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Understanding and Navigating the Modern Age of the Millennial Real Estate Market
What is a Millennial and Why Should I Care?
To understand the millennial market, it’s probably important to understand what a millennial is, right? In the most basic of terms, a millennial is a person born between the early 80s and early 2000s—a generation that came of age around the millennium. Millennials are one of the largest up and coming generations since the Baby Boomers, with 78.5 million American millennials aging in at 18-34 when 2015 rolled around. To the real estate market this means a whole new pool of clientele that are now at an age that they might be buying their first homes.
Naturally, with this new slew of millennial buyers hitting the marketplace every day, an agent must adopt modern techniques and approaches to marketing and selling to a new generation of buyers who aren’t as dependent on one on one interaction with an agent. Social media and the internet as a whole have impacted the ways in which we go about sales, and it’s only going to continue on a changing track from here on out. Evolving along with the changes is much easier than trying to catch up when you’ve already been left behind.
Statistics are key when it comes to buying and selling—and statistics show that millennials are the biggest upcoming generation of buyers and sellers in decades. According to the Home Buyer and Seller Generational Trend Reports of 2017 from the National Association of Realtors, of these millennials coming into the marketplace:
- 89% will use an agent in some capacity—but due to social media and access to knowledge buyers weren’t otherwise privy to in the past, they may be slightly harder to please.
- 63% of millennial home sellers say they would gladly use their agent again or refer someone else to their agent—this is the lowest percentage of any generation surveyed before.
- 45-50% will find their agent through a friend or family member.
- 35% of the current marketplace falls in the millennial generation, and nearly half of them are ready to buy their very first home.
- 99% of millennial buyers researched homes online before stepping foot in a single open house.
- 60% of millennial buyers found the home they ended up purchasing on some type of mobile device or app.
The average credit score of a millennial is 625, mainly due to student loan default and credit card debt, but that doesn’t mean they are completely written out of the real estate game. Millennials are more likely to qualify under flexible FHA-insured home mortgage loans and are more likely to buy with smaller down payments and larger principles, paid off over a shorter time period.
So, What Happens to the Market Once Millennials Come of Age?
This new era of buying and selling a home is a major shift in comparison to when buyers and sellers were completely dependent on the expertise of a seasoned agent, but that doesn’t mean the job of an agent or broker is antiquated by any means. Millennials now make up 32% of home buyers and the pool is only growing every day. As an agent, it is critical to create an online presence to keep up with the modern era of real estate—a tech savvy agent is going to make a much larger impact on the millennial market.
Though millennials tend to arm themselves with backed research, it doesn’t mean they forego using an actual realtor altogether in their homebuying process. They value a combination of the knowledge they’ve gained through general research alongside the professional and personal guidence a realtor brings to the table. That means they are actively looking to agents and realtors to help them navigate an otherwise confusing terrain. Agents can use this to their advantage, as they are more likely to come at a sale with a knowledgeable buyer—one who may need less help with the basics, but more with the intricacies that come with buying a home.
Understanding the Needs of the Millennial Market
Being thoughtful of the millennial market in terms of “wants and needs” is just as important as understanding the ways in which technology and social media change the market itself (which we will discuss in the next section). Millennials have different hopes, dreams, and aspirations than their parent’s generation. They are more interested in bigger cities and downtown areas than almost any generation before them, mainly because they tend to want to be closer to work.
An agent needs to keep in mind the economic situation these young adults grew up in. While the parents of this generation had buying power at an early age, many millennials have put off investing in major purchases until all the stars have aligned and the deck is stacked in their favor. They’ve personally experienced many years of questionable economic stability, which is why when they are finally ready to make a huge purchase, they want everything to be as perfect as it possibly can. There is a general lean toward avoiding renovations and seeking out homes with less customization and more historical uniqueness. Millennials are far more likely to buy in an urban area, with 21% of people under 34 purchasing in an urban market or city central. According to Business Insider, the median income for a dual-income millennial family in Arizona is around $40,000. Partner this with the fact that most of those people also have tens of thousands of dollars in student loan debt, it is very likely that your millennial buyer won’t want to invest money beyond the purchase price to fix up a house when they can buy one that is move-in ready.
A great strategy when dealing with millennial clients is to focus on AICDC:
- Attention: Grab the attention of potential clients and maintain it
- Interest: Garner interest of potential clients by asking a lot of meaningful questions
- Conviction: Gain the conviction of the client—offer strong favorable opinions/claims and evidence that support those opinions/claims (i.e.-testimonials from past clients)
- Desire: Show your clients housing data numbers and offer special services, like high-end walk-through videos or detailed open houses
- Close: Ask for the close! Be adamant about your client’s conviction so they can feel adamant in their decision
Selling in the Era of Social Media
As the largest upcoming pool of buyers in the real estate world, the millennial market is commanding a nearly complete overhaul of traditional real estate models as we have known them to this point. Agents are at a precipice of having to balance the act of maintaining old-school principles while adopting modern sales techniques.
Growing up in a peer-to-peer world, this generation is empowered by a do-it-yourself attitude, giving them a completely different outlook on the most basic concepts of buying and selling. These are the children of EBay and Etsy—they grew up in a world the encouraged researching before purchasing, and furthermore, getting the best possible price on their investment. Whether they are buying a home or childhood collectables, the millennial generation has mastered the art of using progressive technologies to fulfill their every want and need. Just as young people have been turned onto an entirely new approach to purchasing, they have also been made more aware of the troubles that can come along with being tied town financially to a 30-year mortgage—they are a generation far more likely to pay more over a shorter time period, or come at the sale with as much cash down as they can. They want a deal, and they need you to help them find it!
Effective marketing for an agent wanting to sell to young people involves sharable blogs and videos—sales techniques that provide a wide-ranging net and reach a broader audience. A blog or video posted online can garner a world-wide audience, while still only branching out to a specified and more focused pools of buyers. An agent could obtain a client from a world away simply based on the focus of their web content and presence. Paying attention to Search Engine Optimization, or SEO, can make a world of difference when it comes to website traffic. Ensuring the use of precise and detailed language will often warrant clients to come to you and the not the other way around.
On another note, optimizing social media presence and “online office” outreach apps allow agents to interact with clients and buyers in a way beyond what could have ever been imagined before. To the benefit of the agent, the freedom these technologies provide are priceless, as multitasking with multiple clients at the same time is now a reality. Enhancing mobile technology allows agents to yield messages, change schedules at the drop of a hate, store vital info about each showing, engage with potential clients interactively, and so much more. Agents who utilize scheduling apps, messaging apps, and mobile-friendly websites are able to step outside the normal constraints of the 9-5 lifestyle, and in turn can offer something that has been a struggle for decades—time. These modernized technologies allow agents to streamline their schedules and engage with clients at any time of day, and clients and agents who work on non-traditional schedules will rejoice!
It’s not just about easy scheduling and contact, it’s about making your site, your information, and your listings as sharable as possible. Sharing should be almost mindless—easy enough for a client or potential client to not question whether or not to put the time into sharing. Use simple and clear “share” buttons to make it easy—and utilize the info that can be gathered from who shares with who.
Just a few other ways to incorporate social media and technology for any agent:
- Create a Facebook group to garner leads
- Utilize the “live” feature on Facebook or Instagram to show a property
- Use 360-degree photos and videos
- Build a Chatbot on Messenger that can answer FAQs automatically
- Use excellent and quality photography
- Create multiple landing pages for potential clients to come upon in searches
- Utilize keyword searches
And in the End…
Staying relevant in the ever-changing world of real estate is the main goal of most agents out there today. Keeping up to date on technologies and changes in social media outreach can make or break a business in the modern age. Maintaining a prominent social media and online presence is key to maintaining a flourishing business. Garnering clientele takes more creativity than ever before, but the sheer number of clients that can be gained in a short amount of time make the extra effort worth it. The real estate market is forever changing and keeping up with the times and technologies will always be the best way to advocate for yourself and your business!
