Quad Cities Business News

Prescott, Prescott Valley, Chino Valley, & Dewey/Humboldt

You are here: Home / Archives for real estate

real estate

Exploring Real Estate’s 1031 Exchange

By Leave a Comment

I am often asked by current or prospective clients about (IRC Section) 1031 exchanges, especially by property owners who are considering a sale of an existing commercial property. Following last month’s article in the Quad Cities Business News, I received this email from Edward and Barbara G. of Santa Barbara, California, which basically asked this question, “Mr. Sherman, we recently traveled to Prescott and read with much interest your article on Due Diligence. As we are very close to selling one of our commercial properties, can you please give us some pointers on 1031 Exchanges? We have owned the property for the past 10 years or so, in case that makes any difference.”

For starters, I never give legal or tax advice, and always refer such clients to attorneys or CPAs who specialize in such matters. When it comes to exchanges, I have also referred many property owners to Jim Miller, senior vice president with Investment Property Exchange Services, Inc. (IPX1031) in Phoenix. He can be reached at 602-850-8630 or james.miller@ipx1031.com.

Jim is arguably one of the top 1031 Exchange experts anywhere; he has forgotten more about the subject than most people in that industry know. IPX1031 is a fully owned subsidiary of Fidelity National Financial, which owns seven large title companies and is one of the largest and strongest title insurers in the country.

Seeing as how my office and I have successfully handled dozens of 1031 transactions through the years as the broker of either one or both “legs” of the transaction, here are a few things to consider for Edward and Barbara, or anyone else in a similar situation.

Before you transfer the property you are selling (the “Relinquished Property”), you need to enter into an Exchange Agreement and Assignment Agreement with a Qualified Intermediary (“QI”) or Accommodator, and the entire NET proceeds need to be immediately transferred to such QI directly from the title company. If this does not happen at the closing, or if you take possession of the proceeds in the interim, then effectively you have blown the exchange and will no longer be entitled to the tax benefits of such a transaction.

Next, you will have 45 calendar days from the date of closing to identify, in writing, your prospective “Replacement Properties,” meaning that list of properties that you have determined to be a good fit for your Exchange, and from which you will ultimately select one or more to purchase. There are certain rules governing the definition of what is “like kind,” how many properties you can identify, and the aggregate purchase prices of those properties, just to name a few, so further advice from a QI or similar professional is highly recommended.

Following the 45-calendar day identification period, you will have an additional 135 calendar days to acquire (close escrow on) the Replacement Property(ies). If you do not reinvest the total net proceeds from the Relinquished Property into the Replacement Property(ies), any amount not reinvested will be considered “boot,” or taxable income to the taxpayer. Likewise, if you do not replace the exact amount of debt (unless the previous property was owned free and clear) from the sold property into the new property, the difference in debt will be treated as “debt forgiveness” and will also be taxable to the taxpayer.

This rather short article cannot possibly address every single situation to consider when entering into a 1031 Exchange, such as the “taxable basis” from the Relinquished Property, or such topics as “Reverse Exchanges,” but we stand ready to help any QCBN readers who are considering the sale of a commercial property, followed by a 1031 Exchange into a new property.

If handled correctly and strictly by the book, a 1031 Exchange can be a fantastic way to continue buying and selling commercial properties years into the future, all the while deferring the capital gains taxes from each sale and rolling that additional capital into subsequent acquisitions. QCBN

By Neil Sherman

More information and videos about 1031 exchanges can be found on IPX1031’s website: www.ipx1031.com.

Neil Sherman is the Designated Broker and Managing Director of Sperry Commercial in Phoenix, and can be reached at 602-566-7210 (direct). Please send all commercial or multifamily property-related questions to neil.sherman@sperrycga.com

Flowers that Help Sell Your Home

By Leave a Comment

Of all the ways to boost your home’s curb appeal when you put it on the market, what could be quicker or less expensive than installing some colorful garden flowers? Watters Garden Center conducted a survey to discover which flowers are most appealing to house hunters. In addition to trimming your trees and shrubs and freshening up your mulch, consider adding value to your home by adding one or more of these flowers to your perennial beds or front porch containers that add fragrance and wow potential buyers. The plants can add thousands of dollars to the selling price of your home and fuel a bidding war that sells your home fast.

1. Roses

Roses have a universal appeal to homeowners, even those who aren’t into gardening. Although old-fashioned and heirloom roses look stunning with their cabbage-sized blooms and sweet perfume, the installation of a few modern ever-blooming roses is a smart choice when preparing to sell a home. Roses like Easy Elegance series, Knock Out and Flower Carpets give sellers the most reliable rebloom. These roses are also nearly disease-proof, meaning you won’t have to worry about an unsightly mildew breakout blighting your landscape.
If you don’t have time to deal with perennial roses, plant a few containers of annual moss rose, Portulaca grandiflora. This annual bloomer shows off during the hottest, driest months of the year, and its succulent foliage shrugs off pests and diseases.

2. Lavender

Not all of us are lucky enough to live in Provence, but we can import the lavender flowers famous in the south of France to our gardens. Not only will your lavender flowers woo home shoppers with their glorious scent, but you can also tell admirers that the blossoms are edible too, lending a delicate perfume to honey and sorbet. Lavender needs little else besides full sun and well-drained soil to grow. If your plot is damp or slightly shady, pansies will provide the same purple hue and culinary value as lavender.

