Buyer FAQs

While your low offer in a normal market might be rejected immediately, in a Tucson East Arizona area buyer’s market a motivated seller will either accept or make a counteroffer. Full-price offers or above are more likely to be accepted by the seller. But there are other considerations involved:

• Is the offer contingent upon anything, such as the sale of the buyer’s current house? If so, a low offer, even at full price, may not be as attractive as an offer without that condition.
• Is the offer made on the house as is, or does the buyer want the seller to make some repairs or lower the price instead?
• Is the offer all cash, meaning the buyer has waived the financing contingency? If so, then an offer at less than the asking price may be more attractive to the seller than a full-price offer with a financing contingency.

Your realty agent is one source. But keeping them independent from the agent may be a good idea. Inspectors are listed in the yellow pages. You can ask for referrals from friends. Ask for their credentials, such as contractor’s license or engineering certificate. Also, check out their references.

It depends. Fixtures, any kind of personal property that is permanently attached to a house (such as drapery rods, built-in bookcases, tacked-down carpeting or a furnace) automatically stay with the house unless specified otherwise in the sales contract. But anything that is not nailed down is negotiable. This most often involves appliances that are not built in (washer, dryer, refrigerator, for example), although some sellers will be interested in negotiating for other items, such as a piano.

How can you Receive Free Lists of Tucson East Arizona Homes (with prices, addresses and descriptions) That Match Your Buying Criteria E-mailed, faxed or mailed to You FREE of Charge Without Obligation? Here’s how it works… We E-mail you new listings (complete with prices, addresses and descriptions) of ALL MLS properties that match your home buying criteria. So instead of wasting your time with a Realtor® who wants to show you homes that don’t interest you… Our exclusive System allows you to choose which homes you want to view before other buyers even know about them. You get updates of all new home listings that match your criteria FREE of charge. And you get them first, before most other buyers, which puts you in a better position should you find the home that meets your needs. Because you’re there first, before most other buyers, we are able to negotiate the lowest possible price for you. Most importantly your time isn’t wasted looking at homes that don’t interest you. Getting Started is Easy… Just fill out the form below and click the SUBMIT button at the bottom of the form. You’ll automatically start receiving your Free Lists of Tucson East Arizona Homes.

Tucson East Arizona area Real Estate Offers. After you have found your desired Tucson East Arizona home, it is time to make your offer to the owners. In most cases it is better to have a third party such as a real estate agent negotiate the offers. Many buyers aren’t sure if what they are offering is appropriate. A good strategy is to ask the real estate agent for a list of comps, which are home that have sold recently that are similar to the house you are interested in. You can use this list to get a good idea of what the house you are interested in should be sold for. If you have any personal interaction with the homeowner, don’t give out any information about your move, your financial status, or your feelings about their property because that could hurt your price negotiations.

Providing valuable resources for our Tucson East Arizona Real Estate Buyers and Sellers is our top priority. Now that you have made the decision to buy, it is important to figure out what you can buy. Lenders will look at your current budget (income, assets, and debts), and how much you would like to down pay and calculate two ratios to determine how much they are willing to lend. The first ratio sets a limit on what they think you can spend on housing. For example, a 28% housing ratio means your projected housing cost should be less than 28% of your gross monthly income. These numbers are all flexible depending on your down payment. Generally, the bigger your down payment, the less your monthly payment will be. People can usually afford a house 2.5-3 times their gross annual income. The second ratio compares monthly debt obligations to monthly income. After all this is calculated, you can get pre-approved for a loan. This will tell you officially how much you can afford and what your monthly payments will be. Also, this tells the seller you can afford to buy their home. Often buyers can use their pre-approved status as leverage during negotiations.

Deciding on what you want vs. what you Need. Before going out to search for your Tucson East Arizona area dream home, it is important to know what that dream home looks like. Making a prioritized list of what you want in your next home will help narrow down your search. The size of the house depends, not only on your immediate needs, but also what may be needed in the future. For example, a young couple would need to think about possibilities of more children in the future, while a family with teenagers may address the fact that those teens may soon be off at college soon. You needs for additional rooms as studies, or guest rooms should be addressed also. Other desired features in the house should be considered also. For instance, if you are a gardener, a house with a yard would be wanted. Thinking about desired locations is important too. Check out local information like neighborhood statistics and community links. If you have children, researching the schools in the area would be necessary. Depending on your funding, compromises may need to be made.

Providing valuable resources for our Real Estate Buyers and Sellers is our top priority. Here are some frequently cited reasons for buying a house:

• You need a tax break. The mortgage interest deduction can make home ownership very appealing.
• You are not counting on price appreciation in the short term.
• You can afford the monthly payments.
• You plan to stay in the house long enough for the appreciation to cover your transaction costs. The costs of buying and selling a home include real estate commissions, lender fees and closing costs that can amount to more than 10 percent of the sales price.
• You prefer to be an owner rather than a renter.
• You can handle the maintenance expenses and headaches.
• You are not greatly concerned by dips in home values.

Costs of maintaining a home in the Tucson East Arizona Area Market. Experts generally agree that you can plan on annually spend 1 percent of the purchase price of your house on repairing gutters, caulking windows, sealing your driveway and the myriad other maintenance chores that come with the privilege of homeownership. Newer homes will cost less to maintain than older homes. It also depends on how well the house has been maintained over the years.

Providing valuable resources for our Tucson East Arizona Real Estate Buyers and Sellers is our top priority. A standard ratio used by lenders limits the mortgage payment to 28 percent of the borrower’s gross income and the mortgage payment, combined with all other debts, to 36 percent of the total. The fact that some loan applicants are accustomed to spending 40 percent of their monthly income on rent — and still promptly make the payment each time — has prompted some lenders to broaden their acceptable mortgage payment amount when considered as a percentage of the applicant’s income. Other real estate experts tell borrowers facing rejection to compensate for negative factors by saving up a larger down payment. Mortgage loans requiring little or no outside documentation often can be obtained with down payments of 25 percent or more of the purchase price.

