subterranean termite tube

It is imperative that the buyer performs “due diligence” on the property, especially if purchasing the property “AS IS”.
The inspection period is ten days from mutual acceptance of the contract. All days are included, that is calendar days, not working days or week days. Encourage your agent to schedule the home inspection as soon as possible in case other inspections may be needed.
The buyer can inspection for virtually anything at buyer’s expense: environmental, physical, specifics such as roof, HVAC, pest and in Tucson, termite, sewer or septic

connection, information about the neighborhood, CC and R’s, and or other pertinent information. During this period of time, the buyer should be making sure information is being given to the lender for loan approval if not otherwise obtained, that he/she can obtain insurance on the property, that health and safety codes have been met.
In Arizona, the seller’s agent does not have to disclose if the property is in the vicinity of a sex offender, if the property was the site of a felony, death, suicide, and/or murder. The buyer can investigate for these conditions if they are of material concern. In checking these items, the buyer should consult the Arizona Buyer Advisory which is a compilation of links where a buyer can obtain various information which may impact his/her desire to proceed with the property purchase.
The buyer’s responsibility is to provide the seller with copies of all reports obtained at no charge.
If square footage is important to the buyer, or size of rooms of significance for furniture placement, the buyer must complete these investigations during the ten day inspection period. Military people coming from Germany often have a shrunk and it is important to measure the wall space and the size of the shrunk since often, the room is not large enough.
Tucson has two types of homes, those that have termites and those which are going to get termites. Most of our termites are subterranean termites and the cost to treat is generally less than $500. Many lenders will not release loan documents (conditions to close) unless the termite treatment has been done. Generally VA and FHA loans will need termite treatment if called termites exist. Proof of treatment will be required.
The buyer’s agent should check to determine the property is not in a flood plain zone. Although Tucson is desert, there are plenty of areas which are deemed flood plain by the Army Corp of Engineers. These areas will require additional insurance, often costing the same or more than general hazard insurance.
If obtaining homeowner’s insurance is important, and it should be, this should be done during the inspection period. The lender may require insurance prior to sending loan documents for signature. The buyer should ask for quotes from the same company from which he/she purchases automobile insurance. The package of auto and home should be discounted somewhat. Purchasing insurance from the lender is often costly.
The buyer should know if the property is on sewer or septic. If septic, then the tank must be pumped and certified and documents filed with the Department of Environmental Quality. This is a cost to the seller but the buyer should know the location of the septic. Sometimes it cannot be determined if the property is on sewer in which case the buyer’s agent will have to order a dye test to confirm whether the property is on sewer.
Arizona is known for the numbers of child drownings and swimming pool barrier regulations are in effect in several towns. The buyer should receive a copy of the Arizona Department of Health Services approved private pool safety notice and know what barriers regulations exist.
The buyer must know and must initial a clause which specifies that the real estate agent and broker are simply that, real estate professionals. They are not licensed or qualified to conduct inspections and the buyer should contact professionals in the specific disciplines for professional information.
At the end of the inspection period – or the inspections – the buyer will sit down with the agent and write the Buyer’s Inspection Notice and Seller’s Response. In this, the buyer will indicate what situations are to be corrected by the buyer prior to close of escrow. The buyer will respond in writing within five days and indicate what he/she will or will not do. If the seller is unable or unwilling to do the repairs requested, the buyer may withdraw from the contract and have all earnest money returned.
If there are non-working warranted items, the buyer must let the seller know.
Home warranty plans are offered by several companies and cover basic problems. Additional coverage can be purchased for additional cost. Often the buyer will request a home warranty from the seller. The costs of these can run to $600 or more, so be aware of what you are purchasing or asking the seller to purchase.
The seller will make the home available prior to the close of escrow for a final walkthrough where the buyer checks the condition of the property and insures that all repairs have been done in a workmanship like manner. All utilities must be on and the expense is to the seller.

The cover page of the Residential Resale Real Estate Purchase Contract has boldfaced capital letters ending with an exclamation point, ATTENTION BUYER!

And underneath the exclamatory phrase is “You are entering into a legally binding agreement” in large letters.

The Arizona Association of Realtors® is nearly screaming at you to pay attention to what you are about to sign.

There are eight caveats:  Read the entire contract before you sign it.  If you don’t understand something, ask!

