Faqs

Prescott

I’m a California buyer, what next? CA to AZ

Some CA residents may believe those of us who were born and/or raised in Prescott may have a chip on our shoulder for our Golden State friends…this is not true at all. Although there may be some pockets of people who don’t like anyone new moving to town, most residents understand and welcome new neighbors.

Prescott is currently being flooded with buyers from California (Autumn of 2022). A recent buyer looking for a home in the subdivision we currently live sent me an email and indicated interest in the area. Because of the scarceness of homes in this particular community, I informed them they may need to move quickly on the property if their interest was high. They responded rather coarsely with “we don’t do anything quickly…” My thought on that particular and rare attitude is; “then you won’t be living in Prescott.

The property was priced a tad under $400,000, which is a rarity in the current market. The home will likely not be on the market for more than a day. I’m somewhat familiar with this particular property having visited 5 years ago when it was last on the market for $139,000. So WHAT EXACTLY HAPPENED WITH THE AZ MARKET?

COVID happened and many people simple wanted out of the large metropolitan areas. Millions of people started shifting all over the country, and most of them have been sitting on an investment since the crash of 2008-ish. Prescott’s market was actually pretty perfect in 2018…not too high and not too low. The average selling price for a 3 bedroom, 2 bath home was just around $318,000 at $183 per square foot. In 2019 it jumped to $330,000. Still not too bad. If you remove a 2-car garage, the average price per square foot dropped to $175. In 2021 those prices jumped to $260 per square foot, and in 2022 it jumped to $300. The real take away is the average listing price in 2022 was $295.00 per square foot…meaning people paid an average of approximately $10,000 over asking price for a typical 1,750 sq.ft. home. This is the market we’re currently in right now. That same house priced at $318,000 in 2018 is selling for $520,000 currently.

TIPS TO HELP YOU:
If you moving from California to the Prescott area, here’s a couple things to keep in mind.

1. Be ready to pull the trigger. If you’re sure Prescott’s your destination, have your “ducks in a row”. Have your lending or cash status already secured and documented. If you’re unsure where you want to land, spend some time in a particular town before reaching out to a local agent. You may save everyone some time. If you’re visiting Prescott, do yourself a favor and stay at least one night within walking distance to downtown. Book well in advance, rooms are scarce for last minute decisions.

2. Agents are very busy currently, especially the good ones. If you’re driving to town to “look around” and “get an idea”…feel free. However, you need to understand any home you look at will likely be gone by the time you return home with multiple offers. This is the current market for any home under $500,000. If you’re in the $500k – $750k range, you may have a few weeks. If you’re over $1-million, the average days on market is two weeks.

3. Find a good agent. Some of us are doing dozens of transactions per month and we want to help you…Help us do just that. We know what to look for and how our market is flowing. We know how many days on the market an overpriced house will sit before dropping its price. Be ready to adjust quickly.

4. If you need to sell your current home in CA to buy in Prescott, please don’t waste anyone’s time by believing a seller will accept a contingent offer…they simply will not. An imaginary line is forming at the door with cash, full-price, or over full-price offers right behind you. Have your home under contract, and completely through the inspection and appraisal period, or be willing to waive those contingencies with your offer. This means if you make an offer, and the home you wish to purchase does not appraise, you’ll be responsible for coming in with the cash to close the difference. Once you’ve jumped through those hoops with your current sale, then you’re ready to make offers.

5. If you’re looking for future investment, let’s say to retire in a year or so…let your agent know up front. At this stage viewing properties is a largely irrelevant exercise, instead have your agent tour neighborhoods and take good notes. If you really like a particular area, we’ll help you find the right home when the time comes.

My wife & I have made some dear friends over the years who were California residents. We’ve embraced many with open hearts and with some with built life-long friendships. We hope our next adventure is with you and your family…and we sincerely hope these honest approach helps you get on the right path whether you’re a veteran home-buyer, or it’s your first time.

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What happens when someone is trying to illegally sell Prescott property? Who do I Talk to?

To start with, call the police if you have proof and know where the perpetrator is located.

There are many scams going on in land and property sales all over the U.S. Craigslist is one of the most dangerous places to shop for real estate. Many people report rental scams (not just vacation home rentals) but long-term home rentals. The objective of the scammer is to collect the down payment (or 1st & last month’s rent) and then head for the hills.