3. Fuchsia

The pendulous blooms of fuchsia flowers are sure to grab the attention of potential home buyers. Fuchsias like moderate temperatures, moist soil and an area sheltered from the wind. Without these conditions, the plants are prone to bud drop. If you aren’t sure about maintaining these divas during your home’s listing period, substitute a trailing begonia plant in a hanging basket. Dragon wing begonias don’t mind hot spells, and their succulent foliage won’t wilt if you miss a day or two of irrigation.

4. Tulips

These “dig and done” flowers can be your secret weapon if you have a planting window in the fall before you put your house on the market. Although tulips are a spring-blooming flower, the season can be stretched over a period of several weeks by planting a selection of early, mid and late blooming tulips. A sample of a long-blooming tulip planting would include early species tulips, midseason triumph tulips and late-blooming parrot tulips.

5. Sweet Peas

In today’s world of odorless hybrids, the fragrance of sweet peas can bring back nostalgic feelings of grandma’s garden. Might these feelings translate into a potential offer on your home, maybe two? It’s worth risking a seed packet to find out. If you’re past the cool spring weather that sweet peas crave, substitute fast growing nasturtiums for summer listing periods.

6. Lilies

True lilies look like exotic flowers, but are very hardy perennials that can survive temperatures of 40 below zero. Early summer blooming Asiatics are the hardiest, and can ever survive in Alaska, while late-blooming Oriental-trumpet hybrids require less chilling time to form blooms, and will thrive in desert conditions of the mountain Southwest. Or, substitute carefree daylilies, which don’t mind the relentless heat and drought.

7. Jasmine

The common jasmine we love for its sweet perfume is not a frost-hardy plant, but an Arabian jasmine plant will flower throughout the summer in a partly sunny spot. Grow the vine in a large pot that you can move indoors for showings, and the flowers will emit a soft perfume in your home. For a hardier specimen, plant the lookalike sweet autumn clematis, which has similar looking fragrant flowers.

8. Pelargoniums

Also known as geraniums, this favorite bedding plant is a natural choice to brighten borders, porches and pool areas. A full sun exposure with good air circulation is a must for these annuals, so if your lot is shady, substitute the perennial cranesbill geranium.

9. Hydrangeas

Plant a compact type like Bombshell by your front door or anchor the corner of your landscape with the large shrub Grandiflora. Blue varieties need acidic soil to produce blue flowers, so keep some aluminum sulfate on hand if your hydrangea flowers are pinker but equally pretty.

10. Sunflowers

A sunflower patch ties together a cottage garden the way few other flowers can. In addition to making a robust floral statement from a distance, you can use sunflowers to screen an unattractive utility box or air conditioning unit. Sunflowers grow in all climates, but you need to give these plants time to mature when starting from seed.

There you have the Top 10 bloomers that homeowners like to imagine when shopping your home. A little lipstick type fragrance and color before listing can undoubtedly result in more green for your wallet.

Until next issue, I’ll be helping local gardeners get more enjoyment and value out of their home here at Watters Garden Center. QCBN

 

By Ken Lain

Ken Lain, the mountain gardener, can be found throughout the week at Watters Garden Center, 1815 W. Iron Springs Rd in Prescott, or contacted through his website at WattersGardenCenter.com or FB.com/WattersGardenCenter .

 

Becoming a Real Estate Agent  

By Leave a Comment

Have you ever wondered if you could be a real estate agent? If you are looking for a new career, a real estate agent may be a viable option for you.  

Although there are no guarantees that you will succeed as a realtor and passing the test can be difficult and require dedication to learn the material, the overall process itself can be relatively quick. You could start a new career in just a matter of weeks. When armed with a positive attitude, dedicated work ethic and a solid business plan, there are virtually no limits for the growth in the real estate business.  

Being a realtor is a rewarding process when you can help share the joy and dreams of your clients and find them the right place to live. I once read that any realtor can sell a “house”… a good realtor will sell a “home.”  

Below are some disclosures that will help you decide if you can become a realtor:  

  1. Like any job, it takes time to gain confidence. When you are a rookie, you may be at a disadvantage when you are going up against an experienced realtor. In the beginning of your career, partner with experienced agents to help learn the tricks of the trade and gain experience and confidence.
  2. Since most open houses are on weekends, weekends can be hectic. Days of rest are a necessity, so plan on taking time off during the week.
  3. Being a realtor is one of the few careers that you can transition into without prior experience, although starting a new career can be humbling. There are a multitude of items to learn in the real estate business. Be diligent and focused, like the “little engine that could,” and you can succeed. Each day is a learning experience. Before you know it, you will be helping others who are considering entering the business.
  4. Open houses are like hosting a party. When doing open houses, be prepared to greet many visitors. If you are a people person, you’ll love this aspect of the job.
  5. A key benefit of being a real estate agent, your income isn’t limited by an hourly wage or salary range. As a realtor, your income is largely dictated by the time you invest. The growth potential is significant. It can take a while to start getting commission checks. Going from “Purchase and Sale” to “Closing” usually takes six weeks, so planning ahead for your finances is necessary.
  6. Seeing so many options and opportunities, it may be difficult to keep your opinions to yourself. Only your client can truly declare that “I love this place.” Of course, you can lead them and assist them with important information, but when it comes to their tastes, that is a client decision. QCBN

 

 

By Colleen McElmell 

Understanding the Impacts of Tax Reform Legislation

By 1 Comment

In early November, the House GOP leaders took their biggest step yet in their attempt to overhaul the U.S. tax code by releasing legislation that proposes sweeping changes to the current system. The proposal unveiled a new top tax rate, new tax brackets, a lower corporate rate and a compromise on the state and local tax deduction.