It will tell you to review the Residential Seller’s Property Disclosure Statement, otherwise known as the SPDS.    This will be given to you after mutual acceptance of the contract, if not before.  The seller discloses all that he knows about the house to the best of his ability.  With your agent, you should review all information to ascertain if there is additional information you may want to investigate during the ten day inspection period.  On the basis of information in the SPDS, you may decide not to proceed with the contract.  This is an important document.

The third item has to do with Inspections.  The buyer can inspect for anything that is important to the buyer.  This will include the Covenants, Codes and Restrictions (item 7) and other governing documents.  If you have three 150 pound dogs, it is important to read the CC and R’s to make sure they are allowed in the community.  But you may inspect for mold, have a roof inspection, a pest inspection, a pool inspection, and an HVAC inspection or anything else the buyer deems important.

During the inspection period, confirm that you can obtain insurance on the property.  And you should have verified you can obtain a home loan.  Any information requested by the lender should be provided immediately.

Your agent will review the title commitment with you and if there are problems with the title, they will be have to be resolved prior to close of escrow.

And finally, the buyer should conduct a final walk through to make sure the property is in the same condition as when originally seen and if repairs were requested, they were done in a workman like manner.

The cover page is explicit:  “Verify anything important to you.”

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.

After years of downturn, Tucson is beginning to come out of the morass which was the real estate market. 2015 is projected to be a year when the market should appreciate at a normal rate. Most of the foreclosures and short sales will have been sold or auctioned off.

But, we still are influenced by those buyers from other parts of the country who live in judicial foreclosure states. They are about three years behind Arizona and distressed inventory is weighing down their markets.

Potential buyers from those states who are considering a move to Tucson may be hemmed in by lower prices just as we were three years ago and therefore be unable to purchase now.

The average price of a home in Tucson went from $202,342 in December 2013 to $210,454 in October this year.

The median price rose a bit more than 4% from $159,900 to $166,500. Sales statistics are a lagging indicator since they are one month in arrears. The numbers for December 2013 reflect what transpired in November since closing takes approximately 30 days. Seasonal adjustments must also be considered, the normal drop off in sales during the winter holidays when people are celebrating and not thinking about selling their home.

Banks are talking about raising rates and if that happens, buyers may come out of the woodwork to take advantage of their ability to buy more home for the same amount of money. Housing prices have not escalated considerably and the market generally has been quiet.

If you are thinking about purchasing a new home, this is the time. Builders have inventory on hand and especially with spec homes, buyers can take advantage of incentives which include lower interest rates for the loan life. Call me and we can discuss what is out there and where it is located in proximity to your lifestyle. And take advantage of 2014 fiscal year tax deductions.

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

The Tucson real estate market is experiencing some steam with an increase of 23.08% in volume from $130,258,440 in January 2011 to the $160,319,228 in February 2011. This number is about $15,000,000 higher than February 2010.

Are we out of the woods yet?

The average sales price increased 9.22% from January 2011 to February of 2011;  $166,998 to $182,388 in February, but still short of the 2010 numbers which were $201,219 in January 2010 and $195,996 in February 2010.

The average list price increased 8.43% from $177,036 in January 2011 to $191,957 in February 2011.  This compares to $201,219 in January 2010 and $206,843 in February 2010 .

The median sales price in February 2011 is $137,000 a decrease from February 2010 of $13,000 ($150,000) but an increase from January 2011 from $134,250 or 2.05%. The median sales price in January 2010 was $160,000.

A total of 2,272 properties were under contract at the end of February 2011, an increase of 60.34% from February 2010 when only 1,417 were under contract.  This is a 12.87%  increase  in February 2011 from January 2011 when 2,013 properties were under contract.  This compares to January 2010 when only 1,155 properties were under contract.

Total sales units in February were 879 compared to January 2011 when 780 were sold, an increase of 12.69%.  This is more than January 2010 when 712 units were sold and 741 in February 2010.

The numbers of new listings too have declined which may bode well for the Tucson market, maybe signaling that inventory is decreasing.  February new listings total 1,487 as compared to 1,949 in January and 2,104 in February 2010 and 2,424 in February 2010. The month over month 2011 decrease is 23.70%, a substantial number.

Active listings have declined from January when 7,147 properties were listed, and February numbers of 6,947 active listings, down 2.80%.  This is still higher though than 2010 numbers when 6,739 properties were listed in February and 6,618 in January 2010.

The area with the greatest number of properties on the market is the Northwest with 1772 active listings.  This is followed by the Central area with 869 properties for sale and the North Catalina Foothills areas with 727.  Only 17 properties are available in the extreme Northeast.

