The Housechick Blog

Sometimes people ask me how long it’s going to take to write an offer.  That’s a question I can’t really answer.  It could be 20 minutes, it could take 2 hours.

The typical purchase contract we use in Tucson has over 20,000 words, with dozens of clauses and contingencies that we may need to include or negotiate for, depending on your individual situation.

It’s a little more involved than just filling in the blanks.  It takes some skill and strategy to craft an offer that will protect and promote your interests, while getting us to the goal of mutual agreement with the Seller.

When you put pen to paper to sign an offer, you’re making a huge set of promises.  I need to make sure you understand the obligations and commitments you’re making.  If this is your 10th house, you’re probably already familiar with everything.  If this is your first time buying a home in Tucson, we probably need to take our time and have some discussions along the way.

I guess the real answer is - It takes as much time as you need!

I remember the first time that I saw it.  I was on a long cross-country flight, flipping through the in-flight magazine, and there it was.

The FUNCTIONAL UTILITY BAR.

The FUBAR by Stanley tools, recipient of the Popular Science “Best of What’s New” Award.

I was so excited, I woke up my hubby in the seat beside me to show him the ad in the magazine.  “This,” I said.  “This, I need.” 

Let me explain.  I’m a sucker for a project house.  The most recent one we bought had this huge straw bale wall in the middle of the driveway that needed to come down so we could, you know, like, PARK in the driveway.

You know what happens when you hit a straw bale wall with a sledgehammer?

It cracks the stucco.  And then it mashes into the wall a little, and bounces off when it hits the layer of chicken wire surrounding the straw.  It’s an incredible let-down, I’ll have you know, to take your biggest wind-up swing with a heavy sledge at a big wall, and have it go crunch-mush-bounce.  Taking that wall down required a lot more finesse than I thought it would - and an entire 10 yard dumpster.  You’ve got to crack the plaster and pull away the chicken wire and pry out the rebar and untie things.

And then there were the interior walls.  Some are plaster over drywall, some are tile over concrete over brick.  And some are plaster over a heavy metal mesh, nailed to the studs.  To pull those walls down, you’re chipping and chiseling and hammering and prying and pulling.  There’s some muttering to yourself as well, typically.

I own probably 8-10 hammers, ranging from the petite Do-It-Herself hammer I got as a college freshman, to the cushioned handle “iFix” hammer, to the more serious construction guy hammers.  I even have 2 kinds of sledge hammers, and one gigantic pickaxe (which, BTW, also didn’t work on the straw bale wall, but is useful for digging holes in caliche).  I think I have two crowbars - hold on, mine are called “wonder bars.”

However, I’d give them all up for a single FUBAR.  I am convinced it is the answer to all of my demolition needs.  I’m just waiting for the opportunity to destroy something so that I can go out and buy one.  I’m pretty sure I really really need one.

Today - I find out there’s a FUBAR II, which is a lighter weight version of the original.  Was there ever anything more perfect made?

I’m a little obsessed with it.  I wonder if I could have them engraved and give them out as closing gifts to my clients?  Who wouldn’t want one of those?

A good portion of my business comes from people who are relocating to Tucson.  Sometimes people call me two weeks before they move here, sometimes people call me two years before they move here.

Either way, I’m pretty good at teaching people the city and helping them find their new home in Tucson.

The first big step in relocating is figuring out your finances.  I wrote in this post about a couple who are moving and will find new jobs when they get here.  Since their jobs aren’t solid yet, the type of loan and amount of loan they can get has changed.

Lenders and lending practices can vary from state to state.  If you can be comfortable with the money part of your relocation to Tucson, the whole move will be less stressful.

Next, I advise a fact-finding trip, if you can manage one.  Plan out a couple day vacation to the area to explore the various types of housing and prices.  This is also a good time to look at the various school districts, if that’s a factor for you.  People that come to town for 3 days to explore, find, and purchase a house tend to be more stressed and unsure than those that can explore the area on one trip and then select and purchase a house on a second trip.

There are other considerations.  Should you sell your existing home first?  Should you rent here first?  Do you need to complete the purchase of a home without actually being here?  There’s no one answer to those questions.  It’s best to sit down with your agent and advisor and figure out what’s best for you.  Hey, you’ll have lots of things to discuss with your agent as you’re driving around town touring homes!

Finally, don’t be afraid to ask for help.  Being in a new town and not knowing any service providers can be tough.  I know lots of helpful people, from dentists and vets to plumbers, accountants, and good restaurants.

Do you need help relocating to Tucson?  Let me know how I can help!

