TheTucsonFoothills

Tucson-to-Phoenix "megalopolis"

If you're down in the dumps about the state of the current real estate market in Arizona, and betting against an uptick in future home values, particularly in the Tucson to Phoenix corridor, you may get some comfort from what forecasters are predicting in this article in the AZ Daily Star, With growth boom, 24-lane freeways may be in AZ future. On the other hand, it sounds like a future that many of us have tried to escape by moving to AZ, and therein lies the problem.

Arizona, the fastest growing state

Yesterday, in Tucson, one of the hottest markets, still I wrote about the future growth of Tucson, and one of the key criteria for that growth was 'a solid in-migration to the area'. Today a story in The New York Times, Arizona Displaces Nevada as Fastest-Growing State seems to lend credence to that solid in-migration. 'An influx from California helped make Arizona the fastest-growing state, displacing Nevada for the first time in nearly two decades, according to census figures released yesterday'. 'Measured by rate of growth, Arizona was first, followed by Nevada, Idaho, Georgia and Texas, Utah, North Carolina, Colorado, Florida and South Carolina'. “Arizona used to be merely a retirement magnet for Midwest seniors,” Mr. Frey said. “Now it’s also a front door for immigrants from Mexico and an escape hatch for Californians seeking affordable housing. Add the retiree population, which will be soon bubbling with baby boomers, and you have America’s demographic success story — or nightmare, depending on how you see the challenges of rapid growth.” Read it HERE

Builders work to mend fences with agents

Builders work to mend fences with agents from the Arizona Republic 8/28/06

The gist of this story is that last year builders were doing as much business as they could handle and they didn't need agents to help them do it. So they ignored the agents and cut commissions, meanwhile they were having home buyers pay top dollar for every new house and upgrade.

This year the builders are doing very poorly, with a large stock of unsold homes. So they're offering agents increased commissions and some wooing and wining and dining to get them to bring in buyers. And they're offering buyers an array of valuable incentives to get them to buy homes.

But apparently a lot of agents are upset with the way the builders treated them last year, so now that the tables have turned they're ignoring those builders and not bringing their buyers around to those builders sites. They want to get back at those builders for the way they were treated.

Well obviously agents have a responsibility, a fiduciary duty, to show their clients the homes that might be right for them and negotiate in the clients best interests, and not be guided by the amount of the commission or let their personal feelings get in the way.
But sometimes human nature gets in the way anyway, because you usually don't want to be nice to someone who wasn't nice to you.
Conversely, builders DO NOT have a responsibility or duty to agents, to offer agents any particular commission, incentive or anything, in good times or bad.

So maybe you should let your buyers know that Harrys Hillside Homes offers homes that may be right for them. And explain to them that last year Harry was squeezing agents and buyers every which way (if in fact that is true) but that this year Harrys' offering a long list of valuable incentives for buyers and healthy commissions for agents. So let's go out there and take a look.
If they like what they see, you're in the drivers seat.
Now it's your turn to squeeze. Negotiate like crazy to get the absolute best deal for your buyers, and then go back for more. Believe me, the builders have more to offer than what they've laid on the table, probably a lot more. If your buyers are satisfied and you think you've gotten everything you can get for them, then everybody signs on the dotted line. Your buyers get a great deal and you get a fat commission.
Do the right thing for your clients, earn your commission and get back at the builder at the same time. Who knows, that builder might even thank you.