Looking at price points, the majority of homes sell between $100,000 and $159,999.   Running the gamut however, Tucson has 44 active properties priced at $29,999 or lower and at the other end of the spectrum, 194 properties price at $1,000,000 or higher.

The average number of days to sell a home in Tucson is 107 days.  The extreme Northwest properties sell in an average of 51 days while the northeast properties take 130 days.

The majority of people are paying cash for their real estate purchases (336), followed by Conventional loans (251) and then FHA financing (195).  VA loans totaled only 55.  The cash purchases may be reflective of the fact investors are active in Tucson.  Resort and second home buyers are also cashing in on the “bargains” here and many second home buyers also pay cash.

Prices are similar to the end of 2003 and the first month of 2004.  As Marshall Vest, Chief Economist at the Eller School of Management at the University of Arizona told the industry at the Economic Summit, “buy all you can buy, hold it for five years, and make a killing!”

Resources:

http://www.tucsonrealtors.org/tar-v2/statsFeb2011.pdf

The comprehensive market reports released to the public by the Tucson Association of Realtors monthly are both fun and instructional and provide a wealth of data which can be mined with only an elementary understanding of mathematics.

Combining the data with a zip code map provides the basis of knowing where properties are selling and those which are languishing on the market.  This, in combination with absorption rates, (tomorrow’s topic) will divine where the great buys may be and where the “hot market” is currently.

If we look at areas where the greatest percentage of homes on the market sold during December, the Rita Ranch area takes the award with 27.73% of properties sold, but the 85747 zip code had only 154 homes for sale and a total of 35 sold.  Closely following is the Midvale area (85757) with 24.58% sold from a total of 118 on the market, which is 29 homes.  The 85714 area, east of Davis Monthan Air Force Base in the Irvington area had 22.86% sold, or 6 out of 35, and the area with 21.60% properties sold, or 35 out of 162 is 85756, south of Tucson International Airport east of I-10.

Now looking to the areas with the most homes available from the December statistics, there are nine zip codes with more than 250 homes actively on the market.  The Foothills-Sabino Canyon area leads the pack with 353 homes on the market (85750), closely followed by the Catalina Foothills zip code with 340 homes on the market, zip code 85718.  Many people wanted to put their home on the market but waited thinking the prices would increase.

The Green Valley area closely follows in 85714 with 292 homes for sale, followed by Corona De Tucson with 282 homes in the 85614 zip.  Both of these areas saw new construction during the mid 2000’s.   Rancho Vistoso in the 85755 area is offering 279 homes, and the Saddlebrook-Catalina area in 85739 has 270 homes on the market.  All of these areas may appeal to people looking to retire in the Tucson area or people looking for second homes.

The northwest, Lambert Lane area south of Tangerine between Cholla and Oracle in 85737, an Oro Valley zip, has 259 homes on the market.  From Golf Links north to Speedway in the 85710 zip, northeast of Davis Monthan has 258 listings, and Sahuarita, a new home subdivision area in 85629 has 252 homes on the market.

The absorption rate, which is a different statistics than discussed today is tomorrow’s topic for the various zip codes in town.  This will tell how long it may take to sell a property in a specified zip.

Resource:

http://www.tucsonrealtors.org/statistics.html

If you are considering purchasing a home in Arizona, your agent should provide you with the Buyer Advisory, a document which is nine pages and provides information about items a person should know prior to purchasing a home.

The document, written by the Arizona Association of Realtors, is designed to allow the consumer to check  issues he/she should consider when purchasing a home.  It contains links to many websites which can answer consumer questions.

Information concerning neighborhoods is not static, changing frequently, and the Buyer Advisory is revised periodically.  The websites referenced in the Advisory also change their information frequently.

Crime statistics are important and the Advisory references the various sites in Arizona cities where these statistics can be obtained.  An agent cannot know all of these facts and the knowlegable consumer will reference the Buyer Advisory to find answers to his/her questions.

The Buyer Advisory is also a document which a homeowner can use to ascertain answers to questions he/she may have regarding where to go for tax information, zoning information, information about area schools, and the ever famous sex offender information.

If you are considering purchasing property outside of Arizona, the Buyer Advisory is an excellent guideline to questions you may have and potential places to obtain the answers in that state.

