Lucas Group News and Real Estate Report Issue 1
Sales and prices soared past estimates to record levels last year as people, enticed by falling interest rates and tanking stock process, poured money into Valley homes.
The binge isn't expected to come to an end this year. Most real estate experts see the market slowing only slightly to still post the second-highest sales number in the state's history.
A staggering 75,982 used homes changed hands Valley-wide last year, according to numbers tallied by housing analyst R.L. Brown. That's a 5.62 percent increase from the previous record of 71,936, set in 2001.
Permits for new homes climbed to 38,943 in 2002, a 7.7 percent jump from the previous record set the year before.
The national slowdown helped push 30-year mortgage rates below 6 percent for the first time in 40 years, offsetting rising housing costs for many Arizonians last year. The typical price for a new Valley home hit $167,703, and the median cost of an existing one climbed to $142,500 in 2002.
Cheaper mortgages are allowing people to get more expensive homes without a significant increase in their payments.
Buyers are paying about the same price for a median price home as those in 2000, although the median price for a home as increased by $20,000 between those years.
Even though the Valley lost thousands of jobs in 2002, the area’s population continues to climb as people move here for the warm weather, affordable housing, and growth potential.
All of this data translates into positive news for the Kyrene Corridor and local home values. As the Valley grows to its edges, we hold a distinct advantage with our land-locked, central location.
This combined with our recent explosion of amenities and excellent schools still makes the Kyrene Corridor the premier
A.C.E. Club Helps To Change Lives
The
The A.C.E. Club is a program that helps students, who feel unsuccessful in school, focus on Achievement and Character for Excellence. This goal is to help members increase academic standings and decrease attendance and behavior concerns.
The program takes place at the Kyrene middle schools and includes approximately twenty 6th, 7th and 8th grade students and three certified teacher, as A.C.E. Club instructors from each school.
The A.C.E. Club operates solely on grants and community contributions and is constantly seeking revenue to support its expenses. However, without an increase of financial assistance, the program is in jeopardy of sustaining itself. For more information on how you can support the A.C.E. Club in our Kyrene schools, please contact Samantha Burkett @ (480) 783-4074 or visit the A.C.E. Club website www.kyrene.org/ace
The Lucas Groupies - Our Unofficial Fan Club
“I would highly recommend that before you choose a real estate company, that you interview Lucas Realty Group. Their service, promptness, and high ethical standards sets them high above their competition. They get the job done...right. They are awesome!” Les and Michelle Betchner
“Billions of dollars are spent annually on advertising services. Seldom does the service match or exceed the advertising. Lucas Realty Group should be very proud of their organization and staff in making the selling and buying experience “hassle free” as advertised. Even though our sale was small, we felt just as important as a million dollar account.” Dianne Sajban.
“The entire Lucas Realty Group made my task of finding and purchasing my dream home a reality. The processes was smooth, no pressure and actually enjoyable. I will recommend Lucas Realty Group to anyone I hear of looking to buy real estate.”
John Heinzig
“We have bought and sold many houses over the past 25 years. Selling our home through Lucas Realty Group was by far the best we have encountered. We were mostly impressed with Jeff Lucas and his efficient and knowledgeable staff. Jeff not only knew the market, but was very patient and understanding. We would highly recommend Lucas Realty Group if you’re buying or selling a home.” Tom and Colleen Van Ampting
“We have worked with Lucas Realty Group on a number of occasions during the recent years. We have consistently found the entire staff to be knowledgeable, professional, and reliable - each time going the “extra mile” to ensure a pleasant and successful process. We will continue to look to Lucas Realty Group for our real estate needs and whole-heartedly recommend them to others as well.” David and Linda Ross.
Call us if you would like to join this exclusive club.
Lucas Group News and Real Estate Report Issue 2
It Pays To Be Represented When Buying Or Building
We talk with people nearly every week who have bought a resale or new build home without the representation of a Realtor. And while there is nothing inherently wrong with this; we want to remind people of the numerous benefits they could be receiving by taking advantage of the representation we offer with our exclusive “Smart Home Buyer Program.”
First, our representation cost you nothing. Whether you are looking to buy an existing home or build a new one, we are traditionally paid by the seller or builder.
Additionally, if Lucas Realty Group represents you when buying a home then you will save 1 percentage point on the commission if you decide to sell your home through us too. That’s a $1,000 savings for every $100,000 that your home is worth!