Always handle your transactions through a legitimate title company, and always have Realtor representation. There’s a difference between agents and Realtors. Many people go through the classes and pass the exam, but they are not Realtors until they pass NAR exams and swear to the NAR code of ethics, along with hanging their license with a legitimate brokerage in good standing. Why say all this?

Licensed Realtors who engage in the profession full-time are likely to be a huge asset to your real estate endeavors. In like fashion, the same is true when buying anything online. People are worried about buying concert tickets, amusement park tickets, vehicle purchases, etc. There are numerous scams and everyone wants to save a buck. However, is it worth your time and money to get scammed? The answer is no. People blame the scammer (and they should) but really, who is to blame? How about when someone downloads pirated software and then complains that it doesn’t work correctly or is riddled with viruses? Again, who is to blame? In no way, shape, or form are we condoning the behavior of scammers or con-artists, but there’s a reason why they exist. People are always trying to “game the system“. We all want to save a few bucks on Disneyland tickets, but when you’re at the gate with your family and you can’t get in the park, you’ll realize the value of legitimate channels of purchase.

There are safeguards in place when purchasing any real estate. Work with a Realtor. They can not only save you money, but can help you avoid scams.

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Arizona Moving Checklist

Address Change

  • Post office: give forwarding address
  • Charge accounts, credits cards
  • Subscriptions : notice requires several weeks
  • Friends and relatives

Bank

  • Transfer funds, arrange check-cashing in new city
  • Arrange credit references

Insurance

  • Notify company of new location for coverage: life, health, fire and auto

Utility Companies

  • Gas, light, water, telephone, fuel, garbage, internet, satellite services
  • Get refunds on any deposits made

Delivery Service

  • Laundry, newspaper, changeover of services

Medical Dental, Prescription Histories

  • Ask doctor and dentist for referrals; transfer needed prescriptions, eyeglasses, X-rays. Obtain birth records, medical records, etc.

Pets

  • Ask about regulations for licenses, vaccinations, tags, etc.

And Don’t Forget To:

  • Empty freezer; plan use of foods
  • Defrost freezer and clean refrigerator. Place charcoal inside to dispel odors.
  • Have a tool kit handy and zip-lock bags. Make sure you have a Phillip’s screwdriver and a flat-head screwdriver. Allen wrenches come in handy, a hammer, and a pair of vice-grips. Place screws & nails in zip-lock baggies along with various tacks small items you find along the way.
  • Have appliances serviced for moving
  • Remember arrangements for TV and equipment hooked up for sound system and internet. Label each cable with tape, and even on the unit itself
  • Clean rugs or clothing before moving; have them moving -wrapped
  • Plan for special care needs of infants or pets

Moving Day

  • Carry enough cash or travelers checks to cover cost of moving services and expenses until you make banking connections in your new city.
  • Carry jewelry and documents yourself, or use registered mail
  • Plan for transporting pets; they are poor traveling companions, if unhappy
  • Let a close friend or relative know route and schedule you will travel including overnight stops; use him or her as message headquarters
  • Double check closets, drawers, shelves to be sure they are empty
  • Leave all old keys needed by new tenant or owner with Realtor or neighbor along with any electric garage door openers, ceiling fan controls, and/or other remotes

And At Your New Address:

  • Obtain certified check or cashiers check necessary for closing real estate transaction
  • Check on service of telephone, gas, electricity, water and garbage.
  • Check pilot light on stove, hot water heater and furnace
  • Have appliances checked
  • Ask mail carrier for mail he or she may be holding for your arrival
  • Have new address recorded on driver’s license
  • Visit city offices and register for voting
  • Register car within five days after arrival in state or a penalty may have to be paid when getting new license plates
  • Obtain inspection sticker and transfer motor club membership
  • Register family in your new place of worship
  • Register children in school
  • Arrange for medical services: doctor, dentist, veterinarian, etc.

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50 Tips to Sell your AZ home

Hire a Professional

  1. List your home with a Realtor who will do all the things necessary to bring in qualified prospects, guide you in setting a good price, help you to show your home to your advantage and negotiate a contract that nets you the most money possible.

