General	Top
This page is filled with resources whether you are buying, selling, an investor, or just considering. Links will either open a new window, or put the new page into a window that had already been opened by a link on this page.
Brokers, Agents, and RealtorsŪ, Oh My!	Top
Broker The Broker is the person you employ when you list/sell your property (listing broker) or when you buy a property (buyer broker). More often that not, though, you'll probably not ever meet your broker as you will be dealing with an Agent. The Broker, however, works for you through his or her Agent. Is licensed by the State. Agent The Agent works for the Broker. From your perspective, and for all intents and purposes, it will appear that the Agent works for you. The fact is that this legal distinction is of little concern to you and you'll probably not notice it at all. Is also licensed by the State. RealtorŪ This is important - not every licensed broker or agent is a RealtorŪ. This is a special designation for those licensees that subscribe to a more rigourous code of ethics. In Tucson, RealtorsŪ are members of the National Association of RealtorsŪ, the Arizona Association of RealtorsŪ, and the Tucson Association of RealtorsŪ. Only RealtorsŪ have access to the Tucson Multiple Listing Service (MLS). By the way, it's pronounced "Real"--"tor", two syllables only. Agency This is the legal description of employment of a broker by another. You'll want to discuss agency with your REALTORŪ and what it means. Dual Agency Arizona permits the same broker, and even the same agent of a broker, to represent both the seller and the buyer in a single transaction. This dual representation is common when unrepresented buyers contact a listing agent to buy a listed property. For our first links, here are the big guns: AZ Dept. of Real Estate (the law) National Association of RealtorsŪ AZ Association of RealtorsŪ Tucson Association of RealtorsŪ
The Multiple Listing Service (MLS)	Top
Perhaps the most important tool that a RealtorŪ in Tucson has at their disposal is the Multiple Listing Service, or MLS. The MLS is a central database that RealtorsŪ may access to list properties available for sale. RealtorsŪ and the general public may search the MLS for information about these listed properties. RealtorsŪ may also look at information about previously sold properties and may use a variety of other tools to use the sales data. Nearly every property listed in Tucson is on the MLS, and trying to sell a property without listing it there can be, forgive the pun, trying...
Information for Buyers	Top
Below is some help if you are buying, or considering buying, real estate. There is not only some general information, but also things to refer to as you move through the process.
Should I use an agent?	Top
Yes! (of course we're biased, but read on...) The easy answer is that using an agent to help find and buy a property is a simple decision because it won't cost you anything. You see, the seller pays the commission in nearly every real estate transaction, so obtaining the services of an agent if you are buying is free. An agent will help you find out what you want (you'd be surprised how many people think they know but later discover that they want something else), determine what you can afford, and find a property that fits those needs. You'll have access, through your RealtorŪ, to the Multiple Listing Service so you can review properties that meet your criteria as they come up on the market and so that when you spot one or more that interest you, you and your agent can visit and view the property (we have key access to nearly every property listed on MLS). Finally, using a RealtorŪ insures that you'll have the best advice and advocacy during the negotiation and contracting process. You'll be protected in the best way possible, with experience and expertise on your side. We promise that our involvement will make the entire experience better!
The Buying Process	Top
Fund It Before you find a home to purchase, you should not only figure out how much you want to spend, but line up the financing in advance. Obtaining a pre-approval for a mortgage will make things much easier once you've found a house you like, and will also make negotiating for that house much more effective. Find It This is the fun part! Working with your RealtorŪ you will determine some criteria and begin to look at properties, first on paper and then in person. As you do this, your criteria may get adjusted - don't worry, that's normal. Remember: there is no "perfect" property; your job is to find one that works for you. Contract It This part of the process involves negotiating a contract and then fulfilling the contract, including inspections and securing financing. Close It "Closing" on your home is exciting, and potentially a little intimidating. Your RealtorŪ is there to make it easier and understandable. This part is done when you get the keys!
How Much House Do You Want?	Top
Deciding how much you can afford, or better yet, how much you want to spend, is the fundamental first step in buying a home. We strongly suggest you find a mortgage broker you're comfortable with to explore all of your options and to pre-qualify for a loan. You and your RealtorŪ can use this Simple Mortgage Calculator as a tool to help in your early decision-making. We've also created a great spreadsheet to help you in deciding how much down payment is wise depending on the current investment market. There are plenty more calculators at one of our favorite sources, The Motley Fool and your RealtorŪ can help you with them if you like.
