Lucas Group News and Real Estate Report Issue 1
Ask The Lucas Group?
How can I increase the score on my credit report so I can get lower interest rates on loans?
These are a few steps you can take to make sure your credit report is accurate and strong.
• Are there entries which are factually incorrect? If yes, contact the credit reporting agency and/ or the creditor immediately.
• Does the report include information regarding someone else? If you are "Fred Smith" and not "Fred Smith, Jr.".
• Late payments are a no-no with lenders and can quickly knock down credit scores.
• What are your debts? Lenders look at real estate, installment debt such as a car payments, revolving accounts such as credit cards, collection claims, and other obligations.
• Is your personal information accurate? The wrong address or Social Secuirty number may mean incorrect references.
• How many credit inquires have you made in the past 90 days? Lenders want to know if you have recently extended your credit obligations.
• Do you have any delinquent credit accounts?
• Each credit report will also provide credit scores. Higher is better. Anything over 720 should elate lenders.
• What to do if you have bad credit? Pay bills on time, reduce debts, and build savings.
• Want more information? Lucas Mortgage would be happy to pull a credit report for you (agency fee is $19). Call Karen at 480-940-0922 for more information.
The Future Looks Bright
Despite terrorist attacks, recession, unemployment, and hard times on Wall Street, local and nationwide residential real estate did well in 2001.
According to the National Association of Realtors, 5.20 million homes were expected to be sold in 2001. The record? 5.21 million in 1999.
And this year, says NAR, should be a repeat of 2001.
New home construction was also at peak levels. New home production in 2001 is expected to reach 888,000. That’s an increase of 11,000 units over 2000.
Why has real estate done so well during the past year?
Lower interest rates in 2001 meant that more people could enter the marketplace as buyers and that many buyers could afford homes with higher prices. The larger pool of potential buyers created by lower rates helped sellers maintain pricing levels. In addition, reduced rates allowed existing owners to refinance and cut monthly mortgage costs.
What will happen in 2002?
First, each year a given number of people become first-time homebuyers and a certain number of existing homeowners move. This means that regardless of interest rates and economics, there's always a housing market of some size.
Second, while national trends are important to follow, real estate is localized. The activity and pricing levels in
Call The Lucas Group today to find out more about the local marketplace, listings, sales and trends.
Second Homes Get Hot
Despite the recession, increased unemployment, and ups and downs on Wall Street, second home sales have risen substantially in the past few years.
Often purchased as vacation or retirement properties, second homes clocked an estimated 415,000 sales in 2000, up 10 percent from 1999 according to the National Association of Realtors (NAR). The year 2000 estimate is up 40 percent compared with the 296,000 second homes sold in 1995.
Why so many second-home purchases?
The economic expansion during the past decade has created extraordinary equity growth in primary residences and bullish stock market returns. Also, the Taxpayers Relief Act of 1997 allows qualifying owners to keep more of their profit when they sell a prime residence -- money often used to purchase a replacement home as well as a vacation property. And sometimes, of course, the vacation property is the replacement home.
No less important, it has become more practical to own a second home. The Internet, cell phones, and fax machines allow many owners to work from any location, including by the slopes or near the beach.
NAR's "Home Wealth Effect Survey" shows that a typical owner has $50,000 in home equity -- $100,000 for households earning more than $75,000. Baby boomers aged 50 or older have still more money in their homes.
"It's really the middle income where the bulk of the baby boomers are showing a demographic demand that's very strong," said Walt Molony an NAR spokesman. In some cases, he says, second home ownership is "designed to diversify a totally stock-based portfolio with other forms of more secure investment."
In many cases, vacation home owners get the same mortgage interest tax write-off they get for their first home and there's even some tax-free income available -- provided the vacation home isn't rented for more than 14 days in any calendar year -- for details be certain to speak with a tax professional.
Historically, vacation home buyers most often are simply after the good life -- an A-frame on the slopes, a cottage on the beach, a cabin by the lake -- a place to get away from it all. The house may become a retirement home, an inheritance for the kids or even a status symbol.