What if you have a bankruptcy or foreclosure and want to buy a property in the Tucson East Arizona area? Bankruptcies and foreclosures can remain on a credit report for seven to 10 years. Some lenders will consider an borrower earlier if they have reestablished good credit. The circumstances surrounding the bankruptcy can also influence a lender’s decision. For example, if you went through a bankruptcy because your employer had financial difficulties, a lender may be more sympathetic. If, however, you went through bankruptcy because you overextended personal credit lines and lived beyond your means, the lender probably will be less inclined to be flexible.

Providing valuable resources for our Tucson East Arizona Real Estate Buyers and Sellers is our top priority. Fannie Mae is expanding the availability of low-down-payment loans in an effort to help more people nationwide qualify for a mortgage. Two new programs will help potential buyers overcome two of the most common obstacles to home ownership, low savings and a modest income. To address many first-time buyers’ struggles to save the down payment, Fannie Mae developed Fannie 97. The program provides 97 percent financing on a fixed-rate mortgage with either a 25- or 30-year loan term through Fannie Mae’s Community Home Buyers Program. Fannie Mae’s new Start-Up Mortgage will assist buyers with a 5 percent down payment who are at any income level. Yet applicants do not need as much income to qualify and less cash for closing than with traditional mortgages. Borrowers will receive a 30-year, fixed-rate mortgage with a first-year monthly payment that is lower than the standard fixed-rate loan. Freddie Mac, Fannie Mae’s counterpart, also offers low-down-payment loan programs.

Providing valuable resources for our Tucson East Arizona Real Estate Buyers and Sellers is our top priority. In many states, it’s now common for an agent to represent the buyers exclusively in the transaction and be paid a commission by the sellers. More and more buyers are going a step further, hiring and paying for their own agent, referred to as buyers brokers.

Yes, however buyers should be aware of the differences inherent in working with sales agents who are employed by the developer, rather than traditional real estate agents. Tucson East Arizona area Builders commonly require that an outside agent be present, and sign in, the first time a prospective purchaser visits a site before payment of commission even is discussed. At times when buyers use an advertisement to find the development themselves first, builders can refuse to pay any commission regardless of how helpful an agent may become later in the process. It is advisable to call the development first and inquire about their policy on compensating real estate agents if you are using one.

We’ll assist you in searching for your next Tucson East Arizona home. New listings come on the market daily. Let us know what your looking for and we’ll email you the newest listings before most Realtors in the Tucson East Arizona even know about them!

Get all the information you need on Tucson East Arizona Area Schools, Neighborhoods & more at GreatSchools.  GreatSchools is your objective source of school information on elementary, middle and high schools. A nonprofit organization, GreatSchools.org provides information about public, private and charter schools in all 50 states and detailed school profiles for California, Arizona, Texas, Florida, Colorado, New York, Washington, Pennsylvania and New Jersey.

Public School Review lets you find free, detailed profiles of public schools and their surrounding communities. The site evaluates schools relative to each other and to state-wide averages for several key criteria like teacher:student ratios. The site can be particularly helpful for families who are moving and need to evaluate several potential schools, or for all parents who are exploring different pre-college educational options for their child.

Sperlings BestPlaces is the ultimate resource for relocating or finding out information on specific areas in the US. In additional to in depth school statistics they also offer city profiles, neighborhood profiles, cost of living, climate profiles, crime rates and much, much more.

SchoolMatch by Public Priority Systems, Inc. is a research and database service company that collects, audits, integrates, processes and manages information about public and private elementary and secondary schools.

Buyers considering a foreclosure property should obtain as much information as possible, including the range of bids expected. It also is important to examine the property. If you are unable to get into a foreclosure property, check with surrounding neighbors about the Tucson East Arizona property’s condition.

Here are some frequently cited reasons for buying a house:

1. You need a tax break. The mortgage interest deduction can make home ownership very appealing.
2. You are not counting on price appreciation in the short term.
3. You can afford the monthly payments.
4. You plan to stay in the house long enough for the appreciation to cover your transaction costs. The costs of buying and selling a home include real estate commissions, lender fees and closing costs that can amount to more than 10 percent of the sales price.
5. You prefer to be an owner rather than a renter.
6. You can handle the maintenance expenses and headaches.
7. You are not greatly concerned by dips in home values.

Knowing what you can afford is the first rule of home buying, and that depends on how much income and how much debt you have. In general, lenders don’t want borrowers to spend more than 28 percent of their gross income per month on a mortgage payment or more than 36 percent on debts. It pays to check with several lenders before you start searching for a home. Most will be happy to roughly calculate what you can afford and prequalify you for a loan. The price you can afford to pay for a Tucson East Arizona home will depend on six factors:

1. Gross income
2. Amount of cash you have available for the down payment, closing costs and cash reserves required by the lender
3. Your outstanding debts
4. Your credit history
5. The type of mortgage you select 6. current interest rates Another number lenders use to evaluate how much you can afford is the housing expense-to-income ratio. It is determined by calculating your projected monthly housing expense, which consists of the principal and interest payment on your new home loan, property taxes and hazard insurance (or PITI as it is known). If you have to pay monthly homeowners association dues and/or private mortgage insurance, this also will be added to your PITI. This ratio should fall between 28 to 33 percent, although some lenders will go higher under certain circumstances. Your total debt-to-income ratio should be in the 34 to 38 percent range.

Bankruptcies and foreclosures can remain on a credit report for seven to 10 years. Some lenders will consider an borrower earlier if they have reestablished good credit. The circumstances surrounding the bankruptcy can also influence a lender’s decision. For example, if you went through a bankruptcy because your employer had financial difficulties, a lender may be more sympathetic. If, however, you went through bankruptcy because you overextended personal credit lines and lived beyond your means, the lender probably will be less inclined to be flexible.

You have several options to determine the value of a Tucson East Arizona home. First way is to contact Mel Byrd now at 520.250.7437 for a Free Comparitive market analysis. For buying purposes you’ll need an appraisal. It’s is a professional estimate of a property’s market value, based on recent sales of comparable properties, location, square footage and construction quality. This service varies in cost depending on the price of the home. On average, an appraisal costs about $300 – $600 for a $250,000 house.

A comparative market analysis and an appraisal are the standard methods for determining a home’s value. Your real estate agent will be happy to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood. Be sure you get listing prices of current homes on the market as well as those that have sold. You also can research this yourself by checking on recent sales in public records. Be sure that you are researching properties that are similar in size, construction and location. This information is not only available at your local recorder’s or assessor’s office but also through private companies and on the Internet. An appraisal, which generally costs $200 to $300 to perform, is a certified appraiser’s opinion of the value of a home at any given time. Appraisers review numerous factors including recent comparable sales, location, square footage and construction quality.