I get asked this quite frequently.  Friends and clients want to know what improvements they can make that will add value to their home.

There’s 5 big areas:

• Kitchens
• Bathrooms
• Flooring
• Landscape
• Structural Changes and Improvements

If you’ve watched any show on HGTV, you know that kitchens and baths sell homes.  It’s difficult to go wrong by improving either of those areas.  For older houses, a coat of paint, new hardware, and new countertops can go a long way.  For newer homes, upgraded countertops and custom backsplashes can make your home stand out. 

Next, consider flooring.  Replace vinyl with tile.  Replace carpet in high traffic areas with tile or hardwood floors.  Always replace nasty carpet, but don’t spend too much there.  Get a nice pad, so that you can lift and replace just the carpet in 5 years, as long as you don’t have pets.

The landscape is an oft forgotten item.  If you plant a tree or two now, put in a simple drip watering system, you can have some nice shade and life in your yard in 5 years.  A nice mesquite grows quickly, doesn’t need a whole lot of water, and looks nice year round.  It doesn’t have to be elaborate, but it needs to be something.

Finally, I consider some more detailed structural items.  Replacing a swamp cooler with an air conditioner can add a couple grand to the value.  Improvements like converting a carport to a garage, adding a covered patio, or replacing windows and sliding glass doors can add value to a home.

Let’s look at some examples.

Case #1 - The Young Family

This couple and their two young children bought a 3 year old house in a typical builder neighborhood.  There’s only 5 or so different models of houses in the area, and most are very similar in interior finishings.  Their house has vinyl floors in the wet areas, carpet everywhere else, typical light oak cabinets with Formica counters, and a dirt backyard.

They asked me what improvements would be best if they plan to move in 5 years.  I recommend replacing all of the flooring immediately.  Put tile throughout, and carpet in the bedrooms.  They don’t have pets, so they should get an upgraded pad, and not overspend on the carpet itself.  Their kids are likely to spill on the carpet, so we know it will have to be replaced in 5-7 years.  I advised against hardwood floors in this house - it would be an over-improvement for the area and for the level of the other finishes in the house.  Next, they need to get some kind of landscaping going in the backyard.  Eventually, I’d replace the countertops with a nice mid-range solid surface countertop, add a tile backsplash, and replace any “builder grade” light fixtures with something a little nicer.  The goal is to make the house look better than the competition without overspending for the area. 

Case #2 - The Original Owner

I listed a house on the Northeast side of town, in a neighborhood of homes built largely in the late 1960s - nice big ranch houses on large lots, but with choppy floorplans due to the era of the homes.  I encouraged my Seller to make a couple improvements, but she was hesitant to put any money into the house.  The kitchen was original: painted cabinets, original yellow countertops, with vinyl floors in the kitchen, worn wrinkled carpets in the living areas, and a small dark brown tile in the entryway. 

After a couple months on the market, my Seller agreed to make a few improvements.  With a $5000 budget, we put a neutral tile in the entryway, kitchen, and baths, and replaced all of the carpet (it was a big house!).  We had a new neutral Formica countertop installed, gave the cabinets a fresh coat of paint, installed new hardware, and took down some dated window coverings.  Afterwards, we sold that house for full price in about a month.

Case #3 - The Historic Neighborhood

My client bought a sweet little dollhouse in a historic neighborhood, an estate sale from the original owner.  There had been some updating at different times, which made it a mish-mash of different finishes from different eras.  With the age of the house, the rooms were very separate from each other, and there was a large, walk-through pantry that was pretty much just a waste of space. 

The plan for this house involved some structural items.  To make the floorplan more modern, the doorway between the kitchen and dining room was widened, and the wall between the pantry and kitchen was eliminated.  The cabinets were in bad shape, so the kitchen was replaced with period style cabinets.  My client really wanted granite counters - I’ve got to admit, I’m sick of granite.  Everyone has it, it isn’t a luxury item anymore.  With the small size of the kitchen, putting in soapstone or some other more exclusive material wouldn’t blow the lid off the budget.  The historic neighborhood supports high prices for the area, so putting in nicer stuff wouldn’t over improve it for the area.  Hardwood floors would be appropriate here.  I also recommended some changes to the landscape: the previous owners had a lot of gravel and nothing very appealing.  Adding some more plants and softness to the house would be the perfect touch.

The real estate blogging world is a small one. Today, we pause to help a friend.

A couple days ago, there was a funny video making the rounds among Realtors, and today we learn that the star was killed in a car accident. He was brother to a fellow friend and blogger. He leaves behind a young wife and two daughters, both less than a year old.

