Why Do Some Real Estate Transactions Fail?

Real estate transactions can fall apart for a number of reasons, but I have noticed three in particular that cause deals to fail in today’s market.

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Whether you are buying or selling a home, you may end up in a real estate transaction that falls apart. Why do some real estate deals fall through?

There are many factors that go into a real estate deal, but there are three main reasons why a transaction could fail:

1. You ask for too much on the inspection report. Since we have low inventory right now, sellers often end up with multiple offers. As a result, they are not going to fix every single item on the inspection report. If you are buying a home, focus on the major issues in the home rather than requesting a bunch of cosmetic fixes. If you ask the seller to take care of everything on the list, they will simply move on to one of the other six offers they have on their home.

2. Your real estate agent gets emotionally involved. Unfortunately, there are a lot of agents out there who let their emotions interfere with your transaction. As real estate agents, our job is to represent our clients’ needs and interests. Sometimes agents feel as if they are the ones buying the property and end up taking everything personally, which can cause your deal to fall through.

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Focus on major issues in the inspection report instead of cosmetic fixes.

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3. Bad negotiation tactics. In today’s market, if you offer $250,000 on a house that is worth $300,000, you could really insult the seller. Our job as real estate agents is to get you the best deal, but we are also here to educate you. That way, you can offer a fair price, avoid angering the seller, and get a deal done. If you insult the seller at the beginning, you’re in for a difficult battle during the negotiations.

Fortunately, a professional real estate agent can help you avoid any of these problems. If you have any other questions about buying or selling a home, just give me a call or send me an email. I would be happy to help you!

Why the Tucson Market Is Changing

Inventory is extremely low in the Tucson metro area and we're seeing the market turn into a seller's market. We're even seeing sellers receive multiple offers on their homes.

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Tucson is really turning into a seller's market, so I wanted to stop by with a quick market update.

There is extremely low inventory all over the Tucson metro area. I've talked about this before, but I can't stress it enough: if you're thinking about selling at all, inventory is very low right now, so you have a very good chance of getting full price for your home. We're even having a lot of sellers getting multiple offers on their house and getting to choose one that's above asking price in some situations.

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You have a good chance at selling at or above asking price.

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Low inventory puts you in a great negotiating position because buyers have fewer options to choose from, which means that you won't have to do many repairs after an offer comes in. These are the kinds of things that will save you money.

If you've thought at all about selling your home, give me a call or send me an email today because you don't want to wait any longer to take advantage of this market. I hope to hear from you soon!

A Great New Loan Program for Home Buyers

This loan program will gift you up to 10% down to purchase a home. There are limited funds, so acting fast is essential. 

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I’ve got a great new loan program for buyers that I want to discuss with you today. This program is called “Pathway to Purchase,” and it’s one of the best programs I’ve ever seen for a conventional loan.

This conventional loan product gifts you up to 10% down, and you don’t have to pay it back. The only caveat is that you have to live in the house for five years before selling. After five years, you can sell or do whatever else you’d like. The down payment will cover up to $20,000, so you could get a home worth up to $200,000.

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There are limited funds in this program.

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Even if you have money saved up for a down payment, you can use this extra money for renovations. There are limited funds in this program, so if you would like to learn more, let us know as soon as possible so we can get you in touch with one of our lenders. This program is designed to stimulate activity, but once it’s done, it’s done. This product has also brought more buyers into the market, making it a smart time to sell, too.

If you have any questions for me, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

A Great New Loan Program for Tucson Home Buyers

I wanted to take a minute talk about a great new loan program that’s only available here in Tucson.

This loan provides up to $20,000 that you don’t have to pay back for properties in Tucson. The only small caveat is that you have to live in the house for five years. You can’t use this program to buy a house, get $20,000 in free equity, and sell it right away. This program is not for people who want to flip properties.

I’ve never seen a program like this for first-time home buyers. If you’re a first-time buyer and you don’t have enough money for a down payment, this program will give you up to $20,000.

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I’ve never seen a deal like this for first-time buyers.

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It’s a remarkable deal with great rates, too. If you’re interested, we’d love to put you in touch with one of our preferred lenders.

If you have any other questions about this loan program or about real estate in general, give us a call or send us an email. We would be happy to help you!