What to Expect from a Home Inspection
Navigating the Home Buying Process
One of the very first steps to take after putting an offer in on a new home is making sure a home inspection is completed. Inspections can be a bit nerve-wracking, but don’t fear! The following is a quick rundown of all the things you’ll need to know when planning for, arranging, and attending a home inspection:
First you may be wondering…
Where do I find an inspector?
Home inspection is not federally regulated, so it’s important to ask for recommendations from people you know and trust. Whether that be your co-worker, your mother, your lender, or your agent is up to you—but finding a trusted inspector is key to ensuring your confidence in their evaluation. Though there are no national requirements pertaining to inspectors, there are plenty of databases that buyers can refer to verify an inspector. The National Association for Home Inspectors and International Association of Certified Home Inspectors both require members to pass an exam, honor a code of ethics, and continue their education as often as needed.
The good news is, in Arizona, inspectors must be licensed and must meet certain requirements set forth by the state to verify that they meet current rules, standards, and regulations. Most buyers in Arizona can rest assured that their inspector is qualified for the job!
Once you find an inspector…
Who finances the inspector? Who arranges the inspection?
Traditionally, the buyer pays for the inspection, however, some buyers negotiate the price into their offer, and insist that the seller pay. Most realtors and agents, though, would recommend the buyer choose and arrange the inspector, just to ensure the inspection itself is free of bias and personal ties (to buyer and seller).
How do I pay for it and what does it cost?
In 2018, the average inspection ran between $277-$388, but at the end of the day, it really comes down to the location and size of the home being inspected. While the price of the inspection may go up with the size of the home, it’s important not to skimp on an inspection. If you get a quality reference, but the price tag is a bit high, don’t low bid for a far less reputable inspector. Quality should always prevail.
Once the inspection is scheduled and paid for, what will the inspection look like?
A good inspector will get into every possible nook and cranny to compile a summary that will include checking:
- HVAC systems
- Interior plumbing
- Electrical systems
- Roof
- Basement/Structural components
- Attic
- Floors
- Windows & doors
- Foundation
The checklist the inspector will amass will look at the above functions with scrutiny, so it is inevitable that the checklist the buyer will receive back will have a shocking amount of issue to address. As a buyer, it’s important to not focus on the number of issues addressed, but rather look at the severity of the them. Some problems can be dealt with easily, like chipped paint and a missing tile. Other problems can be deal breakers, like a complete roof renovation or major plumbing complications.
The inspector will provide the buyer with an extensive summarized compilation of all the notes and pictures taken throughout the inspection, as well as estimates on the longevity of major equipment and systems that are integral to the home (i.e. roof, structure, paint, garage doors, etc.).
How long will the process take?
There are a number of variables to take into account when trying to gauge the time an inspection will take. The size of the home, the thoroughness of the inspector, the number of defects, and the effort the owner put in to preparing for the inspection will all account for different durations of time the inspection can take. It’s safe to assume it will take over two hours, maybe even up to four. It is highly recommended that the buyer is present for the inspection whenever possible. It allows for exploration of the property and the opportunity to ask questions about components of the home that may need explaining—not to mention the benefit of being on-site to witness first-hand any concerning issues that might present themselves.
How should I prepare as a buyer/seller?
The best way to prepare as a seller:
- Leave all keys available (garage, electrical panels, etc.)
- Ensure all pilot lights are on (fireplace, furnace, etc.)
- Tidy up—especially in basement and attic areas (inspector needs to be able to get to furnace, HVAC systems, water heaters, etc.)
- Clean up the yard—inspector needs to get to drainage point and septic systems
- If the space is currently unoccupied, make sure electric, gas, etc. are turned back on
The best way to prepare yourself as the buyer:
- Expect a lengthy list of minor issues and a few possible major ones
- Ask to attend the inspection
- Remember no home is perfect and without problems
The process of buying a home can be beyond stressful—but it doesn’t have to be. Thank you for allowing us to help guide you through it and hopefully ease your nerves as you embark on one of the biggest purchases of your life!
What to Expect When Working with a Lender
A Quick Breakdown of Mortgage Lenders
Working with a lender is an integral part of buying a home. Whether you are coming at the transaction as the buyer or the agent, working with a mortgage broker helps make the whole process go a little bit easier—and here’s how.
You might wonder…what is a mortgage lender? A lender’s job includes but is not limited to:
- Act as the middleman between potential buyers and lenders to find the best interest rates and terms for the buyer.
- Understanding lending institutions, rates, and terms; and having a knowledge of credit criteria and reporting.
- Doing the brunt of the legwork with the financial end of buying a home—including gathering documents, pulling credit histories, and verifying income and employment.
- Establishing relationships with favored lending institutions—a good broker will always look out of the best interest of the client.
When it comes to buying a home and choosing a lender and an agent, you may be stuck in a chicken and egg situation—which comes first??
Many people would likely argue that it’s best to first secure a lender, which makes complete sense on paper. Meeting with a lender can ensure an accurate price point based on pre-approval. If you happen to be out looking at homes with an agent and find the perfect match early on, without a predetermined approval in place from a qualified lender, you as a buyer can’t make a move or put in an offer. This would all be good reason to ensure you nail down a lender first and foremost—but truly, at the end of the day, finding a trustworthy and credible realtor first may be more to your benefit.
A good agent will be able to point a buyer in the best direction for their needs. Realtors cannot receive incentive for referrals or working with specific lenders, so there is no worry about ulterior motives or backroom deals. Buyers can rest easy knowing their best interest in always most important. A great agent will know which brokers will not only secure the best rates and fees but will also ensure they job is done quickly and precisely, pushing the loan and paperwork through seamlessly and without error.
You might be wondering, once you have lender referrals, what do you do with them? What should you look for in a mortgage lender and why? Many people make the mistake of basing their entire decision around rates and fees. While those are obviously important factors to consider, focusing too much energy on negligible percentage points won’t make a huge impact at the end of the day. The percentages most lenders are competing with will more often than not dwindle down to saving $300 on a $300,000 loan—which just isn’t worth the extra stress and trouble. Instead, go with a lender who has a reputation for processing loans in a timely, efficient manner, with no errors. Pay attention to your agent’s demeanor around the lender and keep in mind lender referral is always earned and cannot be bought. If your agent seems at ease and has a seemingly stress-free relationship with the lender, it’s a safe bet that they have a fairly seamless transaction history, and odds are using that lender will be equally as stress-free for you as the buyer. Trust your agent. They will look out for your best interest in finding the right lender as much as they will in finding the right home.
Never negate the importance of quality first-person referrals.
Once a good team is in place, the lender and agent will come together to create synergetic efficiency. Together, they will work to:
- Network
- Educate
- Market
- Service
- Refer
Focusing your energies on a lender with stellar word of mouth will all but ensure you’re homebuying process will go smoothly. Between a good agent and a quality lender, as a buyer you shouldn’t run into too many wrinkles that can’t be ironed out by the professionals you’ve hired—so trust your gut and trust your agent.
