TucsonHomesForSaleGuide.com

THE TUCSON REAL ESTATE MARKET Trend is local…..The Tucson Association of REALTORS® November 2007 Housing Report’s statistics show a more stable market than in November of 2006

According to the Tucson Association of Realtors new contracts opening escrow, listing inventory and new listings coming on the market all supported the positive trend when compared to November 2006 for the sixth consecutive month. 

The 910 New Contracts opening escrow compare with 891 in November 2006.The Active Listing inventory of 9,234 is slightly fewer than the 9,238 in November 2006.

A new Tucson Restaurant Deli was just opened at Plaza Colonial in the Foothills of Tucson, which added a much needed dimension to the area.

Being a former trained chef, I love to try new restaurants where ever I go!

The menu is comprehensive with traditional Deli sandwiches but the Restaurant also has some great New York Deli specials such as Knishes which are excellent and also evening specials such as Hungarian Goulash. The Deli will also capture some of the evening traffic as it has a bar, and is open late like other restaurants in the area. It also has a comprehensive breakfast menu.

Pricing is a little high, but the portions are huge so be prepared to either share or take home a box.

The Tucson housing market will fair better than other retirement destinations is the prediction of  many local economists and real estate agents.

There are several reasons for this happening.

One includes the fact that it was a late player in the housing boom  game as many investors had gone to Las Vegas, Miami, Phoenix, and San Diego before turning their heads to the Tucson Market.

Also as a city goes, we did not have such a large gross product in construction as other areas, and many of our jobs are stable University, government or Raytheon jobs.

Investors were shut out of new construction by local and national builders with the experience of other areas, and way fewer penetrated the fold than in Phoenix or Las Vegas. Our median price has dropped only 2.3% over the last year compared to other Boomer hot spots such as Phoenix (-10.6) San Diego (-11.4) Miami (-12.4) Source ..Cnn Money Magazine

Many  baby boomers are still going to be looking for reasonable places to live with lower taxes, less natural disasters, low home owners insurance. Arizona ranks the 15th least taxed state.

We have a great climate and Tucson itself is one of the sunniest places in the US.

Canadians are buying in Tucson with the dollar exchange and Tucson has always been a good destination for foreign nationals.

With the present financial climate one would be better to find the right house at the right price as our inventory is slowing.

Tucson has traditionally always had low inventory until the boom.

Recent Tucson Real Estate Market Appraisals has been making it harder on people in the Tucson area with national press about  depreciating values nationally. Appraisers that were once conservative about appreciating values a few years ago are now conservative in making value estimates. Well Fargo and also Countrywide are now requiring extra money down when a home is seen in an area of proposed depreciating value.

The problem comes when dealing with out of state underwriters who do not understand the local market, or with inexperienced appraisers that are not totally familiar with certain areas of town. Such an event happened to one of my buyers this last week when mistakes were found in the appraisal done on a Dove Mountain Property that she received a great discount from the builder, and only to be told that the home did not appraise. The appraiser had taken two builder reductions instead of one from one the comparable properties. Hence the appraisal was reduced by over 23,000 dollars. The appraisal was amended after talking with the underwriter and the appraiser, but the box that said that the area was in decline was not ammended by the appraiser.

One can understand someone not wanting to lose face to a lender but at the expense of a Buyer?

The Ritz Carlton recently started its largest resort in the development after years of planning and the areas is poised to become a number one golf destination in the United States. So depreciating value?????

Short Sale Addendums are becoming more apparent in the current market as we see the effects of ARMS and investors homes on the market. To educate both Buyers and Sellers about Short Sales, we have included information that will help both understand the procedure of buying or selling a home with one of these Addendums in place.

A short sale occurs when the lender that owns the mortgage on a property is shorted on the sale. In other words, they agree to take less  than the total amount that is due on the note from the borrower. For example  If your mortgage is $200,000, but your home in your current market is worth $190,000, you would be looking at  $10,000 short. This would not include your  costs to close the sale such as real estate commissions and  title and escrow charges.

In the current market with may sub prime loans foreclosing, the bank may  authorize a short sale to avoid going through the cost of foreclosure especially if the homeowners are in a pre foreclosure status.

The following steps would be taken to list your home as a short sale:

Seller would sign a listing agreement  with a real estate agent  and it would be subject to selling  the home as a short sale with third-party approval. IE the bank. 

The agent  would then find  a buyer who would make a offer on the home that is less than the amount of the mortgage.

The  Sellers lender then accepts the buyer’s offer to purchase the home.

The Transaction closes when the buyer delivers the funds to close on the home. The  lender then  releases the lien on the home,  and the seller delivers the deed  to the buyer.

There are however consequences to a short sale the are important to remember.

There has to be certain criteria met to qualify for a short sale. If you are unable to answer yes then you may not qualify.

1.The home value has dropped.

2. There must be hard comparables to show the home is worth less than the unpaid balance due to the lender. This balance also may include a prepayment penalty

3. The mortgage must be in default.

4. The Seller must delver a letter of hardship explaining why they cannot pay the difference due upon sale, and including why the seller has stopped making monthly payments. Hardship examples are: Unemployment, Divorce, Medical emergency /sudden illness, Bankruptcy, Death, or lack fo Financial Assets.

The lender will review  a copy of the seller’s tax returns and / or a financial statement.

If the review discovers assets, the short sale may not occur as the lender feels that the seller has the ability to pay the shorted difference with their own assets.

For example,  if the seller has any cash in a savings account, owns stocks, bonds, or has an IRA,  and /or other real estate, the lender will most likely determine that the seller has assets. The short sales that get accepted are usually those where the seller has no money or assets.

Short Sales have Consequences

In order for a short sale to happen there has to be an offer to purchase, and also the lender has to accept the offer.

I If the lender agrees the lender has the right to issue you  a 1099 for the shorted difference, due to a provision in the IRS code about debt forgiveness.

You should  consult with a real estate lawyer and a tax accountant to determine the amount of short sale taxes and whether you can afford to pay that tax.

A short sale will show up on your credit report as a pre-foreclosure that has been redeemed.  The damage to your credit report may not be as  bad as a foreclosure, for example, some creditors may not make the distinction they still affect your credit score.

You should always seek legal counsel before attempting to pursue a short sale. A real estate agents , we cannot give you any legal advice.