A growing number of second-home purchasers are buying in metropolitan urban areas so they can have quick access to theaters, museums, and shopping. In general, however, no matter what state or region they choose, buyers most often seek lakeside, beach front, mountain and other resort communities, says Molony.
How can you find a second home? Here are a few ideas:
• Buy near your current location. Usage tends to drop with distance and the cost of travel. If it's too far or too expensive to reach within a few hours, you likely won't use it enough to justify the cost as an owner-occupied vacation home.
• There are second home locations which are remote. But in most cases, owners prefer ready access to shopping, night life, recreation, cultural activities, and medical care.
• Take an area for a "test drive." Rent a local condo or home for a season. See how often you actually manage to get to your vacation home and whether you like the area.
If you are thinking of buying a second home, please give us a call. The Lucas Group has eight Sales Associates who specialize in buyer representation. Any of them would be more than happy to assist you with the buying process.
Lucas Group News and Real Estate Report Issue 2
The Next Boom Looms
There's a major national housing boom brewing this decade and there may be little consumers can or should do about it in terms of their home buying plans.
A housing boom -- fueled by aging baby boomers, baby boomer kids, the boost from information technology, the looming lure of rising home price appreciation and the carrot of ever-easier financing, among other factors -- is the subject of a growing number of reports.
From Fannie Mae and Freddie Mac to the National Association of Retired People and
The national housing boom may not come with the frenzied intensity of recent
"There is this strong housing demand and a relatively muted supply. Increasing concerns about the environment and sprawl make it more difficult to expand and that will push up prices stronger than in the last decade," said David Berson, vice president and chief economist with Fannie Mae.
Remember, forecasts are, well, forecasts. And opinions, it seems that everyone has one. No one can predict the future.
The home buying decision is too personal to base on forecasts -- for better or for worse. That's because buying a home is often the largest financial transaction many ever complete and the purchase should be considered holistically in the context of other financial plans.
If you are thinking of buying or selling please call The Lucas Group. We can help you make wise real estate decisions.
Ask The Lucas Group?
I’m thinking of selling my home. Can you tell me what makes one real estate agent better than another?
Not all real estate agents are equally skilled or committed to quality service. When selling your home, you should establish specific criteria for selecting an agent who has qualities and skills which will best meet your needs.
Selecting an agent is a critically important decision in terms of your satisfaction with the real estate transaction. There are very specific questions you should be asking a prospective agent to ensure that you get the best representation for your needs.
Many agents would prefer that you don’t ask these questions, because they may not have some of these skills or qualities: marketing expertise, knowledge of the marketplace, negotiating skills, and a proven track record of success.
Hiring a real estate agent is just like any hiring process —identifying the person or people who best meet your needs, and who will work in your best interest. After all, the sale of your home is a significant financial transaction and you will need skilled representation.
Here are the specific questions that you should ask:
1 - Does the real estate agent and his/her company have a presence in the area where your home is located? If the real estate agent you are interviewing is unfamiliar with your area, you are probably not talking to an agent who can best meet your needs. Agents who are unfamiliar with the area where your home is located are more likely to make mistakes
in pricing and/or representations about your home, neighborhood, schools, etc., which could potentially cost you thousands of dollars and result in a nightmare of a transaction. So, try to interview agents who are familiar with your neighborhood. Agents who have listed and sold homes in your area are more likely to have first hand knowledge of other homes like yours in the neighborhood which have recently sold, and therefore, these agents are more qualified to help you to determine the optimum price for your home.
2 - Does the agent have a proven track record of success?
In today’s residential real estate industry, the top 10% of agents do more than 80% of the business sales volume. Typically, these agents are the best and the brightest. They are thoughtful, creative, and skilled in their business practice. Hire a skilled, successful agent who takes seriously his obligation to represent your best interests in the marketing and sale of your home. Hiring an agent should be a self-interested business decision—this is not a time to do a favor for a friend, beginner, relative, etc.—at your expense.
It costs no more to hire the best; and in fact, you are likely to save thousands of dollars and avoid mistakes and hassles.
3 - Does the agent have systems and staff in place to meet the demands of servicing multiple sellers and buyers?