Selling Luxury Real Estate
How to Break into the Luxury Market and What to Do Once You Have
Selling luxury real estate takes a certain type of agent with a certain type of mindset. Marketing is key, and high-end homes deserve high-end agents. The luxury agent has an all-around understanding of how business and marketing work within a multi-million-dollar sale. A client looking to buy or sell a high-end home will likely come equipped with some business savvy for which only a luxury agent can be prepared. Attracting the right buyer is vital and a knowledgeable agent is key. High-end clients expect expertise—an agent who can decipher what separates one luxury home from another. The following is a list of tips and techniques that will help a luxury agent be their best and sell that house:
Work to Build Your Credibility
An agent who wants to sell luxury homes needs to establish a level of credibility that builds the trust of potential clientele. Agents who build a foundation of knowledge around luxury real estate will understand high-end homes in a fully different way than an average agent. A good luxury agent will exhibit specific traits, including:
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- Effective and deliberate communication
- Understanding how to properly price in the high-end market
- Well versed on the ins and outs of the local market—luxury and otherwise
- Shows great attention to detail
- Having a wide network of influence
Luxury agents must also have an extensive understanding of what sets luxury real estate apart from everything else. Understanding what types of luxury finishes are common in high-end homes and having the ability to explain them with expertise takes research, time, and effort. There are rooms and features in these homes that require an understanding of electronics, capacities, and green energies. A luxury agent should be able to explain the details of the following luxury finishes:
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- Home theaters
- Indoor and outdoor pools
- Complex security systems
- Wine Cellars
- Central sound and lighting systems
- “Smart Home” capabilities
Knowing the ins and outs of luxury finishes can set you apart as an agent in the luxury market. Showing a home and knowing how to demonstrate the features for potential buyers is a key component to effectives sales. More than just understanding the finishes though, keep in mind what really sets the property apart aside from its finishes. Make note of the area schools, the amazing local restaurants, coffee shops, boutiques, etc. The lifestyle a property offers is often just as important as the finishes and features.
Effective Marketing is Everything
Branding yourself as a luxury agent is vital to finding success in the high-end market. There is a specific approach a luxury agent uses in marketing the homes she is selling and simply listing on MLS isn’t enough. Networking with potential clientele, as well as other luxury agents, is a key component to building a successful luxury business. Marketing your expertise in luxury real estate on social media and apps that expand into a broad luxury market are a good start, but the following tips will help too:
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- Establish a clear message—
- Showcase your strengths and knowledge base
- Create a consistent design for your promotional materials—
- Streamline and customize your personal logo
- Consider yourself the product—
- Carry yourself with confidence and create an air of uniqueness around yourself
- Establish a clear message—
Branding yourself also means understanding the buyer or seller you are looking to reach. Making a psychological profile of the buyer and seller you want. When you want to work with high-end clientele, remember that the net you cast is going to be much smaller. Think ahead as to who you are trying to reach, why you are trying to reach them, and how you are going to reach them. Effective marketing requires a full understanding of your ideal client—do everything in your power to obtain that knowledge.
Use Quality Photography and Video
The quality you use in your marketing reflects the quality in the work you do as an agent. It’s fair to say that you wouldn’t trust a doctor or a lawyer who used low resolution photography for documents or X-Rays, so why would anyone flock to a real estate agent who does just that?
Luxury buyers tend to value their time and often need the most realistic view of a property they can get without having to visit it. It is to an agent’s benefit to provide a quality idea of what the property conveys without the client actually standing physically in the home. Poor marketing and photography are the easiest ways to ensure a high-end client will write you off as their agent. Hiring a professional to take quality photos and videos will help to attract the right buyer/seller, and one can only hope that buyer or seller will tell potential clientele about you!
Telling a story about the property is the goal. Imagine your target audience and provide marketing and imagery for that particular crowd. Avoid casting out to the mass market and focus solely on how to reach your desired audience. Incorporating video walk-throughs is no longer an option, but a gold standard requirement that should include:
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- Overhead drone footage and clean videography.
- Footage gathered from around town to create the vibe of the area.
- Professionalism—never go it alone. Hire a professional.
The more effort you put into your photography and marketing, the more likely the right buyer will be attracted to the property. Going the extra mile will always be appreciated by your clients, be they buyers or sellers—they will thank you for putting in the extra effort to ensure a quality sale.
Pricing is Everything
A good agent knows the area they work in—a great agent has the market knowledge that’s required to sell in the high-end market, and that includes understanding pricing on a differently level. Pricing a home too high out of the gate is a death sentence for a luxury home. Working the numbers to properly price a home is one of the best moves an agent can make in nabbing a quality sale.
A luxury agent has to be thoughtful and knowledgeable about the comps in the area, as well as the high-end market in a broader and less local level. Understandably, sellers want to get the biggest and best price for their beloved home, but the reality is that not all luxury homes are equal. Aggressive pricing can be made difficult to agree to, but in the end, it’s the best way to ensure you get a sale.
In a luxury market, an agent has many hurdles to overcome, including having less comps to compare, pricewise. Most smaller towns will have an extremely low number of comps, while most bigger cities will have a wider range. But it doesn’t come down to strictly price by square foot. High-end homes tend to be unique—with finishes and features that are incredible beyond belief, but not necessarily desirable to all buyers.
Working as an agent in the high-end market can be a tough road to navigate. Your success is highly dependent on how well you can network in a niche market and the amount of extra energy you are willing to exert. Building a good reputation, creating effective and thoughtful marketing campaign for not only the individual properties you represent, but for you as an agent in general, and pricing just right are just a few ways to break into and become an integral part of the high-end market.
Understanding the Real Estate Market
When Is It Buyer’s, When Is It Seller’s, and Why?
Once you dip your toes into the real estate world—be it buying, selling, or simply entertaining the idea of either—you will inevitably hear the terms ‘buyer’s market’ and ‘seller’s market’ more times than you’ll be able to keep track of. While you may hear it said and glaze over, it’s important to understand what it actually means. It could make all the difference when it comes to when and how you sell or buy your home.
First and foremost, the most important thing to know when it comes to the real estate market is, just like any other market based in capitalism, the market’s stance is completely dependent on the laws of supply and demand. The marketplace will swing between buyer’s and seller’s markets based solely on whether supply outweighs demand or vise versa. The market can fluctuate quickly and unexpectedly, and in some cases, it can be at a devastating loss. But it can also come at a magnificent gain. It’s all part of the ebb and flow of American business.
You’re probably wondering what difference it makes. What does it matter to you as a buy or seller if the market fluctuates? Well, it matters a lot actually. So, let’s explore the who, what, where, when, and why of buyer’s and seller’s markets.
Let’s start with the basics. Like what is a ‘buyer’s’ market? Well, it refers to a situation in which the supply of homes on the market exceeds the demand for the homes available. A buyer’s market essentially means the buyer has the advantage in the purchasing process. A downward pressure on price is created when there are more homes than there are buyers, and it gives the buyer pull in terms of negotiating price.
The benefits of buying in a buyer’s market:
- Houses tend to be priced at lower rates
- They stay on the market longer, so you have more time to weigh your options
- Price wars are common, but start on the low end, so a buyer can bid lower than asking price, in many cases
There is a flip side to all this though…and you’re probably curious about what the alternative outcome is when the roles of supply and demand suddenly reverse. When the demand for home outweighs the number of homes on the market, the result is a ‘seller’s market.’ It is in a seller’s market that an agent can encourage competitive pricing and will often have to navigate through bidding wars on any given property. Homes in a seller’s market will often sell at a higher price point than they were originally listed at.
The benefits to a seller in a seller’s market:
- The seller will often get multiple offers resulting in high stakes bidding wars
- It’s the best time to make money off the investment that is your home—you will likely turn a profit
- Staying at or below listing price is very unlikely
So, how do we determine what climate the market is in? Who gets to decide? Economics tells us a market of any industry can change quite literally from season to season. Also like any market, there are trends that happen at particular times of year. For instance, there are more homes for sale in the summer. The weather makes a potential move a lot easier to comprehend and leisurely buyers are more likely to get out look at homes when it’s warmer out. There will always be anomalies where people are forced to move at less than desirable times, but according to how the market changes historically, the winter tends to lean more towards a seller’s market, while the summer tends to lean towards a buyer’s.