Deciding What You Want	Top
Early in the process we will want to discuss your initial search criteria for a property, but we will also want to discuss your timeline as well as your ability to finance the purchase. By this time, you should have prequalified for financing and have a clear idea of your price range. Deciding on location, price, bedrooms, bathrooms, square footage, amenities, etc. can make the shopping experience a bit overwhelming. Taking some time early in the process determine what your priorities are will make it go much smoother. You can and probably will adjust along the way, but a little effort at the beginning will save a whole lot of effort as you go. As we work together to examine your needs and wants, we'll try to identify your "deal breakers" or things that are absolutely not acceptable, as well as your "deal makers" or things that are highly desirable. Once we've done this, we can begin to search for properties that meet your criteria and your priorities. Knowing what you want ahead of time makes it much more likely you'll be happy with your decision, and much more likely that the process will be enjoyable rather than frustrating. A critical point is that once you know a property isn't right, it's best not to waste any more time on it. Also, once you know that one of your criteria has changed, tell your Realtor® at once.
House Hunting - A Story	Top
Rather than try to detail out how this will work exactly, and since it is slightly different in each case, let's take a look at an example: Shannon contacted George because she and her boyfriend were talking about finding a house to buy. They were tired of paying rent, and were also on their way to getting engaged! Their first move was to schedule an appointment to sit down and discuss, of all things, the buying process. At that time, George suggested several mortgage brokers where they could begin the process of prequalifying for financing. They then started talking about what sort of home they wanted to buy. The first thing that came up was that they wanted a pool. After that was discussed, they talked about locations and neighborhoods, number of bedrooms, and what their plans were for their home beyond just sleeping and eating. It turned out that Shannon sewed and wanted a place where she could have all of her projects out all of the time. After this first discussion, they had an idea of some neighborhoods, some amenities that were absolutely necessary (pool) and a a good feel for number of bedrooms and baths needed. They were ready to look at listings. At that point, they all sat down at George's computer and within a few minutes had 15 houses that fit. A couple of hours on a Saturday was spent driving to those houses, and after viewing 5 or 6 of them, it was clear that some of the criterial needed to change. They modified some of the search items and set it up so that the MLS system would send an e-mail to Shannon whenever a property came up that fit. She agreed to drive by any property that was interesting and if if looked good, to call George to see the inside. The next time out George started by asking Shannon a simple question "If we find a house that you like and fits all you're looking for, are you prepared to buy it today?" She thought about it for just a moment and said "Yes, but it has to be the right fit." Sure enough, the third house they entered that day was "the one" and shortly thereafter they were writing up an offer to be presented to the seller right away. As we said, every situation will be different, but they all have these few things in common: be ready to buy (because properties can sell at any moment), start out knowing what you're looking for, don't be afraid to change your criteria, and spend time reviewing possibilities. We didn't mention that as soon as you know a property is not a fit, don't spend any more time with it. Your RealtorŪ is experienced at this process and can guide you through it with a minimum of your effort and with the best possible result.
The Sales Contract	Top
Offers The offer to purchase contains all the provisions of what the buyer wants, and is accompanied by earnest money. Earnest money is what the buyer puts up to demonstrate they are serious about the purchase. If the offer becomes a contract and the buyer breaches it, the seller is entitled to keep the earnest money as compensation for taking the property off of the market. More often than not, the first offer is not accepted and the seller returns a Counter Offer, typically changing one or more terms of the offer. Price is usually the issue being negotiated, but ofter there are other terms that are changed including length of escrow and closing date. The buyer can counter the counter which can then be countered by the seller, and so on until a counter offer is accepted. Once an offer or counter offer is accepted, the offer and all included counter offers become a contract. This begins a process known as "escrow" which refers to the name for the account that holds the earnest money. Escrow is handled by a title company who also manages virtually all of the paperwork for the sale. Inspections You'll want to have everything that is, or may be, a concern to you, inspected by a competent person that you trust. We highly recommend you look over the AAR Buyer's Advisory to learn about this important part of the process. Investors frequently handle the initial inspection themselves and call in specialists for items or areas that give them concern. First-time home buyers usually hire a professional inspector to do a comprehensive home inspection and then follow there advice if there is more to look into. If the house was built prior to 1978, there is the possibility that lead-based paint was used and you'll want to read the EPA's brochure to learn about that. In any case, you have the entire inspection period (typically 10 calendar days) to learn anything you want about the property. Once your inspections are complete, you have the option of accepting the property as it is or requesting repairs or consideration for items you found unsatisfactory. Essentially negotiations are reopened but you are in the driver's seat. If the seller does not agree to your request, you can cancel the contract. If, during the inspection period, or anytime during escrow, both parties agree to modify the contract, this is done with an Addendum, which then becomes part of the contract. Appraisal and Financing Most financing will require an appraisal, which we typically like to order once we're past the inspection stage. Not appraising for the sales price or greater is another way the contract can be canceled by the buyer.