If you agree that it is to your advantage to hire a successful, knowledgeable real estate agent, then you should next determine which of those successful agents have systems and support personnel in place to ensure that the marketing, sale, and closing of your home is carefully attended to.
There are many time-consuming aspects of the real estate business—planning, marketing, client communication, showing homes to buyers, negotiating contracts, plus the complexity of coordinating the closing of a real estate sale. Beware of the “Lone Ranger” agent who has no support personnel—juggling the demands and expectations of multiple buyers and sellers. The likelihood of a smooth transaction is greater when you hire an agent who has systems and support personnel in place.
4 - Does the agent have a marketing plan to sell my home? Advertising, promotion, etc.
Good, effective marketing is the engine that delivers buyers and agents to your home. As with any commodity, (assuming appropriate pricing) your home is more likely to sell for a premium price as a function of the number of buyer prospects who know about it.
An agent who claims that advertising and other promotional activities don’t work, is an agent who either doesn’t want to spend money promoting your home or who doesn’t have a marketing plan. Your home will sell more quickly and for a premium price with effective marketing using current technology.
5 - Of the listings that the agent sells, what is the average time on the market and the ratio of asking price to sales price?
Currently, homes in the Valley are selling for approximately 97% of their asking price in an average of 57 days. The Lucas Group’s listings are selling for an average of more than 98.5% of asking price in just under 32 days. On a $200,000 home, the seller would net $3,000 more and save 25 days by listing and selling through us versus the average agent.
6 - How does the agent use technology in his business?
Agents who have not incorporated the tools of technology in their real estate business are not as likely to be among the leaders of their profession as those agents who have.
7 -What does the agent do that sets him apart? Why should I list my home with him?
What unique plans and programs does this agent have in place to make sure that your home stands out favorably versus other competing homes? What things does this agent offer you that others don’t do to help you sell your home with the least amount of hassle and for the most amount of money?
8 - Does the agent have a list of references?
Ask for a list of recent references and make several calls asking for an evaluation of the agent’s services.
Lucas Group News and Real Estate Report Issue 3
We’re Growing!!
The Lucas Group is opening a branch office in the new Copper Point Albertson’s Shopping Center on the northwest corner of Ray and McClintock.
This
The new location is currently under construction and should be open in August of this year.
We are currently looking for real estate agents who would like to join our growing team. We offer a host of benefits that make a move to The Lucas Group very appealing:
• We are an independent company with a friendly, family style environment.
• We have vision and value oriented leadership.
• You will increase your income with our qualified lead generation program.
• You will have minimal out of pocket expense and generous commission splits.
• We offer turnkey systems and technology with a proven track record of success.
• You can finally enjoy a higher quality of life with our built-in support staff and unique team system.
If you are interested in benefits like these and many more, please call Jeff Lucas at 480-940-7100.
Lucas Babysitter Classes Are Beginning Soon
It is once again time for the annual Lucas Group sponsored Babysitter/CPR classes. We are now entering our 8th year for this extremely successful program. Over 400 local kids have successfully completed the program.
This wonderful program is part of our continual effort to give back to the community in which we work and live. Are hope is that this program helps to make our neighborhoods a little bit safer.
The all day classes cover growth and development, age appropriate play, children’s safety issues, babysitting techniques, basic first aid and CPR for infants, children and adults. The classes are open to kids ten and older (5th grade and older).
The cost of the Babysitter/CPR class is $30.00. Upon completion of the class, students will receive an American Safety and Health Institute CPR card.
The classes are taught by Patti Luttrell RN, MS. Patti has been involved in pediatric nursing and a variety of healthcare and community education classes for the past 20 years. She is a certified American Safety and Health Institute CPR instructor.
Classes run from 8:30-4:30. There are ten classes this summer: June 8th, June 11th, June 20th, June 22th, July 13th, July 23rd, July 25th, July 28th, August 3rd and August 6th. The CPR portion can be taken alone.
Bring a lunch and a stuffed animal to practice babysitting techniques. Snacks will be provided.