The area of the market you are in or looking in matters too. Some areas are always trending towards a seller’s market because the population and influx of buyers is so immense. The markets in Southern California, NYC, Seattle, etc. are currently nearly always in a state of seller’s market. For the time being, these cities are more the exceptions to the rules over the rules themselves, but it’s important to know they exist. Sometimes these exceptions foreshadow major fluctuations on the larger scale.
There are three major differences within the markets and how they affect those who are in the home buying or selling process.
First, expectations. The expectation on a seller’s end means more money. On a buyer’s end it means more options and upgrades at a better price. The seller may have to work harder to push a property in the buyer’s market. This could mean renovating a home, landscaping, upgrading the curb appeal, and updating the appliances. This could be a cost for the seller, but it makes their home stand out in the sea that is the real estate market. Buyers expect a lot from a home in a buyer’s market, and sellers need to come through on those expectations if they want to sell. The reverse side to that is a seller’s expectation in a market that benefits them—which is essentially taking the highest bid in a hot market.
Second, power. Where the power lies in a real estate transaction depends on what type of market it is. If the buyer holds the power, it’s because they have the option to walk away from a home they love, knowing another will pop up in its place. This is less likely to happen if the seller holds the power. In this case, the buyer is left to make quick decisions so as to not let a property slip between their fingers.
Third, marketing. In a buyer’s market, the seller and agent usually have to work overtime to make the home stand out among the rest. They often throw in incentives, be it through upgrades, price reductions, or inclusion of furniture. This often also includes professional staging and photography—even aggressive ad placement. Anything and everything that ensure buyers will see and love the home. In a buyer’s market, these are non-negotiables. Reversely, in a seller’s market, a bit less of an emphasis can be placed on these marketing ploys. Seller’s can focus their efforts in on ensuring that their property lands in the hands of the highest bidder and forget about much else.
At the end of the day, knowing what state the market is in is vital if you have a choice as to where and when you’re going to move. Those the market can change from day to day, the big changes can be monitored through a simple google search. Pull up the homes for sale in your desired area. If the number is really high, it is a great time to start looking and thinking about purchasing a home. If the number is low, it might be a great time to sell for yourself, but a not so great time to buy. Asking a trusted realtor can bring you the peace of mind you’ll need to navigate the treacherous world of real estate. Ask one of our many knowledgeable agents about the climate of the market and whether now is a good time to buy or sell.
Retiring in Prescott
Let’s get one thing settled first…
Why Prescott?
What’s so special about this little north-central town in Arizona—and why are retirees flocking to it with such enthusiasm?
When topretirement.com voted Prescott #3 on their list of the 100 Best Places to Retire, the decision came down to more than just gorgeous year-round weather and majestic and mountainous surroundings. At the end of the day, Prescott averages around 88 degrees in July and around 51 degrees in January, but you can find that in a number of other cities throughout the U.S. So what sets Prescott apart from those other cities?
The fact is, retirees flock to Prescott for good reason—the charm, the sense of adventure, the consumer-friendly taxes, and the likelihood of a return on a property investment, be it personal or rental.
At an altitude of 5,400 feet, Prescott is an ideal place to find an outdoor adventure any day of the year—but better yet, it boasts a vibrant downtown with an inexplicable charm that will pull you in and will never let go.
For the outdoorsy retired folk, there may be no better place on Earth for outdoor recreation than Prescott, Arizona. From hiking, biking, and equestrian trails to boating, swimming, and camping, the possibilities for outdoor activities are endless.
The trail systems of Prescott are like nothing else. With over 68 walkable miles, including Rails-to-Trails, Greenway Trails, and the Prescott Circle Trail system, the Mile-High Trail system of Prescott is perfect for novice and expert hikers alike! If that isn’t enough, Prescott National Forest encompasses 450 miles of single-track bike trails.
Nestled northeast of the city is the gorgeous Granite Dells and Watson Lake; a perfect hangout for locals and a lovely getaway for tourists. The trail offers a host of activities including kayaking, boating, and fishing. The 5.5-mile-long trail showcases natural granite boulders along a maintained trail perfect for hiking, biking, or horseback riding.
The Highlands Center for Natural History is a delightful getaway for any retiree who loves the outdoors—providing an interactive educational experience that is not to be missed out on! Explore nature. Walk the world around you. Find it all here, in Prescott.
If nature isn’t really your speed, Historic Downtown Prescott is rife with fabulous shopping, adorable boutiques, antique shops, and numerous contemporary retailers. After a long day of fun check out the brilliant downtown nightlife with a walk down Whiskey Row.
Prescott is full of beautiful natural sights, magnificent walking and hiking trails, and is home to the mountainous and lush Prescott National Forest. There’s no doubt that our residents love to venture into the great unknown to find a moment of connection to the world around them, but what happens when we yearn for more than earthly connection and want a dose of human connection too? Enter—Montezuma Street.
Known as “Whiskey Row,” this unique stretch of old saloons and new bars in downtown Prescott act as an adult playground, where every few steps there is an entrance to a magical world of whiskey, bourbon, and “old west” authenticity.
For those who lead a quieter lifestyle, Prescott is full of incredible examples of historic architecture that add so much to the charming ambiance—with 525 buildings on the National Register of Historic Places, Prescott is an architecture buff’s dream!
Investing in a Retirement Home/Property for Yourself
When thinking about relocating post-retirement, there are a number of factors that wrinkle up and need to be ironed out before just up and moving an entire life to a different part of the country. Retiring to Prescott, or anywhere for that matter, will likely be a huge venture and deserves a high level of research before diving in.
For instance, if you’re planning to use an IRA, or use a cash down payment from a previous property, these are the three most vital things to consider:
- Location
- Maintenance
- Budget
Location
There is more to think about than simply scenery and weather when it comes to relocating. Good weather is great, but with it can come unexpected concessions, like higher taxes and perhaps a differing lifestyle than what you had expected. Climate is important, but it shouldn’t be the end all be all when it comes to deciding where to land.
Proximity to friends and family is possibly the most vital thing to reflect upon. Are you comfortable being away from your safety net? Just like leaving for college, retiring and leaving everything you know is a major choice and disruption in life, but it’s one that tends to be worth it in the end. This choice does require some thought about some really important questions that come along with aging though—like how close the new home will be to vital things like doctors, shopping, pharmacies, and airports?
As the saying goes, “nothing in life is certain but death and taxes”—it’s obviously true no matter where you go. Taxes change and fluctuate depending on where you are, but they are always there, so a little research can go a long way before making a decision to move permanently.
Arizona is what most would consider a “tax friendly” state. In fact, it is named one of the Top 10 Most Tax Friendly States for Retirees by Kiplinger!
- The personal tax rate in Arizona tops out around 4.54% but varies from county to county
- Prescott sits at a cool 2.75%
- There is no inheritance or estate tax in AZ and no tax on food or medication prescribed by a licensed doctor
- Property tax on a home valued at $187,700 would average around $1,356
Budget
Be cautious of what your financial situation is going to look like not just tomorrow, but years and years down the road. What is your retirement plan, and does it allow for a purchase as major as a home? Working out a post-retirement budget allows you to know how much you can realistically afford. If buying a home is really part of your plans once the 9-5 is over, you’ll need to know the answer to quite a few questions that you may not have thought about in a while. Like:
- Will you finance?