The implications of tax changes are widespread. The question that most households are asking is: “How is it going to affect me?” One of the changes in the spotlight is the treatment of taxes on mortgage interest. The National Association of Realtors and the local Prescott Area Association of Realtors have been paying close attention to the tax proposal and its impact on homeowners.

REALTORS® are on high alert since the tax reform could threaten most of the tax benefits of owning a home. The National Association of Realtors (NAR) is opposed to the tax reform legislation. “This bill is a direct threat to consumers, to homeowners and to our businesses. Not only will millions of homeowners not benefit from the proposal, many will get a tax increase. Additionally, homeowners could lose substantial equity from the more than 10 percent drop in home values likely to result if the bill is enacted.”

Below is a summary provided by NAR to help us understand some of the specifics of what the legislation would do in the recent proposal.

  • Caps the mortgage interest deduction at $500K for new mortgages.
  • Cap applies to new mortgage debt (but not refinancing) incurred after November 2, 2017.
  • Limit is not indexed to inflation causing its value to even further diminish over time.
  • Income from passive activities would be taxed entirely at the 25 percent rate. This means that all rental activity is taxed at a 25 percent rate.
  • Increases the standard deduction. Puts homeownership tax incentives beyond the reach of more than 90 percent of American families.
  • New rules would require homeowners to live in their home for five of eight years before a sale to qualify for the exemption, versus just two of previous five years with the current legislation. This will create a hardship to homeowners who have to move inside that five-year window.
  • Exemption phases out for single filers with incomes over $250K ($500K for joint returns).
  • Eliminates the deduction for state and local income or sales taxes.
  • Eliminates the Mortgage Interest Deduction for second homes.
  • Eliminates the deduction for moving expenses.
  • Eliminates the deduction on interest on student loans.
  • Eliminates the deduction for medical expenses.

All communities in Arizona are going to be impacted by these proposed changes. Prescott residents need to brace for the changes as well. The Prescott Quad Cities area is comprised of four thriving communities: Prescott, Prescott Valley, Chino Valley and Dewey-Humboldt. These are diverse communities with approximately 1,300 homes for sale at any given time, ranging in price from $50,000 to $5,000,000.

Prescott, which has a population of around 41,000 people, has a unique economic structure, as it is a blended community of families and retirees. The median resident age is 56.7 years, whereas the Arizona median age is 37.4 years. The growth is also evident in the household income figures, the estimated median household income in 2015 was $48,210 (Arizona’s average is $51,492), which is up from $35,446 in 2000. With the Prescott area being heavily populated with middle-class homeowners, the local REALTORS®, community leaders and business owners are paying close attention to the recent Tax Reform proposal. House Ways and Means Committee Chair Kevin Brady, the author of the tax bill, said the House should pass the plan by Thanksgiving.

As homeowners and potential homeowners, it is important to know the implications of the tax reform. Millions of middle-class homeowners would see a tax hike under this proposed plan. In addition, if homeowners buy a home and then have to move within five years, they could be hit with a significant tax bill under this plan. QCBN

 

By Colleen McElmell

REALTORS® spend a significant amount of time keeping informed on laws and strategies to help guide their clients. For more information on how this legislation will affect homeownership, visit CLARealty.net, or give CLA Realty team a call at 928-662-9200.

 

1031 Exchanges

By 1 Comment

A 1031 Exchange is a powerful tax-deferment strategy used by some of the most financially successful investors to defer taxes when selling investment/commercial property. This effective strategy is also known as a “Starker Exchange,” named for the first tax case that allowed the exchange, or a “Like Kind Exchange,” referring to the type of change that occurs. This tax-efficient way of preserving capital that is invested in real estate is appropriately named a 1031 Exchange, after Section 1031 of the IRS code.

Section 1031 of the Internal Revenue Code provides an exception that allows the deferment of payments of capital gains taxes when a business or investment property is sold, if the reinvestment of the proceeds is reinvested in a similar property through a like-kind exchange. To put it simply, a 1031 exchange allows an investor to “defer” paying capital gains taxes on an investment property when it is sold, as long as another “like-kind property” is purchased with the profit gained by the sale of the first property. An investor will eventually cash out and pay taxes, but in the meantime, Section 1031 allows an investor to trade properties without incurring a sudden tax obligation.

Like-kind property is a very broad term that means that both the original and replacement properties must be of “the same nature or character, even if they differ in grade or quality.” In other words, the exchanged wouldn’t work when changing farming equipment for a fitness center, because they’re not the same character. Here are some examples of acceptable exchanges that are considered to be like-kind: residential to commercial, industrial to raw land, single family to multifamily. They also allow a two for one deal (or vice versa), the number of properties does not matter. It is possible to sell one and buy two or sell two and buy one. What is important, the 1031 Exchange Rules require that both the purchase price and the new loan amount be the same or higher on the replacement property.

The exchange can occur simultaneously or delayed for a maximum of 180 days. The likelihood that the owners of the two swap properties want each other’s property is incredibly unlikely. Therefore, the rules allow a delayed exchange to make the transaction successful. In a delayed exchange, there is a middleman who holds the cash after the sale of the property and uses it to “buy” the replacement property to complete the transaction.