Class size is limited to 10 so call today to sign up. Pre-registration is required. Please register through The Lucas Group at 480-940-7100.
Internet Site Gets Facelift
It’s here! Our web site, www.TheLucasGroup.com, has received a little plastic surgery, and we think you will like the new look.
You can take over 25 virtual tours of Lucas homes for sale, search the MLS, and find out tons of great information about buying and selling a home.
Hope you enjoy the surfing!
In Love With Two Houses? What to Consider When Making a Decision
As you find yourself heavily immersed in house-hunting mode, you may encounter a situation in which you're torn between two houses. Perhaps you and your spouse each have a favorite, or perhaps you both like two houses equally.
Making a final decision and determining which house to make an offer on shouldn't be taken lightly. The decision should be made rationally and not emotionally.
Of course, you may not have the luxury of taking your time on deciding which house you'd like to pursue. You may be in a market in which homes in your price range get snatched up as quickly as they go on the market, perhaps attracting multiple offers.
But in some situations, you may find yourself torn between two houses. Sometimes the easiest thing to do is take pen to paper and outline your family's needs, your budget, and the pros and cons of each house.
Some things you'll want to compare include:
The neighborhoods. If the two final contenders are in different neighborhoods, evaluate the pros and cons. If you have kids and being close to a park is important, you'll want to consider that. How close are shopping, restaurants, churches, and other services? Are the streets maintained? Do homeowners landscape and maintain their homes nicely? How long will your commute to work be?
The schools. If you have school-aged children, you definitely want to consider the reputation of the neighborhood schools. You can usually find general district information and state standardized test results online. But once you're this deep in the process, you'll want to visit the schools and receive the information first-hand from school officials. You should also talk to teachers and parents.
Crime. Go to the local police or sheriff department and ask about crime in your specific neighborhood. You might find theft or vandalism to be more prevalent in one area than another.
The houses compared to others in the neighborhood. While it may boost your self-esteem to have the biggest house on the block, it's typically a better idea to stay away from purchasing the neighborhood monster. When it comes time to sell you'll find that the lower value of your neighbors' homes will shrink your home's value.
Appreciation. If the two homes you're eyeing are in different parts of town or different neighborhoods, ask your real estate agent to retrieve sales of homes in those neighborhoods over the past few years. If one neighborhood shows an annual average 8 percent increase and another is skyrocketing at 15 percent, you may have your decision made.
The sellers' situations. If you don't know already, ask your real estate agent how long each home has been on the market. Usually the longer a house has been listed, the better chance the seller will accept an offer lower than asking price. Conversely, if the house has been on the market for just a couple days, the sellers will probably wait for a better offer if you offer less than the listed price. Your real estate agent might also be able to find out additional information about the sellers, like why they're selling. If it's a job-related move, the sellers likely want to move as quickly as possible, meaning you have a better shot at them accepting a lower price.
The houses themselves. If you haven't already, you should make a list of the attributes you want your house to have. If you want that first-floor home office, a large, open back yard for the kids, or a gourmet kitchen, be sure to include that on your list. Then, rate how each house measures up to each need on your list. Likewise, list the cons associated with each house and determine how much of a negative impact each will have.
As you carefully weigh all the factors, it might become clear that one house is more enticing than the other. Or, you may find the houses are still equally appealing. If that is the case, be sure you look at the homes more than once. You may notice something you didn't the first time around.
Lucas Group News and Real Estate Report Issue 4
Summertime Is A Great Time To Buy And Sell Real Estate
As we enter the sweltering summer, homebuyers' thoughts will naturally turn to patios, decks, landscaping, air conditioning, and in some cases, pools.
Summer is traditionally a busy time for real estate sales because many families want to move during their children's summer vacations and get them acclimated before the new school year begins.
That means if you're selling your home this summer, you'll likely have more competition as more of your neighbors put their homes on the market, too.
But the good news is that this summer in particular should be a good time to sell. The pace of home sales - propelled by stable interest rates, a recovering economy and improving job outlook - is expected to stay steady through the rest of the year.
"The momentum of sales will push us into another annual record, even with a somewhat lower pace of home sales activity going forward," said David Lereah, chief economist for National Association of Realtors.
