A Few Things To Consider When Purchasing Prescott, AZ Real Estate

Many people buy real estate at some point in their lives and often more than once. Even though it is common to buy real estate few people are educated buyers. I have purchased real estate many times and learn from each purchase. I hope some of the things I have learned, which I will share, will help you with your purchase.

I have to start with the famous “location, location, location!” speech.  I hope this isn’t your first time hearing that location is very important when purchasing real estate. Every lot is unique in a variety of ways. Each state, city and even neighborhoods may have their own laws, rules, and culture. Some areas have very low taxes and some may have very high taxes even within a few miles of each other. The view or lack thereof is also something to look for when making a purchase.  Location is important is “real estate terms” because “situs” or jurisdiction is absolute. The land does not move or change position. You’ve heard the old saying, “Land, they’re not making any more of it” is true. Sometimes one house may have a great view while the one next door does not. Location is very important to consider for many reasons but it isn’t everything.

Many people think you make money on real estate when you sell but many wise investors will say that you make money when you buy. I think there is money to be made on both transactions. You want to find a good deal when you buy and that will make it easier to make money when you sell. Negotiations are very important and to help with this it is important to have a good realtor that you can trust. Remember that you don’t have to pay the asking price and don’t be afraid to insult the seller with a low offer. If your offer is countered don’t feel that you have to meet in the middle or up your offer as much as they dropped their price. You will end up at a lower price if you go up in smaller amounts than the seller comes down. If the property isn’t attracting the bids of others you may want to let the seller sit on it a while and they will usually come down or reconsider a lower offer. Low offers simply open up the dialog. A seller should never be insulted, but understand it’s all part of the process.

Some people like to find the diamond in the rough but when it comes to real estate that is the opposite of what you would like to buy. If you own the best home in the neighborhood you probably over paid for it. The real estate around your property effects the value of your property, (comparable). If you are surrounded by property that has less value than yours it is bringing your value down. On the other hand, if you find a cheap piece of real estate in an expensive neighborhood with a little work you may be able to greatly increase the value of your property. Each neighborhood has limits to how high a property will be worth no matter how much money is put into it. Don’t exceed that limit otherwise you are basically throwing your money away.

Please continue to learn more and do your due diligence before buying any real estate. Buying real estate can be a wonderful step but may also be a very costly one, if you don’t do your homework first. For further advise, call us. We can be a great source of information and help when buying real estate. It’s what we do every day, all day.

Buying Foreclosure Properties in Prescott, AZ

The real estate market is showing increasing signs of recovering and there are great investment opportunities to be found.  Home prices are still relatively stable and interest rates are still very attractive.  However, whether buying for a primary residence or for investment purposes, there are still some basic guidelines to follow when considering a foreclosure purchase.

1.    Work with a Realtor.  It does not matter if you are buying a foreclosure for investment or as a primary residence, it is really helpful to have a savvy agent help with the process.  Neighborhood is one of the most important factors when it comes to buying a home and an experienced agent is worth their weight in gold when it comes to knowing the local real estate market.

2.    Do the financial due diligence.  All we need to do is remember the real estate market crash to see why it is important to do a thorough financial due diligence when purchasing a home.  At the current time real estate prices are projected to increase for the rest of the year.

Be realistic about your budget and how much home you can really afford.  If the home is an investment purchase, can you make the mortgage payment if you have to carry the mortgage for a few months?  That can happen with investment property so be sure you factor in at least six months of mortgage payments just in case.

Also factor in the cost of any repairs.  This is especially true with foreclosure purchases which are often sold “as is” which means they often need repairs.

Verify the condition of the property.  Restore and repair costs add up on a total value of a home.  It is always best to purchase foreclosure homes that require minimal repairs, otherwise your profit margin shrinks.

3.    Understand that every neighborhood is local to that neighborhood.  What this means is that what is selling in one area may not be selling just down the road, so you need to do your homework and check comparable homes in the area to know whether or not what you are buying is a good investment.

Get a proper assessment on the home you are considering purchasing.  Foreclosure homes will generally be thirty to forty percent discounted, so if a foreclosure home does not need major repairs and you can get it for a price that is well below the market value of similar homes in the same area, then you are probably making a good investment.

4.    Try and find foreclosures that are bank and creditor owned.  These properties are where you can most likely get the best deal because banks are not in the business of owning property so want to sell these types of properties and will often do so at a much discounted price.

Investing in foreclosure properties can be a very smart move, especially in the current real estate market.  With housing prices still relatively stable and interest rates still very attractive, there are many good opportunities for investment available.  When considering purchasing a foreclosure property, it pays to research the property and to do the financial due diligence in order to verify the quality of the property and financing.

Buying Foreclosed Prescott, AZ Real Estate with no Money Down

Properties that have been foreclosed are often a gold mine for any experienced or novice investor in real estate. Typically, properties that have been foreclosed are sold by the bank or financial institution for a price well under the current market value. This means that anyone that can purchase and repair the property can earn huge profits when they resell it.

Most individuals avoid looking at foreclosure properties because they believe they need impeccable credit and huge amounts of investment capital. However, there are effective ways that any investor in real estate can purchase foreclosed properties with virtually no credit and no money down.