Outside

  1. Invest in landscaping where it can be seen at first sight. A well manicured lawn, neatly clipped shrubs and clean walks create a good first impression.
  2. An extra shot of fertilizer, in season, will make your grass look lush and green.
  3. Cut back overgrown shrubbery that looks scraggly and keep light out of your house.
  4. Paint your house if necessary. This can probably do more for sales appeal than any other factor.  If you decide against painting, at least consider painting front shutters or window and door trim.
  5. Walks should be free of leaves, weeds, dirt and debris.
  6. Inspect the roof and gutters, and replace any missing shingles.
  7. Consider putting flowers outside the front door.
  8. Repaint or stain the front door.
  9. Put a bright coat of paint on your mailbox (or replace it).
  10. Put a new doormat out front.

Kitchen

  1. This is the most important room in the house. Make it bright and attractive.  Clean your cabinets inside and out.  Also new wallpaper pays dividends.
  2. Clean the vent hood, the range/oven and the sink.
  3. Scrub the kitchen floor.
  4. Remove any extra appliances on the counters that you do not use every day.

Bathroom

  1. Repair any dripping faucets, because they discolor sinks and suggest faulty plumbing.
  2. Keep fresh towels in the bathroom.
  3. Scrub the toilet, shower, tub and caulk if necessary.
  4. Use drain opener to unclog any slow drains.

Living Areas

  1. Have all drywall in good shape. Cracks and nail holes are easy to fix.
  2. Check ceiling and ceiling fans for dirt.
  3. When painting or re-decoration, stick to conventional colors.
  4. Replace faded curtains or bedspreads.
  5. If you have a fireplace clean it out and lay some logs inside.
  6. Wash your windows inside and outside.
  7. Replace any broken windows.
  8. Replace or fix any torn screens.
  9. Make sure all windows pen and close easily.
  10. Check all light bulbs and replace if necessary.
  11. Check light switches and plugs to make sure they work.
  12. Make sure all floors are clean.
  13. Straighten all closets. Well ordered closets show space is ample.
  14. For sliding doors that stick, rub parafin wax in the tracks.
  15. Clean the air return vents and put in new filters.

Garage, Attic and Driveway

  1. Clean and organize the garage and attic, and dispose of anything you will not take with you.
  2. Repair any major cracks with ready mix concrete.
  3. Clean any oil stains.
  4. Check garage door and oil if necessary.

When Your House is Being Shown

  1. Keep shades open to let in light. This makes your rooms look larger
  2. Turn on all interior lights
  3. Have your home well-lit and interior doors open for showing
  4. At night, turn on porch light and any exterior lighting
  5. Make sure all beds are made and rooms cleaned daily
  6. Make sure all dirty dishes are in the dishwasher, not in the sink nor on the counters
  7. Keep toys in the kids’ rooms
  8. Keep radio/stereo/TV off
  9. Try to run some errands when the house is being shown
  10. If you are home, do not negotiate directly with the buyers
  11. Refer any inquiries about your home to your Realtor
  12. Take your pets for a walk when your house is being shown
  13. Let the Realtor show your house and do not tag along

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Top 8 Seller’s Questions

  1. When do I get my sale proceeds?

On the date of recording, your escrow officer will have your proceeds available for your review.  At the time of closing, you may request that your escrow officer either cut you a check for your proceeds or wire the funds directly into your bank account.

  1. Why do I have to pay interest on my loan pay-off past the day of recording?

Your lender continues to accrue interest to the date that they post your loan as being paid in full.  This could be one or two days from the date your escrow officer sends your pay-off check via overnight mail or wire transfer.

  1. When do I get a refund from my impound account?

After your escrow officer sends your pay-off check to your existing lender, you can expect to get your impound account back direct from your lender within 30-60 days.  If you have any questions after that time, we suggest calling your lender.

  1. When do I cancel homeowners/fire insurance?

Please do not cancel your insurance until you have received your sale proceeds.

  1. Why does my escrow officer require that I complete a 1099 form?

A 1099 form is the reporting form adopted by the IRS for submitting the information required by law.  Under guidelines established by the IRS, sellers of real property are require to have their sales price reported on the 1099 form.