Tucson Business Spotlight Podcast: Dave Clarkson

Dave Clarkson is the president of Clarkson Insurance with State Farm. Dave found his calling to be in the insurance industry when he was in college and opened his agency in Tucson when he was only 23 years old. Dave is dedicated to educating his clients about insurance so they can make the best decisions possible.

WHAT YOU’LL LEARN

• How Dave got his calling to be in the insurance industry
• Why his job is to provide Insurance 101 to his clients
• Examples of the most basic insurance you should have
• Why umbrella policies provide peace of mind
• Why Dave views the insurance agency as a service industry
• Why Dave wants high schools to have a few days dedicated to insurance education

SUMMARY

Dave Clarkson is the president of Clarkson Insurance with State Farm. Dave opened his agency at the age of 23 and has been serving the community of Tucson ever since. His number one priority is educating his clients. Most people don’t understand the purpose of insurance and think they have nothing to insure. Dave explains why insurance is so important, the basic types of insurance you should have, and why education is so important. Dave also reveals why he would love to give a few lessons at local high schools.


RESOURCES

http://daveclarksoninsurance.com/
https://www.statefarm.com/agent/US/AZ/Tucson/Dave-Clarkson-L78W91YS000
https://www.facebook.com/Dave-Clarkson-State-Farm-Agent-179893835380010/

Buying and Selling Trends in Tucson this Summer

We’ve got a second quarter update for the Tucson market for you. Today’s market is a double-edged sword for both buyers and sellers. It’s great for sellers because of low inventory, and it’s great for buyers because interest rates are still low and there are a lot of down payment assistance options out there. At the same time, we are still seeing issues.

For buyers, low inventory means you’ll likely be competing against multiple offers on anything priced right in the $250,000 or below price range. For sellers, prices are going up due to low inventory, especially in the last few months.

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Buyers must be prepared to make a quick offer.

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If you’re selling in this market, all you’ve got to do is price properly and you have a good chance at receiving multiple offers. If you plan on buying, it’s absolutely possible to get a good home. You’ve just got to be prepared to write an offer quickly. Homes are sometimes getting multiple offers within the first 24 hours that they are listed.

The weather isn’t the only thing heating up in Tucson; the market is as well. If you have any questions for us, give us a call or send us an email. We would be glad to help you out.

How the Brexit Has Impacted the Tucson Market

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For those of who you follow the news, I’m sure you’ve heard by now about the U.K. deciding to leave the European Union, or the “Brexit.” This event has actually benefited us in the real estate market as it has lowered interest rates a considerable amount. Whether you’re buying a house or selling a house, the impact has been positive.

If you’re selling, there will be more potential buyers out there looking to lock in a great rate. If you’re a buyer, you’ll be able to get a great rate on virtually any type of loan program. If you’re looking to wait and see what will happen, now is a great time to act due to the increased amount of buyer activity.

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Whether you’re buying or selling a house, the impact has been positive.

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This is especially true here in Tucson, where we’re seeing low inventory. Low inventory, of course, drives prices up because there are more buyers than there are properties listed. It’s a win-win situation for all parties.

If you have any real estate needs regarding buying or selling a house here in Tucson, please feel free to give me a call or shoot me an email. Have a great day!

Tucson Business Spotlight Podcast: Anthony Birchak

Anthony Birchak is a mixed martial artist and has competed in the bantamweight and featherweight divisions for the UFC. Birchak is opening 10th Planet Tucson, a gym dedicated to training mixed martial arts fighters that will also bring together the fighting community in Tucson.

WHAT YOU'LL LEARN

• Anthony’s background in UFC and mixed martial arts
• Misconceptions about UFC competitors
• Explanations of jiu-jitsu and its many different forms
• How Anthony wants to help end bullying in Tucson
• The importance of posture and how jiu-jitsu can allow anyone to defend themselves
• How to contact Anthony about a special grand opening offer for 10th Planet Tucson

SUMMARY

Mixed martial artist Anthony Birchak and has competed in multiple UFC divisions, and now he's opening 10th Planet Tucson, a community-oriented MMA gym. The gym won't just be limited to MMA techniques however, but additional martial arts as well. Anthony, who was bullied as a child, wants a place where children in the community can come and relate to one another, but also build life skills outside of the ring that will help them to live brighter lives. Lastly, Anthony will give details about his gym opening up in July and some special offers going on until July 4th.