In support of the Anglin family, a PayPal account has been created. If you feel moved to help out, just click the Donate button below.

One of my favorite things to do in Tucson is visit Kitt Peak Observatory, primarily for their Nighttime Observing program.  It’s a great place to take visitors and guests who are into a little bit of the science-geeky scene.

During the night observing program, you get a short talk about the observatory itself, learn to use a star chart, some visible constellations are discussed, and have a brown bag dinner as you wait for the sun to set.  Once it’s dark outside, you’re issued binoculars, start chart, and small flashlight and the group heads outside to check out the stars.  The group guide is helpful in pointing out each constellation and the various features visible through binoculars.

Next, you head into an observatory to get a look through at the big boy telescopes.  I’ve had some wonderful guides who would keep the group discussion entertaining, showing pictures on the display screens of objects spotted and recorded by the telescope.  Typically, the guide discusses some object, points the telescope at it, and everyone gets to take a look one at a time.  They keep the groups fairly small, so things stay interesting.

What they don’t tell you is that you have to drive back down the mountain with your lights off when the program is over for the night!

Reservations are needed 2-4 weeks in advance, so call early: 520-318-8726.  Also, it’s about 20 degrees colder there than in Tucson, and the nights get pretty cold, so dress warm.

Of course, you can always visit during the day without reservations.  There are walking tours as well as guided tours of the telescopes. 

Kitt Peak is located 56 miles Southwest of Tucson - plan about an hour, hour and 15 minutes to get there.  From Ajo Way (State Route 86) and I-19, head West on Ajo to Junction 386, which is past Ryan Airfield and Three Points.  Turn left onto 386, and head up the mountain about 12 miles to the summit.

By the way, all the space photos were taken during the Advanced Observing Program at Kitt Peak - where public guests can take high-quality CCD images using some of the Kitt Peak telescopes. 

Horsehead Nebula photo credit: Tracey and Russ Birch/Flynn Haase/NOAO/AURA/NSF

Andromeda Galaxy photo credit: Adam Block/NOAO/AURA/NSF

Star Cluster photo credit: Allan Cook/Adam Block/NOAO/AURA/NSF

I’ve been spending some time lately renewing my presentations for Buyers and Sellers.  I’m a short-and-sweet presentation type of gal.  My listing presentation, without discussing pricing, is about 8-10 minutes.  There’s a brief introduction, a rundown of the plan and the why of the plan, and then my accountability systems.  I’m pretty sure no one wants to hear me blather on and on for half an hour about marketing or my company or my personal achievements.

Anyway. 

I scored a free copy of this book at the Inman Connect event in San Francisco, and there’s a chapter about fiduciary versus “functionary” tasks as an agent.  Functionary tasks would be things like taking photos, making flyers, things that don’t require a fiduciary relationship.  In the online world where information is so freely available, my value as an agent becomes more about interpretation and knowledge and expertise - it’s about my role as your fiduciary, not in my performing a couple of functions.

So I went back to my old listing presentation and classified everything in there as either a functional item or a fiduciary item, which was an eye-opening experience.  There were so many fiduciary items in there disguised as functional items, but I wasn’t presenting them that way.

For example: We’re going to have professional photos taken. 

Great.  Any monkey can do that.  What is unsaid is that I bring in my fiduciary duties, my skills, by knowing what attracts a Buyer to a house and making sure the photographer includes those things in his pictures.  I’ve sat with buyers at a computer and looked at millions of pictures.  All of that experience lets me know what pictures to have taken, what 10 to include online, what 3 to put on the flyer.

The point isn’t that we’ll get professional photos.  The point is that I know what photos we want!  That’s part of what makes me different from the agent who will whip out his point-and-shoot pocket camera, snap close-ups of the toilets, and call it a day.

So now I’ve got a lot of work to do!  If I can get my now 20 minute long rough draft version pared down to 10, I’ll be a fantastic editor.

From the Tucson Association of REALTORS.

Quick Facts:

• Average Single Family Home Sales Price: UNKNOWN***
• Median Single Family Home Price: $245,000
• Average Townhome Sales Price: $208,561
• Median Townhome Price: $182,500
• Average Condo Sales Price: $160,364
• Median Condo Price: $150,000
• Average Days on Market:69
• Citywide Months of Inventory: 8.8 months
• Number of Units Sold: 1019
• Number of Active Listings: 8954
• Number of New Listings: 2337

***The August Statistics Report shows the Average Sales Price for single family homes in August 2007 as identical to that of July 2007, down to the dollar, which I find highly unlikely.  When I calculate average sales price directly from MLS for single family homes for July 2007, I get $301,891, and the report says it was $295,399.  When I calculate the same for August, I get $302,963, and the August report says $295,399.  WTF?