Appraisers use several factors when estimating a Tucson East Arizona home’s value, including the home’s size and square footage, the condition of the home and neighborhood, comparable local sales, any pertinent historical information, sales performance and indices that forecast future value. For detailed information on appraisal standards, contact the Appraisal Institute at 875 N. Michigan Ave., Suite 2400, Chicago, IL 60611-1980; (312) 335-4458.

Buying into a Tucson East Arizona area new-home community may seem riskier than purchasing a house in an established neighborhood, but any increase in home value depends upon the same factors: quality of the neighborhood, growth in the local housing market and the state of the overall economy. One survey by the National Association of Realtors shows that resale homes do have an edge over new homes. The trade group’s figures show the median price of resale homes increased 4.3 percent between 1999 and 2000, compared to 2.8 percent for new homes in the same period.

The list price is a seller’s advertised price, a figure that usually is only a rough estimate of what the seller wants to get. Sellers can price high, low or close to what they hope to get. To judge whether the list price is a fair one, be sure to consult comparable sales prices in the area. The sales price is the amount of money you as a buyer would pay for a property. The appraisal value is a certified appraiser’s estimate of the worth of a property, and is based on comparable sales, the condition of the property and numerous other factors.

Most offers include two standard contingencies: a financing contingency, which makes the sale dependent on the buyers’ ability to obtain a loan commitment from a lender, and an inspection contingency, which allows buyers to have professionals inspect the property to their satisfaction. A buyer could forfeit his or her deposit under certain circumstances, such as backing out of the deal for a reason not stipulated in the contract. The purchase contract must include the seller’s responsibilities, such things as passing clear title, maintaining the property in its present condition until closing and making any agreed-upon repairs to the property.

Finding out what you can afford is one of the fist steps, which can be done by pre-qualifying for a home loan. This step will help you narrow your search for both a neighborhood and particular houses in the Tucson East Arizona area. A pre-qualification is a simple calculation that considers several factors, but primarily your income. There are no guarantees with a prequalificaiton, but it will be expected of you when you make an offer on a home.

It’s very important to price your home according to current market conditions. Because the Tucson East Arizona area real estate market is continually changing, and market fluctuations have an effect on property values, it’s imperative to select your list price based on the most recent comparable sales in your neighborhood. A so-called comparative market analysis provides the background data upon which to base your list-price decision. Watch out for an agent whose opinion of value is considerably higher than the others. Contact us today and we’ll explain why.

There are several cardinal rules to negotiating effectively. One is do your homework, and learn as much about the seller or the buyer as you can. Another is to play your cards close to your vest and not reveal too much information to the other party or their agent.

An ‘inspection contingency’ protects you as a buyer in a purchase offer by allowing you to cancel closing on the deal if an inspector finds problems with the Tucson East Arizona area property. As soon as the seller accepts a written offer, the document becomes a legally binding contract. The purchase contract can be written to include a contingency for any repairs found to be needed or related items the seller must take care of before closing. If these are not dealt with, and you have such a clause in your contract, you can delay or possibly cancel the closing. If it’s not stated in the contract, you could face losing your deposit. There also may be costly legal implications stemming from backing out of a contract. You usually will have the right to choose the inspector (and be responsible for paying for the inspections). In addition to an overall inspection for structural soundness, you can request a satisfactory pest control inspection report, roof inspection report or contingency for no potential environmental hazards such as asbestos or radon gas. Contingency clauses should satisfy the concerns of both the buyer and seller. Buyers also can protect themselves by inserting additional necessary contingencies. Indicate which items like curtains and appliances are to remain with the house. Then stipulate you have the right to personally inspect the home 24 hours before closing to make sure all is in order.

While a typical buyer may look at five to 10 homes before making an offer, an investor who makes bargain buys usually goes through many more. Most experts agree it takes a lot of determination to find a real ‘bargain.’ There are a number of ways to buy a bargain property in the Tucson East Arizona market:

• Buy a fixer-upper in a transitional neighborhood, improve it and keep it or resell at a higher price.
• Buy a foreclosure property (after doing your research carefully).
• Buy a house due to be torn down and move it to a new lot.
• Buy a partial interest in a piece of real estate, such as part of a tenants-in-common partnership.
• Buy a leftover house in a new-home development.

Because many buyers prefer to move in the spring or summer, the market starts to heat up as early as February. Families with children are eager to buy so they can move during summer vacation, before the new school year begins. The market slows down in late summer before picking up again briefly in the fall. November and December have traditionlly been slow months, although some astute buyers look for bargains during this period.

The more you know about a seller’s motivation, the stronger a negotiating position you are in. For example, seller who must move quickly due to a job transfer may be amenable to a lower price with a speedy escrow. Other so-called ‘motivated sellers’ include people going through a divorce or who have already purchased another home. Remember, that the listing price is what the seller would like to receive but is not necessarily what they will settle for. Before making an offer on any homes or properies in the Tucson East Arizona area, we will always check the recent sales prices of comparable homes in the neighborhood to see how the seller’s asking price stacks up. Some experts discourage making deliberate low-ball offers. While such an offer can be presented, it can also sour the sale and discourage the seller from negotiating at all.

If you want to get top dollar for your Tucson East Arizona property, you probably need to make all minor repairs and selected major repairs before going on the market. Nearly all purchase contracts include an inspection clause, a buyer contingency that allows a buyer to back out if numerous defects are found or negotiate their repair. The trick is not to overspend on pre-sale repairs, especially if there are few houses on the market but many buyers willing to buy at almost any price. On the other hand, making such repairs may be the only way to sell your house in a down market.

One-bedroom condominiums historically have not been considered as good an investment as condos with two bedrooms or more. But in high-cost markets, such as Manhattan or the San Francisco Bay Area, one-bedroom condos have proven to be equally good investments. Helping that along are changing demographic trends. With more single home buyers in the market today than at any time in history, there is more demand for one-bedroom condos.

