White Mountains Arizona Real Estate & Area News-Events-Info-Articles

The Secret to a Vacation Home

noreply@blogger.com (Your White Mountains AZ Realtors) — Wed, 27 Feb 2008 04:20:00 +0000

Buried under an avalanche of housing market doom and gloom is a little piece of information that might make you smile knowingly or shock and surprise you-- Vacation property has never been more popular. It's true. Seriously, it is.

In 1995, the American Resort Development Association, a Washington D.C.-based trade group associated with resort travel and real estate, reported that thirty-five percent of American households felt they would probablybuy recreation property within the next ten years. That figure was up from twenty-six percent only two years earlier in 1993, and it has continued to rise recently.

All of us desires an escape. A place to get away from ever-increasing hectic and hurried modern lives. We all dream of a place, no matter how small and modest, where we can just disappear to on weekends, or several times a year to relax, recharge, reconnect with ourselves and each other, gain some perspective, or just plain regroup and plan. Catch a breather. The key here is that this is OUR place, not someone else's place. Not a place we rent, but a place that's all our own. Our stuff is there, and it stays there. Our stuff is there when we come back; and like an old friend we've not seen in a while, our place and our stuff is familiar, yet somehow we see it through different eyes. Our vacation place is just enough unfamiliar to be totally refreshing-- a little surprise in a way.

Because there's something about a second home that works a change on us when we are there. In different surroundings than our usual habitat and habit, we are try new things, we're quite different people as we break free from the constraints of our daily routine and move in different patterns at different times, and we explore. Turning off the daily demands of business and everyday homelife, we enjoy the feel of a different breeze, we appreciate the different scents on the air, the different sounds or complete quiet and peacefulness-- and we become different, too. We forget all responsibilities and deadlines and places to be and just be. We sit in the shade. We rock contentedly in the rocker on the porch or deck and listen to the crickets at night. We look up into a night sky so filled with stars that it could break our hearts with the weight of all that beauty. No city lights. We sleep well. We wake refreshed and looking forward to the day. Will it bring a new adventure? Will we try a new sport? Find our way around the surrounding environs, stop at yard sales, have morning coffee in a new place with the locals? Make sun tea that'll taste better for being made on our back deck in the fresh air? Rise at dawn to catch a glimpse of the deer? Or will we just stretch out and read that novel?

And while many Americans have the joy of discovering that owning a second home vastly improves their quality of life, and also their perception of the quality of life itself, they also find that they've improved their investment portfolio, too.
Mountains, lakes, streams, golf courses, ski areas, wildnerness and wildlife are very limited resources, and getting more so each day. A well-situated resort vacation home here in the White Mountains of Arizona is almost certain to be of great value no matter what the housing market looks like. Then, too, potential rental income can make your investment even more beneficial by paying for itself while you are back at home in your primary home.

There probably are investments that will offer more for you financially. But the lifestyle "equity"-- those memories and experiences you share with your loved ones at your vacation retreat are worth more than money can buy. With only a small monetary downpayment, you create years of family holidays, special family celebrations, weddings, friends and good times, and then, when you eventually sell, you pocket your financial profit. Truly a win-win proposition. Or, if love of your special retreat continues on down the years, it becomes a valuable heirloom, one that you pass on down to the younger members of the family and for future generations to enjoy. THAT's making a family history that everyone will remember and talk about fondly. Real meaning.

And so, a vacation home should be purchased for recreation and personal enjoyment first, and as an investment vehicle second. Make your vacation home purchase based on pure emotionality! And, maybe you'll later join the many folks who are buying a vacation home now for the purposes of retiring to it later. That's exactly what's happening in the White Mountains of Arizona. And, it's telescoping the availability of prime vacation properties significantly. There are young retirees, telecommuters, and workers who work via the Internet coming to live in our resort communities; even some who are willing to commute during the week. This phenomenon reduces the number of existing resort properties that will come on the market. And as you might guess, the nation's largest single cohort, the "Boomers" are leading the race to improve their quality of life. They make up the primary buyers of vacation property, and there are lots of them, and many of them do have the wherewithall to live the dream. There are 80.5 million "Boomers", and this will create a rough and tumble mad scramble for resort vacation properties such as we have in the White Mountains.

Here in the White Mountains of Arizona, we have a very finite amount of land, squeezed as we are between Government lands and Tribal lands, just a thin strip winding through the mountains and the Rim. It may be just the perfect time for you to make your move and stake out your "little piece of Heaven" before the rush that will surely come.

White Mountains Forest Land Development

noreply@blogger.com (Your White Mountains AZ Realtors) — Mon, 15 Oct 2007 18:02:00 +0000

File this under “Progress”, but you can add a question mark—“Progress?” depending on whether you think developing forest lands is a good idea.

The U.S. Forest Service is starting an Environmental Impact Statement (EIS) for the Black River Exchange in response to a March federal court order.

The Greer Coalition Inc. and the Center for Biological Diversity had filed suit against the Forest Service's decision in October 2005 which stated that the proposed exchange could proceed.
      The court remanded to the agency its decision authorizing the exchange.
      The proposal would exchange 337.74 acres of National Forest north of Greer with 396.35 acres of private lands located on the Black River and Blue rivers. The court directed the Forest Service to address and evaluate the environmental impact of the proposed exchange should the selected federal land be developed using multiple shallow water wells.
      A new appraisal of land values will also be prepared.
      The draft EIS is scheduled for availability in February, and the final EIS is anticipated for July.
      The Apache-Sitgreaves National Forests supervisor invites the public to submit comments on the proposal and offer suggestions on the scope of the proposed exchange.
      For more information or to comment on this proposal contact Bruce Buttrey at the Springerville Ranger District (928) 333-4372.
      More information on the proposal is available at the forests' Web page: www.fs.fed.us/r3/asnf/projects.

NPC Rodeo Club Reestablished

noreply@blogger.com (Your White Mountains AZ Realtors) — Mon, 15 Oct 2007 17:02:00 +0000

Young Rodeo Lovers Back in the Saddle

After three years of being largely defunct, the Northland Pioneer College Rodeo Club is back!
The club was brought back with the help of the college and community members. Members are now able to compete in 10 rodeos throughout the year with a chance to complete in the National Intercollegiate Rodeo Association (NIRA) finals.

"It just got re-established," Sandy Doyle (who, with her husband, John, coaches the team) said.
The club was reestablished with no funds and no participants and had to start from the beginning, recruiting kids and enrolling them in the college. He said advisors from the college helped him get off on the right foot.
"The college has helped out a lot," John said.

The Rodeo Club is made up of seven members: Choc Westcott, 20, Casey Rudder, 19, Pat Curtin, 19, Marissa Marciano, 18, P.J. Thomas, 21, Rendi Lamb, 18, and Ace Long, 19.
To be eligible to compete, the students must have a high school diploma or GED, carry 12 credits through the college and maintain passing grades.

The club would still need funds to operate. Eddie Hancock, the Town of Taylor, Rob and Shawna Bolten and Victoria McCarty have made sure the kids have a place to practice in Taylor and Show Low.
"They donated the use of arenas," Sandy said.
More help came from other community members. Dax Austin provides the Rodeo Club with bulls for their practice and Reed Flake provides the steers and ropes. Bullfighters Shawn Corbello and Clifford Maxwell and Taylor Ambulance are also on hand for every practice.
Practice for the Rodeo Club occurs two or three times a week for two hours each day. The members practice their different areas of expertise: Westcott and Rudders are team ropers, Curtin, Thomas and Long are bull riders and bronc riders and Marciano and Lamb are barrel racers.

Not only must the Rodeo Club's members stay conditioned, but their horses have to be taken care of and their equipment kept in top shape. It's a lot of work, but it's also a lot of fun for the members, who all agree that rodeo is a thrilling pastime.
"I've always wanted to do it," Westcott said.
Thomas said rodeo was "just a dream I developed in high school. I started doing it. I made a lot of friends doing it. It's kept me out of trouble. There's nothing I'd rather do."
The members just got their first taste of competitive rodeo as a club, participating in a NIRA rodeo at Cochise College in Douglas Sept. 21 and 22. NPC had two winners. Long placed third in the saddle bronc event, while Curtin won a jackpot bull ride worth $2,500.
It was the first of the 10 rodeos that the NPC Rodeo Club will participate in as part of the Grand Canyon Region of the NIRA, which takes in 10 college rodeo teams in Arizona and New Mexico.