RESOURCES

Facebook - 10th Planet Tuscon
Facebook - AnthonyBirchak
Anthonybirchak.com
Cronkitenews

Tucson Business Spotlight Podcast: Fred Adler

Fred Adler teaches us how to plan for retirement and take control of your financial planning. His innovative strategies allow clients to take control of their finances years and even decades before retiring.

WHAT YOU'LL LEARN

• How Fred got into the business
• How to plan for retirement if you haven’t already
• What demographic Fred typically works with
• How to take control of your retirement funds
• Different ways to reach Fred if you’re interested in his services

SUMMARY

As the President of Suncrest Wealth Management, Fred Adler provides retirement planning services. He works with clients of all ages, and shares some of his experiences in the surrounding Tucson area in today’s podcast.

RESOURCES

Linkedin
Facebook
Suncrest Wealth
Vistage

Avoid Disappointment With a Pre-Approval When Buying in Tucson

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When thinking about buying a property, the pre-approval is probably the most important step.

There are a number of reasons why.

Depending on your price point, there are a lot of sellers that won’t even let you come view their property without pre-approval or proof of funds. The pre-approval is basically a letter from a lender saying that you’re good up to a certain amount on a home loan.

Sometimes hopeful buyers will view a property without pre-approval, and become excited after their spouse and kids have seen it, only to be let down when they find out they can’t afford the property after getting pre-approval.

In other cases, some buyers wait two or three days too long for pre-approval. Here in Tucson, anything below $250,000 is in a hot seller’s market, and will likely have multiple offers after just a couple days. Oftentimes, one of those early offers might even be accepted.

Don’t miss out on a home you love by waiting to get pre-approved.

If you’re looking to buy or sell in Tucson, don’t hesitate to reach out to me or my team!

Increase Your Selling Chances in Tucson with a Key Safe

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When your house is listed and available for showings here in Tucson, it’s important to make it as easy as possible for a buyer’s agent to show your property.

Typically when an agent is showing homes to a potential buyer, they’re showing them 3-6 homes in a short time, which could be just one or two hours. There are two things we recommend our clients do to make showings easier and increase their chances to sell.

If the house is vacant, we recommend a key safe, which allows agents to show the property at any time.

Sometimes we have clients still living in the home. If this is the case, we still recommend a key safe, but we put in a notice for either a 30- or 60-minute courtesy call. This way the agent can call or text the homeowner with the time they wish to show the property.

This gives the homeowners enough time to exit the property so the agent and potential buyer can view the home by themselves.

If you have any questions about selling your home or any other real estate questions, give me a call or send me an email. I'd love to work with you!

Don’t Forget the Closing Costs When Buying in Tucson

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Typically, when we work with buyers, many assume that the down payment is the only money they will need to pay out of pocket for the property. These buyers get a rude awakening when they realize there are other costs. That’s why today, we’re talking about closing costs.

First of all, there’s the down payment. There are some loan programs that don’t require any money down. In Tucson, there’s even a down payment assistance program. If you don’t want to pay any money out of pocket, you will still need a savvy agent to negotiate closing costs.

Closing costs include loan origination fees and other fees. If you are working with a DPA program, you can probably come in with a 3% down payment. If your agent doesn’t negotiate the closing costs, however, you will actually need to pay 6.5% out of pocket.  

In our current market, homes priced around $250,000 are in a strong seller’s market. That said, sellers are still paying closing costs. You may have to offer closer to the asking price in order to make that happen, but it will mean less money out of pocket at the end of the day.

There are other fees that a buyer needs to be aware of as well. We always recommend that buyers conduct a home inspection. These usually run around $300 to $350. For smaller properties like townhouses and condos, a home inspection might only cost $280. This is a small investment to make in order to know everything about the property before you buy it.

On top of the regular home inspection, you should also get a termite inspection. Termite inspections only cost $40 to $60. It’s important to make sure that the property doesn’t have any termites because banks won’t finance your home purchase if there are termites.

As you can see, there are many costs involved in buying a home. If you have any questions, give us a call or send us an email. We would be happy to help you!

The News About Long-Term Listing Agreements in Tucson

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Long-term listing agreements are ultimately designed for failure. You wouldn’t go out on a blind date and marry that person right on the spot, would you? It’s the same kind of thing when you interview an agent to sell your property.

Don’t hire the first agent you interview. Talk to at least two to four agents before making a decision. You may know one of them better than the others already but you won’t know their whole history. You need an agent with proven experience.