Using appreciation as a measure, condominiums in the Tucson East Arizona area have been as profitable an investment as single-family homes in the past five years. And in some markets, condos appreciated even more, according to some experts. While single-family homes have been the preferred investment by home buyers, changing demographics are helping make condos more popular, especially among single home buyers, empty nesters and first-time buyers in high-priced markets. Also, the condominium community has worked hard in the last few years to overcome image problems brought on by homeowners association and developer disputes as well as all too frequent construction-defect litigation.

While condos never had the kind of appreciation experienced by single-family homes in the go-go 1980s, most ultimately have not lost value, say some experts. And with high prices in many urban markets and more single home buyers in the market than ever before, the market for Tucson East Arizona condos is strong. As with any home purchase, you should do your homework about the neighborhood or development before you buy. In the case of condominiums, it is important to read the past six months of homeowners association minutes to see how effective the board is and to learn about any possibly detracting issues (such as protracted litigation with the developer). The condominium community has worked hard in the last few years to overcome image problems brought on by disputes and lawsuits. Associations are becoming more sophisticated about property management and taking steps to prevent legal problems and disputes.

Resources:

1. Community Associations Institute, 1630 Duke St., Alexandria, VA 22314; (703) 548-8600. * ‘The Condominium Bluebook,’ Branden E. Bickel, B&B Publications, San Francisco, CA; 1993.

Condominiums have held their value as an investment despite economic downturns and problems with some associations. In fact, condos have appreciated more in the past few years than when they first came on the scene in the late 1970s and early 1980s, experts say. While there are lots of reports about Tucson East Arizona area homeowners association disputes and construction-defect problems, the industry has worked hard to turn its image around. Elected volunteers who serve on association boards are better trained at handling complex budget and legal issues, for example, while many boards go to great lengths to avoid the kind of protracted and expensive litigation that has hurt resale value in the past. Meanwhile, changing demographics are making condominiums more attractive investments for single home buyers, empty nesters and first-time buyers in expensive markets.

Contact your Tucson East Arizona real estate agent (some even specialize in such transactions) or read up on lease options at the public library. If you have a real estate attorney, ask if he or she has any prepared information you can review. Most bookstores have a fairly hefty real estate book section these days. Many current real estate books have at least a section on lease options. If you are considering a lease option, be sure you do your homework first. And have an attorney or financial advisor on hand to review any paperwork before you sign.

A real estate agent is a good source for finding out the status of the local housing market. So is your statewide association of Realtors, most of which are continuously compiling such statistics from local real estate boards. For overall housing statistics, U.S. Housing Markets regularly publishes quarterly reports on home building and home buying. Your local builders association probably gets this report. If not, the housing research firm is located in 4200 Koppernick Rd #40, Canton,Mich.48187; call (800) 755-6269 for information; the firm also maintains an Internet site. Finally, check with the U.S. Bureau of the Census in Washington, D.C.; (301) 763-2422. The census bureau also maintains a site on the Internet. The Chicago Title company also has published a pamphlet, ‘Who’s Buying Homes in America.’ Write Chicago Title and Trust Family of Title Insurers, 171 North Clark St., Chicago, IL 60601-3294.

A real estate agent is a good source for finding out the status of the local housing market. So is your statewide association of Realtors, most of which are continuously compiling such statistics from local real estate boards. For overall housing statistics, U.S. Housing Markets regularly publishes quarterly reports on home building and home buying. Your local builders association probably gets this report. If not, the housing research firm is located in Canton, Mich.; call (800) 755-6269 for information; the firm also maintains an Internet site. Finally, check with the U.S. Bureau of the Census in Washington, D.C.; (301) 763-2422. The census bureau also maintains a site on the Internet. The Chicago Title company also has published a pamphlet, ‘Who’s Buying Homes in America.’ Write Chicago Title and Trust Family of Title Insurers, 171 North Clark St., Chicago, IL 60601-3294.

In some circumstances, a co-owner often can force the sale of a shared Tucson East Arizona property by filing a so-called partition action. In such a situation, if the severance is granted, the property would be sold and the owners would split the proceeds proportionate to their interest in the property. You should check your title for any references to such a severance action. You may need to consult a real estate attorney.

Studies show that the closing costs, which can average 2 to 3 percent of a total home purchase price, are often more costly than many buyers expect. But there are some ways to save:

• Negotiate with the seller to pay all or part of the closing costs. The lender must agree to this as well as the seller.
• Get a no-point loan. The trade-off is a higher interest rate on the loan and many of these loans have prepayment penalties. But buyers who are short on cash and can qualify for a higher interest rate may find a no-point loan will significantly cut their closing costs.
• Get a no-fee loan. Usually, though, these fees are wrapped into a higher interest rate though it will save you on the amount of cash you need upfront.
• Get seller financing. This kind of arrangement usually does not entail traditional loan fees or charges.
• Rent the property in which you are interested with an option to buy. That will give you more time to save for the upfront cash needed for the actual purchase.
• Shop around for the best loan deal. Each direct lender and each mortgage brokerage has their own fee structure. Call around before submitting your final loan application.

Closing costs are the fees for services, taxes or special interest charges that surround the purchase of a home. They include upfront loan points, title insurance, escrow or closing day charges, document fees, prepaid interest and property taxes. Unless, these charges are rolled into the loan, they must be paid when the home is closed.

As much as you as a buyer may want to believe that the Tucson East Arizona home you have found is perfect, a clear title report ensures there are no liens placed against the prior owners or any documents that will restrict your use of the property. A preliminary title report provides you with an opportunity to review any impediment that would prevent clear title from passing to you. When reading a preliminary report, it is important to check the extent of your ownership rights or interest. The most common form of interest is ‘fee simple’ or ‘fee,’ which is the highest type of interest an owner can have in land. Liens, restrictions and interests of others excluded from title coverage will be listed numerically as exceptions in the report. You also may have to consider interests of any third parties, such as easements granted by prior owners that limit use of the property. Some buyers attempt to clear these unwanted items prior to purchase. A list of standard exceptions and exclusions not covered by the title insurance policy may be attached. This section includes items the buyer may want to investigate further, such as any laws governing building and zoning.

Closing costs are either paid by the home seller or home buyer. It often depends on local custom and what the buyer or seller negotiates.