Finding the Properties

Properties that are distressed in the community are those that are about to go through foreclosure sale. Any notice of a foreclosure sale will be posted on a board in the County Clerk’s office, in the county with a distressed property is located. This is because it is a public record that a foreclosure sale is about to take place. If you’re unversed in this procedure, be sure to contact us. We have a lot of experience with buyers and foreclosures.

Typically, the best time to locate the new list of foreclosure sales is the first Tuesday of the month. This is the time when the last huge batch of properties that were foreclosed had been sold at auction, typically on the steps of the County Courthouse, or at the Sheriff’s office. It is then that a new list of any upcoming foreclosure sales will be clearly posted.

Contacting the Financial Lender

On the list of foreclosures will be another list of lenders that are owed monies on the property, and have called for the property to be foreclosed. We’ll make contact with the financial lender and offer a proposal to assume the loan on the property without the need to qualify. The loan assumption without the need to qualify simply means that you will be willing to take over any current and future mortgage payments for the lending institution.

However, your proposal to assume the debt requires that the bank not qualify you based on any credit check. Typically, small lending institutions will agree to this format if you have the ability to prove that you have a minimum of three months reserve payments. However, tighter lending laws may prevent those wishing to purchase to qualify in this manner. Be sure to check with us about the latest lending procedures when it comes to foreclosures in the Prescott area. Cash buyers usually win out over loans, and most banks will not even look at an offer for at least 5 days after being on the market. The trick is to catch it before it hits the market. We have a short-list of folks who are interested in finding out about these deals. If you want to get on the list, contact us.

Contact the Property Owners, No

Contacting the property owners in a foreclosure situation is practically unfruitful. In large cities where moguls with huge wads of cash are able to walk neighborhoods and influence distressed homeowners by waiving a belt of bills in their face is very rare in smaller communities. The truth is, the homeowner may be paralyzed by the situation emotionally and afraid to even speak with the bank. This is where we come in. We can talk directly to the bank on the seller’s behalf to see if a loan assumption is even possible. If the bank agrees, it can allow the seller to avoid the foreclosure and help them evade any damage to their credit history.

Once the entire process has been completed, you will receive the keys to your new home, and the lending institution will have transferred the title or deed of the property directly into your name.

Buying A Vacation Property in Prescott, AZ

There is nothing quite like owning a second home in your favorite destination. Making the leap in purchasing a vacation home can be challenging, but the rewards are many. If you pick a great location, you can use the home as a rental unit when friends and family are not otherwise using it, and you can also retain the home for many years, allowing it to grow in equity and create a nice nest egg if you decide to sell when retirement time comes. If you are considering the purchase of a second home, here are some tips that can help you to make the best choice, and one you will ultimately be happy with.

First, carefully consider your location. If you are looking for a home that can be used as a rental unit while you are away from it, you cannot go wrong by selecting a unit in the cool pines of Prescott, AZ. Mountain units can be rented year round in Prescott, and during peak seasons they can bring in high dollar amounts. It is quite possible to own a mountain property and receive enough in rental income to pay the mortgage each year. If you are not interested in a mountain retreat, other popular locations include ones near a popular ski resort, in a city with old-west charm, or sitting on the shore of a large lake. Take the time to look at rental prices in the area you are looking to buy in, and allow those to influence your final purchase.

Once you have carefully considering the location, take the time to give us a call and have a phone interview. Take your time during this step, and make sure to ask all the questions you need to feel comfortable. If you have the chance, visit the location for a face to face interview. If you live out of town, be sure to explain that much of your home search will be performed from out of town. No worries we’re comfortable using the phone, Internet and fax machine, texting, or any social media for correspondence. We’re very responsive and understand your needs and value your time. House hunting can become an arduous process. We’ll help take some of the burden off of your daily activities on the computer.

After you have taken the time to browse through several days worth of search results, plan on making a trip to your preferred area for a house hunting excursion. If possible, plan to be in the area for several days in order to have the time to see several houses and go back for a second look if necessary. While you can get a good feel for many houses by looking at pictures and reading descriptions, you will not be able to make the right decision about your final home purchase without seeing some houses for yourself. A trip to the area will allow you to do that, and it will also give you an idea of what comparable houses in the area look like so you can make a wise decision when it comes to making an offer.

Purchasing a second home is a great idea for many reasons. By taking the time to perform your search the right way, you can end up with a home you are happy with for many years to come, and one that will provide you with a rental income and future nest egg as well. Happy house hunting!

Real Estate and Drones – FAA puts a halt on Realtors marketing efforts

Drones and Real Estate

In a recent letter from the National Association of Realtors, it appears the FAA has temporarily banned the use of drones for real estate marketing.

I’ll address some concerns in this article from both home-owners, and as techie nerd myself who is a drone owner.

The main issue is over privacy. The secondary issue is safety. Not only can drones cause serious issues with airplanes, they can do tremendous amounts of damage to property and persons. If you’ve never seen a drone in person, in flight, it’s hard to understand how powerful these little machines are. Some drones weigh in at 7lbs while other average 3-4lbs and can fly at 50mph or more. Imagine standing on the side of a road and having someone lob a 7lb dumb-bell at your head out of car driving 55mph… that’s about 1/2 as dangerous as a drone is while in flight.

