Tucson Kent's World: Arizona: Tucson

Buyers often ask me "Can I put in a really low offer on this house?"  The short, simple answer to that is that anyone can offer whatever they wish on a property.  What really matters is if the offer will be looked at...and even considered.  A few times I've had clients who really, really liked a particular home, but ended up heartbroken because, in their attempt to "get a steal" because "it's a buyer's market," they either poisoned the seller against them or wasted time in a competitive foreclosure market by offering w-a-a-y below asking price.

Lets take a look at a typical scenario:

Buyer A is approved for a loan that will allow them to buy a home priced up to $200,000.  The question comes up about the possibility of offering say $200,000 on a property priced at $225,000 (which is a 12.5% discount).

There's absolutely nothing wrong with offering that, if comparable properties in the area are going for the lower price.

In reality, chances are, that offer won't even get a response. Generally speaking in the Tucson market, prices being asked nowadays are fairly close to what the market is bringing. If the seller is asking more than what the market is showing, you can just about guarantee that asking for a discount like this is going to be met with rejection instead of a counter-offer back. If it is a bank-owned house, you don't have to deal with the "human factor" i.e. "ego" like you would with one that is owned by a human being - there's nobody that would take personal offense or get cranky about a "lowball" offer - but they have their bottom line too, and a rejection is a rejection.

In the Tucson real estate market of today, many bank-owned homes (aka REO, foreclosure) are underpriced and seeing multiple offers in the first week or two.  Taking the time to submit a lowball offer and wait for a response can often be an exercise in futility - with a more realistic offer (many times OVER the asking price, but within comparables for the area) snapping it up before another offer can be made.

Most often, a home priced above market IS owned by a real-live person who is still attached to their property emotionally, and either can't or won't face the reality of the marketplace. Many times, the home will have been sitting on the market quite a while (DOM or, Days On Market), and will probably remain there for quite a while until the seller either takes it off of the market or comes to grips with it & eventually lowers the price.

If you see a home that is priced at $225,000 and want to offer $200,000 on it - I have no problem putting together the offer...just realize that the likelihood of positive results are close to nil in today's market. We could get lucky, just don't count on it!

Something else to factor into an offer is whether you want the seller to help pay your "closing costs" which generally run about 3% of the purchase price ($6000 on a $200,000 home). Typically, sellers in today's market are willing to help out that way, but not with a large discount on the asking price included...it is like asking them for 2 discounts at the same time - similar to showing up at a resort offering "Locals Only Summer Rates" and wanting a AAA discount on top of it. You might get one, but not both.

I also work with investors who are market-savvy, looking at capitalization rates, market saturation ratios, historic vacancy rates & projected growth patterns...the principles work the same way:  If the property works for you, and you want it, messing around may cost you a good property.

Smart investors know where the market is & are willing to pay the price because it is right.  Amateurs, blowhards & wannabes "paper the town" with offers looking for "the steal of the decade" while others make money.

Yep - the announcement is true:  I'm opening an office right in the heart of Downtown Tucson.  Tierra Downtown is a going to be a branch office of Tierra Antigua Realty...and the TucsonKent Group is one of the founding partners!

We're located in the historic Pioneer Hotel Building (could be haunted!), on the top floor with views that can't be beat.  The best part of being located downtown is that we're right in the thick of the community that is revitalizing Downtown Tucson - Congress Street, Pennington Street, Broadway, Stone Avenue...the Modern Streetcar and much more.

We're having a Grand Opening Celebration on November 12 from 3PM to 6PM, with wine, women & song (at least the wine part is a go), munchies & a lot of fun.  If you're in Tucson that Friday afternoon - come on up & help us celebrate the beginning of what portends to be a very exciting beginning in Tucson history as Downtown continues to grow & come alive again.

Downtown Tucson has quite a few murals adding a little spice to the walls and construction sites in the area.  How often do you get to watch the artists at work?

Often it seems that these works spring up "overnight" or perhaps we get so used to seeing the same old monolithic walls on buildings or drab plywood "safety barriers" around construction sites that we don't notice the art until it stares us in the face!