Aside from these obvious financial advantages, the most important benefits might just be our vast amount of experience. We have been through literally hundreds of resale and new home purchases - the value of which is truly priceless.
Here are a few items to keep in mind when dealing with a new homebuilder. If you go into a model home center for the first time without a Realtor, then you will loose your right to be represented. The on site salespeople, though very nice and helpful, work for the builder - not you. And, new homebuilder contracts can be very tedious and confusing.
Bottom line - we are in the business of selling homes so why not utilize our knowledge to save you time and money. If you wouldn’t go to trial without a lawyer or into surgery without a doctor, then why would you consider buying or selling a home without a Realtor.
So, if you are planning on buying or building a home in the near future, please contact Lucas Realty Group in advance of your home search.
Local Resident To Host Football Camp
The 1st Annual Arizona Youth Football Camp will take place this summer. The idea is the creation of local resident, Javier Zuluaga, and his co-coach, Steve Caparella.
The goal of the camp is to prepare and empower young athletes with sound fundamental football techniques as they progress toward high school football.
Both coaches bring a host of on the field and coaching experience to the endeavor.
The five day camp is open to next fall's 4th, 5th, 6th, 7th, and 8th graders and will take place June 16th through June 20th from 6:30pm - 8:30pm each evening.
The camp will be located at the Boys and Girls Club Scottsdale Facility -
Participants should come prepared physically and be ready to play with intensity and enthusiasm. Kids will learn techniques that will increase their confidence as a player.
The cost of the camp starts at $125. You can get more information at www.azyfc.com or call Coach Zuluaga at (602) 686-8354.
Lucas Realty Group is currently looking for real estate agents who would like to join our team. We offer a host of benefits:
1 • We are an independent brokerage with a supportive environment and commitment to customer service.
2 • We offer an extensive mentoring program taught by Jeff Lucas. Learn the techniques and systems that made Jeff the #3 agent in the SE Valley in 2003.
3 • Benefit from our support staff and wheel of services. Listing and escrow coordinators, marketing manager, in-house lending, on site brokers - all available to you free of charge. You concentrate on selling while we take care of the details
4 • Enjoy the generous splits and minimal expenses. No monthly bills, no desk fees, no transaction fees, no franchise fee, no E&O fees.
5 • Our turn key systems and technology will make you a better real estate agent, increase your income, and give you a higher quality of life.
Are you ready for a change? To learn more about this great opportunity please contact Erika Lucas-Goff - 480-940-7100
Lucas Group News and Real Estate Report Issue 3
Fed Rate Cut Has Opposite Effect on Mortgage Rates
The Federal Reserve Board of Governors recently voted to cut short-term interest rates by one quarter percent to an astounding low level of one percent. Contrary to what a lot of people think, the move did not spill over into the mortgage market. In fact, mortgage rates rose and here’s why:
The Federal Reserve has complete control over the Federal Funds Rate. This is the interest rate that commercial banks charge each other for short-term loans. The problem is that the Federal Funds Rate and thirty year fixed rate mortgages are not closely related.
The Fed's purpose in lowering the Federal Funds Rate is to stimulate borrowing, which in turn stimulates economic growth. Since there are many other types of commercial and consumer loans that are tied to the Federal Funds Rate, the Fed's move is likely to lower borrowing costs on many other loans such as personal loans, home equity lines and credit cards. Not necessarily true for long term mortgage rates.
The Fed's move created a spike in mortgage rates and here's why: the Fed's decision to cut the Federal Funds Rate is a sign that it is taking proactive steps to create economic growth. This means higher stock prices, increased job hiring and all the other things that come with economic growth.
The downside to a robust economy is inflation. Inflation results in higher fixed rate mortgages. Investors perceived the rate cut as a symbol that the economy will soon be picking up. When that happens, investors sell shares of "mortgage backed securities". A sell-off in mortgage-backed securities causes long-term mortgage rates to rise.
The bottom line is that no one really is able to predict the movement of mortgage rates because no one can predict when or by how much the economy will start to gain steam. When there are clear signs that the economy is recovering expect mortgage rates to rise.
Is Now The Time To Sell Investment Homes?
Recent changes in federal tax laws suggest that owners with investment homes should look carefully at the marketplace: The capital gains tax rate has been reduced between May 6, 2003 and December 31, 2008. During this period, the capital gains tax rate will be 15 percent, down from 20 percent. For individuals in the 10 or 15 percent marginal tax bracket, the news is even better because the capital gains tax has fallen to 5 percent until 2008.