Home ownership offers tax benefits as well as the freedom to make decisions about your Tucson East Arizona home. An advantage of renting is not worrying about maintenance and other financial obligations associated with owning property. There also are a number of economic considerations. Unlike renters, home owners who secure a fixed-rate loan can lock in their monthly housing costs and make prudent investment plans knowing these expenses will not increase substantially. Home ownership is a highly leveraged investment that can yield substantial profit on a nominal front-end investment. However, such returns depend on home-price appreciation. ‘For some people, owning a home is a great feeling,’ writes Mitchell A. Levy in his book, ‘Home Ownership: The American Myth,’ Myth Breakers Press, Cupertino, Calif.; 1993. ‘It does, however, have a price. Besides the maintenance headache, the amount of after-tax money paid to the lender is usually greater than the amount of money otherwise paid in rent,’ Levy concludes. As for evaluating the risk associated with home ownership, David T. Schumacher and Erik Page Bucy write in their book ‘The Buy & Hold Real Estate Strategy,’ John Wiley & Sons, New York; 1992, that ‘good property located in growth areas should be regarded as an investment as opposed to a speculation or gamble.’ The authors recommend that prospective buyers spend a few months investigating a community. Many people make the mistake of buying in the wrong area. ‘Just because certain properties are high-priced doesn’t necessarily mean they have some inherent advantage,’ the authors write. ‘One property may cost more than another today, but will it still be worth more down the line?’

If you find yourself stumbling over weird acronyms on a Tucson East Arizona area Real Estate listing, don’t be alarmed. There is method to the madness of this shorthand (which is mostly adopted by sellers to save money in advertising charges). Here are some abbreviations and the meaning of each, taken from a recent newspaper classified section:

• assum. fin. — assumable financing
• dk — deck
• gar — garage (garden is usually abbreviated ‘gard’) expansion pot’l — may be extra space on the lot, or possibly vertical potential for a top floor or room addition. Verify actual potential by checking local zoning restrictions prior to purchase.
• fab pentrm — fabulous pentroom, a room on top, underneath the roof, that sometimes has views
• FDR — formal dining room (not the former president)
• frplc, fplc, FP — fireplace
• grmet kit — gourmet kitchen
• HDW, HWF, Hdwd — hardwood floors
• hi ceils — high ceilings
• In-law potential — potential for a separate apartment. Sometimes, local zoning codes restrict rentals of such units so be sure the conversion is legal first.
• large E-2 plan — this is one of several floor plans available in a specific building
• lsd pkg. — leased parking area, may come with an additional cost
• lo dues — find out just how low these homeowner’s dues are, and in comparison to what?
• nr bst schls — near the best schools
• pvt — private
• pwdr rm — powder room, or half-bath
• upr- upper floor
• vw, vu, vws, vus — view(s)
• Wow! — better check this one out.

Resources:

1. ‘Real Estate’s Ambiguous Language You Oughtta Understand,’ Glennon H. Neubauer, Ethos Group Publishing, Diamond Bar, CA; 1993.

Home inspections, seller disclosure requirements and the agent’s experience will help. Disclosure laws vary by state, but in some states, the law requires the seller to complete a real estate transfer disclosure statement. Here is a summary of the things you could expect to see in a disclosure form:

1. In the kitchen — a range, oven, microwave, dishwasher, garbage disposal, trash compactor.
2. Safety features such as burglar and fire alarms, smoke detectors, sprinklers, security gate, window screens and intercom.
3. The presence of a TV antenna or satellite dish, carport or garage, automatic garage door opener, rain gutters, sump pump.
4. Amenities such as a pool or spa, patio or deck, built-in barbecue and fireplaces.
5. Type of heating, condition of electrical wiring, gas supply and presence of any external power source, such as solar panels.
6. The type of water heater, water supply, sewer system or septic tank also should be disclosed. Sellers also are required to indicate any significant defects or malfunctions existing in the home’s major systems. A checklist specifies interior and exterior walls, ceilings, roof, insulation, windows, fences, driveway, sidewalks, floors, doors, foundation, as well as the electrical and plumbing systems. The form also asks sellers to note the presence of environmental hazards, walls or fences shared with adjoining landowners, any encroachments or easements, room additions or repairs made without the necessary permits or not in compliance with building codes, zoning violations, citations against the property and lawsuits against the seller affecting the property. Also look for, or ask about, settling, sliding or soil problems, flooding or drainage problems and any major damage resulting from earthquakes, floods or landslides. People buying a condominium must be told about covenants, codes and restrictions or other deed restrictions. It’s important to note that the simple idea of disclosing defects has broadened significantly in recent years. Many jurisdictions have their own mandated disclosure forms as do many brokers and agents. Also, the home inspection and home warranty industries have grown significantly to accommodate increased demand from cautious buyers. Be sure to ask questions about anything that remains unclear or does not seem to be properly addressed by the forms provided to you.

We can find distressed Tucson East Arizona area properties or fixer-uppers for you in most communities, even wealthier neighborhoods. A distressed property is one that has been poorly maintained and has a lower market value than other houses in the immediate area. Ascertaining whether the Tucson East Arizona property you’re interested in is a wise investment takes some work. We’ll need to figure what the average house in a given area sells for, as well as what the most desirable houses in that area are like and what they cost. Contact us today and we’ll get started! Some experts suggest that buyers who take this route try to find a ‘cosmetic fixer’ that can be completely refurbished with paint, wallpaper, new floor and window coverings, landscaping and new appliances. You should avoid run-down houses that need major structural repairs. A house price that looks too good to be true probably is. A smart buyer will find out why before buying it. The basic strategy for a fixer is to find the least desirable house in the most desirable neighborhood, and then decide if the expenses needed to bring the value of that property up to its full potential market value are within one’s rehab budget.

Remodeling magazine produces an annual ‘Cost vs. Value Report’ that answers just that question. The most important point to remember is that remodeling a home not only improves its livability for you but its curb appeal with a potential buyer down the road. Most recently, the highest remodeling paybacks have come from updating kitchens and baths, home-office additions and extra amenities in older homes. While home offices are a relatively new remodeling trend, for example, you could expect to recoup 58 percent of the cost of adding a home office, according to the survey.