Typically when you sign a listing deal, you commit to working with that agent for 6 months to a year and there’s no clause to exit the agreement. If things don’t go smoothly with the agent, you are stuck with them until the agreement is up.

On our team, we include a no-questions-asked clause that allows you to get out of the contract. In the state of Arizona, you need to provide the start and end date in a contract. We include this clause so that if you’re not happy with our services, you can cancel at any point. This holds us accountable. We will do what we say we’ll do during the listing appointment. If we don’t, you don’t have to continue working with us.

This is the best way to go into long-term business relationships. Most agents will just tell you what you need to hear and, after they get the listing, you won’t hear from them. The no-questions-asked clause keeps us on our toes and working hard to sell your home. 

If you have any questions about today’s video or real estate in general, give us a call or send us an email. We would be happy to help you!

The Key to Avoiding a Real Estate Disaster in Tucson

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There is one main question you should ask your agent before hiring them: “Are you a full-time agent?” You need to find whether they just do real estate as a hobby or as a part-time job. If that’s the case, you probably shouldn’t hire them.

Most deals that fall through do so during the inspection process. If you have an agent who is only part-time and has only done a few transactions, you increase the chances that the deal will fall through. You need a savvy agent with a lot of experience in order to ensure the deal goes smoothly.

A part-time agent is only going to be available part of the time. If a buyer calls to check out your house, but your agent isn’t available to take the call, the buyer will move on to the next home. You need an agent whose highest priority is real estate so that they’re always available to assist you.

Here at Emprea Real Estate, we are full-time agents. We don’t hire anyone part-time because we want to ensure a professional experience for our clients. Selling a property can be very stressful, so we want to help take the stress off our clients as much as possible! On our team, there is always someone available to answer your call!

If you have any questions about the real estates process, or if you need real estate assistance of any kind, please don’t hesitate to reach out to us. We would love to hear from you!

What Determines Your Buying Power in Tucson?

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As a buyer in the Tucson housing market, there are a few things to keep in mind when considering your buying power. Check out these four important factors below!

• Your credit score is the most basic way for a lender to know where you stand financially. This also accounts for your ability to pay back each loan every month.


• Your initial down payment is important. The more money you’re able to offer upfront, the more purchasing power you have.


• Next, there’s always the debt-to-income ratio to keep in mind. Although you might have a steady income, any remaining debt can decrease your purchasing power.


• Lenders want to be reassured a buyer has the assets to pay back loans. This can include money coming in the future, such as rent from tenants, or any investments.

If you’re thinking about buying or selling in the surrounding area, give me a call or email! I’d be happy to answer any questions you have.

Prepare Your Tucson Home for Sale

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Before listing your home, do a walkthrough of your own house as if you were a buyer. Look for leaks around toilets and sinks. See if you can spot any problems that need to be addressed sooner than later. Buyers will most likely see these problems if you can.

You can always contact a home inspector, too. They can perform a pre-inspection for your property. This can cost around $300 to $400, but it is worth the investment. After the inspection, they will give you a report with repairs and problems to fix. If you contact us, you can ask our recommendation for a local inspector. Our office maintains relationships with contractors in the area.

Many people also ask if it’s wise to remodel their home (specifically the kitchen or the bathroom) before listing it. Generally, I advise against this, because you don’t always see that return on the investment. For instance, if you replace appliances and it ends up costing you $50,000, don’t expect your listing price to increase by that amount.

If you have any questions at all about pre-inspections, please don't hesitate to ask!  

The Importance of Home Inspections in Tucson

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When buying a home, should I get a home inspection? In Tucson, when you go under contract, you have ten days for due diligence. Due diligence allows you to inspect the property. Recently, many clients have asked if a home inspection is worth the fee. We always say yes!

Generally, home purchases are the most costly transactions you’ll make in your lifetime. You want to get what you bought. Make sure you know what you are getting into. Home inspections usually cost between $300 and $400. They’re definitely worth the price, too.
 

Any skilled inspector knows what to look for, from plumbing to electrical repairs to the roof. They will give you a report on what needs to be fixed, updated, or addressed soon. They will tell you what to look for. The extra expense of hiring a home inspector is well worth it.

If you have any questions about inspections or real estate in the Tucson area, give me a call or send me an email today. Please reach out!