The long-predicted cooling-off of home price appreciation is underway, but there are no signs of a meltdown, according to the Office of Federal Housing Enterprise Oversight (OFHEO), the only agency that tracks the actual market valuation movements of millions of American homes.
What's the outlook for home values nationwide for the balance of the year? Look for the moderate cooling trend now underway nationally to continue. But there's little chance of the bubble bursting. To the contrary, in markets with solid local economies, strong employment growth and a shortage of homes for sale, don't be surprised if values continue to boom along as they have for the past decade.
If you are thinking or selling, buying or building a home this summer, or if you know someone who is, please give us a call. We’re creating excellent real estate experiences...one home at a time.
Lucas Group Looking For Real Estate Agents
The Lucas Group is currently looking for real estate agents who would like to join our team. We offer a host of benefits that make a move to The Lucas Group very appealing:
• We are an innovative, independent company with a friendly, family style environment.
• You will increase your income with our qualified lead generation program.
• You will have minimal out of pocket expense and generous commission splits.
• Our agents average over 24 closed deals per year. The SE Valley average is 4.6 closed deals per year.
• We offer turnkey systems and technology with a proven track record of success.
• Minimal out of pocket expenses and generous commission splits.
• No monthly bills, no desk fees, no transaction fees, no ad fees, no E&O fees, no gimmicks.
• Enjoy a better quality of life and higher income with our built in support staff and unique team system.
• Our support, training, and systems will make you a better real estate agent.
If you are interested in benefits like these and many more, please call Erika Lucas-Goff at 480-940-7100.
Lucas Group News and Real Estate Report Issue 5
Ask The Lucas Group?
I am buying a home. Can my insurance company deny to cover the property because of a history of claims?
Yes they can. Some insurers have begun investigating the property, and if the property has too many claims in the past, the may decide not to insure it.
There have also been reports of homebuyers having their homeowner’s insurance cancelled after closing escrow because of the insurance claims previously submitted by the seller of the home.
The Department of Insurance states that
What can you do? Homebuyers should consider investigating a home’s claims history. A claims history can be obtained from the Comprehensive Loss Underwriting Exchange (“CLUE”), a shared repository containing 90 percent of the insurance claims made in the
CLUE generally tracks claims going back five years and provides information on the cause of loss and the claim amount.
Homeowners have the right to request a CLUE report on their property, but buyers do not have the right to the report until they close escrow. However, buyers should consider asking sellers for a copy of the home’s CLUE report before submitting an offer or during the contract inspection period.
A CLUE report costs $8 and may be obtained by calling 800-456-6004.
Stay Up-To-Date At Kyrene.org
School is back in session and www.Kyrene.org is a great web site to keep parents and students abreast of the happenings in the
The web site links to tons of great information ranging from lunch menus and school calendars to community education topics and a directory of useful phone numbers.
You can also link to the Kyrene Schools Community Foundation’s new web site. The Foundation secures resources that support and enhance educational opportunities within the Kyrene Schools Community by building partnerships between business, the community and its schools.
On the left side of the home page there is a drop down menu of links to web sites developed by the individual Kyrene schools.
The District News link allows you access to an online version of the district’s newsletter, The Kyrene Communicator.
Surf on over to the Athletic link to get game schedules and results.
As you know, much of the funding for the athletic department has been cut so this link also details how you can help support student athletes.
As part of our community friendly philosophy, The Lucas Group happily donates a portion of the proceeds from every home sold to The Kyrene Foundation, The Kyrene Athletic Department, and The Kyrene Community Education Program.
Lucas Group News and Real Estate Report Issue 6
New Office Now Open For Business!
Lucas Realty Group is now open for business at our new
Jeff Lucas says the new office isn't just about expansion of an already strong position; it's about the future. "We want to continue to grow our market share in the Kyrene Corridor area."
The family decided more space was needed to meet the growth and bring in more staffing. Lucas Realty Group now has over 35 individuals working together towards a common vision of creating excellent real estate experiences.