What these changes mean is this: You bought an investment property for $100,000 and 20 years later it's worth $400,000. In general terms, if you sold today you would have a $300,000 profit and owe a $60,000 tax to Uncle Sam at the 20 percent rate. Under the new rate your tax bill would be reduced to $45,000, a savings of $15,000 -- enough to buy a car or reduce college tuition costs.
Or, imagine if you retire. Now your income is substantially reduced. If you fall into the 10 or 15 percent marginal rate categories your capital gains tax would be just 5 percent -- $15,000 for our model transaction.
Nothing with taxes is simple, of course. You should contact your accountant or tax advisor for more information.
If you are thinking about selling a home, feel free to call or drop by - we would enjoy having the opportunity to create a memorable experience for you.
Lucas Group News and Real Estate Report Issue 4
Should You Buy or Sell First?
For homeowners aiming to sell their home and buy another, it's the classic real estate, which came first, the chicken or the egg, question - buy or sell first?
If you sell first, you may find yourself under a tight deadline to find another house, or be forced into temporary quarters. If you buy first, you may be saddled with two mortgage payments for at least a couple months. You may need the money from the sale of your original home in order to qualify for a loan for your new home, or you may be facing a job relocation and need to sell quickly.
One school of thought is that there is generally less pressure and stress when you sell first, which lessens the risk of owning two houses, or none at all.
If you have the money to make two mortgage payments, the pressure is off. But if you need to sell your house to qualify for a loan, then you'll probably have to sell first.
You can write a contingency offer, but if you really want the home, you'll pay more of a premium, if the seller will even entertain a contingent offer. If you go ahead with a contingent offer, then you may end up settling for less for the house you're selling in an effort to get it sold.
Another advantage to selling first is having the time to get pre-approved for your mortgage and see all the housing options in the price range you'd like to buy.
The worst that can happen is the right home isn't available, and you end up in a short-term rental with the cash in your pocket and pre-approved financing for the balance you need. So you look like a cash buyer when you make an offer on the home you finally decide on.
Whichever decision you make, we can assist you in overcoming the various issues. Give us a call today to find out more.
The
Kyrene exists to serve our students and their families. The District is committed to educational success. In order to achieve that success, students must have access to a variety of quality educational program opportunities. Our Business Partnerships are critical to the support of the programs that currently exist and for those yet to come.
Lucas Realty Group is one such organization. Lucas Realty Group donates a portion of the proceeds from every home they sell to support the Middle School Athletics Scholarship program. This program provides the financial resources for students who otherwise might not be able to participate in middle school athletics.
If you are interested in developing a business partnership, please contact Michelle Stevens at 480-783-4174.
Rates Improve In September It’s a Great Time To Refinance
After reaching 6.44 percent for 30-year, fixed-rate loans at the start of the September, mortgage rates generally retreated during the month. According to Freddie Mac, 30-year loans were priced at 5.98 percent by the end of September -- the first time rates fell below 6 percent since July. In both cases borrowers also paid .6 points.
Interest rates hit a low of 5.21 percent in June, according to Freddie Mac, and rose during much of the summer. However, even the highest summer rates were low when compared with the usual interest levels seen during the past several decades. One result: the National Association of Realtors reports that existing home sales in August rose 21.8 percent when compared with August 2002 -- and 2002 was a very good year for real estate.
For those who prefer adjustable-rate mortgages (ARMs), start rates below 4 percent were available at the end of September. The more liberal qualification standards associated with ARMs may allow borrowers to obtain larger loans, and thus obtain homes which would otherwise not be available with fixed-rate mortgages. The caution, of course, is that ARM rates and payments can change in the future.
Lucas Mortgage, our convenient in house lender, can help you with any and all of your mortgage and refinance issues. Please call them today for more details - 480-940-0922.
Lucas Group News and Real Estate Report Issue 5
A Cupful Of Hope
This story is about an amazing young man named Jeff Luttrell. He is 15 and has been dealing with Leukemia for most of his life. He has been cancer free for the last 3 years, but this certainly hasn’t diminished his focus on finding a cure for this tragic disease.
Jeff and his family have put together a cookbook, A Cupful Of Hope. The proceeds from donations collected from the book will go to the Leukemia and Lymphoma Society to help find a cure for cancer.
The book has over 125 tried and true recipes from friends and family of the Lutrell’s. It is also displays the artistic talents of Jeff with colorful illustrations of a character that he refers to as Dizmo.