- Will you pay in cash?
- Will you use an IRA?
- Will you get a 15- or 30-year loan?
- Will you be able to manage the maintenance?
While it may be tempting, tying up all your assets and money in a home can be detrimental to having a positive outcome. Getting a 15-year mortgage can help you save your hard-earned cash for a rainy day—plus it will be paid off while you still get to truly enjoy it!
It’s hard to think about, but it’s wise to have a small emergency fund stashed away in case the worst happens. Life happens around us, and sometimes it costs money—it’s always better to be safe than sorry. Even harder to consider, but vitally important, is how will the home be paid for when you have passed? Prepare to think about how the cost will be managed as a widow or widower. It can be a shock to go from paying the mortgage with two social security checks to one. Always be prepared for the worst.
Maintenance
With a budget comes the burden of weighing maintenance costs. The cost of owning your own retirement home comes with far more than just a mortgage, taxes, and insurance. The cost of maintenance and upkeep can be unforeseen if not considered ahead of time.
Often, buying a newer home can help cut down the cost of maintenance, as almost all the features and finishes are brand new and come with warranties—normally for the first ten years of the home’s life. If buying new is an option for you, it might help to consider buying within an active adult community too. In that case, most of the maintenance and upkeep is included as a service within the HOA.
Thinking about how you’ll age with the home is a must too. Will the property be able to accommodate you as you age? Easy conversion into elderly living is a huge factor. A multi-level home may be out of the question, if stairs are a concern—and wide hallways and doorways may be something to look more closely at when looking at homes.
What About Buying an Investment Property for Post-Retirement Income?
Owning an investment property can be difficult and thrilling all at once. There is a real excitement in own and managing properties, but there is an obvious substantial amount or work or monetary investment that needs to be made too. There are a number of things that need to be look at under a microscope before making such a significant decision.
- What will it cost?
- What is the best location to invest in?
- Will I see a return on my investment?
- What potential problems will I see?
The first thing to consider is the initial cost of the investment property. Will you have a cash down payment, or will you need to take out a mortgage? Lenders usually require 30% or more on a down payment if the owner of the property will not be living in the home. As a buyer, if you don’t have a considerable down payment, you can consider using IRA funds, as equity growth and rental property income will grow in an IRA.
Owning a property means you have to think ahead too. Consider what the cost of covering on going expenses will be—taxes, updates, repairs, etc. Think about how to cover periods of vacancy as well. It is very unlikely that the property will be occupied every single day of your ownership over it—so how will you cover the mortgage cost when the property is unoccupied?
Just as was discussed earlier in this very blog (as is the case in basically all of real estate), location is everything. If you’re investing in a property as a personal venture, you will ideally want the property to be within driving distance of your own home. Unless there is a plan in place to have property managers (who you will also have to pay out as part of your investment), the closer you are, the better. Just like investing in your own property, there will be expenses to consider that will change from place to place—like taxes, insurance, and maintenance fees. Do yourself a favor and become well versed in all the financial burdens that could arise when owning an investment property, and where that burden is more…well, burdensome, depending on location. Will you have to pay out more in taxes in California vs. Arizona? Probably! Take note of that to help figure out our next issue—what kind of return on investment will you see?
When trying to evaluate out what type of return a property will provide, it’s vital to think about what you’ll want to earn on the capital you’ve invested—and ideally, that number averages around 8%. Put in the simplest of terms, if you invest $100,000, you want to see a net income of $8,000 per year above and beyond your investment costs. This will help to compensate for the risk and liquidity of investment. The costs and expenses, however, will be much lower if you are able to do your own maintenance and repairs. Normal expenses will include:
- Mortgage
- Taxes
- Insurance
- Maintenance
- Optional 10% property management fee
- 10% vacancy allowance rate
As the case is with any investment, potential problems can arise that seem completely unexpected without the right research. Potential problems include:
- Renters failing to pay
- Excessive maintenance costs
- Difficulty finding tenants
- Vacancy
Take into consideration too that owning a rental property is not a hands-free affair. There is a lot of work that goes into acting as a landlord, and if you can’t physically manage the property yourself, hiring a property manager will be a requirement—which will mean paying between 8-10% of the total gross income from the rental fees.
Retirement is a huge step in life—a leap into an unknown world with less schedules and more adventure. Deciding where to live for the adventure is part of that huge step—and choosing whether or not property investment is a good way to make some income post retire is an even larger hurdle to jump.
With all of these decisions to make and options to weight out, it’s good to know Arizona, and Prescott in particular, is a highly desirable place to make such a key investment. The state, county, and city itself has some of lowest taxed in the U.S. and is one of the most tax-friendly states, in general. Investing in Arizona, be it for personal or income property, is a decision that will likely go without regret.
Historic Districts in Phoenix and Prescott
How to be a Quality Agent in the Historic Home Market
America is ripe with historic homes, and while most of the oldest homes in the country reside on the east coast, there are plenty of historic homes in the southwest—and Phoenix and Prescott are just a few cities in Arizona that boast a number of examples. Homes in and around downtown or centralized areas of larger cities are becoming more popular and sought out by the day. Younger buyers, for instance, tend to be far more attracted to older homes than they are newer builds. The suburban expanse that once took us out of the city limits has slowed down to make way for modern needs that bring us back into the city. At the end of the day, the new-found love for historical homes partially boils down to one thing—location, location, location.
Phoenix and Prescott have become hotspots for younger potential buyers seeking out old-world charms with modern amenities. With 35 individual historic districts to choose from in Phoenix, and a charming and unique historical downtown in Prescott, buyers have plenty of places to choose from in central and north central Arizona. Phoenix boasts a number of high-end historical communities, including Willo, Coronado, Roosevelt, and FQ Story—while Prescott is a booming downtown with small estates, early 20th century bungalows, and some mid-century moderns.
Most historic homes in Arizona were built between 1900 and the early 1950s, at the height of southwestern expansion. Many of these homes were built after the endings of both WWI and WWII, when soldiers came home and searched for places to plant their roots and begin their families. Phoenix and Prescott were both popular Southwestern destinations for westward migration and many of those homes remain strong to this day, mixing together the charm of a life that once was with the amenities of modern day life.
So, what does it take to sell historical properties and how can you be sure you’re going about it the right way as an agent? Here is a quick rundown of the characteristics of a historic home, how to go about pricing and marketing one, and what are the biggest perks buyers get out of purchasing one:
Characteristics of Historic Homes
Historic homes come in all shapes and sizes. Historical status does not require a property to be a sprawling estate with maid’s quarters and guest homes—historical status can pertain to anything from small bungalows to giant estates, and everything in between.
There aren’t many requirements to signify historical status, but there are different types of historical designation. Homes can be recognized as historic on a local, state, and national level, with the most prestigious homes being recognized by the National Register of Historic Places. Depending on their designation, some historic homes come with harsher regulations pertaining to renovations and repairs on the exteriors, and sometimes even the interiors, as the registry seeks to maintain the integrity of the architecture.
In the simplest of terms, a historic home:
- Must be over 50 years old
- Often resides in designated historic district in its given city
- Are often sought out for their architectural and cultural significance
The quality of a historic home tends to be the most important feature that buyers gravitate toward. Commitment to craftsmanship just doesn’t exist like it used to, and because of that, our homes aren’t built with quite the same integrity as they once were. While we’ve become a society that loves the newest and latest, when it comes to our homes, it’s fair to say that newer isn’t always better. Renovations happen, and when they do, the old world charm a historic home offers mingles with modern updates to create what has become one of the most ideal sales in terms of the current real estate market.