Building codes are established by municipal authorities in theTucson East Arizona area to set out minimum public-safety standards for building design, construction, quality, use and occupancy, location and maintenance. There are specialized codes for plumbing, electrical and fire, which usually involve separate inspections and inspectors. All buildings must be issued a building permit and a certificate of occupancy before it can be used. During construction, housing inspectors must make checks at key points. Codes are usually enforced by denying permits, occupancy certificates and by imposing fines. Building codes also cover most remodeling projects. If you are buying a house that has been significantly remodeled, ask for proof of the permits involved before you purchase to avoid future liability for fines.

Resources:

1. ‘The Ultimate Language of Real Estate,’ John Reilly, Dearborn Financial Publishing, Chicago; 1993.

Qualified rehabilitated buildings and certified historic structures in the Tucson East Arizona area currently enjoy a 20 percent investment tax credit for qualified rehabilitation expenses. A historic structure is one listed in the National Register of Historic Places or so designated by an appropriate state or local historic district also certified by the government. The tax code does not allow deductions for the demolition or significant alternation of a historic structure.

Resources:

1. National Trust for Historic Preservation, Washington, D.C.; (202) 588-6000.

It depends. Distressed properties or fixer-uppers can be found anywhere, even in wealthier neighborhoods. Such properties are poorly maintained and have a lower market value than other houses in the neighborhood. Many Tucson East Arizona marketvexperts recommend that before you make such an investment, first find the least desirable house in the best neighborhood. Then do the math to see if what it would cost to bring up the value of that property to its full potential market value is within your budget. If you are a novice buyer, it may be wiser to look for properties that only need cosmetic fixes rather than run-down houses that need major structural repairs.

A foreclosure property is a home that has been repossessed by the lender because the owners failed to pay the mortgage. Thousands of homes end up in foreclosure every year. Economic conditions affect the number of foreclosures, too. Many people lose their homes due to job loss, credit problems or unexpected expenses. It is wise to be cautious when considering a foreclosure. Many experts, in fact, advise inexperienced buyers to hire an expert to take them through the process. It is important to have the Tucson East Arizona house thoroughly inspected and to be sure that any liens, undisclosed mortgages or court judgements are cleared or at least disclosed.

Judicial foreclosure action is a proceeding in which a mortgagee, a trustee or another lienholder on Tucson East Arizona property requests a court-supervised sale of the property to cover the unpaid balance of a delinquent debt. Nonjudicial foreclosure is the process of selling real property under a power of sale in a mortgage or deed of trust that is in default. In such a foreclosure, however, the lender is unable to obtain a deficiency judgment, which makes some title insurance companies reluctant to issue a policy.

Trustee sales are advertised in advance and require an all-cash bid. The sale is usually conducted by a sheriff, a constable or lawyer acting as trustee. This kind of sale, which usually attracts savvy investors, is not for the novice. In a trustee sale, the lender who holds the first loan on the Tucson East Arizona property starts the bidding at the amount of the loan being foreclosed. Successful bidders receive a trustee’s deed.

The U.S. Department of Housing and Urban Development acquires properties from lenders who foreclose on mortgages insured by HUD. These properties are available for sale to both homeowner-occupants and investors. You can only purchase HUD-owned properties. HUD will pay the broker’s commission up to 6 percent of the sales price. Down payments vary depending on whether the property is eligible for FHA insurance. If not, payments range from the conventional market’s 5 to 20 percent. One caution. HUD homes are sold ‘as is,’ meaning limited repairs have been made made but no structural or mechanical warranties are implied.

Copper Rose Realty of course! Call us at 520.250.7437. More generically…in most states, a foreclosure notice must be published in the legal notices section of a local newspaper where the property is located or in the nearest city. Also, foreclosure notices are usually posted on the property itself and somewhere in the city where the sale is to take place. When a homeowner is late on three payments, the bank will record a notice of default against the property. When the owner fails to pay up, a trustee sale is held, and the property is sold to the highest bidder. The financial institution that has initiated foreclosure proceedings usually will set the bid price at the loan amount. Despite these seemingly straightforward rules, buying foreclosures is not easy as it may sound. Sophisticated investors use the technique so novices may find themselves among stiff competition.

Resources:

1) ‘The Smart Money Guide to Bargain Homes, How to Find and Buy Foreclosures,’ James I. Wiedemer, Dearborn Financial Publishing, Chicago; 1994. * ‘Real Estate Principles,’ Charles O. Stapleton III, Thomas Moran and Martha R. Williams, Dearborn Financial Publishing, Chicago; 1994.

2)  ‘Real Estate Investing From A to Z,’ William H. Pivar, Probus Publishing, Chicago, 1993.

The U.S. Department of Housing and Urban Development acquires properties from lenders who foreclose on mortgages insured by HUD. These properties are available for sale to both homeowner-occupants and investors. You can only buy HUD-owned properties through a licensed real estate broker, whose commission will be paid by HUD. Down payments vary depending on whether the property is eligible for FHA insurance. If not, payments range 5 to 20 percent. When the property is FHA-insured, the down payment can go much lower. Each accepted offer must be accompanied by an ‘earnest money’ deposit equal to 5 percent of the bid price not to exceed $2,000, but not less than $500. You should be aware that HUD homes are sold ‘as is,’ meaning limited repairs have been made but no structural or mechanical warranties are implied.

What’s a home inspection? A home inspection is when a paid professional inspector — often a contractor or an engineer — inspects the Tucson East Arizona area home, searching for defects or other problems that might plague the owner later on. They usually represent the buyer and or paid by the buyer. The inspection usually takes place after a purchase contract between buyer and seller has been signed.

Yes. Buying a home ‘as is’ is a risky proposition. Major repairs on homes can amount to thousands of dollars. Plumbing, electrical and roof problems represent significant and complex systems that are expensive to fix.

Your realty agent is one source. But keeping them independent from the agent may be a good idea. Inspectors are listed in the yellow pages. You can ask for referrals from friends. Ask for their credentials, such as contractor’s license or engineering certificate. Also, check out their references.

