Starting the Search for Your First Home

With mortgage rates more than double what they were in 2021, it might feel like now isn’t a good time to buy your first home. Here’s why that type of thinking isn’t beneficial for first time homebuyers…

Until recently, the fed has kept interest rates artificially low, making it cheaper to borrow money. Low interest rates might sound like the best opportunity for first time homebuyers, but when you combine record-low mortgage rates with a housing shortage, things get complicated.

Arizona is currently suffering from substantial housing scarcity — with a shortage of around 270,000 homes, according to the Arizona Department of Housing. So what happens if mortgage rates drop again? That means that buyers will likely flock back to the market, recreating the fierce competition over homes that defined 2020 & 2021. As you can imagine, this ripple effect could lead to over bidding on homes again, which would then drive up prices even more.

So why does buying now make sense?

If you want to buy a home and are in the position to do so, time may be of the essence. In Tucson’s local market, housing prices have been increasing consistently year-over-year, with no hints of letting up. Supply and demand is in play here, with demand far outreaching available supply. If you buy now, you can always refinance later if rates drop. But if you don’t buy, and rates continue to increase, you may end up priced out of the market.

Want to talk to a lender about your options? Contact me for trusted referrals.

Click here to learn more about what makes these breweries so special 🍻😎

Fiduciary Duties: What Does an Agent Legally Owe Their Clients?

In addition to having a knowledgeable advocate on your side during the buying or selling process, there are a number of reasons why it’s beneficial to be represented by an agent, or even better, a realtor.

All realtors are required to uphold the National Association of Realtor’s Code of Ethics and Standards of Practice, which ensures that consumers are being thoughtfully represented. Additionally, all licensees must follow the fiduciary duties automatically established by their agent-client relationship. Those duties are: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care and diligence. But what do those look like in practice?

Obedience: An agent must adhere to all lawful client requests. For example, if you want to list your house at a price your agent doesn’t agree with, they are required to comply if they want to continue working for you.

Loyalty: It is always required that an agent act in the best interest of their client, even if it’s a detriment to their own best interest. Your agent is legally obligated to do what’s best for you.

Disclosure: An agent must disclose all known relevant information to their client. This includes anything that the agent is aware of that may improve or deter the client’s interest in buying/selling.

Confidentiality: This is the one duty that extends beyond the completion of your transaction. It necessitates that an agent can never disclose any personal information about their client(s), unless their client has asked them to do so.

Accounting: Agents must keep accurate records, including receipts, contracts, and communication, and protect the client’s information accordingly.

Reasonable care and diligence: It’s necessary that an agent competently assist their client and exhibit superior professional skills and expertise. An agent needs to work efficiently to spot any possible red flags, investigate when needed, and refer clients to specialized experts if necessary (including inspectors, electricians, accountants, etc.).

Now that you know what your agent is supposed to do for you, find out what doesn’t fall under their jurisdiction.

Is Tucson Running Out of Water? The Answer May Surprise You

Thanks to a legacy of water conservation, forward-thinking policy, and a dedication to developing ambitious infrastructure, Tucson is actually one of the most water-resilient cities in the Southwest.

In the ‘60s & ‘70s, Tucson purchased and retired farm lands in Avra Valley, just northwest of the city, and those lands now serve as large basins where Colorado River water is recharged into the local aquifer. According to John Kmiec — Deputy Director of Tucson Water — we have 2 million acre feet of water in storage for a “rainy day” fund, in addition to the water that we allocate and replenish yearly.

And in recent decades, Tucson has become a global leader in rainwater harvesting, water recycling, and conservation. Notably, in 1984, the city became one of the first in the nation to use recycled treated wastewater to irrigate at a large scale, including at public schools, parks, and golf courses. And because of the city’s conservation efforts, in the last 20 years water use has dropped 33% per person. That means that despite growing 40% in population, Tucson uses the same amount of drinking water that it did in the mid-1980s.

While every drop counts and this doesn’t mean you should go seed your yard with grass (astro turf is a comparable alternative 💚) it does mean that Tucson’s creative approach and forward thinking have set the city up so that we have enough water to thrive in our beautiful desert environment for the foreseeable future.

Explore the Responsible Desert Dweller Guide to learn more about Tucson’s water history and future.

Buying or selling in Tucson? Let’s chat! Email me at [email protected] to set up a call or meeting over coffee 😎☕