The current largest pool of potential buyers are Gen Xers and Millennials, many of whom have take a different approach to home buying, seeking out a home with quality bones, modern updates, and superior features—like copper piping, plaster walls, original hardwoods, slate roofing, and even stained glass. The modern young buyer has been awakened to the benefit that true quality can bring—and the idea of a Roomba robot vacuum cleaner trailing around a home that once didn’t have direct electricity is almost too good to imagine. Historic homes don’t offer quality alone, but also a sense of historical and modern juxtaposition that a younger prospective buyer can really appreciate.
Pricing and Marketing Historic Homes
Pricing historic homes anywhere is dependent on the surrounding comparable homes—but the uniqueness of historic homes is a key factor in pricing as well, so finding true to form comps can be a difficult task. There often are not obvious homes to compare any given historic property to. For instance, I am currently writing this blog from a home that was built in 1900, which resides next to a house that was built in 1888. While the home built in 1900 has been renovated and has its own set of perks, the home built in 1888 has original features that could easily help to make the price point much higher, even with less renovation.
Renovations play a major role in how an agent will price a historic property, in that a good reno job can make the price tag sky rocket, and a property in need of renovation can be an incredible investment to make if buyers are willing to put in the work to rehabilitate the home to get a return on their venture. Specific to renovating a historic home, a lot of the return on investment is dependent on how much of the original home is preserved in the process. There is a buyer for every property but stripping too much of the original architecture and integrity away can be detrimental to rehabbing a historic home and making a sale.
The plus side to all this dependency on uniqueness is, the price history for any given historic home is usually available to the public—so an agent can use the past trends of the home’s price to come up with a fair and balanced market price. A chief point to make as an agent would be emphasizing the act that property taxes in historic districts and areas tend to stay fairly steady. As an agent, it would benefit you to present a history of property taxes, as well as the price history of the home you are showing, just to give the prospective buyer an idea of how the price and taxes have or haven’t fluctuated over time.
Marketing a historic home is often a vastly different experience than marketing a new build or home built within the last 50 years. As an agent, you have to focus on what makes the property unique and sets it apart from anything else they might find on the market.
Here are three important tips to always consider when marketing historic properties:
- Know where to advertise
- List in magazines and publications with historical context—a place where potential buyers are looking specifically at older properties with historical significance.
- Inquire and network with agents who specialize in historic homes. They may have a built-in clientele—knowing who is buying and who is selling—that they can connect you with.
- Know what to advertise
- Work to come up with the perfect price based on all the public information and updates that can be configured.
- Focus on the history of the home—find a story to tell. Exploit the historical significance of the home in any way you can. Create a historical story to emphasize the charm and unique nature of the property.
- Point out the modern updates where it’s beneficial and do the same for the original components. Is there a new kitchen? Point out all the benefits that brings! Are the moldings and hardwoods original? Make it known! Buyers love to see the connections to history—and the juxtaposition of old and new is super popular right now.
- Know how to market
- Make a website specifically for the historic property listing—using squarespace or wix for easy coding.
- Include a virtual walk-through.
- Incorporate any first-hand articles or pictures that emphasize the age and history of the home. Look for the original blueprints and showcase them with a list of modern updates that have been made.
- Generate excitement by making a site that showcases the property thoughtfully, is streamlines, and easy to navigate.
As the selling agent, it will be beneficial to know the answer to a handful of questions that prospective buyers are sure to ask.
- What year was the home built?
- Were any substantial renovations made?
- Any historical stories or facts to share? Notable owners or residents/visitors?
- What features remain original to the home?
Promote the Perks
Many states offer tax benefits for owning a historic home—including but not limited to reduced property taxes and state income tax credits to be use toward restoring the property. Tax breaks and benefits vary from state to state—Arizona specifically offers property tax reclassification, in which, according to the Arizona State Parks Board, “the fifteen-year agreement requires maintenance of the property according to federal and Arizona State Parks Board standards and limited to property used for non-income producing activities. In order to qualify for the SPT program, the property must be listed on the National Register of Historic Places either individually or as a contributor to a historic district.” The program reduces property taxes by anywhere between 30-45% under the agreement that the property owner will “maintain and preserve the integrity of the property” for 15 years—including the historic features, materials, appearance, and environment. Applications for property owners (or potential buyers) can be obtained through the County Assessor’s Office. When showing homes in the historic districts of both Prescott and Phoenix, it’s vital to know where to direct you prospective buyers if they wish to benefit from any historic tax breaks the state has to offer.
In Conclusion
Working as an agent in Phoenix or Prescott all but ensures that a historic property will pop up on your radar at one point or another. Between the 35 historic districts of Phoenix, and the historic downtown area of Prescott, there are plenty of properties for sale that fall under the category of “historic.” With location acting as one of the biggest deciding factors when purchasing a home, historic homes have become more and more popular amongst younger buyers looking to be closer to or in the city.
Selling historic means knowing the ins and outs of the market, and understanding the benefits, and also restrictions, a buyer will face when buying historic. Learn about the history of the property and convey that history as a selling tactic. Emphasizing the charm and integrity that comes along with the home is the best selling point an agent can arm themselves with—so fill that arsenal!
Prescott Pub Crawl
For any transplant to a new city, it’s important to figure out what kind of fun can be had around your new town. It is especially important to have a go-to activity when people come to visit, so as to keep them coming back! As an agent, having these kinds of ideas on the ready for your clients is vital. They want to know more than just the real estate market in their potential city; they want to know what kind of fun the community has to offer too.
Prescott is full of beautiful natural sights, magnificent walking and hiking trails, and is home to the mountainous and lush Prescott National Forest. There’s no doubt that our visitors and residents alike love to venture into the great unknown to find a moment of connection to the world around them. But what happens when we yearn for more than earthly connection and want a dose of human connection too? Enter—Montezuma Street.
Known as “Whiskey Row,” this unique stretch of old and new bars and saloons in downtown Prescott acts as an adult playground, where every few steps there is an entrance to a magical world of whiskey, bourbon, and “old west” authenticity. So, take a moment from your day and join us as we take a virtual pub crawl down Montezuma St. in Prescott, AZ.
The Point Bar & Lounge
Point Bar & Grill is one of the highest rated establishments on our crawl. Boasted for its authentic “speakeasy” feel as well as its epic Whiskey Menu, home to over 150 options; amazing for even the most experienced connoisseur.
Point also caters to all other possible patrons, with a three-page menu containing almost any cocktail the mind could conjure up…in case whiskey isn’t really your thing.
As if this place couldn’t get any better, they pride themselves on the process that goes into every cocktail as well. Whole and organic ingredients are a vital part of every drink, as Point uses no artificial color or flavoring, using only house-made bitters and fresh squeezed juices. Everything component of every cocktail is thought out, down to the ice they use in every drink, which is made using only water that has been treated with reverse osmosis. This is a can’t miss outing for anyone in the Prescott area.
Prescott Public House
Just slightly off the beaten path, Public House is one of those places that just always has something going on. Are you in to live music? You’ll love Public House! Love trivia nights? Public House is your place! Big fan of bar games accompanied by a live DJ? …You get the picture.
With an extensive and ever-changing Beer Menu, Public House is perfect for folks who are just looking to drink a couple beers or cocktails and have a good time. Public does not have a full food menu, but it does offer an array of “munchies” to keep your tummy full through all those beers. Just take a short stroll down W. Gurley, right off of Montezuma and you’ll find this gem, offering Happy Hour from 3-6pm every day.
Jersey Lilly Saloon
If people watching is more your style, you must check out Jersey Lilly Saloon. This amazing “lil” bar is located at the heart of Downtown Prescott, with the only balcony in Courthouse Square, just perfect for sitting down with a cocktail and unwinding while watching the whirl of the city below. Jersey Lilly offers a full bar as well as a substantial draft beer menu, with options ranging from your basic domestics to local craft options.