In order to find a home inspector, Dian Hymer, author of ‘Buying and Selling a Home A Complete Guide,’ Chronicle Books, San Francisco; 1994, advises looking for someone with demonstrable qualifications. ‘Ideally, the general inspector you select should be either an engineer, an architect, or a contractor. When possible, hire an inspector who belongs to one of the home inspection trade organizations.’ The American Society of Home Inspectors (ASHI) has developed formal inspection guidelines and a professional code of ethics for its members. Membership to ASHI is not automatic; proven field experience and technical knowledge of structures and their various systems and appliances are a prerequisite. One can usually find an inspector by looking in the phone book or by inquiring at a real estate office or sometimes at an area Realtor association. Rates for the service vary greatly. Many inspectors charge about $400, but costs go up with the scope of the inspection.

Guaranteed replacement insurance is a more comprehensive policy. It tends to cost more, but it promises to cover the complete costs — less deductible — of replacing a destroyed house. With these sorts of policies, limits on the policies are not as common, because complete coverage is more explicit.

A standard homeowners policy protects against fire, lightning, wind, storms, hail, explosions, riots, aircraft wrecks, vehicle crashes, smoke, vandalism, theft, breaking glass, falling objects, weight of snow or sleet, collapsing buildings, freezing of plumbing fixtures, electrical damage and water damage from plumbing, heating or air conditioning systems, according to the Insurance Information Institute, a Washington, D.C.-based nonprofit group for the insurance industry. Such policies are ‘all-risk’ policies, which cover everything except earthquakes, floods, war and nuclear accidents. A basic policy can be expanded to include additional coverage, such as for floods and earthquakes and even workers’ compensation for servants or contractors. Home-based business-coverage, an increasingly popular rider, does not cover liability associated with the business. Insurance experts recommend that homeowners obtain insurance equal to the full replacement value of the home. On a 2,000-square-foot home,for example, if the replacement cost is $80 per square foot, the house should be insured for at least $160,000. For personal items, homeowners can increase their coverage beyond the depreciated value of items such as televisions or furniture by purchasing a ‘replacement-cost endorsement’ on personal property. Some experts recommend an inflation rider, which increases coverage as the home increases in value.

The interest rate on an owner-carried loan is negotiable. Ask your Tucson East Arizona agent to check with a lender or mortgage broker to determine the current rate on institutional first (or second) loans. Seller financing typically costs less than conventional financing because sellers don’t charge loan fees (points). Interest rates on an owner-carried loan will also be influenced by current Treasury bill and certificate of deposit rates. Sellers usually aren’t willing to carry a loan for a lower return than they would earn if their money was invested elsewhere.

The Annual Percentage Rate (APR) is the relative cost of credit as determined in accordance with Regulation Z of the Board of Governors of the Federal Reserve System for implementing the federal Truth-in-Lending Act, according to Charles O. Stapleton III, Thomas Moran and Martha R. Williams, authors of ‘Real Estate Principles,’ 3rd Ed., Dearborn Financial Publishing, Chicago; 1994.

The APR is the actual yearly interest rate paid by the borrower, figuring in the points charged to initiate the loan and other costs. The APR discloses the real cost of borrowing by adding on the points and by factoring in the assumption that the points will be paid off incrementally over the term of the loan. The APR is usually about 0.5 percent higher than the note rate.

When a renter signs a lease with an option to purchase a Tucson East Arizona property for a specific price within a certain time frame, that is called a lease option. In most lease-option situations, a portion of the rent is applied to a future down payment. Lease options are most popular among buyers who don’t have enough funds for a down payment and closing costs.

A lease option is an arrangement with you and a seller to exercise the option to buy a Tucson East Arizona area home after you have rented it for a specific period. A portion of your rent would applied toward the purchase if the option is exercised. This is referred to as rent credit, which most institutional lenders will accept as part of the down payment if rental payments exceed the market rent and if a valid lease-purchase agreement is in effect, a copy of which must be attached to the loan application. If you are a seller, lease options can give you several advantages, especially in a slow market. These include a monthly rent higher than market rent, top-market value for the property and tax-free use of the option consideration until the option expires or is exercised. Also, the renter is more likely to treat the property like an owner, tax-free use of option consideration until the option expires or is exercised. Read any lease-option arrangement carefully for details on transferring the option and other important concerns.

For more information, get a copy of ‘How Lease- Options Benefit Realty Buyers, Sellers, Agents and Investors,’ available for $4 from Tribune Media Services, 64 E. Concord St., Orlando, FL 32801.

In most states, it is the seller, but obligations to disclose information about a property vary. Under the strictest laws, you and your agent are required to disclose all facts materially affecting the value or desirability of the property which are known or accessible only to you. This might include: homeowners association dues; whether or not work done on the house meets local building codes and permits requirements; the presence of any neighborhood nuisances or noises which a prospective buyer might not notice, such as a dog that barks every night or poor TV reception; any death within three years on the property; and any restrictions on the use of the property, such as zoning ordinances or association rules.

There is no ‘best’ time to sell per se. Selling a house in the Tucson East Arizona area depends on supply, demand and other economic factors. But the time of year in which you choose to sell can make a difference both in the amount of time it takes to sell your home and in the ultimate selling price. Weather conditions are less of a consideration in more temperate climates, but most of the time, the real estate market picks up as early as February, with the strongest selling season usually lasting through May and June. With the onset of summer, the market slows. July is often the slowest month for real estate sales due to a strong spring market putting possible upward pressure on interest rates. Also, many prospective home buyers and their agents take vacations during mid-summer. Following the summer slowdown, Tucson East Arizona area real estate sales activity tends to pick up for a second, although less vigorous, fall market, which usually lasts into November when the market slows again as buyers and sellers turn their attention to the holidays. If this makes you wonder if you should take your home off the market for the holidays, consider the advice of veteran agents: You are always more likely to sell your house if it is available to show to prospective buyers continuously.

Today a vacation home can be purchased for investment purposes as well as enjoyment. And yes, there are tax benefits. Some people buy a vacation home in the Tucson East Arizona area with the idea of turning it into a permanent retirement home down the road, which puts them ahead on their payments. Another benefit is that the interest and property taxes are tax deductible, which helps to offset the cost of paying for a second home. A vacation home also can be depreciated if you live in it fewer than 14 days a year, or 10 percent of the rented days – whichever is greater.

Resources:
1) ‘Real Estate Investing From A to Z” William Pivar, Probus Publishing, Chicago; 1993.
2) ‘The Ultimate Language of Real Estate,’ John Reilly, Dearborn Financial Publishing, Chicago; 1993.