Is drone technology really useful for marketing real estate? In my opinion, not really. At least not the way most realtors are using them. I’m not THE authority on any of it, but believe that location and topography play an important role. I’ve personally photographed over 5,000 houses in the region I live in Prescott, AZ. For many years I was the single most sought after professional photographer for real estate in the area. Hundreds of agents came to me for not only photos, but marketing assistance as well. I was also the VP of Marketing for the last company I worked for…so, I have some idea of what I’m talking about.

There were many instances over the years where I really wanted/needed to get a better angle of a home; mostly due to its topography. Homes that sit high up on lots are troublesome to photograph due to the camera being mostly at ground level. Although not impossible if you’re creative, the drones could certainly come into use in these situations. Most of the time, the drones are used to photograph the roof, which in my opinion is a practice producing less than desirable results.
badroofimage

Because some/most Realtors are not photographers, and they likely are not videographers, they may lack experience and simply fly up and around. For them, the drone is a gimmick they use to lure a potential seller into listing with them. The claim is, “More people will see your house!” This claim is largely unfounded. Videos of homes have been around for years and for the money, I find the “lifestyle” tour a much better investment. A lifestyle tour is one where the Realtor hires actors and actually scripts live-action scenes around the property. This not only shows the home more accurately, but allows interaction in the home by people; lending to a much better representation of the property. Don’t get me wrong… I don’t dislike drones by any means. In fact, I’m a huge fan and owner myself. However, the public needs to get its perception correct on exactly what the benefit is?  If you live in a huge estate, the drone can certainly add advantage. If you live in a 2,000 sq.ft house in a subdivision, the technology is virtually useless. The very reason you likely hired your agent will be the reason no one wants to buy the house. Everyone will have an accurate visual of just how crowded your neighborhood really is. In the end, your agent could be driving potential buyers away from your property. Those same buyers viewing a lifestyle tour would be 75% more likely to go see the house in person than viewing a drone tour.

The Verdict
For the next two years NAR will be disseminating the ins and outs of drone use with the FAA. Until then, all Realtors are supposed to put the practice on hold. If your agent is currently using a drone to market your house, you may want to find a new agent. Currently, there is no one in Yavapai County with COE clearance from the FAA to operate in UAS.

Capital Canyon Club, Prescott, AZ Updates

Hassayampa Prescott Arizona's best real estate

The Hassayampa Golf Club is now the Capital Canyon Club!
Memberships to the club is offered in seven tiers. For more information, call the Capital Canyon Club or contact them by email. Prices are subject to change.

As of March 2017, the prices below reflect the membership fees. Since opening, some tiers of membership have been exchanged or added including the “Maverick”.
Other added memberships include the Pioneer and Prospector. The Prospector plan resides just under the Founders plan, and the Pioneer plan is for young, business executives under the age of 45. For a full brochure stating fees at the Capital Canyon Club, click here.

FOUNDERS

$55,000 initial fee
$0 Monthly for 10 years

$1,200 Annual Food & Beverage minimum.

  • No dues for 10 years
  • Unlimited use of the Club Golf Course
  • Unlimited use of Club Practice Facilities
  • Unlimited Cart Usage
  • 14 Day advance starting time reservations
  • Complimentary Club Rental for your Accompanied Guests
  • 20% Discount off of the member guest rate for your accompanied guests
  • Complimentary Bag Storage and Complimentary Locker
  • Access to the Club Fitness Center and Swimming Pool
  • Exclusive access to our Clubhouse Restaurant & Social Events
  • Invitations to join Men’s & Women’s Golf Association Events
  • Access to Troon Reciprocal Golf Program

FRONTIER

$5,000 Initial Fee
Monthly Dues $625
$1,200 Annual F&B minimum.

  • Unlimited use of the Club Golf Course
  • Unlimited use of Club Practice Facilities
  • Unlimited Cart Usage
  • 7 Day advance starting time reservations
  • Complimentary Bag Storage and Complimentary Locker
  • Access to our clubhouse, fitness center, and swimming pool
  • Exclusive access to our Clubhouse Restaurant & Social Events
  • Invitations to our Men’s & Women’s Golf Association Events
  • Access to Troon Reciprocal Golf Program

MAVERICK

$5,000 Initial Fee
Monthly Dues $475
$1,200 Annual Food & Beverage minimum

  • Unlimited use of the Club Golf Course
  • Unlimited use of Club Practice Facilities
  • Optional Annual Cart Program
  • 7 Day advance starting time reservations
  • Access to the Club’s Fitness Center and Swimming Pool
  • Invitations to Men’s & Women’s Golf Association Events
  • Exclusive access to our Clubhouse Restaurant  & Social Events
  • Access to Troon Reciprocal Golf Program and Golf Concierge

1864

$1,500 Initial Fee
Monthly Dues $100
$1,200 Annual F&B minimum.

  • Exclusive access to our clubhouse, restaurant & social events
  • Access to the club fitness center
  • Enjoy limited golf benefits