Closing	Top
Escrow is opened once an offer, with counter offers if any, is accepted and becomes a contract. The earnest money is held by the title company, inspections are scheduled, and all other details for the seller to sell, and the buyer to buy, are begun, pardon the pun, in earnest. Unless the contract is cancelled, escrow is closed at the agreed upon date. The seller signs all the required paperwork to transfer ownership and at a different time, the buyer signs all the paperwork to take possession. Depending on payoff of existing loans and creation of new ones, the amount of paperwork can be small or large on both sides of things. Once the sale is recorded with the County, the keys and possession can transfer. This is a simplification of a rather detailed process, but should give you an idea of what happens in what order. Your RealtorŪ is there to help you through every part of the process.
Information for Sellers	Top
Below is some help if you are selling, or considering selling, real estate. As with other sections, there is both general information and specific information you may wish to use during the sales process.
Should I use an agent?	Top
This is a great question and a good place to start. Should you hire a broker/agent to help you sell your property or should you try to do it yourself? While we can't answer the question for you, we'd love to sit down and review your situation and discuss these factors: - listing on the MLS - offering cooperation to buyers' brokers/agents - advice on pricing - advice on preparation of your home for sale - advocacy during the negotiation process - help with the sales contract, counter offers, addendums, etc. - advocacy before and during the closing
The Selling Process	Top
Prep It Doing what you can to put the "best face" on your property will help it sell for the best price possible in the shortest amount of time. Price It You and your RealtorŪ will spend a great deal of time and attention on this. Promote It While price and condition are the primary factors that influence a buyer's decision to purchase your house, how it is promoted can sure be important in getting the job done. Contract It Once you have an offer, negotiating a contract and seeing it through escrow are big jobs. Close It The final step is perhaps the easiest, provided everything has been done well up to it.
Prepping Your Property to Sell	Top
You have total control over perhaps the most important factor in selling you property, it's price. The next most important factor, though, is its condition. Unless you are selling your property to an investor or at a "wholesale" price, the condition of it will have a large and immediate impact on any prospective buyer. Surprisingly, there are many things that can be done that don't cost a lot of money but will have a significant impact. You and your RealtorŪ will go over your options in detail for your property. He or she should suggest those things that will yield a positive return on your time and money. Major work is usually out for this reason; it is rare that additions or major renovations increase the price more than their cost. Little things, however, can have a remarkable impact. It should go without saying that having the property spotless, to the highest standard, is the first and most important step. If the property is vacant, then beyond clean you probably need only invest in some throw rugs, towels, soap and soap dishes, and perhaps a few kitchen accessories. If you're still living in the house, then neatness and minimalism are your friends. Cutting back on clutter and paring down the decorations will improve the showability of your house. Your RealtorŪ will have specific recommendations, and may even have a video or other resources for you to use. Pay close attention and do what you can to show your property in the best light possible. When you list your home, there are a number of things that will also be done in terms of disclosures and other reports ordered: Flood Plain Verification Davis Monthan AFB Zone Map
Deciding on a Price	Top
Time and price are the key variables in selling a property. Seller terms go with price, but typically only when the mortgage rates are high and financing is difficult, or when a buyer would have trouble getting financing due to their circumstances. Most often, terms are not an issue and sellers don't get involved in the financing end of things. If you price your property far enough below its market value, it will sell immediately; there is no shortage of investors, including some of us here at Santana, who are always looking for a bargain and will gladly pay cash for one right away. For convenience sake, we'll call this "wholesaling" your property. As your price moves from "wholesale" to "retail", obviously there will be fewer potential buyers, and it may take more time to find one. At some level and beyond, there are not likely to be any buyers, or it will need to sit waiting until the market catches up with your price. That could take a long time. Of course timing is hardly set in stone -- it may be that your price is such that only one in a million prospective buyers will want your property, but that one buyer may see it the first day it's on the market. There are no absolutes here, just probabilities. Your task is to decide how important time is, and how important price is. We'll work with you to examine the recent market action for similar properties (we call these "comps" for comparable sales) and we'll make suggestions on what we think the market value is. This number, or more likely a range, will help you decide how to price your property, considering how quickly you want it to sell. We will also spend some time discussing what you can do to get the most for your property. Its condition is the one variable that you alone have control over that can significantly influence its eventual sales price. If your property has been on the market for some time and has not sold, that is usually a strong indication that the price is too high. Again you'll be considering time as you decide whether it will be appropriate to lower your price. Beyond this basic idea, it's pointless to try to discuss the subject further without looking at a specific sitiuation. In the end, though, price and time will still be the key factors for you to consider. Finally, you and your RealtorŪ should discuss how much it will cost to sell your home, including an estimate of closing costs.