Just the other day, I was fortunate enough to see local artists Rock Martinez & Ed Muren work on their temporary canvas in the heart of Downtown Tucson - at 50 E. Broadway Boulevard - as this building gets renovated.

If you haven't been to Downtown Tucson in the past year...or even in the last 6 months...you'll be amazed at the entergy, vitality & transformation that is happening.  The downtown area is coming alive with new investment and a sense of destiny in becoming a showcase of promise in The Old Pueblo.

Yet one of many reasons my partners & I have decided to locate our office in downtown...right in the thick of things!  Stay tuned for photos & updates on what is happening in the heart of Tucson.

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Downtown Tucson Commercial Properties

This photo is of Sombrero Peak, which is a landmark to help point out where Continental Ranch is in Tucson.  It is on the northern end of the Tucson Mountains - and stands out visible for miles and miles.  If anyone needs to know where the community of Continental Ranch is, you can simply point out Sombrero Peak & say,

"Head that way, you can't miss it!"

I was driving to an appointment late in the afternoon when I saw this combination of clouds & light with Sombrero Peak silhouetted beneath them.  Seeing the rays of sunshine defined like this doesn't happen very often, so I knew I just had to try to capture this scene!

Continental Ranch is a large, master-planned community west of I-10 in the northwest part of the Tucson Metro.  Begun in the early 1990s, the community is still growing as it matures - new subdivisions are still being built, new commercial space is supplementing that which has been serving the area for the past 2 decades and more.

Late this fall, the Twin Peaks Interchange will add direct freeway access to the northern end of the community, which will ease traffic on Silverbell and make things much easier for those living on the northern end!

If you live in the Starr Pass Residences of Tucson, you know one of the perks of owning a home here is a great setting for spectacular sunsets.  Located on the west side of the metro, cradled by hills studded with saguaros, the JW Marriott Starr Pass Resort anchors this community of single family homes, condos and casitas.

Rated as one of the world's best spa resorts by the Conde Nast Traveler, Fodor's & other noteworthy guides, the Starr Pass Resort also serves as an intersting backdrop for sunsets - especially on a stormy night like this one.

Owning a home in the Starr Pass Residences isn't nearly as expensive as one would think - even one of the golf course casitas.  Don't take my word for it though, check out the current properties on the market below.  Lets play a round at the Jack Nicklaus Signature course, relax with a massage at the Hashani Spa then enjoy a meal at one of the 5 restaurants while we celebrate your new home with luxury at your doorstep - without paying a mint for it.

Downtown Tucson is experiencing a rebirth.  One of the newest developments is located on the actual birthplace of Tucson itself - with streets following the routes of the first canals in the area.

The Mercado District of Menlo Park is a truly unique community - setting the standard for sustainability and livability in the region.  All of the custom builders in The Mercado use differing Green construction methods to achieve high-performance standards while providing a peaceful environment of privacy within a vibrant community. 

Live/work opportunities are a part of the unique character of The Mercado - much like the original village that lies preserved beneath it.  The narrow streets are by design to make the area more pedestrian-friendly.  Parking for guests or visitors is plentiful and close, with Tucson's new Modern Streetcar an added bonus - The Mercado District is the western beginning of the route to the heart of Downtown and to the University of Arizona. 

Architecture is a blend of Old Mexico and turn-of-the-century style, with one area, The Paseo, designed to be a walking street of shops, galleries and residences that bring back a simpler way of living.

Soon to come:  a gallery of photos as we watch the first Paseo residences come to life from the ground up!

University property in Tucson has traditionally been very popular for investors and parents of students attending the University of Arizona.  Benefiting from the proximity to campus and the ready supply of renters and buyers, the value of these properties has held up better than the overall real estate market the past few years - see this article.

This area in the Tucson real estate market is one that I enjoy concentrating on, not only because of the business, but the vitality of the people and the variety of styles, architecture and property types near the University.  Recently, I represented a couple who purchased a condo for their daughter to live in.  Just a few weeks later, they decided to invest in another condo to use as an investment property in the same complex.