The next rodeo for NPC's riders will take place at Dine College in Tsaile Oct. 26 and 27. At the end of the year, each region is represented at the national level for the finals.
Rodeo participation can be very expensive, but many area organizations and businesses have helped them with donations and discounts. Among those to be thanked are: Hawkeye Feed, High 5 Design, The Tack Shop, Cowboy Up Supply, Eddie Hancock Ranch, Hatch Construction and Paving, Doyle Electric, Yellowhair Buckles, the Law Office of Ron Wood, Gold Level Construction, Mobile Cellular and Eagle Realty.

But the newly reformed club still needs help and would like others in the community to help out with either sponsorships or fundraisers, and support from the community would be welcome.
Aside from competing, the NPC Rodeo Club will promote a rough-stock clinic in the future, which will be open to the public. For more information on this or to become a sponsor, call John Doyle at (928) 521-6005.

Visiting Your White Mountains Cabin? Call ahead for provisions

noreply@blogger.com (Your White Mountains AZ Realtors) — Fri, 22 Jun 2007 18:25:00 +0000

Forget something? If you're on your way up to the White Mountains of Arizona, either to your own vacation cabin, or to headquarter in a rental cabin to LOOK for your own vacation cabin, Click here to find a cabin for sale maybe you forgot some provisions! If so, think about calling ahead to Eddie's Country Store in Pinetop. (928-367-2161)

Eddie's Country Store is a White Mountains favorite, that's for sure-- and if you call ahead and give them your provisions list, they'll have it waiting for you. Eddie's is owned by the Basha's supermarket chain, and does offer many of the products you'll find in a large store, including a full-service meat counter. Don't miss that! There are also bakery goods, good fresh produce, seasonal offerings, and a line of specialty products that you won't find elsewhere. Eddie's will also have some area food taste-treats, such as pies, cakes, breads on occasion-- right outside the store.

On Friday, Saturday & Sunday, you'll find an extra-special treat awaits you: Outdoor-cooked apple-smoked meats cooking in big cookers in the parking lot. Ribs, chicken, and a tender tri-tip can be picked up there. It's a good idea to call ahead and reserve your barbecued meats, but usually you can snag some on spur-of-the-moment. Eddies also has a wonderful selection of wines and spirits that many find extraordinary. Some camping cookware is available, and you can buy your fishing license there, too. Local craftspersons or sellers of speciality items are many times invited to display their wares inside the store. There is also a small restaurant on the premises, serving breakfast, lunch and supper, which offers some of the store's specialty apple-smoked meats along with traditional quick and tasty meals.

All in all, it's a very friendly well-run operation, (Jeremiah Navarro, Manager) and it's actually fun to go there. And don't forget the marshmallows!

Multiple Washers & Dryers - The New Trend!

noreply@blogger.com (Your White Mountains AZ Realtors) — Mon, 05 Feb 2007 18:09:00 +0000

While home interior vacuum systems are a real convenient plus for the homeowner or the potential buyer, it seems there's a new movement afoot (for some), and that is, multiple washers and dryers throughout the home. This, according to the Wall Street Journal this month.

Gone, apparently, are the days of the basement laundry area! It seems many homeowners, including those with vast square footage and aging (ahem) Baby Boomers who would prefer not to lug laundry baskets up and down the stairs, are opting for washers and dryers in other rooms such as, bedrooms, and most importantly, guest rooms. Some homeowners, according to reports, are putting washers and dryers in every closet of every bedroom. How they do that, the female half of "Your White Mountains Realtors" does not know!

There are currently no real statistics on how many homeowners are refitting closets to accommodate extra washers and dryers, but according to reports, builders and interior designers say that the trend is catching on, most notably in higher-end homes. So we may begin to see some of this trend here in the White Mountains of Arizona, especially in our vacation/second home market, which homes, in many cases, find the owners enjoying their beautiful cabins with their guests. It would be a blessed convenience for guests to be able to perform their laundry tasks away from the main laundry area; and, even launder their own linens prior to leaving-- fantastic!

But even if a vacation home is sans extra laundry, some home owners are spending upwards of $2,500 on the newest machines that come in designer colors and run quietly, or buying specialized machines for delicate items and durable items.

Understanding the White Mountains Real Estate Market

noreply@blogger.com (Your White Mountains AZ Realtors) — Thu, 21 Sep 2006 20:42:00 +0000

Understanding the White Mountains Arizona Real Estate Market

We have to take a deep breath here. Although we provide buyers with a very nearly overwhelming verbal explanation/discussion of the market intricacies during many of our initial contacts, the subject of what forces drive the market in the White Mountains of Arizona is important enough to deserve wider distribution. We’ve studied it in-depth ad nauseam, watch it on a daily basis, and are probably one of the best resources a White Mountains Arizona real estate buyer can work with. At least that’s what they tell us, and we appreciate that very much.

Our market is predominantly a vacation/second home market. As such, “real value” as in price-per-square foot considering age, condition, upgrades, comparables, etc., must be considered in the context of many intangibles to value, both real and perceived that are overarching big players in our market. Many buyers have a “sticker-shock” reaction to the prices asked for vacation/second homes and mountain cabins in The White Mountains with—“That’s crazy!” But is it really? Or, “It’s a buyer’s market— hasn’t anyone up here heard that?” Sure we have; but, the White Mountains Arizona real estate market has some thick and natural (of course!) insulation against national real estate downturns.

A good place to start getting your head around this market, is a comparison of “real value” versus intangible value, so take a look at Aspen. There, a small, ancient single-wide mobile, cheek to jowl with another equally ancient single-wide mobile will command in excess of $1million dollars. Well, you may say that the White Mountains is no Aspen— and others may answer, “Not yet…” (because indications are that the White Mountains is heading resolutely in that direction). Anyway, from your $1million dollar-plus trailer in Aspen, you may sit on your front steps, strap on your skis, and get on the lift. Just like that. To many, that ability is not only worth millions, it’s priceless.

Similarly, with some of the nation’s most glorious lakes, rivers, streams, four-seasons, skiing, camping, fishing, good water, no pollution, no industry, no gridlock, no crime, peace and quiet, security--- ad infinitum lifestyle benefits, the White Mountains may have even more to offer than “ski from your doorstep”. These attractive and compelling qualities are hyperactive “location, location, location” realities. And these qualities may not be to-the-eye represented in the wood, brick and mortar of homes and their prices.

Did you know that there are areas in New England that actually tax homeowners on the view they enjoy? That’s true. Should homeowners there have the right to ask more for these million-dollar view homes? Sure. If a governmental body has decided that the views have value, why not? Fortunately, no one is taxing views here in the White Mountains; but, the market is placing a value on these “intangibles”, including views, be it mountains, thick pine, peaceful meadows, the golf course, etc., outside the square footage, age and amenities of homes.

So much for some of the valuable intangibles that fuel our market prices. Now let’s talk about the area, itself, and what that means to the pressures of supply and demand. Over 750 square miles. Big, yes. But, out of that, only an estimated 12% to 13% can be privately owned. The rest belongs to The Tribes and to the State/Federal Government, the BLA, too. Now out of that 12% to 13%, there is a vast amount of land that is wild, windswept, rocky scrub where the traditional cattle herds needed huge amounts of land to graze. This use is disappearing, but this difficult land still remains, much of it for sale. There still remains the “wide-open spaces” appeal to many for this rugged land and independent lifestyle (we appreciate those individuals and salute them), but the majority of buyers want the flip-side of our market’s coin. They want our cool mountain vistas, and they want trees. Pine. The more the better. And so, the small remaining balance of available land is considered prime with correspondingly supply/demand high prices for obvious reasons. The White Mountains can boast of the largest stand of Ponderosa in the nation; but, the majority belongs to the aforementioned entities. That leaves very little for private use.

