Senators agreed on a $15 billion bipartisan plan to help alleviate some issues the real estate markets across the nation — including Tucson AZ — are currently facing. The plan is intended to help the real estate market regain its footing. The first piece of the plan would permanently increase the amount of loans backed by the FHA to $550,000. The down payment would increase to 3.5% from its current requirement of 3%. A second boost for the market is that it will give a $6.1 billion tax break to homebuilders and other troubled firms. These companies can apply operating losses from this year and next year to past tax bills, giving homebuilders a little back to assist them in keeping their companies from dissolving over the next 2 years. Also part of this major bill is the availability of $10 billion of mortgage revenue bonds that states can issue for refinancing and first time homebuyers. The facet of the plan that will help the average person the most is the offering of incentives for the purchase of foreclosure properties rather than other available homes. To accomplish this, the federal government is offering a two-year $7,000 tax credit if the property the buyer is purchasing is facing foreclosure. This should have the effect of greatly reducing the number of foreclosed homes on the books. It will be a great help to banks and neighborhoods.

Arizona is a major hotbed for what’s called “foreign nationals” — persons from another country residing in the United States. Most foreign nationals who come to Arizona to invest or purchase second homes are from either Canada or Mexico. However, I have also seen buyers from the United Kingdom, Europe, Latin America, and South America. Many foreign nationals would like to purchase property in the United States but find the process confusing. It does not have to be complex. In fact, it is simple, and I will walk you through it.

Tucson AZ is a prime secondary home (winter home) market. Every year, hundreds of people decide to buy a $1 million dollar + home in Tucson. So what does $1.5M get you? We’ll check it out. In case you’re wondering, there are 239 properties listed at $1,500,000 or greater as of today (March 29, 2008) in Tucson.

This property (courtesy of Russell P. Long of Long Realty) is currently listed for sale at $1,595,000.

This home is 4050 square feet, located in the ultra-high-end community of Pima Canyon Estates, on a lot that is over an acre is size.

High-end foreclosures are starting to show up in the Tucson marketplace. Homes above $1 million are coming up as REO (Real Estate Owned Properties). The reasons for this are many, and I predict that these high-end foreclosures will continue to escalate in number. One reason that this is happening is that many would-be developers decided real estate was doing so well in 2005 that they were going to buy a parcel of land and develop a million dollar or multi-million dollar property. From point of decision to completion, development time is 9-18 months. Now in 2008, the market is severely depressed and the amount the developers thought they could sell the property for is not even possible, and the cost to build is more than the market value of the home. This leaves the developer in a tough situation unless they have major reserves to hold the property or pay out of pocket to get it sold. Many of these would-be high-end developers do not have reserves or did not anticipate cost overruns that pushed the costs up on their home, making them too expensive to sell and netting them a foreclosed property.

A new listing that will be on the market soon is 5340 W Sunstone Pl, Tucson AZ 85742. This home is located in the master-planned community of Countryside, developed on Tucson’s northwest (NW) side in the late 1980’s through the 2000’s. This particular home was built in 1993 and is a single-story with almost 2000 square feet (1958 square feet, to be exact). The home offers 4 bedrooms and 2 baths. This home has new upgrades that include new carpeting and paint. The home also features lots of tile, a large kitchen with an island and breakfast bar, vaulted ceilings, lots of arches, 3-car garage, a large covered patio, and a water feature in the rear yard. This home is one of the few in Countryside that has a tile roof and very contemporary exterior and interior design. This home shows extremely well and should sell quickly due to its reasonable price of $224,900. On the northwest side of Tucson, a home in Countryside is very desirable. Children would attend school in the Marana Unified School District (MUSD). The elementary school for this neighborhood is Degrazia, the middle school is Tortolita, and the high school is Mountain View. If you would like additional info on this home or would like to physically view it, please let me know.

Have $750,000 and want to know how far that will get you in the Catalina Foothills of Tucson? In many large cities like San Diego, Los Angeles, New York City, Chicago, Seattle, and many other areas of the country, $750,000 will not get you very much at all. But Tucson offers climate, scenery, and an economy that (while not as diverse as some of these mega metro areas) is very vibrant. Here in Tucson, we have passed 1 million in population and this has pulled many high-end businesses and retailers to the area. Just off of Sunrise and Campbell, La Entrada is fully leased with premium retailers for high-end fashions and services to residents who demand luxury items. In addition, the Tucson area is dotted with many exclusive resorts that cater to residents and guests alike with world- class golf, spas, and recreation that cannot be surpassed by any desert climate in the world!