Getting a testimonial from a client is a wonderful thing, but when they take the time to make a video, it is extra-special!

Investing in real estate may be better now than in decades - because of the combination of prices tumbling from artificial highs a few years ago & record-low interest rates.  Some university properties are bargains while others are not - having an experienced REALTOR® who knows the area well can make a difference in getting good value for your dollar or finding a "bargain" that turns into a money-pit.

Below are current properties for sale in areas that are popular with University of Arizona students.  The list on the left contains Residential Income properties, the list on the right are single family homes, townhomes and condos for sale.  Click on either list to see more detail - no, you don't have to register or sign up for anything.  If something interests you, please feel free to contact me.

So - is it a good time to buy a home in Tucson?  Rip Van Winkle took another nap...for 5 years...see what he found out!

Things have changed dramatically in the Tucson Real Estate Market in the past five years.  Prices have come down considerably, and - get this - interest rates are incredibly low.

The past several years have seen artificially inflated highs, so inflated that the economy of the United States suffered a severe downturn when the "bubble" burst in the Sand States of Arizona, Nevada, California and Florida.  This was a serious contributing factor to the near meltdown on Wall Street - and affecting economies worldwide.

The speculators and "quick buck" artists of the go-go 00's are gone, with first-time homebuyers, people looking for 2nd homes and smart investors finding value in today's no nonsense real estate market.  The days of "picking up a couple of homes for an easy flip" are over, and common sense has come back to the table, at least in the Tucson market.

The average homebuyer can now buy a good home at a good price, with a loan that has a historically good interest rates.  Many "crystal balls" turned out to be cracked & made of cheap plastic in the "oh-oh 00's" but I have a feeling that several years down the road, the market we are in right now will be looked at as one of the best times to buy in a long time.

If you find something of value here, please feel free to share or forward this to your friends and colleagues.  To learn more about Tom Heath & mortgages in Tucson, click here.  To search for properties available in the Tucson real estate market, click here.  To learn more about people & places in the Tucson area, visit our website, THE Tucson Real Estate Show.

Special thanks goes out to Barry Habib for his inspiration in making this video.  The location we used is in the University of Arizona BioSciences Park, now under construction.

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The Tucson Real Estate Show

In Episode 3, THE Tucson Real Estate Show takes a break from the business side of things to ride the Historic Tucson Trolley and learn about its history from Karen Rodack, who is a volunteer conductor for the Old Pueblo Trolley organization.

Currently, the trolley runs along University Blvd. from Main Gate Square at the University of Arizona, and down 4th Avenue where it stops before going down Congress Street in downtown Tucson. This nostalgic attraction is completely volunteer operated & funded by donations. It generally runs on weekends - weather & maintenance permitting.

Work is beginning soon on a new, Modern Streetcar for Tucson, which will expand the route significantly and be more useful as a practical mode of transportation.  There has been quite a bit of new activity in the downtown Tucson area as businesses open up as part of the downtown revitalization effort - and in anticipation of the Modern Streetcar's debut in 2013.  Yes, Mr. An has started construction on his new restaurant, An Congress, right by the Rialto Theater and Hotel Congress.  Can anyone get us an interview with him?

In Episode 2 of THE Tucson Real Estate Show, Tom Heath and I visit Tucson's Historic Train Depot downtown to help illustrate how to be "On The Right Track" for getting a home mortgage.

Our mission with THE Tucson Real Estate Show is to provide consumers with information they can use about the local Tucson real estate market, while highlighting the people, places and things that make "The Old Pueblo" a special place.

Tom Heath is a mortgage professional with Sunstreet Mortgage and current President of the Southern Arizona Mortgage Lenders Association.  Kent Simpson is a REALTOR® who is awaiting trial for impersonating someone who knows how to do a real estate show.

On our next video, follow along as we ride the Historic Tucson Trolley in search of Mr. An - while Conductor Karen Rodack tells us the trolley's history.  Do we find Mr. An?  Will he invite us to the grand opening of An Congress?  Watch & see!

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Episode 1 - Introducing THE Tucson Real Estate Show