That fact reminds us of some very revealing stories about potential buyers from out of our area—and there are many similar stories, all with the same general theme. A private pilot, while flying in his plane over Rim Country from Flagstaff to Show Low was very impressed with mile after square mile of heavy Ponderosa pine forests. He figured, out of all that forest, he’d be able to buy at least 100 acres with no problem. And since there was so dang much of it, most probably the 100 acres could be had for a song. He was, therefore, extremely disappointed and slightly angry to learn that he’d been flying over miles and miles of National Forest Service land. Similarly, many who drive to our beautiful area arrive at our office wanting land “close to the Ski resort” or “on that big lake”, or “on that stream with the little waterfall”—again, disappointed to learn that all those miles of pine, aspen, meadow, lakes and streams belong to The Tribes or the government.

But, hey, we learned that lesson when we first came to Arizona, to Flagstaff, in particular, where, talking to a Realtor we were asked, “Do you like trees?” Well, what else were we there for but Ponderosa and maybe a view of the San Francisco Peaks? We thought the Realtor was fibbing when she told us each Ponderosa added about $5K to an asking price… Abandoning Flagstaff for the White Mountains in the belief that things might be different here afforded us a similar situation with the addition of lakes, streams and creeks added to the "no can do" list. But! The White Mountains was the closest to "heaven on earth", in Arizona, and we soon realized we'd stumbled onto something very special. And so, when OUR buyers show some anger and disbelief when they hear “the news”, about what they can and cannot have at any price, we totally understand, because on the face of it…

All this sounds like, “You’ll take what you get and like it”; but that’s not true. With good understanding of the market, and happy appreciation of all the wonders and beauty a vacation home in the White Mountains offers in addition to the enjoyment of your White Mountains vacation home’s four walls, you can “Take what you like and love it”. It doesn’t have to be a full-out glam vacation cabin, either. It can be a modest dwelling in the pines, a headquarters, a quiet place to come back to after days of fun, adventure, plenty of sunshine and clean air. Cool summers for the children to enjoy, crisp autumn air with just the hint of a distant wood-burning stove at dusk, delicious trout sizzling in the pan, sunrises and sunsets from your deck, pleasant neighbors— we could go on and on. When you open the door of your new vacation home OR your permanent home here in the White Mountains of Arizona, you open a whole world.

Life is better in the White Mountains

Hot Tubs Make Vacation Home Rentals Pay Off!

noreply@blogger.com (Your White Mountains AZ Realtors) — Mon, 21 Aug 2006 17:05:00 +0000

Thinking about renting out your White Mountains Arizona vacation home? Here's an interesting and valuable tip:

"Anyone who plans to rent out a second home to vacationers should consider adding a hot tub", says Bill May, owner of Sunspots Inns, Resorts and Rentals, which maintains more than 100 properties in Hawaii and other vacation spots. This is according to a recent article written by Tom Kelly of the Los Angeles Times, which article is attributed here in part or in total.

May estimates that vacation rental condos with hot tubs bring in an average of $14,000 more annually than rentals without hot tubs.

"It's a four-season amenity and something people really like to have available, even though they might not use it," he says. "It would probably pay for itself three times over in less than a year."

Beyond a hot tub, "What people want and will remember is that the home is pristinely clean," says Penny Taylor, May's wife and business partner. "Renters remember crisp linens and sparkling floors and are after a spot where all they need to bring is clothes and food."

Your White Mountains Vacation Home - Renting it Out

noreply@blogger.com (Your White Mountains AZ Realtors) — Thu, 10 Aug 2006 17:34:00 +0000

So you say you want to own a second home—but you just can’t quite afford it? Many people can and do accomplish the dream of a second home by buying and then renting the property out to vacationers. It’s a simple strategy, and one of the smartest ways to make your second home mortgage payment with hardly any problems at all.

When it comes to success with vacation rentals it’s important to prepare a plan of attack-- you really must know exactly what you are doing, or best scenario for you, work with Realtors like Pam & Bruce at Century 21 Sunshine in the White Mountains—people who really know the White Mountains Arizona market, know what other people find appealing in vacation/second home cabins, good value for dollar, and many other market factors. More than likely there will be potentially hundreds of other vacation rentals in the White Mountains of Arizona. It’s a big area, and one of the most popular vacation destinations in the Southwest. So, you’ll want your vacation rental to be competitive not only in features and prime location, but in price, too.

The best way to determine price points on rentals is by examining other similar properties in the area. And be realistic about this! Don’t buy too big and price yourself out of the vacation rental market. You’ll be sorry.

Bruce & Pam, “Your White Mountains Realtors” are a great resource for your pricing. Our Property Management Division has a long experience with owners of vacation homes—and we can guide you very well on price points.

And don’t forget the Internet if you are trying to get information on vacation rentals. Search any one of a number of sites that list vacation homes for rent, and then compare the prices.

In addition to how much rent you charge, you will also need to give some good thought to the time of year that you are renting-- that will have a lot to do with how much money you can hope to make. The White Mountains of Arizona offers vacationers near year-round vacation opportunities, in all seasons; but summer and winter will be the big bookers. When vacationer traffic is the highest, you can command top dollar for your property.

In the White Mountains of Arizona, an owner can make money renting out vacation rentals during off peak months, too; but the rental return will be slightly less than the peak months. But if you are not going to be staying there, you might as well try to rent it out! After all, any money that you get is better than no money at all!

And don’t forget to decide how long you will rent your property out for—weekly, monthly, etc. Take a look at your own schedule and finances to determine what’s best for you.

Being a success with vacation rentals is achievable. Knowing the details of renting out vacation properties is the best way to make sure you have relatively few problems making enough money to cover your second mortgage!

And, buying a vacation rental in the White Mountains of Arizona can be a great way to get involved in the real estate industry. Many people decide that this method of investment can be much more profitable than other methods of investing such as foreclosure investing.

Avoid snap decisions that result in a property you’ll have trouble renting. Think BUSINESS, not fun. And, as always, “Ask A Realtor”— good, market-savvy Realtors, such as Pam & Bruce can be the most important weapons in your arsenal!

So, remember:

1. A vacation home is not one that you will live in year round. Don’t necessarily look for features that you would like in a home—this is a vacation property. Rustic, cozy, a simple “home away from home”. Look for features that people who rent vacation homes and cabins would like. This includes an eat in kitchen, pull out couches, decks/patios, tall trees, some privacy, and proximity to White Mountains lakes, streams, parks, activities, etc.

2. Make scrupulously sure that you do not overextend your budget. This is advice to follow whenever you buy any property. Never make a purchase that you cannot afford.

3. A vacation home is a great way for you to make additional money, but remember there will be out-of-pocked expenses, and time to invest. If you plan to manage the rentals yourself, be prepared for a job. Maybe consider putting a little buffer between you and your renters by hiring a property management outfit to take care of it for you. If you do plan to go that route, factor those costs.

Consult a tax professional about tax consequences. Most experts advise that you should buy a vacation home for pleasure - not as an investment.

If you rent out a vacation property most of the year, the IRS will only allow you to occupy the property for two weeks out of the year without affecting its investment-property status.

#1 Bargain Vacation/Second Home Market!

noreply@blogger.com (Your White Mountains AZ Realtors) — Thu, 15 Jun 2006 15:58:00 +0000

White Mountains of Arizona - #1 Best Vacation/Second Home Bargains!

According to AOL via SmartMoney Mag, the White Mountains of Arizona took the top spot for vacation home bargains. Forget Aspen!

"Why settle for the red-hot temperatures of Tucson when the White Mountains of Arizona, less than 200 miles north and at 6,000- to 8,000-foot elevation, are usually 30 degrees cooler? The region is "an oasis above the desert," according to EscapeHomes.com, and abounds with nearby fishing lakes, hiking trails and beautiful mountain views." Bruce & Pam Wachter, "Your White Mountains Realtors" couldn't have said it better. Well, maybe... Let's try!

With average site-built prices in the Show Low area at around $200K (and sometimes a tad less), where can you find a deal like that? Minutes from area lakes, hiking trails, shopping, dining, and a small-town community feel, you just can't beat those pluses. Factor in that one can secure a "headquarters" - a base of operations from which to fan out for fun and recreation - for far less$$ by looking at manufactured homes, and you're so here! The White Mountains is approximately 750 square miles of vacation home opportunities. From The Rim Country to Alpine/Greer/Nutrioso and all the top-name areas in between (Pinedale, Linden, Vernon, Pinetop-Lakeside, etc.), you're sure to find exactly what you're looking for!