“We do things a little different around here. Most real estate agents work alone. We work together and I believe the synergy makes for a better experience for our clients,” Lucas said.
With the new move and two offices in an area where it already has an established presence, the company will continue its strong involvement in the community.
"We've been a supporter of the Kyrene schools and done things such as babysitter safety classes and Red Cross CPR training; we're also regular contributors to the Kyrene Foundation, Kyrene Athletics, and to individual Kyrene schools," he said.
The company plans to expand its in-house mortgage-lending and to launch an innovative, Web-based program designed to simplify real estate transactions.
"We will shortly be closing our transactions on an Internet platform that all of the parties can view online, with real-time updating of the progress being made toward the close of escrow," he said.
Most of all, said Lucas, the company hopes to solidify its position as a leader in the local marketplace.
"What characterizes our business is that we're essentially a real-estate marketing company that we can say is always at the forefront in terms of innovation and service, both to our clients and community."
You can reach the Group by phone at the new office (480) 603-3310. The original
Lucas Changes Name
With all of the other major changes happening, we decided it would be an appropriate time to change our name too. Effective immediately, The Lucas Group at RE-Source One Realty will simply be known as Lucas Realty Group.
We figured most people simply knew us as The Lucas Group anyway so we decided to make the change.
The RE-Source One concept was meant to convey the one stop shopping concept that we have created. This won’t change - we are still striving to create an excellent real estate experience in a convenient, neighborhood setting.
Our web site is now located at www.LucasRealtyGroup.com.
Will There Be A Real Estate Housing Bubble?
Newspapers around the country have carried articles recently debating whether there will or will not be a real estate "bubble," a general and substantial decline in property prices.
No one knows what the future will bring and since real estate is a commodity it's true that prices can go up and down. That said, why do reporters ask Wall Street analysts about real estate pricing trends when it's clear that many analysts have been terribly wrong about individual stocks as well as overall market patterns?
Here's an alternative idea: Speak with your local real estate broker and ask for an assessment of your immediate marketplace. For instance: Is the local population rising? Is the local job base growing or contracting? How long does it take to sell a typical existing home listed in the local MLS? How long did it take a year ago? Are mortgage rates rising or falling? Where do they stand compared to last year?
Be aware that what happens to real estate prices nationally or regionally may not reflect local trends, the prices in your neighborhood. Also, look behind the numbers. For instance, suppose average prices in a given ZIP code fell significantly during the past year. Sounds bad -- but what is the mix of homes being sold? Perhaps a new townhouse development has opened and the prices for such properties are generally lower then detached homes, thus skewing the average down. Meanwhile, it may be that detached home prices have actually been rising during the past year.
We at Lucas Realty Group believe that the local marketplace is not facing a housing bubble. Prices of homes have appreciated at a sensible and steady pace of around 5% for the past few years. There might be pockets and certain subdivisions that have appreciated faster that might be at risk; however, these are the exception and not the norm. 2002 will end up being another record year for home sales and we are optimistic about the local market going into the new year.
Lucas Realty Group’s Community Friendly Activities
Lucas Donates to Kyrene Athletics
The Kyrene athletic program is pleased to announce that Lucas Realty Group has recently donated $2000 to help fund athletic programs this year. The program receives no funding from the District budget.
The
Many Kyrene families cannot afford the athletic program fees required for students to participate in sports. The Kyrene athletic program offers these families an opportunity to receive assistance with full and partial scholarships.
Because of the partnership built with Lucas Realty Group, the Kyrene athletic program will provide financial assistance to student athletes. The recipients of these scholarships live far below the federal poverty level.
You too can help by donating your time or money. And don’t forget, you can take advantage of the tax credit offered by the State of
Babysitter Classes Offered Monthly
Lucas Realty Group sponsored CPR/ Babysitter classes are now going to be scheduled on the first Saturday of every month.
Classes last from 8:30 to 4:30. Classes are taught by Patti Luttrell, RN, MS. The cost of the class is $30.00. Upon completion, students receive an American Safety and Health Institute CPR card.
Class size is limited so call today to sign up. Please register with Lucas Realty Group at 480-940-7100.