Jersey Lilly’s has a vibrant history, dating back to prohibition, and boasting a name honoring “one of the most famous songstresses of the 19th century.” Whether you live in Prescott, or you are just in town for a visit, Jersey Lilly’s offers “The Whiskey Row Penthouse” as a nightly room rental to give its patrons the full experience of Prescott, AZ.
Bird Cage Saloon
While some folks love a ritzy feel whilst sipping whiskey on their pub crawl, some like a good ol’ dive bar, full of true locals, and always boasting a good time. Bird Cage may not be highbrow, but it does its job in ensuring its customers feel warm and at home. With an old saloon feel, Bird Cage can always be counted on for its great service and nostalgic atmosphere.
It is a refreshing stop on the Whiskey Row Pub Crawl. While many of the stops along the way will be teaming with tourists, Bird Cage is a constant in that it is normally filled with friendly, local faces who are quick with a joke and even quicker with a smile.
Far from Folsom
What could be better than a Johnny Cash themed restaurant and bar? The answer to that is, “basically, nothing!” Located in historic Whiskey Row, this visit on our pub crawl is known for their delicious liquid libations as well as their artfully crafted food options. It is one of those unique places that offers not only a mind-boggling plethora of drink options, but also a full menu with options for every moment of the day, be it lunch, dinner, late night, or even brunch!
Obviously, a Johnny Cash themed bar wouldn’t be quite the same without live music. Far from Folsom has quite possibly the best music scene in Prescott, with regular musicians gracing “The Yard,” their outdoor venue area. You can find melodic jams bellowing from this venue almost any day of the week. It is absolutely perfect for anyone who loves to sit back and sip a cocktail while enjoying the some good ol’ fashion tunes.
After a long day or night pub crawling around Prescott, a quick stop over at Wild Iris Coffeehouse can be a life-saver—enough to keep you fueled for the next adventure that is sure to be found in this delightful and charming town!
Having a High Time, Living the (Off) Grid Life
How to Live a Good Life Off the Grid
The current state of the world is enough to make you want to run into the woods and never return to society or life as you once knew it. For many, the idea of living “off the grid” is less of an escape and more of a dream scenario. A lifestyle that is 100% dependent on self-resiliency can seem like a daunting mission, but after learning how to live without outside intervention, you begin reverting back to the basics of human nature. You start to appreciate a small home because it gives you the shelter you need when the weather gets rough. You begin to see the beauty in something as simple as a small fire providing warmth when the winter chill comes. You value the breeze that helps muffle the heat—and works to move the water, that moves the wheel, that provides the power, that lights the life. You praise the land because it provides the soil that enriches the growth that feeds the hunger. You notice that everything in life is connected. When you begin to connect the dots, you start to see how simply we can live off the complexity of nature. Northern Arizona may be one of the best places on Earth to move if your goal is to get off the grid. Our agents at Better Homes and Gardens Bloomtree are here to help you find the best piece of land to suit those self-sufficient needs. We are ready to take on any challenge, and many of our realtors even specialize helping buyers establish a homestead or off-the-grid lifestyle.
Factors to Consider Before Buying…
- Climate: What do you need out of the climate in order to attain your off-grid lifestyle? Do you need weather that is good year-round? Are four seasons a necessary part of your growing year? Would 2 obvious seasons work better? Do you prefer cool evening and hot days? Ask yourself what best suits your needs. Are you farming? Fermenting? How will the climate effect your overall goals?
- Water: No matter what you will need access to a renewable, clean, and dependable water source. It’s literally the most important lifeline we have. This is crucial when thinking about the land you’re buying. Desert land is cheap, but there’s a reason for that. The mountainous land of Northern Arizona is much more fitting for an off-grid lifestyle because there are plenty of fresh water sources to rely on.
- Laws: There’s an irony in the laws you have to pertain to in order to release yourself from the governmental hold. In order to go off grid, you have to dive into a bit of bureaucracy to ensure all your off-grid activity is legal. Finding a location that doesn’t enforce code is usually your best bet—luckily Arizona is pretty good for that!
- Zoning: Finding land that is zoned specifically for agricultural use is a major benefit when shooting for an off-grid life. You will have lower taxes and less input from the city or country, depending on where you’re zoned. There’s a chance the property you fall in love with will not be zoned as an agricultural site. The good news is you can usually petition the city or county to have your property rezoned, so long as you can provide good reasoning.
When Buying and Building…
Our agents are equipped with answers to many of your burning questions—like all the things you’ll need to consider before building, and what to avoid during the process. Have you ever thought about the placement of your home? Our specialized agents have! Experts argue the alignment of your home is vital when it comes to heating and cooling. An eastern/western axis will help with insulation more than just a south facing roof for solar panels. Having an east/west axis will help naturally heat and cool your home by ten degrees—warmer in the winter and cooler in the summer. This is crucial when running your entire heating and cooling system from a renewable source. On the flip side to that, our agents can steer you in the right direction when it comes to what to avoid when building too. For instance, did you know you should avoid any and all electric heating loads? From base board heaters to water heaters, and electric dryers to heating tape, having electrical heating loads in your home can use up more energy than what your generator or panels will allow for. Also, air conditioning. It may sound like torture to not have centralized air in the Arizona sun, but when building a home and taking the right precautions, you can reduce the need for one altogether.
Once You’re Set Up…
Once you have your homestead built up and ready to go, there are plenty of great ways to ensure you keep your off-grid goals intact.
- Collecting drinking water cuts out the need for a city or county water source. Rainwater can be collected from your roof. Arizona may be full of deserts, but in the northern areas it produces enough rain to provide for a whole family. With a quality filtration system and access to quality fresh water, you’ll never have the need pay for water again!
- Getting a quality back-up generator is of the utmost importance. Look for a generator capable of Automatic Generator Start (AGS) or, at the very least, an electric start.
- It’s likely you’ve already converted to LED lighting, but if not, this is the best time to step into the newest phase of the lighting world. Energy-efficient lights, like LEDs or compact fluorescent, will cut down on the amount of energy needing to be put out by our energy panels. Thus, your lighting will last longer without a generator having to kick in. They cost a bit more up front, but the savings and lifespan you get in return is priceless.
So, when the time has come that you’ve had enough of depending on the world around you, shoot one of our specialized agents an email with your details—perhaps they can help you find the property and structure of your dreams. Maybe they’ll help guide you into an entirely new lifestyle that’s not only great for the environment, but for the self too. When you let go of dependency, you find a reliance on yourself you never thought possible. Let our agents help you find you.
Tlaquepaque: Sedona’s Famous Artist’s Village
What to See, Where to Go, Who to Meet, and What to Know
Abundant, lush, vibrant landscapes help to surround and cloister the vibrant artist’s community of Tlaquepaque—a small community for artists fashioned to resemble a traditional and authentic Mexican village in central Arizona. Known as the “Art and Soul” of Sedona, Tlaquepaque was founded in 1970 and has since grown into a beloved destination that houses 45 shops and galleries for tourists and locals to explore! The compound was built to help support the artist’s lifestyle—allowing artisans and makers to create one-of-a-kind works that are stimulated by the inspiring environment that surrounds the community itself. Tlaquepaque is an unforgettable experience that brings together music, art, food, and tradition in harmony. The timeless beauty of the stucco walls, the cobble stoned streets, and the shade from the giant Sycamore trees extending overhead, create a stunning and remarkable experience that keeps visitors coming back for more. The following what to see, where to go, what artists to seek out, and what to know about the history of the world-renowned Tlaquepaque Artist’s Village:
What to See and Where to Go
Tlaquepaque is so eccentric and unique, it’s hard to narrow down what to see because everything is worth seeing—but here are a few great suggestions to help guide you:
Jewelry
Caravana Jewelry
Caravana offers pieces that “reflect free spirited fun” made right in Sedona by talented artisans. Opened in 2003 by Melissa Iaquilino, Cravana carries jewelry from Melissa herself, as well as a number of other local Sedona creators. The boutique specializes in unique copper and silverwork. The attention to detail in each piece is magnificent and makes for some of the best one-of-a-kind jewelry in all of Arizona.
