are governed by CC and R’s, Covenants, Codes and Restrictions.
The CC and R’s are legal documents which residents can be held to uphold. It is important that you read these for not only do they indicate how many pets you can have and how big, or what color you can paint your house, they often also govern the ages of children who can live in the community or purchase property in the community.
I know of communities where anyone younger than 55 cannot purchase a home, and proof of age is a requisite. A child younger than 55 cannot purchase a home for a parent even if the sole purpose is for the parent to live there. There are communities where rentals are not permitted. Someone who is 55 plus and desires to purchase a winter home which will be rented until retirement is prohibited from doing so by the CC and R’s. Such a covenant may impact on your financial planning.
If you are expecting children and grandchildren to visit for a month, know what the C C and R’s say. In some communities, children younger than 18 years cannot stay in the community for more than a few days. And certainly, if you ever anticipate that a grandchild will live with you on a permanent basis, definitely understand the provisions in the C C and R’s. There was a situation where a grandmother took in her grandchild and was forced to sell and move from the community. It didn’t matter that the grandmother became the legal guardian, the law upheld the C C and R’s.
Active Adult Communities bring together people of like mind, they offer camaradie, activities, and peacefulness to those who purchase there. As in any property purchase, it is important to know what you are buying and how you can use your property. Your Realtor is crucial in helping you wade through the do’s and don’ts of purchasing in an Active Adult Community.

Tucson real estate March sales picked up smartly from February and increase nearly 20% in sales volume although the average sales price decreased more than 10% from the February price of $182,388.  The average list price of properties in Tucson is $173,590, and the average sales price is $163,590. The last time the average sales price hovered near $163,590 was September 2002 ($163,591).

Nearly 33% more homes were sold in March than in February, jumping from 879 to 1,169.

Out of 1,169 properties sold, 37.4% were purchased with cash (437) and another 29% (329) purchased with a conventional loan.  This may indicate investors are swarming Tucson looking for the best buys.

A total of 56.9% of the homes sold (665) were priced at $139,999 or lower, and the median price of all homes sold was $125,000.  (The median price in October 2001 was $125,000). These homes are located in the northwest  (280 units), the central area (122) and the southeast (129).  The average sales price to list price was 94.46% of the last listing price.

Tucson has a high end market with a total of 210 properties $1,000,000 or more for sale, 180 properties between $750,000 and $999,999, and 482 homes in the $500,000 to $749,999 price bracket.  Many of these properties sold for considerably more during the mid 2000’s.

At the end of March, 2,152 homes were under contract and this number should be reflective in higher numbers for April closings.

Looking at the zip codes, the story of foreclosures and short sales rings through the numbers since the greater percentage of homes  sold during March are in areas such as Sahuarita, Green Valley, Midvale, Rita Ranch, Starr Valley and Rancho Del Lago.

These are areas which experienced rapid growth during the first decade of the 21^st century and where builders offered come on pricing of zero down with a fixed and adjustable rate mortgage.   These second mortgages are coming due and the real estate market is seeing these homes selling for far less than what is owed.

Resources:

For a detailed report:  http://www.tucsonrealtors.org/tar-v2/statsMar2011.pdf

March generally is the last month that Tucson is home to winter visitors.  Easter marks the end of the season, but Easter is late this year in April and April is the time the crocus and daffodils rise from their winter sleep in the northern country.

Those who wintered in Tucson this year, I am sure, were grateful to miss all the snow, the sleet the ice and the difficult winter their stay at home counterparts witnessed.

Home prices now are low as are interest rates and this is an ideal time to think about purchasing a second home.

Many people arrive in November for the holidays, and granted the holidays without snow are different!  But hiking, birding, or just plain walking  in Tucson’s warm air and sunny days with a light jacket is joyous.

Active adult communities abound including golf course communities where the retiree can play a round of golf every day!  There is an abundance of private and public golf courses from which to choose including the world famous Dove Mountain Ritz Carlton course, made famous by Accenture Match Play.

For non golfers, Tucson offers a plethora of things to see and do.  Those people who opt for an active adult community often have planned activities including book clubs, art lessons, pottery lessons, tennis lesson, culinary lessons, exercise classes, poker and billards rooms and on and on.  But you don’t have to opt for an active adult community to be party to all of those things.

Tucson has an excellent library system and book clubs abound.  For more formal instruction, the University of Arizona and Pima Community College offer classes in literature for the general public, not just students.  The Tucson Museum of Art provides art classes as does the Sonora Desert Museum and for people who want to try something new, the Sonoran Glass Art Academy can help you learn to blow glass while you create beautiful items for your home and friends.

The Tucson Park and Recreation Association sponsors pottery classes in different venues in Tucson. You can also learn to salsa dance, play tennis, learn to swim, take up beadwork or any number of hobbies.  Golf lessons are also offered!

The Audubon Society has a year’s worth of activities for birders and the Sonora Desert Museum also provides classes about the natural habitat of the Sonora Desert.  The Tucson Botanical Garden is another popular place to enjoy time and classes as is the University of Arizona Cooperative Extension Service where one can learn to become a Master Gardener.

Living in an active adult community provides instant activities, but for those who want to customize what to do during retirement, think about a house anyplace, then pick and choose your activities from all that Tucson and its surrounding area has to offer!

http://www.sonoranglass.org/about/staff.htm

http://cms3.tucsonaz.gov/parksandrec/program-guide

http://www.tucsonaudubon.org/

http://ag.arizona.edu/pima/gardening/

http://www.tucsonbotanical.org/

http://www.golfnow.com/tucson?trk=PPC_GNOW_Google_TUC&cam=golfnow_local_-_tucson&adg=regional&kwd=tucson_golfing&pht=Broad&gclid=CO-aye2106cCFQUDbAodkEAh-g

http://www.tucsonmuseumofart.org/

http://www.desertmuseum.org/

For more information, contact me:  information@terrybishop.com or check my website

http://www.terrybishop.com