Those who hold real estate inventory or who purchase real estate for re-sale are called “dealers.” These properties are not eligible for Section 1031, unless they are also an investor and meet the same requirements for exchange. It is important to note, personal use property does not qualify for Section 1031, only commercial investments.

The like-kind exchange technique is fundamental to the real estate investment sector. The current law provides real estate investors with a sizeable amount of flexibility in managing their real estate portfolio. A common mistake that investors make is not seeking the advice from legal, tax and financial advisors. They also need to locate a good qualified intermediary. Knowledge is key. Unfortunately, investors are not typically “experts” in the process, and may be sadly unaware when they have a potential problem with their 1031 exchange transaction if they don’t enlist the help of a knowledgeable professional. QCBN

By Colleen McElmell

At Home with Tom and Sandy

By Leave a Comment

Welcome to “At Home with Tom and Sandy!” This month, we have a hot topic. As Tom and I always say, we are here to give you the inside scoop on real estate, the construction industry; what’s up, what’s down; what’s hot, and what’s not. We’ll share real estate stats, home prices, building permit numbers, construction pointers and give you hints on renovations that will give you a return on your investment.

There is plenty going on in the housing and construction industry and we want to share some interesting information with you this month. So, settle in and enjoy.

Sandy:   Okay, Tom, what is our sizzling emotional topic this month?

Tom:       Multi-gen housing.

Sandy:   Tom, I am pretty sure you are not talking about multi generators and back-up battery packs as energy sources for coffee pots, ovens, dishwashers and rowing machines are you? Multi-gen?

Tom:       Ha, Sandy! All in the Family Multigenerational Living is making a comeback – multi-gen housing for short – where two and three generations are living under the same roof.

Sandy:   Tom, I am seeing more and more folks visit my office – adult children and parents or a parent with them. So, one is to assume that more generations are sharing a roof as a growing number of adult children move back in with their parents and aging parents move in with their grown children. WOW, I can think of a bazillion reasons why that would be a challenge, but I get it. What are you seeing age-wise with families?

Tom:       I am seeing and designing home features that accommodate younger generations, 20- and 30-year-olds moving in with their parents and I am also beginning to see the 40-year-old generation with their children moving back in with parents.

Sandy:   How do you wrap your arms around a design concept to accommodate generations, personalities and different life styles all under one roof? There are a lot of considerations.

Tom:       Now you know I am thinking like an architect and builder here. We have remodeled homes for what has been call a “Mother in Law quarters.” Multi-gen is not a “Mother in Law suite.” We are starting to see new homes being built and remodeled with two master suites and one small and one larger kitchen.

Sandy:   I know we are not talking about a duplex here, but explain how these are different. I know it must do with connectivity. You know I serve on the Yavapai County Planning and Zoning Commission, and Yavapai County has been on the forefront of this issue.

Tom:       Well yes, I knew that and you are correct. In a duplex, there is no internal connectivity. In multi-Generational Housing, connectivity comes in the most minimal form as a doorway from one space to either a common area, or connecting hallway.

Sandy:   How widespread is this in our area?

Tom:       The Pew Research Center says that about 57 million Americans are living in multi-generational homes. That’s almost 19 percent! And our area is slowly but surely taking this multi-gen housing on.

Sandy:   As I understand it, there are many reasons why this is happening. It was just a few generations ago that this might have been considered the norm and therefore it is not a new phenomenon. The Great Recession is a major contributor.

Tom:       Nearly one in five Americans are now living in a multigenerational household (defined as a home with two or more adult generations or grandparents living with grandchildren).

Sandy:   I did some quick research while you were on the drafting board Tom and economists say the main reasons for the uptick are rising home prices, higher child care expenses, increasing college debt, longer life expectancies, and the growth in communities.

Sandy:   Tom as a builder you must be able to respond to the trend, constructing homes with more square footage that contain a separate wing for extended family members. How do you communicate with your clients about Multi Gen?

Tom:       Everyone is looking for the perfect home for any number of family situations and I feel that Multigenerational homes in our area will be on an up-tick account and we are going to see more and more homes with multiple kitchens and master suites and separate entrances. The team at Renovations is skilled and adept at asking questions such as life style, later years, family and then bingo we have a house model to start from.

Sandy:   I am fielding a lot of calls from homeowners looking to adapt their current home to better accommodate multiple generations and I caution them to investigate the zoning laws in the Jurisdiction in which they reside.

Tom:       Because of this change taking place we need to make additions easier, passing laws that ease restrictions on constructing a second unit on a piece of land or again, adding multiple kitchens, etc. in an existing home.

Tom:       Again, along with student loans being high, losing a job and divorce are among the plethora of reasons why multi-gen housing is gaining traction.

Sandy:   What about the “Boomers” turning 65 at a rate of 11,000 per day and what about considering the effects aging will have on us and how convenient it will be to have family on hand to assist. Tom, can I move in with you and your wife? Hey, as you said it is the new way of living!

Sandy:   Let’s talk design, Mr. Architect. Clearly the grown kids moving back home, usually with children of their own have a different daily cycle than you boomers – especially the boomers who have been empty nesters for a while. What are the design considerations here? Not all can afford to build two of everything; why not just build two homes?

Tom:       Fair question. The answer largely depends on several factors. The needs of the older parent are usually met in the home they are living in. What needs to be decided is what are the two generations willing to share, how they will share and what aspects of daily living are going to be separate. Mealtime and preparation is often one of the daily activities generations like to share. Sleeping is separate, as are bathrooms. There might be a shared living room or family room space, but typically there are also spaces for retreat for the separate occupants.