And there are mountain cabins, too. From mid-line pricing to prestige, gated, ungated, big lots, small lots, golf communities, and more - your choices of mountain cabins costing a fraction of those in other "vacation" markets is unmatched. All in the tall, cool pines. Dollar for dollar, you'll get more value in a White Mountains cabin than anywhere else.
Whatever your White Mountains Arizona vacation home ideas may be, Bruce & Pam will carefully guide you through our varied market and help you find what you're looking for. Just a call or click away-- Why not fill out one of our Rapid Response Request forms and get fast, friendly advice and service - Get your own White Mountains vacation home bargain under contract, and start living the life this summer!

Can A Vacation Home Qualify as a 1031 Exchange?

noreply@blogger.com (Your White Mountains AZ Realtors) — Thu, 01 Jun 2006 17:01:00 +0000

There are so many fine vacation homes available here in the White Mountains of Arizona, and the opportunity exists for buyers, if careful and educated, to avoid capital gains when selling real estate and obtaining their vacation home. Below is just a "thumbnail" of the process. You MUST consult with a CPA/attorney for your individual situation.

Can A Vacation Home Qualify as a 1031 Tax-Deferred Exchange?

Most tax and exchange professionals say "Yes", to the extent that the vacation home is used in part for rental purposes. As an example, if the vacation home is used 50% for personal use and 50% for rental or investment purposes, then 50% of the property is qualifying property held for investment purposes under IRC § 1031. The personal use portion of the vacation home will not be eligible for 1031 Exchange treatment, and neither can any expenses for that portion of personal use time be used as a deduction.

What if the vacation home is used partly for personal use and partly for investment purposes but is never rented out? In this case, the answer is "it depends. It depends on the amount of personal use of the property by the taxpayer. Property held for personal use does not qualify as investment property (IRC § 1031(a)). However, mere incidental personal use of property that is otherwise considered investment property does not disqualify the property from 1031 Exchange treatment (PLR 8103117). "Incidental personal use" is not defined by the Code, Regs. or by other guidance issued by the IRS. Personal use of a vacation home for anything other than "incidental personal use" will disqualify a property if it is never rented out by a taxpayer.

Under what circumstances can all of the vacation home (100%) qualify for a 1031 Exchange? Code Section 280A(d) provides that if a taxpayer's dwelling is a 100% rental property (and not a "residence") if the taxpayers personal use of the property is less than the greater of -

15-days, or

10% of the number of days during the year for which the dwelling is rented (at fair market value rents).

Personal use includes use by members of the taxpayer's family. Personal use does not include work days a taxpayer is at the residence. The purpose of IRC §280A is to limit deductions with respect to the rental use of a residence. Does 280A also define a property for purposes of a 1031 Exchange? Most tax and exchange professionals do not think so. However, compliance with the minimal personal use provisions under IRC §280A could be considered to be a safe-harbor for qualification of the property as a 100% eligible property for 1031 Exchange treatment.

As a last resort, if none of these rules will work for a taxpayer because of disqualifying personal use of the vacation home, then the taxpayer should consider converting the property to a qualifying investment property by discontinuing all personal use for up to a year or more to position the property for a 1031 Exchange. Renting the property will be a definite help for this purpose but is not mandatory.

Remember, Bruce & Pam, "Your White Mountains Realtors" only at Century 21 Sunshine in Show Low, Arizona, will help you find the right-priced vacation home for your 1031 Tax-Deferred Exchange! Send us your Vacation Home Requirements and we'll assist you every step of the way!

INTERMEDIARIES

To facilitate a 1031 exchange it is required to utilize the services of a qualified intermediary (QI), also known as a facilitator or accommodator. A QI is the person or entity that acts as the middleman in the exchange, providing the paperwork, oversight, escrow services and expertise necessary to assure that the exchange qualifies as an exchange under Section 1031 of the Internal Revenue Code. Even though a 1031 exchange is a complicated process, an exchange using a good QI can become a simple process and look surprisingly like a standard sale. The intermediary performs these services on a fee-for-service basis.

The QI facilitates the exchange of the relinquished property (the property you wish to sell) and the acquisition of the replacement property (the property you wish to buy) by having the sale and acquisition flow through the QI and by providing proper documentation to preserve the integrity of the transaction and to ensure the exchange complies with all government regulations. Furthermore, the QI safeguards the sale proceeds of the relinquished property and transfers those proceeds to the seller of the replacement property within the timeframe and guidelines required by law.

The IRS requires that intermediaries remain an independent third party from the seller or buyer of the property. The IRS defines a disqualified party as an individual who in the previous two years has served as your employee, attorney, accountant, investment broker, real estate agent/broker or relative.

In a 1031 exchange you cannot take physical possession or constructive receipt of the money resulting from the sale of your property. Therefore, since they are holding your money, it is very important to investigate the bonding, background, reputation and financial strength of a QI. The QI industry is largely unregulated, so it is very important to deal with a reputable, professional qualified intermediary.

Apache County Gets Tough on Illegal Subdivisions

noreply@blogger.com (Your White Mountains AZ Realtors) — Tue, 24 Jan 2006 17:42:00 +0000

by Judy Hayes, White Mountain Independent 1/24/2006

ST. JOHNS - The construction of illegal subdivisions in Apache county may soon come to a halt since the Board of Supervisors on Tuesday unanimously approved a revision to the county's subdivision ordinance making the process of repeatedly splitting lots and selling them off much more difficult.

      "This ordinance now requires an application and administrative review for all minor land divisions, where any of the resulting lots is 10 acres or less," said Planning and Zoning Director Milton Ollerton. "The minor land division ordinance is for land divisions of five or less lots, while the regular subdivision ordinance is for land divisions of six or more lots."
      Commonly referred to as 'wildcat' subdivisions, they have been an ongoing problem in the unincorporated areas of Apache county, most recently in the Vernon area where there's been a tremendous demand for land.
      The process begins with someone buying a parcel of land and through a succession of land splits and property owners, the subdivision escapes the county's basic building requirements for appropriate roads, water and sewer lines and other improvements, often resulting in a crazy quilt of shabby neighborhoods.
      In addition to the infrastructure problems, these subdivisions limit the services of emergency vehicles and pose hazards to law enforcement unable to find addresses on the unmarked roads.
      The county recorder, assessor and treasurer's offices will all play a small part in processing the new requirements of this ordinance. "It's going to require a lot of effort up front and will require some education for the title companies, realtors as well as the property owners," said Ollerton, who anticipates holding public meetings to share details of the new procedures.
      "The minor land division ordinance now requires a survey and a minimum access of 30 feet," said Ollerton. "The administrative review will ensure the lot being split is not a part of an existing county subdivision, meets the zoning requirements for lot size and meets the minimum access. "
      "This ordinance will put Apache county way out in front of all the other small counties," said Supervisor David Brown. "We now have jumped to the forefront of any other small county who is addressing this issue including our next door neighbor. Number one, it's expensive, but we're willing to do it."
      Vernon contractor Ken Luttrell, who has fought against illegal subdivisions for 16 years, expressed his continued concerns about the county's ability to enforce the new regulations. "Will you work with the other agencies in the state on some of these issues?"
      "In the Vernon area, we're trying to have a nice community and we don't want a community that invites people who want to come in and just throw stuff in and get their money and get out," said Luttrell. "Plus we have to live in that community.
      "We've already got substandard roads and water lines, we've already got subdivisions that are inappropriate for the area," said Luttrell. "There needs to be some way to say that we just can't put a construction yard here, housing here, residential here. There needs to be some kind of process that suits the community and doesn't just suit whoever comes in and has the money to put it in."
      "Some of these concerns that Mr. Luttrell mentioned are the result of Vernon being the fastest growing area in the county," replied Ollerton. "There is an incredible amount of growth happening and a lot of interest and these pains that we're seeing in the Vernon area will continue until the town of Vernon incorporates and some of these problems can be more directly addressed.
      "Up to this point, we have had no enforcement capability, said Ollerton. "I've turned in 11 illegal subdivisions to the Department of Real Estate. One illegal subdivision they sat on for two years before they even filed any paperwork or contacted the owners."
      Ollerton explained that when his department reports an illegal subdivision to the state, they do a tremendous amount of work and documentation prior to submitting it. They look at all the land recordings and basically do a title report on all of the lots involved in an illegal subdivision - the last packet of paperwork they sent to the Department of Real Estate was over 500 pages.
      "(The changes) will enable us to now catch the problem up front instead of having to go and do it afterwards," said Ollerton, who explained that a lot of the time the county didn't find out about an illegal subdivision until after it was either developed or the properties had already been sold.
      County Manager Delwin Wengert told Luttrell that the county shares your concerns. "We want the Vernon area to grow in an organized manner and following the proper procedures. I think its important to say that the vast majority of its developers follow the rules and follow the county's guidelines," said Wengert. "I just want to make sure the public understands that the county's interest is your interest."
      "With the growth and development this county anticipates over the next ten years, this ordinance will serve to ensure growth is organized, access is adequate for emergency vehicles and further development," said Ollerton.

