Prescott, AZ

There are 43,560 square feet in a acre; this is 4,840 square yards.

You can find a conversion calculator at http://www.unitconversion.org/area/acres-to-square-foots-conversion.html

If the land is a perfect square, it is 208.71 feet wide by 208.71 feet long.

If the land is rectangular in shape, you would have to know at least the length of one dimension in order to figure the other.

Originally, the size of an acre was approximately the amount of land an ox could plow in a day. Today, the easiest visualization might be the sideline to sideline area of 90.75 yards of a standard american football field.

Lot sizes are commonly measured in acres or a fraction thereof. A typical suburban residential lot would measure 0.15 - 0.50 acres. As you move to more rural areas 5, 10, 20, 40, and 80 acre parcels are very common.

Every day we hear the talking heads tell us what is happening to the real estate market But its important to remember that "All Real Estate Is Local". So how much does our local Prescott AZ market follow the rest of the country? For the past couple of months when people ask me "How's the Market?". I've been telling them its great, I'm busy. So I did a little more research so I can speak a little more intelligently on the subject.

Lets look at the period from 9/1/09 through today 11/23/09 and compare that with the same period in 2008. Here is what we find. *Note we are looking at residential listings and sales in the Prescott Association which covers nearly all of Yavapai County.

Listings: declined 14.4% This is great because it mean sellers in Prescott have less competition and buyers still have plenty to choose from. As inventory declines we move from a buyer's market toward a neutral market.

Sold Listings: increased 33.8% This is even better. It means we have sold 1/3 more homes. Woo Hoo!

Average Sale Price: declined 20.2%. This is a mixed blessing. Great for buyers; not so much for sellers.

Days on market: no change This surprised me, but we are looking at an average number of days on market being 164 with most of the homes that are well priced selling much quicker.

Vacant Land sales has increased 101% in the Prescott real estate market but that's still only 123 sold listings which means things are getting better, but land is going to be lagging far behind home sales.

The final point I should mention is the Prescott REO market. In the period we are looking at in 2008 we had 11% of the closed sales come from REO properties. This year in the same period we had 39%. In actual numbers we went from 52 REO sales up to 244 just since 9/1/09. That is huge, but I don't expect that trend to continue. We actually peaked in June with trustee sales at 415. Now we are down to about 320 per month for Yavapai County.

Dave Conners specializes in selling Bank Owned, REO Homes in Prescott Arizona, (and doing what his wife tells him to do and also playing with his kids):

I have 2 recent short sales submittedto BofA some 60 days ago and still no negotiator?? I also have a case where they approved a short sale and according to them had the foreclosure on hold while the short sale was worked but they failed to notify the attorney who foreclosed anyway!

I have escalated this file to the President's office and a senior negotiator is working on rescinding this foreclosure and 45 more days have passed!

BofA please tell us how we can help you approve short sales in a timely manner.

Savvy home buyers want to hit the jackpot and buy that Prescott AZ REO foreclosed home, many of which are priced under the market. When banks price REOs under the comparable sales, multiple offers are often the response. This means you could be up against stiff competition for that bank-owned home.

It's not unusual for some Prescott AZ REO homes to receive 5 to 10 offers. Sometimes the bank will throw out all but two offers and then ask the selected buyers to resubmit what is called "Highest and Best" offer. Some banks simply accept the best offer. If you're wondering how you can make your offer shine above all the rest and be the winning offer, here are a few tips to help you select the right price and terms:

1) Get the Property History

Ask your buyer's agent to find out the bank's purchase price on the Trustee's Deed. Generally, it is noted on the document itself, which you can get from the tax rolls or a title company. Compare that price to the price the bank is asking.

Look at the amount of loans that were once secured to the property. Somewhere between the original mortgage balance(s) and the foreclosure sale price is the amount the bank will accept.

2) Determine Comparable Sales

In many cases, the list price has little bearing on the value of the home. The market value carries the most weight. If you are up against competing offers, other buyers will offer more than list price.

Look at the last three months of comparable sales, a mini CMA, for that neighborhood to determine how much this REO is worth. Try to use only those homes that most closely match the REO regarding square footage, number of bedrooms, baths, amenities and condition.

Look at the pending sales.

3) Analyze Listing Agent's REO Solds

Most REO agents work for one or two banks. Many Prescott REO listing agents are exclusive listing agents for REOs, and they do not list any other type of property. Since REO agents deal in volume, they typically apply the same pricing principles to all their REO listings.

Ask your buyer's agent to look up the listing agent in MLS.

Run a search using that listing agent's name to find the last three to six months of that agent's listings.

Pull the history of those listings to determine the list-price to sales-price ratio. If most of those listings are selling for, say, 5% over list price, then you may need to offer 6% over list price, and vice versa.

4) Ask About Number of Offers

If there are no offers on the REO home, you can probably offer less than list price and get your offer accepted. However, if there are more than two offers, you will most likely need to offer above the asking price.

If there are 20 offers, bear in mind that some of those offers might be all cash. Banks like all cash offers. If you are obtaining financing, then you may need to increase the price on your offer to be considered.

5) Submit Preapproval Letter

It goes without saying that you do not want a prequal letter. You want a preapproval letter. Get preapproved from your lender in advance.

Sometimes preapproved by the lender who owns the property is required. Do not expect to use this lender for your loan, but submit the prepproval letter from this lender, along with the letter from your own lender. Banks don't trust others lender preapprovals but trust their own departments.

6) Don't Ask for Repairs

Sometimes banks will pay for repairs, but typically will not agree to do so at the offer stage. If there are problems found during a home inspection, renegotiate after your offer has been accepted.

7) Shorten the Inspection Period

If another buyer asks for a 20 day inspection period, and you ask for 10, you will be deemed the more serious buyer.

8) Offer to Split Fees

Some banks will not pay transfer fees, for example. If the buyer offers to split those fees, the bank will feel more amenable to accepting the offer. Same thing for escrow fees.

Many banks negotiate discount fees for title insurance. If the bank will pay for the owner's policy, the ALTA policy might cost a bit more. But it's still a good idea to let the bank choose title if you want your offer accepted.

9) Accept the perks if availble. Many banks have programs such as HomePath and HomeSteps which allow the bank to pay up to 3.5% of the buyer's closing costs. I have noticed in the Prescott REO market that when these perks are offered, there does not seem to be any downside to using them.

Dave Conners specializes in Prescott REO properties.

This beautiful Prescott AZ property, located in The Ranch is yours for only $625,000. Elegant single level home on wood sub-floor with automatic ventilation fan in the crawl space. Level lot. Wonderful curb appeal. Lovely entry. warm oak flooring. Gourmet kitchen with Cambria Quartz counters. GE Profile appliances, maple cabinets. Formal dining room. Living room with vaulted ceilings, 3-sided gas fireplace. Executive height counters in all baths. Large master bedroom with oak flooring. Interior fire sprinkler system throughout this beautiful home. Over-sized 2.5 car garage. Level lots that extends beyond the backyard landscaping. Gorgeous views. You won't be disappointed!