Sandy:   Do you find that people build new or do the remodel on existing homes? Where do these folks start?

Tom:       Typically, the older parents’ home is the starting point. It is either close to or possibly already paid off. We have added to the home by going out as a single-story addition, or going up as a second floor.

Sandy:   I can guess who would get the second floor in your home! Both of those options represent an investment. With the equity you mentioned in the home I can see where that would help out. Is there a typical cost involved with adding on?

Tom:       That of course depends on what you are adding on. Investments of $100K to $250K are not out of the realm of possibility. Think about it though. You would be hard pressed to find a home for under $200k that would not need some work. Adding onto an existing home is usually more cost effective, because the land is already there.

Sandy:   What about Including age-friendly and privacy features if renovating or building: Consider wider doorways, brighter lighting, grab bars, low-pile carpeting and a separate space for additional family members.

Tom:       Yes, these are all component considerations with multi-gen housing – knocking at our door here in Yavapai County.

Sandy:   On a closing note, I say if you are considering multi-gen housing, don’t forget to divvy up chores!

 

Thanks for stopping in “At Home with Tom and Sandy.” You’re in good company and we love sharing educational, fun and important information with you. See you next month. QCBN

 

Tom Reilly, LEED Accredited Professional, Architect, Contractor, Renovations 928-445-8506 www.renovationsaz.com

Sandy Griffis, Executive Director, Yavapai County Contractors Association. 928-778-0040

Welcome to “At Home With Tom and Sandy”

By Leave a Comment

We are here to give you the inside scoop on real estate, the construction industry – what’s up, what’s down, what’s hot, and what’s not. We’ll share real estate stats, home prices, building permit numbers, construction pointers and give you hints on renovations that will give you a return on your investment.

There is plenty going on in the housing and construction industry and we want to share some fantastic, cool, groovy and helpful information with you. We are going to use our insight and local expertise to help you save time, money and surmount obstacles of all kinds. So settle in and enjoy.

 

Sandy: WOW, how fantabulous is this weather! I am already breaking out the BBQ and patio furniture as I am sure many other are doing as well and our YCCA peeps are busy helping folks prepare for outdoor living again.

 

Tom: Sandy, you are spot on about the weather. It is good to hear that business is hopping also. We are getting calls from folks who want to maximize their outdoor living time. As you know, the planning process is step one in getting it right.

 

Sandy: Right on, Tom. So what is the first step in the planning process to maximize outdoor living? I guess first of all folks need to know what they want from their outdoor spaces and get started by asking the right questions. Tom, what are some of those questions that you ask families when planning an outdoor living area?

 

Tom: First of all, do you want to sit outside? Do you want to cook outside? Is dining outdoors a goal? The answers to these questions will get you started down the right path. In this region, the opportunities for living outside are huge and that’s why we live here!

Other questions to ask are, if you are cooking outside, how close is the kitchen and do you want to be running back and forth while trying to cook? Knowing the answers to this can help you decide if you need outdoor storage for cooking tools, spices, condiments and the like. Taking the time to analyze these issues will help give your architect and builder the information they need to meet your goals.

 

Sandy: I personally like to eat outside, and with the great climate here, entertain outside as well, and I am not one who wants to run back and forth – I like everything at my fingertips and I would not be big on running back and forth to the kitchen every time someone wants a drink or a fork or another plate. I have seen some simple outdoor cabinets for storage and I have seen some elaborate setups that include outdoor refrigerators and sinks, just like a full kitchen.

Tom, share with our readers some of the outdoor kitchens you have designed and built.

Tom: We have designed and built several outdoor spaces ranging from the simple and basic to the full kitchen and dining area. Some have included warming drawers to keep the veggies warm while the steaks cook and cooling drawers for salads and other condiments. Refrigerators for drinks range from full size to smaller under-the-counter types. We have even used dispensers for soda, beer kegs and juices. A lot of these are a big step up from the Igloo cooler filled with ice and drinks, although that still works!

 

Sandy: I love my Yeti cooler. I would guess that the size and outdoor kitchen components would certainly depend on how often the space is used to some extent. Outdoor parties during our GREAT summer evenings make for some good times, that’s for sure.

Tom, as people are thinking about what their space needs to be, size, location, etc., wouldn’t another consideration be protecting the equipment from the elements? I understand that those appliances and cabinets are made to be left outside. Do you build the kitchens under cover in most cases? I would think that the thought of a cover, or roof over the outdoor kitchen area might be considered as well. Hey Tom, what about counter top material for outside use?

 

Tom: Sandy, that is a good thought and thanks for bringing it up. The surfaces are different than those you normally find inside of the home kitchen. While the counters can be the same materials, such as granite or concrete, there are some solid surface products that don’t perform as well outside in the sun and rain. The appliances as you mentioned are typically made of stainless steel. We have constructed the vertical surfaces with stucco finishes, stone and specialty metals such as copper. As for cover, that depends largely on how the space is oriented. While our climate is generally great, the sun can be somewhat unforgiving in the afternoon. A roof to screen out the sun makes for a more comfortable area with the added benefit of protecting from the rain.

 

Sandy: You make it sound as though everything but the kitchen sink is out there! How does one power all this? Or even clean up afterward?