Take advantage of this resource, it is part of a buyer’s due diligence when purchasing a property.   A link to the Arizona Buyer Advisory is provided below, you may be surprised at the amount of information it contains.  Use this information for your advantage.  A knowlegable buyer is a good buyer.

http://www.aaronline.com/documents/buy_advis.pdf

http://www.aaronline.com/documents/buyer_advisory.aspx

An 11.36% increase in Tucson, Arizona homes sold during August statistically illustrates positive movement in the real estate market, and coupled with a decline in inventory of 21.82% and an increase of 39.19% of total listings under contract, the figures demonstrate the numbers of homes on the market in Tucson is decreasing.

This is good for the real estate market. In July 990 homes went under contract and in August 1,378 had contracts. A total of 792 homes were sold in July and 882 or 11.36% more homes sold in August. The median sales price inched up $750.00 from $150,000 to $150,750. and the number of new listings decreased from 1861 in July to the August total of 1,455. However, the total of active listings rose to 7,180 from 6,668 or 7.53% reflecting spillover inventory.

Looking at the percentage of homes sold in each zip code, the areas with more than 20% of homes sold include the downtown area with 23.33% where 7 out of 30 active properties sold; 85746, the southwest area which includes Midvale Park, where 24.86% of the properties sold or 45 out of 181 properties, and 85738, Catalina, where 100% of the properties sold or 1 out of 1 listing.

The Northwest area of town has the most properties on the market with 1,826 homes for sale. During August, 219 homes sold. That is followed by the central area of town which includes the University area, with 921 homes on the market and 102 sold in August. Rounding out the top three is the North section of town which includes the Catalina Foothills with 676 properties on the market and only 69 sold during August.

Price wise, the properties between $120,000 and $250,000 had the most sold and also accounted for the most inventory. Less than 10% of the properties priced above $250,000 were sold in August.

Types of financing were nearly evenly split between FHA loans which 242 buyers selected, conventional loans for which 275 buyers opted, and 245 buyers elected to pay cash. The remaining financing was split between VA loans, owner carry backs, cash to loan and other types of financing.

The average sales price decreased 2.9% from $192,072 in July to $186,562 in August while the median sales price increased about one half of one percent to $150,750.
The average number of days in the market increased by four days to 91 from 87. West side homes took the longest to sell on average at 114 days, while the extreme northeast only took an average of 59 days.

When looking to purchase or sell property, studying the statistical data can give you insight as to how long it may take to sell property and where the price points are located for people looking to purchase property. It also shows up/down movement in the market. Make sure you have the latest Multiple Listing Monthly Statistics to help you make a good decision and ask your Realtor® to help you interpret the data for your specific need.

Resources:
Tucson Association of Realtors August 2010 Monthly Statistical Report:
http://tucsonrealtors.org/tar-v2/aug10.pdf

There are plenty of active adult community properties for sale in Tucson less than $200,000. This is the time to look at your southwest sunbelt home. Check properties now while you still have the best pickings…before the majority of winter visitors arrive.   Enjoy January through April here in beautiful Tucson while your neighbors shovel snow, dig out their car, and bundle up in winter gear just to go to the store.

The price of property in Tucson is at 2003 levels and interest rates are at a historical low. This equation equals an opportunistic time for people who always coveted a retirement home or second home in the southwest sunbelt to purchase that dream.

Tucson and the surrounding area is home to several active adult communities and homes in these areas have decreased in price.   Prices are down 15 to 25% from three years ago.

In the entire Tucson Multiple Listing Service, 91 properties sold during the past three months (since June 22, 2010) in active adult communities at an average list price of $262,873 and an average sale price of $248,302.

That is an approximate 5.5% discount to list price. The median asking price is $249,000 and the sale price was $230,000 or a 7.6% discount to list. And the low price was $92,800 with the sale price of $92,000 or a .08% discount to list. The high end property which sold during the past three months, had an asking price of $599,000 with a sale price of $569,000 or a 5.0% discount to list.

Currently, as of this morning, there are 460 properties in active adult communities on the market, four of which are more than $1,000,000. The average price of those properties is $297,942 but of this total, 45 properties are $500,000 or above skewing the average prices upwards. The median price is $249,700, the low price is $52,500 and the high price is $2,800,000.

Most people seeking an active adult community will be purchasing property below $500,000 and the 415 properties on the market have an average price of $251,827, with a median price of $239,000, a low price of $52,500, and the high price of $499,900. These are asking prices.

Using the discount to list price during the past three months of 5.5%, one may be able to purchase an average active adult community property for about $237,000 if we use the entire domain of properties to $500,000.

To use an old cliché, “the early bird catches the worm”. For more information about Tucson active adult communities, contact me, terry@terrybishop.com for more information and a relocation package.