Here’s a new listing hitting the market on 3/10/08, located in Sonoran Ranch Village on Tucson’s southwest (SW) side. This home is a 3 bedroom, 2.5 bath, with a loft AND den downstairs that has double doors. This home is very clean, at the end of the street with no neighbor on the left hand side, and looks pretty impressive from the street corner. Features inside the home include ceramic tile in wet areas and plush carpeting in the living areas. Window coverings stay with the home as do ceiling fans and the following kitchen appliances: range, dishwasher, disposal, and microwave.

I recently commented on another real estate agent’s blog about why discount real estate brokers do not really save clients (sellers) any money 99% of the time. To say the least, it triggered a storm of comments from agents and the general public. This is why I decided to devote an entire blog post to my feelings on the subject and point out the issues for sellers. I honestly think if you’re trying to sell your own home, selecting a real estate brokerage type — discount or full service — and the real estate agent is a lot like playing poker. You’re not sure which combination is going to result in the most money gained at the end of the day. Let’s start from the beginning and I will give you the facts on both forms of service and even some advice about picking the actual listing agent.

Benefits/Downsides of a Discount Broker Model For Sellers

First, it’s very inexpensive! Some brokers will just place your home on the market (the local MLS) and place their sign in your yard for a flat fee. Whether your home sells or not is completely up to you. Some of these very limited brokers will not even help you with contracts and the offers that are received. You will either need to pay a real estate attorney to do the paperwork correctly, or you will need to take the risk of doing it yourself. If you can’t sell your home on this very limited plan, you lose the money you paid for the flat fee.

Most discount brokers (such as Help-U-Sell and Assist-2-Sell) charge the same flat fee, although in this case the fee is usually a few thousand dollars for their side of the transaction rather than a few hundred for a very limited flat fee. You still normally pay the fee upfront and the amount typically can be decided by the client, meaning that if you want more service than the flat fee covers, you can pay extra all the way up to essentially full service. This, in my opinion, is a better plan than the limited flat fee. If you find that you are in over your head, you can just phone your agent and sign up for more service. The down side is that these companies are just “helping” you sell your home. Since the fee is charged upfront, if you decide the “help” isn’t helping much, then you’re out thousands of dollars rather than just a couple hundred. Again, usually the service includes listing with the MLS and installation of a sign. I believe Help-U-Sell will even lend you some open house signs so that you can hold your own open houses if you choose.

It’s a team effort these days keeping up with the many clients we have been signing up recently. I could never assist as many clients without my team, which is driven to offer superior service and knowledge to all clientele. One of the newest listings we have is a beauty! Located at 12728 S. Owl Head Canyon Rd, Marana AZ 85758, this home is tucked away in Dove Mountain, which hosts the annual Accenture World Match Play Championship. (Next weekend is the tourney!) Dove Mountain is one of the most sought after master planned communities in the Tucson region due to its amazing golf amenities and the general growth of its luxury market. A Ritz Carlton is due to open next year in the Dove Mountain area — the first of its kind in the Tucson/Southern Arizona area. In the greater region, many very expensive homes are being developed due to the overwhelming demand to live near the Tortolita Mountains. Our new listing can be purchased at a fraction of the cost of these homes. We are placing this wonderfully appointed 3-bed, 2-bath home, complete with professionally stained concrete flooring and many designer touches, for a the very reasonable price of $189,900. If you check the comps, a home in this area under $200k is very rare. Given the condition of this home and all the special touches, it will be snagged quickly. This home is perfect for winter visitors who would like a nice home in a highly desirable community, with quick and easy access to I-10, and true world-class gold amenities within walking distance. If you have additional questions about this property or would like to schedule a private showing, please contact me at (520) 247-4134. See additional pictures and information by clicking here.

I recently accepted a listing on the southwest (SW) side of Tucson Arizona (AZ) located at 6525 S De Concini Dr 85757. The home is located in Sonoran Ranch Villages, a neighborhood built by Richmond American. This particular home was built in 2005 as were most of the others in the neighborhood. The home has 4 bedrooms, a loft, and 3 full baths, making this home hard to pass up. One of the bedrooms is downstairs opposite a full bath, which is a perfect arrangement if you have or ever encounter the need to have a bedroom/bath on the ground floor level. Extra high ceilings make this home feel much larger then its actual 2,171 square feet, as shown in the assessors’ records. The listing also features a built-in BBQ in the back yard that is wired for electric, lots of tile, upgraded staircase, and a great location near Casino Del Sol and AVA Amphitheater, making it a true bargain for the moderate price that the sellers are listing it for, which is currently $150,000.