 

Tom: You are right Sandy, except the kitchen sink is often included for the full outdoor kitchens. Hot water is often supplied by an electric or gas (both propane and natural) on-demand heaters. Power for other appliances is usually from a separate electrical circuit(s) as needed. As we started this conversation saying, early planning is the key to any successful project.

 

Thanks for stopping in “At Home with Tom and Sandy.” You’re in good company and we love sharing educational, fun and important information with you. See you next month. QCBN

Welcome to “At Home With Tom and Sandy”

 

Nature Girl Pursuing American Dream for Home Builders, Sellers, Buyers

By Leave a Comment

Flagstaff native Lori Anna Harrison’s life could fill a whole season of “Lifestyles of the Rich and Famous.” She has lived all over the world in places like the Netherlands, Thailand, Costa Rica and even on luxury yachts (she was part of filmmaker Steven Spielberg’s crew that sailed across the Atlantic Ocean). She knows a thing or two about what it means to live well and understands the power of beautiful surroundings. She speaks the language of luxury.

Harrison’s view of the American dream is big. She plans to achieve that bigness for her business, DLP Marketing, and her clients – developers and real estate agents – as she helps them connect buyers with their dream homes.

This year in particular, her company is well positioned for success, as Phoenix is projected to be the top housing market in the country, according to a new report by Realtor.com. “We’ve always known that Arizona is a very desirable place to live and the numbers will be demonstrating that in 2017 as the market takes its biggest recovery step since the Great Recession,” said Harrison. “For our clients in the Valley, price gains are expected to increase 5.9 percent and sales growth by 7.2 percent. We anticipate housing markets in Flagstaff, Prescott and Tucson to benefit as well. Our job is to capitalize on this activity for our clients.”

Harrison’s young company, DLP Marketing, already has experienced outrageous growth. In 2016 alone, it grew more than 137 percent with a footprint stretching beyond Arizona and into Texas, New Mexico, California and Colorado.

To understand Harrison’s success in the competitive real estate marketing industry, it is helpful to trace her steps and appreciate her passion and fascination for living spaces.

Born and raised in Flagstaff, Harrison has fond memories of riding bikes around Mount Elden with her dad. “The Skyline community was being built when I was a kid. We would walk through the houses as they were being framed and imagine the beautiful homes they would become.”

Harrison was so intrigued with the new construction taking shape that she would buy stacks of Architectural Digest from the Goodwill on Beaver Street, find floor plans and draw in the furniture. “I’ve always loved real estate.”

While attending Coconino High School and serving “Hungry Man Specials” at popular local restaurant Mike and Ronda’s, Harrison began taking classes for her real estate license. She also earned an undergraduate degree in accountancy, which she used while working for Arthur Andersen. Her knowledge of business, craving for adventure and zest for all things real estate took her to Southern California where she earned an MBA with a marketing emphasis at San Diego State University. She worked in marketing and design for Shea Homes and sold property for Coldwell Banker in Costa Rica during the Great Recession. For years she commissioned and lived on private multi-million-dollar yachts, and traveled the world. “Being out at sea is one of my favorite things. It’s so tranquil. I just love it.”

In April 2013, Harrison bought Desert Lifestyle Publishing, which produces magazine-style real estate newsletters, customized for specific subdivisions. Since then, DLP Marketing has evolved into a full-service marketing firm that creates strategies with direct mail, web design, logo development, public relations and digital marketing. The company has grown from a one-woman shop to six full-time employees and six agency partners.

With the start of the New Year, DLP Marketing has hired two more designers, Bethany Smith and Yoojin Seong, who graduated in December with art degrees from Scottsdale Community College.

“DLP Marketing is a fast growing company with abundant opportunity for growth,” said Operations Manager Michelle Ruggiero. “When all of us are together, the creativity doesn’t stop! We all come from diverse work experiences so when it’s time to do something creative, there is no shortage of ideas streaming from all that positive, high energy.”

“Never have I worked for a company like DLP Marketing,” says Art Directors Susan Richards. “We don’t feel or operate as simply employees – we’re all invested in the growth and success because it rebounds back to us personally. It’s really exciting being part of something with such unlimited potential!

DLP Marketing’s clientele includes such real estate developments as Eastwood, CantaMia, Encore, Oasis, Courtyards at Madison Ranch, Cheyenne Meadows and Sienna Hills. Currently Harrison is proposing projects in the Prescott and the Quad Cities area.

“Last year nearly 40 percent of our business came from our direct mail and print campaign that Lori and her team at DLP Marketing helped us create,” said Jennifer Anderson of Willis Allen Real Estate. “This campaign has also enabled us to double our average sales price and become known as area experts!”

Harrison is an avid student of marketing, real estate and business. She reads obsessively, attends workshops, seeks regular guidance from her coach, develops the DLP Marketing team through annual retreats and is active in business organizations. She is also a huge proponent of giving back.

She has served on the board of directors for the Valley of the Sun Active 20-30 Club, a philanthropic, community service organization for professional women. She is also involved in the Young Entrepreneurs Academy (YEA!), a middle and high school mentoring program.

Since she was a little girl riding her bike around the San Francisco Peaks, Harrison’s mountain high view for herself and now her company is an endless expanse of beauty. “We will be the national expert in real estate marketing for agents and builders. This position currently doesn’t exist. There are tons of people who do graphic design, but to really understand and position clients to lead in this market, we are the experts and will grow that national footprint. And our clients are always our first priority.”

 

Who inspires you?