You can buy a vacation home today for investment purposes as well as enjoyment. And yes, there are tax benefits. Some people buy a vacation home in the Tucson East Arizona area to use as a permanent retirement home later, which allows them to get ahead on their payments. Another benefit is that the interest and property taxes on a vacation home are tax-deductible. Some real estate experts predict that vacation homes will appreciate in value due to rising demand from the aging Baby Boom generation. You also can depreciate the property if you live in the house fewer than 14 days a year, or 10 percent of the number of rented days – whichever is greater. You also need to consider whether you can afford to carry two mortgages, pay for the extra utilities and maintenance costs, and how this investment fits into your total personal finance picture.

Builders often include financing programs to help move more buyers into a project early on. If it’s a buyer’s market in the Tucson East Arizona area, you can be sure that developers will offer incentives such as low-down-payment financing.

When you buy a resale home, you can find out a lot more about the Tucson East Arizona area property and the neighborhood before you buy than when you buy a new home. Land to support new-home developments usually is located on the outskirts of town. Potential buyers should ask the developer about future access to public transit, entertainment activities, shopping centers, churches and schools. Find out how far it is to the nearest library, for example. Local zoning ordinances also should be reviewed. A rather remote area can turn into a fast-food-chain haven within a couple of years. Try to ensure that the neighborhood, if not strictly residential, will not begin sprawling out of control.

Sellers are not legally obligated to disclose the terms of other offers to prospective buyers

It depends. Fixtures, any kind of personal property that is permanently attached to a house (such as drapery rods, built-in bookcases, tacked-down carpeting or a furnace) automatically stay with the house unless specified otherwise in the sales contract. But anything that is not nailed down is negotiable. This most often involves appliances that are not built in (washer, dryer, refrigerator, for example), although some sellers will be interested in negotiating for other items, such as a piano.

Here are some ways to save money on taxes: * Mortgage interest on loans up to $1 million is completely deductible for the year in which you pay it to buy, build or improve your principal residence plus a second home. * Points, or loan origination fees, also are deductible no matter who pays them, the buyer or the seller. * Most homeowners, except the wealthy and those living in high-priced markets, no longer need to worry about capital gains taxes. The exemption has been raised to $500,000 for married couples and $250,000 for single owners. It can be taken every two years. Homeowners should always keep all receipts of permanent home improvements and of mortgage closing costs. If you do have to pay capital gains taxes, these costs can be added to your adjusted cost basis. Consult your tax adviser for more information. Resources: * ‘Tax Information for First-Time Homeowners,’ IRS Publication 530, and ‘Selling Your Home,’ IRS Publication 523. Call (800) TAX-FORM to order.

When children inherit a home, the Internal Revenue Service determines their basis in the property on the date of the owner’s death. The cost basis is not the amount the owner originally paid for the house, but the property’s fair-market value on the date of the parent’s death. Cost basis is a tax term for the dollar amount assigned to a property at the time it is acquired, for the purpose of determining gain or loss when it is sold. For example, one of the three siblings sold his or her share of a property to be divided equally, he or she must pay capital gains tax for whatever profit made over one-third of the new basis. Other tax consequences include estate taxes. However, the estate must total $675,000 or more for tax year 2001 before tax issues become a concern. The IRS allow residents to pass on property, cash and other assets worth up to a total of $675,000 for tax year 2001 before charging the heirs any taxes. This figure will rise each year for the next several years. Regarding the transfer of ownership, quit-claim deeds often are used between family members in situations such as this when an heir is buying out the other. All parties must be agreeable to dropping a name from the title. For more information, consult the IRS’s Publication 448, ‘Federal Estate and Gift Taxes.’ Order by calling 1-800-TAX-FORM.

The Internal Revenue Service currently does not allow deductions for losses on the sale of your own home. In fact there’s no way to use a loss on the sale of your principal residence to your advantage on your income tax return.

If you are a Tucson East Arizona buyer, and you or the seller pays points, they are deductible for the year in which they are paid only. You also can deduct any points you pay when you refinance your Tucson East Arizona area home, but you must do so ratably over the life of the loan. Consult your tax or financial advisor.

Homeowners benefit from several generous tax advantages. The most important benefit is the mortgage interest deduction. People may deduct interest paid on mortgage loans totaling up to $1 million used to buy, build or improve a principal residence plus a second home. The IRS calls such loans acquisition debt. Points paid by the buyer or seller on a new mortgage loan for the purchase or improvement of a principal residence are deductible for the year in which the home was purchased. Any points paid on a refinance mortgage, a loan to purchase a second home or a mortgage on income property must be spread over the life of the loan, according to Edith Lank and Miriam S. Geisman, authors of ‘Your Home as a Tax Shelter,’ Dearborn Financial Publishing, Chicago; 1993. Note that when obtaining a new mortgage, the borrower usually is asked to pay interest from the closing date until the first of the next month. Check whether that charge is included in the year-end report. Property taxes on all real estate, including those levied by state and local governments and school districts, are fully deductible against current income, say Lank and Geisman. ‘A homeowner cannot deduct maintenance expenses, nor can he take depreciation deductions on his personal residence,’ states the ‘Realty Bluebook,’ 30th Ed., Dearborn Financial Publishing, Chicago; 1993. Some moving expenses are deductible for people who changed jobs and relocated as a result. The IRS requires that the new employment be located at least 50 miles away, among other considerations, said Analisa Collins-Sears, a public affairs officer with the IRS’ Bay Area office.

Resources: ‘Tax Information for First-Time Homeowners,’ a free guide published by the Internal Revenue Service. Order by calling 1-800-TAX-FORM.

Property taxes on all Tucson East Arizona real estate, including those levied by state and local governments and school districts, are fully deductible against current income taxes.

Contact your local Tucson East Arizona tax assessor’s office to see what procedures to follow to appeal your property tax assessment. You may be able to appeal your assessment informally. Mostly likely, however, you will have to go through a formal tax-appeal processes, which begin with an appeal filed with the appropriate assessment appeals board.

An impound account is a trust account established by the lender to hold money to pay for real estate taxes, and mortgage and homeowners insurance premiums as they are received each month.

Mortgage interest and property taxes are deductible on a second home if you itemize. Check with your accountant or tax advisor for specifics.