Finding a Buyer	Top
You've prepped it, priced it, and now you're ready to promote it. How do we find interested potential buyers. MLS. Sure, properties are sold in Tucson in other ways, but the overwhelming majority of real estate that is bought and sold is done so via the Multiple Listing Service.
The Sales Contract	Top
Evaluating offers and making the decision to sell is the most exciting, and potentially stressful, part of selling your house. There's a lot to consider and think about, and your RealtorŪ is there to help you with it. It is worthwhile to note that while buyers frequently have fairly easy contingencies, or "escape hatches" to get out of contracts, it is rare for the seller to have any. Before you sign, make sure you're willing to sell under the terms and conditions in the contract -- there's no going back!
Closing	Top
Escrow is opened once a contract is arrived at. The earnest money is held by the title company, and the buyer begins their "due diligence" period. At this stage, they can get out of the deal quite easily, so often the negotiating isn't quite over. Unless the contract is cancelled, escrow will be closed at the agreed upon date. You will sign all the required paperwork to transfer ownership and at a different time, the buyer signs all the paperwork to take possession. Depending on payoff of existing loans and creation of new ones, the amount of paperwork can be small or large on both sides of things. This should happen 3 days prior to actual the closing date. On the closing date, the sale is recorded with the County, the keys and possession can transfer. This is a simplification of a rather detailed process, but should give you an idea of what happens in what order. Your RealtorŪ is there to help you through every part of the process.
Information for Investors	Top
If you're an old hand at investment, what follows should generate a nod and a smile. If you're new to it, or thinking about getting into it, pay close attention. We'd love to get together and discuss how we can help you.
Should I use an agent?	Top
1st time buying an investment property? Yes, and... 1st time selling a property? Yes, and... 1st time buying or selling a particular type of invesment property? Yes, and... ...be sure to use an agent that has experience with investing, preferably one who is or was a real estate investor. In fact, for most cases, using an agent will be worth it to you. Here are some possible exceptions: Experience investor selling a property to another investor? Probably not. Experience investor wholesaling a property at a serious discount? Probably not. Experience investor buying from a FSBO (for sale by owner)? Probably not. Experience investor selling in a high-demand area? Probably not. If you decide to sell yourself, offer courtesy to buyer's brokers/agents (pay them a commission). If it doesn't sell or you don't get any traffic, then list with an agent so you can market it on the MLS. If you are buying by yourself, find out if there is a variable rate commission agreement in place with the listing agent. This means that the commission is less if the agent represents both the seller and the buyer. This may save you 1%. If there isn't, then any negotiation you attempt needs to be with the agent, not the seller, since they have an agreement on the commission already in place with the seller. If you don't want to deal with the details, and like having an advocate and sounding board, then use an agent for all your transactions - most investors we know do just that. You may find that a good agent that knows investment is more than worth the cost.
The Investment Process	Top
Find It This is the truly important step- blow it here and nothing will save a deal. If you don't buy the property at the right price, you will not be able to profit from it. Fund It Once you have a property you can make a profit on, then you have to figure out a way to pay for it. Cash is king, with low-cost financing being a close second. Buying properties with little or no money down is great if you can do it, but there are plenty of good investments that require money up front. Farm It Yielding a profit from your investment is your goal. Whether you "flip" the property (buy it, fix it up, and sell it for a profit) or you become a landlord (buy and hold), your results will be measured in terms of ROI (return on investment). Note: Thanks to Robert Allen for these terms. There's good information in his books, though he's not too well liked by John T. Reed. Reed's thoughts about Real Estate Gurus are VERY worth reading and his site is a great signpost to other worthwhile resources for real estate investors.