“I’m incredibly inspired by Barbara Corcoran of ‘Shark Tank.’ She’s a brilliant business woman who made it on her own terms. I’m also a fan of Bob Parson [GoDaddy founder]. I’ve heard him speak and it was so motivating. He has an unbelievable business story and he gives so much back to the community. I teared up listening to him.”

 

What advice would you give someone who wants to start a business?

“Save your money! It takes money and good credit to start a business. And be passionate. You have to absolutely love what you’re doing. You have to breathe it, live it, love it. If you’re passionate and persistent, you will be the best.”

 

What books do you recommend?

“I read everything about marketing and being an entrepreneur. I love all that stuff – it really speaks to me. Some of the most powerful books are ‘22 Immutable Laws of Marketing’ by Jack Trout, ‘Think and Grow Rich’ by Napoleon Hill and ‘Good to Great’ by Jim Collins.”

 

How do you recharge your batteries?

“Getting out in nature is big for me, hiking. That’s why I spend the summer in Flagstaff and vacation in Prescott and San Diego. Also, my life coach Melanie Dunlap energies me with her encouragement and focus. She’s an amazing woman entrepreneur and has this super holistic style. I meet with her twice a month and she conducts corporate retreats for my business. And, of course, spending time with my boyfriend, who is also is entrepreneur. We have this synergistic energy and he’s a great sounding board.”

 

When the movie comes out about your life, who will play you?

“Anne Hathaway. I would hope to have her grace and elegance, but I can definitely relate to how many different kinds of roles she plays. She’s so adaptable.” FBN

By Bonnie Stevens, FBN

For more information about DLP Marketing, visit DLPmarketing.com or call 480-460-0996.

 

 

 

Nature Girl Pursuing American Dream for Home Builders, Sellers, Buyers

By Leave a Comment

Northern Arizona native Lori Anna Harrison’s life could fill a whole season of “Lifestyles of the Rich and Famous.” She has lived all over the world, in places like the Netherlands, Thailand, Costa Rica and even on luxury yachts (she was part of filmmaker Steven Spielberg’s crew that sailed across the Atlantic Ocean). She knows a thing or two about what it means to live well and understands the power of beautiful surroundings. She speaks the language of luxury.

Harrison’s view of the American dream is big. She plans to achieve that bigness for her business, DLP Marketing, and her clients – developers and real estate agents – as she helps them connect buyers with their dream homes.

This year in particular, her company is well positioned for success, as Phoenix is projected to be the top housing market in the country, according to a new report by Realtor.com. “We’ve always known that Arizona is a very desirable place to live and the numbers will be demonstrating that in 2017 as the market takes its biggest recovery step since the Great Recession,” said Harrison. “For our clients in the Valley, price gains are expected to increase 5.9 percent and sales growth by 7.2 percent. We anticipate housing markets in Prescott, Flagstaff and Tucson to benefit as well. Our job is to capitalize on this activity for our clients.”

Harrison’s young company, DLP Marketing, already has experienced outrageous growth. In 2016 alone, it grew more than 137 percent, with a footprint stretching beyond Arizona and in to Texas, New Mexico, California and Colorado.

To understand Harrison’s success in the competitive real estate marketing industry, it is helpful to trace her steps and appreciate her passion and fascination for living spaces.

Born and raised in Flagstaff, Harrison has fond memories of riding bikes around Mount Elden with her dad. “The Skyline community was being built when I was a kid. We would walk through the houses as they were being framed and imagine the beautiful homes they would become.”

Harrison was so intrigued with the new construction taking shape that she would buy stacks of Architectural Digest from the Goodwill on Beaver Street, find floor plans and draw in the furniture. “I’ve always loved real estate.”

While attending Coconino High School and serving “Hungry Man Specials” at popular local restaurant Mike and Ronda’s, Harrison began taking classes for her real estate license. She also earned an undergraduate degree in accountancy, which she used while working for Arthur Andersen. Her knowledge of business, craving for adventure and zest for all things real estate took her to Southern California, where she earned an MBA with a marketing emphasis at San Diego State University. She worked in marketing and design for Shea Homes and sold property for Coldwell Banker in Costa Rica during the Great Recession. For years, she commissioned and lived on private multi-million-dollar yachts, and traveled the world. “Being out at sea is one of my favorite things. It’s so tranquil. I just love it.”

In April 2013, Harrison bought Desert Lifestyle Publishing, which produces magazine-style real estate newsletters, customized for specific subdivisions. Since then, DLP Marketing has evolved into a full-service marketing firm that creates strategies with direct mail, web design, logo development, public relations and digital marketing. The company has grown from a one-woman shop to six full-time employees and six agency partners.

With the start of the New Year, DLP Marketing has hired two more designers, Bethany Smith and Yoojin Seong, who graduated in December with art degrees from Scottsdale Community College.

“DLP Marketing is a fast-growing company with abundant opportunity for growth,” said Operations Manager Michelle Ruggiero. “When all of us are together, the creativity doesn’t stop! We all come from diverse work experiences, so when it’s time to do something creative, there is no shortage of ideas streaming from all that positive, high energy.”

“Never have I worked for a company like DLP Marketing,” said Art Director Susan Richards. “We don’t feel or operate as simply employees – we’re all invested in the growth and success because it rebounds back to us personally. It’s really exciting being part of something with such unlimited potential!”

DLP Marketing’s clientele includes such real estate developments as Eastwood, CantaMia, Encore, Oasis, Courtyards at Madison Ranch, Cheyenne Meadows and Sienna Hills. Currently, Harrison is proposing projects in the Prescott and the Quad Cities area.