Raising money from the cookbook is part of a larger charity campaign to raise $6,000 for the Leukemia and Lymphoma Society. Warner Ranch residents, the Lutrell Family - Steve, Patti, Jeff, and Jenny along with close friend Prudence Hodgeson are in training to complete at least a half marathon in the upcoming Rock ‘N’ Roll Arizona Race.
“We are part of the Team In Training Program,” says Patti Lutrell. “The program is part of the Leukemia and Lymphoma Society. They help us train and we commit to raise money for the Society.”
Jeff, a student at Corona Del Sol High School, is an Honor Patient for the Society. He happily shares his story with other families that are trying to cope with the disease.
The Lucas Family has watched Jeff and his family for nearly a decade and feels a close tie to them. Patti teaches our popular CPR/Babysitter classes and has helped train over 700 Kyrene Corridor kids. We are happily pitching in for their cause by contributing to the printing of the cookbook.
You too can help Jeff and his family and friends. By making a minimum donation of $10, you will receive a copy of A Cupful Of Hope. Simply call Patti at 480-820-6764 to purchase copies for family, friends and yourself! The vast majority of all proceeds goes directly to cancer research. Don’t wait - the deadline to reach their goal is January 11th, 2004.
Community Corner
• Gift of Love •
We are please to announce the beginning of our “Gift Of Love” program which is designed to help local families in need. Details on page 6.
• Babysitter Classes •
Sign up now for the Lucas Realty Group sponsored CPR/ Babysitter classes. Classes are scheduled on the first Saturday of every month and last all day. Call Cheryl at 480-940-7100 to sign up.
• Lucas Aids Schools •
We were happy to donate to Kyrene Mariposa, Kyrene Del Cielo, and Kyrene Manitas for there recent Fall Festivals.
• Garage Sale Signs •
Lucas Realty Group recently sponsored the Wild Tree and Carrillo Ranch garage sale. If you need help with a garage sale or just want to borrow some signs, give us a call.
• Tax Credit Time •
Don’t forget to give to your local schools. You can donate up to $200 and get a dollar for dollar tax credit. Go online to www.Kyrene.org for more info.
1031 Exchange Alternative
Do capital gains prevent you from selling your highly appreciated property? Would you like to know how you could defer capital gains without interest or penalty?
The Private Annuity Trust is an IRS approved product that might just be what you have been looking for. The Trust allows you to defer capital gains taxes. You will receive income for life from the sale of your property, remove the sales proceeds from your taxable estate and transfer the balance of you trust’s assets to your chosen heirs when you die.
Example: John and Mary have an apartment complex. They are age 60 and wish to retire from the property rental business. They have an adjusted basis in their building of approximately $50,000 and the building will sell for $500,000 net. Their capital gain is $450,000 and the taxes will be over $126,000. If they sell outright, the taxes are due. If they 1031 Exchange, the taxes are deferred, however, they are still in the rental business.
If they have a Private Annuity Trust they will receive an income for life of over $34,476 per year, stretch the capital gains over their entire lifetime, without penalty or interest, and leave the balance of the Trust assets to their chosen heirs when they die. The Trust assets are not subject to federal estate taxes, family liabilities, probate or Medicare.
The program is very affordable, easy to understand and implement. Call David or Karen today for more information at 480-940-0922.
Holidays Are The Season Of Giving
Lucas kicks off new charity campaign to help out local families who are in need.
Lucas Realty Group, in cooperation with the Kyrene and
Gift giving during the holiday season is a long standing tradition in many Valley communities. Our intent is to go beyond the once a year giving and work to provide support to these families on a quarterly basis throughout the upcoming year.
To enable our Gift of Love program, we will call on our families, friends and neighbors to lend a helping hand. It’s so easy to pick up a second box of rice, or a second tube of toothpaste, a pack of pencils, or a couple of cans of soup. It means so much!
For our holiday giving, we will collect gifts of clothing (new or gently used), non-perishable foods, gift certificates to grocery stores, new or gently used linens, or staple products such as shampoo, soap, laundry detergent, etc. A list of sizes and a little information about the families will be available by calling either Lucas Realty Group office. Collection will run through December 13th with delivery targeted on December 15-17th.
The remainder of the year might see gifts such as Easter baskets, backpacks with school supplies, summer activity packs, etc. Further details will be published. Stay tuned for more opportunity to join the Lucas Realty Group “Gift of Love” program.