Reprinted for informational purposes only with attribution

More Money Than Sense?

noreply@blogger.com (Your White Mountains AZ Realtors) — Sun, 22 Jan 2006 19:02:00 +0000

Most people would like to have "More Money Than _________" (fill in the blank); but, "More Money Than Sense" is pretty close to the other old saying, "A Fool And His Money Are Soon Parted"-- neither are very attractive attributes!

In the fast-paced and escalating world of market prices here in the White Mountains of Arizona, and other "hot" areas, another old phrase, "caveat emptor" (let the buyer beware) is taking on ever-increasing importance. Buyers must use good sense, common sense, good judgment, and work with a Good Realtor-- one who will readily identify "flips" and help you avoid the pitfalls of paying too much. A Realtor who can and will be fair and honest with them, explain that what looks good might not be good at all. When the value simply is not there, no matter how attractive the location, the amenities, and that "mountain feel", don't have "more money than sense".

When can a "flip" be a "flop" for the buyers? A good example would be say, an older manufactured home (mobile) on a really pretty lot priced at double or more what it sold for very recently. Most probably the current owner and now seller did buy the property for very close to what it is worth. Now turning and flipping, the price is inflated, bloated,unfinaceable, and still only worth what was recently paid for it. Always, always, ask, how long the current seller has held the property and what they paid for it. You must ask. Although the information is "public" information, it will not necessarily be disclosed to you unless you ask.

Although buyers may (and do) fall in love with one of these attractive money-traps, buyers must use good judgment and realize that there is a tomorrow! That tomorrow should be a good one, not one that is clouded over with a poor investment that may haunt you for years to come. It helps to have Realtors who help you see your way through the "too good to be true" to the "good deal".

Real Estate Flyers, Postcards, Newsletters....

noreply@blogger.com (Your White Mountains AZ Realtors) — Tue, 08 Nov 2005 19:52:00 +0000

If you're a property owner in the White Mountains, either full-time resident or absentee, we understand you get a whole lot of solicitations to buy/sell or just say hello to this Realtor or that Realtor in your mailbox. Promises, offers, recipes, calendars, magnets, and a bunch of other pretty neat stuff. Well, that's what most Realtors do, and you can't blame them for trying to get your attention, can you? Nope.The practice is called, "farming", and it can be a great marketing tool for Realtors. But it can get confusing when you really have a need for a Realtor and you've got a dozen postcards on the diningroom table. How do you know what to expect from a Realtor and the buying/selling process?

Many of you come on out to our website (thank you!) to find out what you really should know before you contact a Realtor-- and we don't mind one bit. We spend a great deal of time answering questions, educating about the White Mountains area/real estate, encouraging and reassuring about the buying/selling process, writing articles that give some insight into the process, and anything we can do to help you make good decisions. Many gain the needed information to feel better about contacting one of the Realtors who's sent some nifty thing or said something particularly intriguing. That's all to the good, we think. Because whether you choose to list with us or allow us to help you make a well-thought out purchase, so long as you "Consult a Realtor", we feel we've done some good.

Currently, we don't "farm", so no refrigerators have our pictures on them! We do concentrate on our active client base-- but that doesn't mean we're too busy for you to become an active client, or wouldn't want to give you a really cool calendar! What we do have for you is good advice, support, honest, professional (and friendly) real estate service.

So, when you've got a bunch of Realtor postcards and just don't know what to think, give us a call or an email and we'll help you sort it all out. We won't comment on another Realtor's ability, we'll just tell you what we can do for you and why we think we'd be a good choice or even why another Realtor might be better for your particular needs. What to expect, what to avoid. Just the straight scoop as always. And then, you decide!

Show Low Bluff - Subdivision Update

noreply@blogger.com (Your White Mountains AZ Realtors) — Wed, 14 Sep 2005 15:25:00 +0000

One-half of Your White Mountains Realtors (Bruce) attended the ground-breaking ceremony at Show Low Bluff, Show Low's newest Planned Urban Development (PUD) yesterday, September 13, 2005.

Not much to report, however. He did receive a really nice tote-bag containing some really nice gifts including, a coffee mug, a logo-ed hat, the standard pens/pads, and a really nice 4-color brochure complete with pictures of U.S. Cavalry/Native American re-enactors (local heritage?), and everyday people happily recreating (good times to come at Show Low Bluff).

But not much more hard information.

We still don't know exactly what types of homes are planned; although Bruce says he understands that several builders will be involved. We have no floor-plans to show you, or pictures of proposed models, as yet; and no idea when these will be forthcoming. And so, we have nothing yet to offer in the way of pre-sale opportunities, sorry.

They say they will begin building in about three weeks, but what, we do not know.

We will do our best to bring information as it is available, as we've had many inquiries from our web visitors, for which we thank you all!

"Show Low Bluff" - New Homes Planned for Show Low

noreply@blogger.com (Your White Mountains AZ Realtors) — Sun, 07 Aug 2005 16:32:00 +0000

As the White Mountains Arizona area new homes/resale homes inventory becomes increasingly tighter pushing prices higher and higher, some relief may be on the way.

For September 13, 2005 Update - Click Here

Bruce & Pam, your White Mountains Realtors, recently attended a presentation detailing plans for a new housing development called, "Show Low Bluff". While the ultimate plans for this subdivision call for some 3800 homes, initially, the developers have filed plans for some 101 lots to be developed. Developers Show Low Too, L.L.C. reports that it will begin development commencing in September 2005.

The subdivision is located west of Penrod Road and north of Show Low Bluff, encompassing approximately 34.19 acres, with a minimum lot size of 0.16 acre, a maximum lot size of 0.41 acre, and an average lot size of 0.23 acre. The subject property is a portion of the property formerly known as White Mountain Meadows. This development was approved by the City Council through Ordinance No. 454 on August 17, 1999. The preliminary development plan was approved by the City Council on March 18, 2003.

Although as yet unconfirmed by us, proposed new home prices are reportedly targetting the $200K range. In addition to single family homes, condominiums and townhomes are also in the works. As with any PUD (Planned Urban Development), the development also proposes to have restaurants, lodging, shops, community centers/residents' recreation areas/neighborhood areas.

Although this is great news for The City of Show Low's bottom line, and we applaud the developer's initiative, it's even better news for local and not-so-local buyers who've been frustrated in the past several months by the market in the White Mountains. We've noted more modestly-priced new construction homes increasing in asking price from month to month in an ever-dwindling inventory squeezing out many buyers. Hopefully, Show Low Bluff will do much to ease that situation and offer buyers affordable new homes in our beautiful White Mountains.

For information on Show Low Bluff as it becomes available email: Show Low Bluff Update

Click here for a map of Show Low Bluff

Buying a Vacation Home With Friends/Family

noreply@blogger.com (Your White Mountains AZ Realtors) — Fri, 08 Jul 2005 21:36:00 +0000

Second homes or vacation homes in desirable areas such as the White Mountains of Arizona can be pricey; sometimes more than one party alone can afford. Many people are finding that it's possible to make that dream come true with a little help from friends!