“Last year, nearly 40 percent of our business came from our direct mail and print campaign that Lori and her team at DLP Marketing helped us create,” said Jennifer Anderson of Willis Allen Real Estate. “This campaign has also enabled us to double our average sales price and become known as area experts.”

Harrison is an avid student of marketing, real estate and business. She reads obsessively, attends workshops, seeks regular guidance from her coach, develops the DLP Marketing team through annual retreats and is active in business organizations. She is also a huge proponent of giving back.

She has served on the board of directors for the Valley of the Sun Active 20-30 Club, a philanthropic, community service organization for professional women. She is also involved in the Young Entrepreneurs Academy (YEA!), a middle and high school mentoring program.

Since she was a little girl riding her bike around the San Francisco Peaks, Harrison’s mountain high view for herself and now her company is an endless expanse of beauty. “We will be the national expert in real estate marketing for agents and builders. This position currently doesn’t exist. There are tons of people who do graphic design, but to really understand and position clients to lead in this market, we are the experts and will grow that national footprint. And our clients are always our first priority.” QCBN

By Bonnie Stevens, QCBN

 

Pricing Your Home

By Leave a Comment

HeidiandSandyWelcome to “At Home With Heidi & Sandy.” We are going to give you some marketing and housing stats this month and some tips for pricing your home to sell. Settle in, enjoy and be happy the housing market is good.

 

Sandy:             Heidi, with winter and the holidays approaching, buyers are typically not looking to move this time of the year, are they?

 

Heidi:              In some parts of the county, realtors do see a decrease in activity when temperatures drop below freezing; however, in the Prescott region, as realtors say, there are only two seasons: Winter and Summer, meaning in the Spring/Summer we have buyers the warmer climates moving to the region to escape the heat and in the Fall/Winter we see people from the colder climates relocating to enjoy our mild four seasons.

 

Sandy:             If that is the case, no wonder we have a constant flow of folks and families looking to upgrade, remodel, expand and build new homes in the area.

 

Heidi:              As a local realtor, I find that most of our region moves are due to families seeking a mild four seasons climate and/or health-related changes. Our region is one of the great places in the U.S. to live and the housing stats are indicating there is good movement.

 

Sandy:             Livability indicates that climate is an important consideration for people when choosing where to relocate. Our area boasts plenty of job opportunities, great schools, safe streets, low crime, lots to do, charm and other features that make living in the region great for raising a family.

 

Heidi:              Another reason why some people move is family expansion. Our area is conducive to multi-generational living. Whatever the reasons are, people are progressively choosing to move to a new place and house every day.

 

Heidi:              We have printed some stats as of September 2016, which indicate the change in median price from when the home was purchased and the stats for all sales as recorded in the Prescott MLS.

 

Sandy:             Also included in this column are the building permit stats for single family new homes in Prescott, Prescott Valley and unincorporated Yavapai County/Prescott area from January 2016 through September 2016 and combined numbers for 2015. As you can see, we are on an uptick.

 

Heidi:              With moving/relocation taking place, buyers are educated and do most of their research online, prior to even contacting me. Almost all – 92 percent – of home buyers do research online.

 

Sandy:             Heidi, how do you and sellers agree on the sales price?

 

Heidi:              Home pricing is more of a science than an art, but many homeowners price with their heartstrings instead of the hard facts. And here is why crunching the numbers is always the better route to an accurate home price.

 

Heidi:              Although you can certainly lower an inflated price later, sellers will sacrifice a lot in the process. The most obvious damage: A house that remains on the market for months can prevent a family from moving forward with their plans in a timely manner.

 

Sandy:             So then a seller can lose a lot of time and money if their home is not priced right.

 

Heidi:              As we know, buyers are savvy these days. In my business, it is sometimes difficult for sellers to understand actual value vs. sentimental value because they have lived and loved the time they spent in their home and it is my job to assist them with understanding the real value.

 

Sandy:             And just as important, a seller needs to understand that renovations do not always result in a dollar-for-dollar increase in the selling price. For example, if a seller installs a few thousand dollars of new flooring, he or she might overestimate the upgrade’s impact on the home’s value vs. seeing the replaced value from the potential buyer’s perspective. Smart renovations can make a home more comfortable and functional.

 

Heidi:              Sellers and buyers should both be leery of online home pricing tools that prescribe an estimated market value based on local data and are most often wildly inaccurate.

 

Sandy:             So, Heidi, what is the best pricing strategy?

 

Heidi:              Real estate professionals will use the most up-to-date and accurate comparable sales to determine the appropriate listing price. This is when we seek out similar properties/homes, similar floor plans, square footage and amenities, in the same or similar area(s) that have sold in the last few months. Once this data is collected, we can make an accurate estimate of what the home’s selling price should be. Then, we will work together to determine a fair price that will entice buyers.

 

Sandy:             It is important to remember that this number might be less than what the seller had anticipated, but in the long run, listing your home correctly – not idealistically –is a sure way to avoid the aches and pains of a long, drawn-out listing that just won’t sell.

 

Heidi:              There is an easy way to tell if the house is priced too high and that is if there are no showings or interest. Lots of showings and no offers indicate the home is appealing to buyers and some of the attributes of the home don’t fit the buyers’ wants or needs. My position is that I don’t want to just list your home, I WANT TO SELL YOUR HOME. QCBN

By Sandy Griffis and Heidi Marshall