In addition, there’s an unknown percentage value assigned to each average sales price:

Single Family Homes 39.9%, Townhomes 22.86%, Condos 17.58%, Manufactured Homes 15%, Mobile Homes 11.37%.  All of which add up to more than 100%.  I have no idea what this percentage means.  Single Family Homes are much much more than 39.9% of our market.

Is there a point to looking at this report further?  I used to work in a department called “Engineering Estimating” which are two words that usually don’t go together.  Is this statistics estimating?

Moving On:

Everything can’t be completely wrong, right?  (help me out here…)

Interesting to note is that 30.9% of listings are selling in the first 30 days, and 24% are selling in 30-60 days.  That’s 54.9% of all sales that are selling in 60 days or less - over half of the sales are happening in less than the average days on market.

Unit sales are trickling downwards.  Sometimes we get a little spike in August, but it didn’t happen this year.  We’re heading into our winter slowdown - time to price things to sell and get ‘em gone if you’re serious about selling.

Average sales price (…sigh) and the median as reported by the MLS haven’t made any big shifts since early 2006.  I’ll break it down by area and calculate my own numbers next week, see if we can find any better info.  It’s been a pretty flat 18 months or so for many areas.  No big surprise there.

Tucson still has double the inventory that it would typically carry in our pre-boom years.  Inventory tends to go down as we hit the holiday season at the end of the year - but so do sales.  However, our number of new listings each month has been making progress downward into more reasonable numbers.  Still a couple hundred more new listings than I’d like to see, but the trend is a nice little ray of sunshine.

More on months of inventory, average sales prices by area later next week.

A typical home buyer in Tucson goes through two rounds of negotiations with the Seller.  The first decides the price and terms, like how long of an inspection period, the closing date, and who will pay for certain fees.

Round two of negotiations is the fun part.  Once a buyer is done inspecting a home, or when their time runs out, the buyer gets to open negotiations anew and ask for repairs to be made to the house.

Actually, the buyer has a couple of choices at the end of their inspections:

• They can walk away from the deal with a refund of their earnest money, at their sole discretion (as long as timelines are met).
• They can decide to buy the house and proceed with the deal without any repairs
• or they can ask the seller to make repairs to the house.

What kind of repairs can a buyer ask for?  Well, pretty much anything.  The only two no-nos are asking to reduce the purchase price or asking for money.  There’s a loophole for that though: you can ask a Seller to do a list of repairs OR to give you money towards your closing costs, but you can’t just ask for the money and not the repairs.  Okay?

Okay.  So the buyer fills out a form (fondly known as the BINSR, pronounced ben-zer), and asks for repairs.  What now?

Typically, the Seller has 5 days to respond, although that timeline could have been negotiated to a different number in the original contract.  Default is 5 days though.  The Seller has three options:

• They can agree to do all the repairs, having them done in a “workmanlike manner“
• They can say, heck no, I’m not doing any repairs,
• They can come back with a counter-offer to the repair request.  Maybe the Seller will do 3 of 5 repair items, and give a $400 credit to have something else done yourself. 

Once the Seller responds, the Buyer has 5 days to decide if the Seller’s response is good enough for them.  If the Buyer is unhappy with the Seller’s response, they can cancel the contract, and walk away with their earnest money (typically).  If the Seller’s response is acceptable, then the deal moves forward toward closing.

By the way - the Seller has to have any agreed upon repairs completed 3 days prior to close of escrow.  Don’t procrastinate if you’ve got to get repairs done!  If you’re a Buyer, you better be in there at least 3 days prior to closing, checking to make sure the work was done properly.

(As always, the rules and timelines depend on your individual situation and contract.  What I’m describing here is typical, but if you’re under contract now to buy or sell a home here in Tucson, you should go ask your agent for more specific advice!)

Photo via Flickr by marchenland

Speaking of good people to know…

I saw a bunch of animal droppings in my house and thought I had packrats.  I called out my trusty bug guy, who promptly informed me that was not packrat poo, that was lizard poo.

Turns out, there are distinguishing characteristics of lizard poo.

So now I know what to look for.  And I wanted to let you know.

Just in case, maybe, you find lizard poo-identification a valuable skill when selecting a real estate agent.