Buy, Fix up, and Sell (flipping)	Top
The ideal "flip" is to tie up a property with either an inexpensive option to buy or a minimal earnest money deposit and then sell it to someone else before you have to close on it. It can happen, but your plan should include the very real probability that you'll have to completely buy the property before you can then fix it up and sell it for profit. The idea, though, from that ideal situation is critical: you want to spend as little time as property owner as possible. This will maximize the return on your investment. Obviously finding a property that can be bought, or tied-up in with an option, at a wholesale price, is the key to making this process work. The "fix-up" and the sale are relatively straightforward -- it is the "buy" part of things that is the challenge. Here is a spreadsheet that you and your Realtor® can use to analyze projects.
Buy and Hold	Top
The name of the game here is Return on Equity. In your first year, this will equal Return on Investment, but in subsequent years, your equity will build and your ROE will decrease. This is why most real estate investors keep their properties leveraged; the more you owe, the less you own, the higher your ROE. Here is a spreadsheet you can use to analyze properties with this in mind. Your Realtor® can, of course, help you with this.
Section 1031 Exchanges	Top
Do you have an investment property with significant equity? Have you depreciated it? Has it been refinanced to pull equity out? Do you want to sell it? If you have a property that, if sold, would generate a substantial taxable capital gain, you are a prime candiate for a Section 1031 Exchange. This process allows you to sell one property and buy another of "like-kind" within a short period of time (45 days to designate, 6 months to close), and transfer the taxable gain in such a way as to defer the income tax. You must "trade" up in terms of both mortgage and equity. Your Realtor® can help you if this sounds interesting to you, and as with anything to do with your finances, consultation with an accountant and/or attorney is encouraged.
Services	Top
There are numerous competitiors in the marketplace for these kinds of services. Although we cannot be responsible for the several individuals and companies listed below, we do know that they have been utilized in the past by other home owners. Each should be happy to provide you with a list of past clients to assist you in making your decision.
Mortgage Brokers	Top
Mark McLear, Washington Mutual, 520-319-4415, cell 370-6582 Yvette Villamona, AHM Mortgage, 751-4556
Inspectors & Appraisers	Top
Harris Breit, Affordable Home Inspection, 520-298-5677 Dal-Tech, Inspections, 743-3360 20/20 Real Estate Review, 520-760-2020 Dave Matthews, Termite Solutions, 520-296-0011 Blue Water Restoration LLC., Mold, water, & asbestos remediation, 520-623-0476 EPA's Lead-based Paint Information brochure Julie Burdick, Burdick Residential Appraisals, 520-733-7244
Title / Escrow Companies	Top
Denise Monahan, Title Guaranty Agency, 520-750-8100
Insurance Agents	Top
Leon Byrd, The Mahoney Group, 520-795-8511
Home Warranties	Top
American Home Shield, 800-329-2478
Attorneys	Top
Tom Curti, Fleming and Curti, P.L.C., 520-622-0400 (specializing in trusts and estates)
Accountants	Top
Michael Strauss, Michael Strauss PC, 520-321-1600 J. Charles Maddox, 520-290-8402
Utilities	Top
Tucson Electric Power, 520-623-7711 / 800-328-8853 Tucson Water, 520-791-4331 Southwest Gas, 520-889-1888 / 800-428-7324 Pima County Public Works, 520-205-8350 Pima County Wastewater Management, 520-740-6500
Repair / Maintenance	Top
Steve Boyer, Basically Blinds, 520-884-1353 Steve Canatsey, Canatsey Building and Development (large repairs and renovations up to fully custom homes), 520-881-3318 Chris Edwards, Tucson Appliance, 520-881-1207 Dale Ford, Sunland Asphalt, 520-889-7100 Mike Gray, Planet Organizer (custom closets & cabinets), 520-623-2714 Bill Herrett, Sentry Security, 520-790-7302 Tim Lewellan, Cal's Plumbing, 520-748-1105 Dave Lurtsema, The Awning Doctors, 520-293-5559 Tom Marshall, Arcadia Landscape, 520-791-0889 Craig Blackwell, Essential Termite & Pest Control, 520-886-3029 Lyle Trotter, Aztec Flooring, 881-8838 David W. Wilson, Architect, David W. Wilson & Associates, AIA, 887-1446

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