Economics are always better when people find ways to pool resources to achieve a goal-- and buying that gorgeous vacation home is a worthy goal! After all, you have a lot of good times together, may travel together, and hopefully you share the same ideas about lifestyle, home and family. By multiple contributions to that downpayment, and sharing the mortgage, the power of a few is much greater than the power of one. Is it easy? It can be. But, there are some important points to consider:

1. Make a decision about your own financial abilities. Figure out how much are you willing to put down, and how much monthly payment do you can afford to carry. Try to avoid a common mistake when buying with others of using the extra capital to look for a bigger or better house. Don't forget that the reason you are doing this is financial. Avoid "buying up" and aim for what's comfortable for you with a little room to spare.

2. Think carefully about the people you wish to enter into this arrangement with. Whether friends or family, make sure that you are comfortable with:

a. Their financial security (and stability). You don't want to be left "holding the bag" with the property your entire responsibility.

b. Their honest commitment to the project. You want to gauge their ability to be honest and cooperative in the decision making process. No primadonnas, no hidden agendas.

c. Their true compatibility with you and yours. You may me on the property at the same time; or you will need to work together on future decisions.

3. Once you've chosen your "posse", it's time to talk about visions, goals, and hopes for the prospective property. Do you want to rent to outsiders? Is this a high-end showplace, a casual relaxed place, a "party place"? What do you all require as far as usage, what kind of rules will be set, if any? Try to sit down and talk about these things in a relaxed way and over time. No snap decisions or simple answers. Try not to turn these discussions into business meetings.

4. Once you are all on the same page, it’s time to get get down to brass tacks. These include deciding on the legal structure of ownership. A co-ownership, co-tenancy, tenants-in-common, small corporation, etc.? Research and discuss these with an attorney and/or a CPA. Whatever agreement you select must incorporate issues about finances, occupancy and sell-outs. The way you split the mortgage can be creative, based on occupancy, income or equal/equal.

5. In addition to mortgage payments, there will be many other expenses for the second house-- These could include maintenance, furnishings, management, etc. Put together the very essential yearly budget that you all agree on, so that if certain improvements need to be delayed, it is clear to everyone why you would do so.

6. The very reasonable concern of buying with others is what happens if one person wants to or needs to get out of the arrangement. Will you give the others the option to sell to someone of their choice? Will you require the buy-out to stay within the group? Any agreement will work; but it must be decided in advance and not at the time of occurrence. Failing to plan ahead for change, and having that plan in place avoids bitter feelings on down the road. People's lives do change, so anticipate and you'll be relaxed and unafraid if and when changes do come along.

Once you've done all the hard work, it's time to enjoy the new place, fire up the grill, enjoy that sunset-- knowing that each of you is contributing to the happiness of the others. What could be better?

"Bubble-Proof"?

noreply@blogger.com (Your White Mountains AZ Realtors) — Thu, 16 Jun 2005 15:45:00 +0000

Nationally, home values increased by about 14 percent last year nearly doubling 2003's 8 percent-- the year that talk of a "bubble" commenced in earnest. In mostly coastal areas, prices are up 20 percent, maybe more, putting homes out of reach for many median-income families. Is there a bubble or just bubbling? Is it just some new hobby called, "House Crazy"?

"House Crazy" evidence? What are all those home-remodeling shows telling us? Are today's house "flippers" yesterday's day-traders? Is it all the inexpensive home/house/garden accessories coming to us courtesy of China urging us to expand and decorate our nests and maybe add another nest somewhere else? How about all the new enticing mortgage products that allow you to stretch your home-buying dollar? It seems as though everything is pointing us in the direction of a new home; but are all these simply pressurizing a "bubble"? We don't think so, and there are many economists who agree.

Granted, some real estate speculators may be heading for trouble; but for the sensible individuals, putting money into a home can still be one of the best moves you'll ever make. The key is "sensible". The second key is "think longterm". Delay or ignore instant gratification and think about the future. After all, you don't worry over whether the value of your car is going up yearly, do you? No. Thinking of your home in a similar way eases "bubble" fears.

Outside the "glamour area" cities, there's very little to fear about bursting bubbles. If the bubble bursts, you may not even hear it-- especially here in the White Mountains of Arizona, always a desirable place to live, either full-time or for your vacation home. Steadily increasing property values, reasonable and leisurely growth-- sure doesn't seem like a bubble machine!

So, if you've got some equity, it's still a great time to buy that second home here in the White Mountains of Arizona. Forget about the raw consumption of glamour vacations, (short-lived and very expensive) and think instead about a lifetime vacation AND a great investment with your very own White Mountains home. Enjoy it now and watch your investment grow, too!

"Multiple Offers" - Roll the Dice!

noreply@blogger.com (Your White Mountains AZ Realtors) — Wed, 04 May 2005 23:52:00 +0000

"Are there no rules?", is one of the questions many buyers ask when they've become involved in a real estate transaction that turns into a "multiple offers" situation. If you've never been involved as either a buyer or a seller in a multiple offer real estate deal, you very well may be one day soon in today's hot real estate market.

From the buyer's perspective the scenario is usually an unpleasant surprise. The buyers have made a decent offer to purchase real estate, put up reasonable earnest money on a property that is actively for sale. They wait for the seller's answer and learn from their Realtor that that they are not the only party making an offer, or worse, that they have "lost" the deal to another mystery buyer. "But we were there first!" is the most common reaction, and that's understandable. The second question usually is, "Is that legal?" Well, yes, it is. Legal and acceptable practices as discussed further in Ethics.

The listing agent, if representing both buyer and seller, really gets it from the buyer. "Why didn't you tell me you had other offers before I made mine?" That's a reasonable question. The answer doesn't do much to help in that the seller's agent can only reveal that there are other offers on the property IF the seller permits him to do so.

If the agent is representing the buyers only, many buyers will accuse the listing agent of "lying"-- trying to push up offers, increase his commission and they ask to see the other offers, firmly believing they don't exist. Well, the seller doesn't have to reveal the nature or quantity of the other offers. Not to the other buyers or the buyers' agent.

Whether or not to reveal the status of multiple offers is up to the seller. The plain truth is that the buyer has to wait for a response from the seller during and up to the time they gave the seller to respond. Essentially, the buyer has no "right" to know if there are more offers.

The National Association of Realtors' Code of Ethics has several Standards of Practice (SOP) that instruct how multiple offers are to be handled. The first is that a Realtor "shall submit offers and counter-offers objectively and as quickly as possible." Accordingly, all offers must be submitted until the seller has made a final decision. "When acting as listing brokers, REALTORS shall continue to submit to the seller/landlord all offers and counter-offers until closing or execution of a lease unless the seller/landlord has waived this obligation in writing. REALTORS shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord..."

Multiple offers situations became so prevalent that a short time ago the NAR instituted the following instructions in its SOP: "REALTORS, in response to inquiries from buyers or cooperating brokers shall, with the sellers' approval, divulge the existence of offers on the property."

The salient wording in this instruction is "in response to inquiries." Clearly this is a "don't ask, don't tell" situation for the listing agent. He/she is not going to tell the buyer about multiple offers if the buyer doesn't ask -- and, in reading the SOP further, one can see that the Realtor is not obligated to divulge the presence of multiple offers, either, without the sellers' approval.

In a seller's market (less houses, more buyers), some agents put a deadline on when all offers must be submitted. Once the offers are submitted, the agent then settles in with the seller for a marathon contract offer review. The core area of contention occurs when offers float in one after the other over the period of a few days. Hence, the standard practice of dealing with multiple offers would proceed in this manner:

Each offer is presented to the seller for consideration.

The seller will hear all offers before making a decision.

A seller can accept or begin countering more than one offer at a time; however, she/he must set an order of attention, i.e., primary offer, first backup contract, second backup contract, etc.

Multiple offers are a modern fact of Real Estate life. In this fast-paced market, they are considered fairly normal; and their existence inflates pricing. The buyer who is working with an agent who understands the aggressive and hard-charging techniques needed to escalate their offer, will win. However, buyers may pull contracts during multiple offer situations because they want to deal in a less competitive and roller-coaster environment.