  1. What is a statement of information?

Statements of information provide title companies with the information they need to distinguish the buyers and sellers of real property from others with similar names.  After identifying the true buyers and sellers, title companies may disregard the judgments, liens or other matters on the public records under similar names.

  1. I don’t understand tax pro-rations. How do they work?

Each year on January 1 the lien of the following year’s property tax attaches to the land, pursuant to Arizona Law.  However this is a lien that is not yet payable and it becomes due October 1.  Pro-ration simply figures out how much of these taxes you owe, and how much the buyer owes once he/she becomes the owner.

  1. What will I need to bring with me to Title to sign my papers?

Bring one of the following: Arizona driver’s license, Arizona ID card, valid passport, or military ID.

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Is Prescott, AZ a safe city to live in?

Realtors are not technically allowed to steer people based on the perception of crime. Issues of race and location come into play, and a professional agent refrains from having such conversations. In my own opinion, in general, Prescott is a safe place to live. In fact, I’d say it’s very safe. However, the word “safe” is relative. The question of safety is all in the eyes of the one asking. Every single human has a different view and outlook on safety.

For a factual look at crimes in the Prescott area, and their concentration, check out the following websites.

http://www.usa.com/prescott-az-crime-and-crime-rate.htm

http://www.crimemapping.com

Are there some areas in Prescott that I would say are safer than others?

Prescott is a safe community for most part. We have a fairly good community vibe, and locals do help each other.

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What if my Prescott, AZ house does not sell at public auction, how long do i have to move out?

Depends on if you’re the owner. If not, do you have a lease as the renter?

The law states you have 90 days to receive notice prior to being evicted from a foreclosure. Also, neither the landlord nor the bank is legally obligated to let the tenant know about the foreclosure (in a rental situation.)

If you have a lease, the owners (whoever they are or become) are obligated to allow you to remain in the property until the lease expires with three exceptions:

1. The lease can be terminated on 90 days notice if the unit is sold to a purchaser who will occupy the property.
2. The lease has fewer than 90 days remaining.
3. The tenancy is month-to-month or a tenancy at-will, in which case the new owners must provide the tenant with 90 days notice prior to eviction.

If you’ve been served notice, you have 90 days. If the new owners are unaware, and they try to force you out early, tell them about The Protecting Tenants in Foreclosure Act. PTFA was passed by Congress signed into law by the President in May, 2009 and expired December 31, 2015. (S.896, P.L. 111-22). On May 22nd, 2018, President Trump signed the bill into law to permanently extend the bill (S. 2155).

If you’re the owner of the home, and the home has gone to auction, your time is up. If you have no issue with the sheriff knocking on the door and physically removing you, stay until that happens if it means keeping a roof over your head. Otherwise the bank may offer you an incentive for leaving early and keeping everything in top working order called “Cash for Keys”.

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IRS and HOA liens of Prescott area properties

Question: My Prescott, AZ home is set for auction and there are two liens. One, IRS and the other is an HOA lien. I was told most likely, it will not sell. Is this true?

Answer:

There are “junior” and “senior” IRS liens. If the IRS lean is a senior lien, it means they filed it against you before you obtained the loan on the house. This is typically unpaid taxes. This will stick with you no matter what. If the lien is junior, this means the lien was filed after you obtained the loan on the house, and the IRS will have 120 days to redeem the house from the new owner after it auctions. (Meaning they’ll buy it for whatever was paid plus repairs)

Liens against property exist only because you’re not paying someone. They cannot necessarily procure your home just because they file a lien. For instance, the HOA can not claim your house for $300 in non-paid HOA fees. However, if you sold the house and received any profit, the filed judgement will show up during a title search, and will need to be satisfied during escrow.

Whomever said, “it will likely not sell” is correct, and incorrect. “Likely” being the key word. Some people do not want to risk the IRS redeeming the property during the 120 days after the trustee sale. However, the budgeting for redeeming properties is so low, it is very unlikely that the IRS will attempt to redeem the property, unless a significant financial advantage for redemption exists. Meaning if someone were to not have an emotional attachment to the property, the investment is likely to be a good one; knowing that either way the financial investment will be recouped by flipping or redemption.

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