It's understandable that buyers who've lost in a bidding war complain about "fairness". The situation is similar to being the first to buy a high-priced ticket for a front-row seat, walking down the aisle to find others vying for the seat, being asked to pay MORE for the seat, or finding no seat at all.

But, in a hot real estate market, the seller doesn't care when you got there -- he or she is interested in one thing -- what's the net dollar he'll get for that seat.

White-Hot White Mountains Arizona Real Estate - Cashing In

noreply@blogger.com (Your White Mountains AZ Realtors) — Sun, 06 Mar 2005 03:30:00 +0000

Cashing In Real Estate

You don't have to be Donald Trump, but you have to be smart. It's called "Flipping"-- kind of a loose term newly applied to the practice of buying residential property, waiting a bit, and turning around and selling it at a tidy profit. Sounds easy, doesn't it? Well, for some, the practice has made millions. Does it help to have deep pockets? Well, when doesn't that help? Sure. But, for canny buyers who do their research and use sharp Realtors, almost anyone can play.

A recent survey performed by the National Association of Realtors shows that 25 percent of home buyers do not intend to ever occupy the home they just bought. They intend to turn it around quickly for a quick profit.

The real estate market across the country is red-hot-- in the White Mountains of Arizona the market is white-hot. Blazing. Recently a local appraiser was heard to remark that he was having trouble keeping up with the rapidly rising residential prices. Realtors are talking about clients buying homes "sight unseen". It's that good. And it's that true. Even Bruce & Pam, Your White Mountains Realtors are amazed.

So, is "flipping" right for you? First, do your homework on the web. Then, make a visit to the White Mountains and spend some time. Talk to us about neighborhood markets, hot areas, comparable sales, projected sales, average time on market, whys and wherefores. Make a business plan. Decide how long you want to wait to "flip". Be reasonable, listen to good advice - your attorney, your accountant, your realtors. And ask us about others who can joint your team - inspectors, contractors, etc. Don't jump in without a plan and don't go anywhere without your team!

"Don't Wait to Buy Land..."

noreply@blogger.com (Your White Mountains AZ Realtors) — Tue, 22 Feb 2005 04:41:00 +0000

The rest of the line is, "Buy Land and Wait!"

Great advice from a great man, Will Rogers.

Other smart investors say, "Don't put your money in the bank, bank land". Banking land can be a valuable investment/retirement strategy-- that is, making purchases of land in areas that will experience future growth and development with an eye towards later sale at a tidy bankable profit.

The White Mountains of Arizona is an attractive area in which to bank land. The area has great natural beauty, an enviable climate, an abundance of 4-season recreation, a great lifestyle and culture, and more important, land is limited. In the White Mountains of Arizona, there is only about 18 to 20 percent total land available for private use. And, raw land and real estate values are climbing. More and more people from all over the world are slowly discovering Arizona's Little Secret, and canny buyers are buying now.

Land banking can be an excellent way to diversify your investments. No matter how long you have to retirement, careful purchases of land can add to your planned retirement income. Try to add one new land purchase every few years. Work with a White Mountains Realtor to help you choose parcels in different areas, but with paths to future growth and development. One, two, three small parcels or more, carefully chosen at the right price, and sit back and wait. Or, consider making a large purchase at a reduced amount per acre for future maximum clout, splits into smaller saleable parcels.

Be patient and use your White Mountains Realtor to help you find the best value at time of purchase. Buy slowly and buy well. A few years before retirement, get your selling plans in order. You may want to sell a parcel each year with a goal to having everything sold in five years; or you may make other plans. You may sell for cash, OR you may want to carry a nice note back, guaranteeing a steady cash flow over years. You're in the driver's seat. No one can guarantee a market; but by watching carefully and working with your White Mountains Realtor, buying and selling land as an addition to your retirement plan can be exciting and rewarding.

Real Estate Agents, Brokers, Commissions and YOU

noreply@blogger.com (Your White Mountains AZ Realtors) — Wed, 26 Jan 2005 15:27:00 +0000

Buying or selling your home can be a stressful and uncertain process for many. One component of the process that seems to cause a great deal of apprehension is the Real Estate Broker, the Agent, and commissions-- because many people, especially buyers are afraid of the costs involved. Who pays what to whom and why?

THE BROKER

The Broker may own the real estate company, or he may "act" as a Broker for a non-Realtor owner. The Broker is in charge, and all listings at his agency actually "belong" to him, in spite of the fact that his Agents may have secured those listings, service those listings, advertise them, etc. (They have the direct relationship to the seller and are the "seller's agent"). It is the Broker who offers a "commission" to other Brokers (and their Agents) to sell his listings. This process is done through the Multiple Listing Service (MLS).

MLS - WAS IT ALWAYS LIKE THIS?

No, it was not. Traditionally, Brokers did not cooperate with other Brokers. Each Broker (and his agents) had listings and the public could only deal with the specific Broker who held a listing they wanted to buy. Brokers were exclusively the representatives of sellers. They owed all their loyalty and duty to the seller and NOT to the buyer. Increasingly this was seen as unfair to the buyer, and also to the seller in that the process severely limited the seller's exposure to potential buyers, and buyers had no representation. Independent "buyers Agents" did spring up, and since they were largely left out of the commissions, they did start to charge buyers a fee for representation. This practice still exists; however, with the advent of MLS, it is relatively small.

MLS Benefits Everyone

The Multiple Listing Service (MLS) provided the public with broad abilities to buy and sell homes. MLS Brokers and Agents all pay fairly hefty sums to belong to MLS. Membership allows them to sell each other's listing freely. The public no longer has to come to the office of the Listing Broker-- he may go to any Agency of his choosing, select any listings from many Agencies and have his own personal representation. This gives the buyer a huge inventory of property to choose from rather than as before, just the property the Broker had listed.

THE COMMISSION - HOW DOES IT WORK?

It is the Seller who offers a commission to brokers/agents to sell his property. It is most usually a percentage of the final sales price and the commission comes out of the money the seller receives at close of escrow. Does the selling Broker/Agent get all the commission? No. The splits can be numerous with the Broker or Brokers sharing the amount between them and then sharing the remainder after their portion, on down to the agents at his/her commission scale. Your Agent gets a small portion of the commission, his Broker gets the larger share. When two Agencies participate in a sale, the split on the commission will be at LEAST four ways, and maybe more. Many times there will be more than two Agencies involved, perhaps a long-distance referring Agency, also, who will get a portion, too.

THE SPIRIT OF MLS - COOPERATION, FAIRNESS

In an ideal world, everything would work as it should. But, as always, people devise ways of getting around things-- especially when it comes to money. MLS is no different. Obviously, a Selling Broker/Agent will retain more commission if he has "both sides of the sale"-- both the Buyer and the Seller. The entire commission stays with the Broker. This can be accomplished in a few ways: "Vest-pocketing" a listing-- keeping the listing out of MLS for a period of time and offering it only to buyers who come to that specific Agency; failing to include pictures on MLS-- lessening the possibility that another Agent will send the listing to his buyer; incomplete or scanty property details on the MLS listing "Call Listing Office for full details"; Brokers offering a larger portion of commission to their agents for selling "in-house" listings (bounty). These are just a few ways that the Spirit of MLS of consumer-protection can be short-circuited. So, when as a Buyer or a Seller, you suspect any of the above, you must give some thought about whom you are dealing with and whether they have your best interests in mind.

WHAT WE DO

Sure, many times we will find ourselves representing both the Buyer and the Seller-- some Real Estate professionals find that difficult-- but we do not. We represent both sides fairly and equitably working hard to protect our sellers while representing the buyers fairly, honestly and aggressively. We negotiate for fairness, urging both sides to be considerate, honest, open-minded-- and work very hard to convince each side that they are not in a hostile adversarial situation. We do not "vest-pocket" listings, we do not fail to fully disclose property details/pictures, we disclose everything material we know, AND our Broker does NOT offer a "bounty" for in-house sales. All commissions are the same for anything we sell and there is no incentive for keeping it "in-house". Thus, buyers get to view ANYTHING from ANYONE that fits their needs no matter what the commission may be.

We encourage Buyers and Sellers to think about the process and choose representation very carefully. We encourage you to call us, first!

Sunrise Ski 3rd Annual White Mountain Winter Games

noreply@blogger.com (Your White Mountains AZ Realtors) — Sun, 23 Jan 2005 16:33:00 +0000

Big Weekend at Sunrise

Looking for something out of the ordinary to do? Our neighbors, the White Mountain Apache Tribe at Hon Dah and Sunrise have some winter fun planned for you!

The third annual White Mountain Winter Games will be hosted by Sunrise Park Resort Jan. 29 and 30. Free to spectators, the sled dog races and other winter displays and activities offer a fun-filled weekend at the resort.

Races begin Saturday at 8:30 a.m. near the entrance to the ski area with the finals, and the Awards Ceremony to be held on Sunday.

On Saturday afternoon the events include a giant bonfire party, entertainment, Apache Dancers, ice sculpture competition, dog weight pull and hay rides courtesy of Blue Sky Stables.

For more information about Sunrise and winter events, please call 1-800-772-7669 ext. 2303 or visit the Sunrise website at Sunrise Website

Forecast 2005 - Best Case for Buying Real Estate

noreply@blogger.com (Your White Mountains AZ Realtors) — Mon, 10 Jan 2005 17:16:00 +0000

What's not good for the economy may be great for the housing market among other key factors to keep an eye on this year.

Slow job growth and an economy that loses a little steam might be just the ticket for the housing industry next year in some experts' opinions.

David Lereah, chief economist for the National Association of Realtors, thinks that scenario will keep mortgage rates low and provide a "positive shock to the housing sector."

Mark Dotzour, chief economist at Texas A&M University's Real Estate Center, calls moderately slow growth, low interest rates and positive home price appreciation "the perfect storm for residential real estate sales volume."

While others believe job growth would mean that more people would be able to purchase homes, most agree that continued rock-bottom interest rates would be ideal.

At this point, NAR is forecasting a second-best year. 2004 ended up being the best year. But, next year could turn out the same way with record home sales.

The dream situation would be price appreciation rates between 5 percent and 7 percent instead of rates in the double digits. Rates in the single digit range would still be high enough to interest investors, but not high enough to seriously inhibit affordability as higher rates might. A modest price appreciation would be the best case modality; if an increase happens to precipitously, too many buyers may be priced out.

Another best-case is that the economy also would keep improving long enough for the Baby Boomers' wealth to continue. This huge cohort is investing heavily in second homes. The market also has reaped a benefit from foreign investors/the dollar's weak value against key currencies such as the Euro and Yen. While some see the dollar's continuing weakness a worst-case, others view it in a more positive way. If the trend continues, foreigners will continue to invest in real estate and keep prices in good condition.

If the stock market continues to improve, investors generally turn from real estate and back toward stocks and bonds. But many feel that's not likely to happen as investors are still extremely wary of the market secondary to distrust of corporate accounting and an underperforming stock market.

From a broader economic perspective, no real shocks to the economy are anticipated. Oil prices most probably will continue to drop, decreasing inflationary risks/concommittant rises in mortgage rates. As always, oil prices hang over the stock market.

Overall, investing in real estate, whether as a first home, investment property or second home most probably is the best place for your money in 2005.

What Looks Good for Me in The White Mountains?

Buying a White Mountains Arizona Vacation Home

noreply@blogger.com (Your White Mountains AZ Realtors) — Tue, 07 Dec 2004 23:39:00 +0000

The ski slopes are open, the pines are snow-covered, and the White Mountains of Arizona is a Winter Wonderland! So many people visit us during the glorious winter season and decide that next year they'll be spending Christmas in their own White Mountains vacation home or cabin.

But no matter what time of the year, The White Mountains of Arizona offers an enviable mix of attractive qualities for those considering the purchase of a vacation home or second home. What are some of those qualities?

The area you choose should be a top-quality area, yet be affordable now with the potential for return on investment in the future. The area should combine beautiful settings with affordability and community attributes that translate into long-term investment value for homeowners.

It should have activities, points of interest and recreation opportunities that are varied and easily accessed. Crime should be very low, communities friendly and warm, neighbors who are "neighborly" and community values that match your own. The area should have great appeal for other similar folks should you decide to offer your vacation home as a rental periodically.

The White Mountains of Arizona offers all those qualities, and a whole lot more. The peace and tranquility of our beautiful settings, our Four Seasons climate, our lovely communities, and "Welcome Home" attitude make our area perfect for your vacation home.

So when you visit this winter season,
keep in mind that home prices are traditionally a bit lower than during the warmer months, and that perfect vacation home for next year is waiting for you now!
Find Your Vacation Home!

White Mountains Arizona Christmas Festivities

noreply@blogger.com (Your White Mountains AZ Realtors) — Fri, 26 Nov 2004 03:37:00 +0000
There's no better place to spend the Christmas Season than the White Mountains of Arizona! We have snow on the mountain-tops with Sunrise Ski Resort set to open December 10. In addition to all the beauty Nature offers during the winter season, there's plenty to do, see and enjoy! Here are some highlights:

December 4, 2004

Woodland Holiday Lighting Festival (Christmas Tree Lighting)- Pinetop

Woodland Holiday Lighting, Saturday, December 4th at the Woodland Lake covered bridge. Be sure and watch Santa and his elves arrive!

Scheduled for 2:30pm and all children under 10 are invited to spend some time with Santa and Mrs. Claus. Hot chocolate and cookies! The Tree Lighting Ceremony will be held at 5:00 pm-- don't miss it!

The Rotary Club food drive to help the less fortunate in our communities would appreciate your donation of canned goods. A donation wins you a Holiday Raffle gift!

For more information: Pinetop-Lakeside Parks and Recreation at 928-368-6700

December 2004 (date TBA)

Christmas Tree Lighting and Electric Light Parade - Show Low

Show Low Main Street's Christmas Tree lighting will begin at the Festival Marketplace in downtown Show Low at 5:30 PM. Hot chocolate and hot cider will be available along with a Christmas program and entertainment. The Show Low Chamber of Commerce Electric Light Parade will begin at 6:30 PM along the Deuce of Clubs.

Click here for more information

December 1 thru 12th - Snowflake/Taylor

Snowflake Heritage Foundation's Annual "Twelve Days of Christmas"

This event is held each year to "Celebrate the Season." to celebrate this joyous time of year. Santa Claus makes a special appearance, friends and neighbors gather at Heritage Square to listen to holiday music, gather goody bags-- and all are welcome to enjoy this festive event. Festivities begin with the Snowflake Town Lighting and Festival of Trees at Heritage Park on Main Street in Snowflake. Watch the magic of over 92 snowflake street lights light up the streets of the lovely little town!

Taylor's Christmas Tree Lighting will be held at the Taylor Rodeo Pavilion on December 3rd at the Taylor Rodeo Pavillion at 5:30 pm Santa will visit the children in Snowflake and Taylor, too. Enjoy music, entertainment, train rides, horse-drawn wagon rides, hot chocolate, cookies and the traditional Santa Goody Bags for all the children.

Other festivities included will be Valley View Baptist Church Christmas Program, Living Faith Christian Center and Silver Creek Community Bible Church Choir Christmas Program, High School Holiday Program, and a Holiday Historic Home Tour. There is no charge to these events and visitors are welcome.

December 2004 (date TBA)

White Mountain Historic Home Tour Tea - Springerville/Eager

A high tea and tours of the historic pioneer homes in the communities of Springerville and Eagar is offered each winter in the Christmas Season.

Find Out More

December 2004 (Date TBA)

Christmas Light Parade - Springerville/Eagar

Beginning in Eagar, the parade is traditionally held on the first Saturday evening in December to celebrate the joy of the season and welcome Santa Claus.

Casa Malpais Festival of Lights - Springerville/Eagar

The pathways through these ancient Native American ruins will be lit with luminaria (traditional Southwest candle-lit foot lights)during the holiday season. Overlooking the Town of Springerville, the carefully preserved 17-acre ruins were occupied in the 13th century, and feature the Great Kiva, a catacomb burial area, stairways, astronomically aligned shrines, and petroglyphs. A museum and gift shop displaying artifacts is in Springerville. Guided tours are also available.

For more information: Springerville-Eagar Regional Chamber of Commerce (928) 333-2123