Environmental Realists
One of the original retailers of Tlaquepaque, Environmental Realists is a favorite amongst tourists and locals. With expert jewelers and a knowledgeable staff, this unique shop employs over 120 artisans and craftspeople from the Sedona area and provides values and designs that go above and beyond. From leather goods to jewelry, and buckles to knives, Environmental Realists offers items that appeal to any and all shoppers!
Renee Taylor Jewelry
Showcasing a variety of talented jewelers, Renee Taylor Gallery has become a premier location for engagement rings and find jewelry in the Sedona area. Renee Taylor carries lines that are contemporary but classic—pieces that will last a lifetime and beyond and will always be in style. The gallery ventures outside of focusing solely on jewelry and also offers an array of sculptures and wind-art pieces with intricate metal work and design. With three locations in Sedona, Renee Taylor Jewelry has become a hotspot for Sedona’s jewelry needs!
Galleries
Andrea Smith Gallery
Artist and Gallery owner Andrea Smith creates and showcases pieces that, as she describes it, looks at the “peace within” in hopes it helps to bring peace to Earth as a whole. Her gallery is soft and inspiring, offering paintings, sculptures, and jewelry that focus on heightening spiritual enlightenment. The Andrea Smith Gallery is one of the most eclectic and unique galleries in Tlaquepaque—showcasing artists from every corner of the world and helping to bring together cultures and ideas in one space to live harmoniously.
Eclectic Image Gallery
Offering a wide range of fine-art photography, Elaine and Duane Morgan are a working team and married couple that toil tirelessly to bring beautiful and unique images to the marketplace in Tlaquepaque. From black and white, to tinted, to full color and high-resolution photographs, the talent exuding from Elaine and Duane is palpable and the quality of the work is undeniable. The duo from Eclectic Image Gallery is recognized on an international level for their mind-boggling perspective work and the over-all “wow” factor their work produces.
Kuivato Glass Gallery
The Kuivato Glass Gallery features over 100 individual artists from all around the world and their exceptional works in sculpting, glassmaking, and jewelry. The studio and gallery planted its roots in the Tlaquepaque Artist’s Village community in 1973 and has flourished ever since. With a name inspired by the Hopi language, Kuivato means “greet the morning sun” and the gallery is one of the very first mainstays of the village. Having recently expanded into a much larger space, Kuivato Glass Gallery can now offer almost double what it could house prior to the move. Visitors to Tlaquepaque would be amiss to miss out on such an exceptional space.
Rowe Gallery
Working hard to ensure it represents a wide variety of artists and sculptors, Rowe Gallery showcases traditional and contemporary artists from the southwest that offer pieces that are unique to Sedona. Featuring sculptures and paintings with magnificent attention to detail and a clear-cut focus on the natural elements of Earth, Rowe Gallery is a must-see for collectors both novice and expert. The gallery originally opened in 2010 but has since expanded and outgrown its original location in Tlaquepaque, growing into a larger and more prominent spot under the iconic bell tower! Don’t miss out on seeing the beautiful works for yourself—you surely won’t regret it!
Specialty Shops
Tlaquepaque Toy Town
During a visit full of arts and crafts that are mainly geared toward adults, escaping away to Tlaquepaque Toy Town is a refreshing getaway for any kid, young or old. The store specializes in eco-friendly and non-toxic toys that can help to put those parental anxieties at ease, knowing our children are playing with consciously thoughtful and earth-friendly goods. This is a toy store unlike any other, offering a massive variety of toys for every age and created to optimize on fun!
El Picaflor
Spanish for “hummingbird,” El Picaflor is a vibrant and vivacious boutique offering colorful ceramic works, elaborate patchwork clothing, and crafts. The world-goods are found in a fair-trade and ethically-sourced manner. Offering an array of South American goods, like alpaca furs, tapestries, and figurines, El Picoflor is a favorite amongst visitors to Tlaquepaque.
Esteban’s
A mainstay in Tlaquepaque, Esteban’s has built a dedicated fan-base over the course of the last 35 years. Showcasing intricate pottery work, Esteban’s showcases local Southwestern artists and potters who offer decorative and functional ceramic décor and tableware. Sculptures and vases are featured throughout the gallery as well. Over 50 creators are on display at Esteban’s at any given time—solidifying the gallery’s place as one of the most sought-out shops in all of Tlaquepaque.
Feliz Navidad
Holiday cheer can be enjoyed throughout the year at Feliz Navidad! The holiday-inspired store helps to create a wintery ambiance—even in the middle of the Arizona summer—acting as Santa’s Workshop in the middle of the desert. With ornaments, figurines, tree toppers, and nutcrackers, craftsmanship and artistry from around the world are on constant display at Feliz Navidad. The boutique is well-known for its vast collection of nativity sets from all around the world—representing different holiday traditions in styles from every corner of Earth.
Who to Meet
The artisans, craftspeople, and shop owners around Tlaquepaque take pride in being part of such a unique and vibrant community. The creators are often on-site and ready to intermingle with the locals and tourists. Here is a short run-down of some of Tlaquepaque’s most inspiring creators:
Melissa Iaquilino-Caravana Jewelry
Head designer Melissa Iaquilino’s unique aesthetic comes from a background in silversmithing. Her passion for jewelry making started at a young age and grew into a business she knew she could sustain when she started traveling around to concerts throughout the U.S. to sell her pieces. Iaquilino attended The Penland School of Crafts, focusing on intricate metalwork and eventually breaking into custom jewelry design. Though she showcases her own work in the shop, Iaquilino carries lines from a number of other artisans as well, helping to uplift local makers just as she has been uplifted by the Tlaquepaque community.
Elaine and Duane Morgan-Eclectic Image Gallery
As a husband and wife photography team, Elaine and Duane Morgan have dedicated their lives to mastering the art of distinct perspective photography—creating pieces that immerse the viewer directly into a landscape. They have years of experience and training, and as a partnership, they have established an expertise on quality and craftsmanship.
Ken and Monica Rowe-Rowe Gallery
In 2010, Monica and Ken Rowe opened the doors to their first gallery, with a dream to carry sculptural wildlife pieces that represent the uniqueness of the natural world. Their vision has manifested in an abundant way, as the Rowe Gallery outgrew its first location and had to expand into a larger space in Tlaquepaque un the iconic bell tower.
Nicario Jimenez-El Picoflor
One of the creators who is constantly featured at El Picoflor is Nicario Jimenez, an Andean retablo-maker who creates portable wooden boxes filled with tiny, colorful figurines. His work is on display throughout the year and is always changing, ongoing, and updated. Nicario can be found on site as he works on his displays, and spectators can revel in his hard work and attention to detail.
What to Know
Tlaquepaque is an endearing little arts community filled with unique shops, galleries, and studios—but did you know you can also book spaces throughout the village for special events? The community has become a popular location for weddings since its inception in 1970, bringing an old-world charm to a dream-like day. Here is a quick run-down of what Tlaquepaque can offer lover on their adventure into wedded bliss:
Weddings/Venues
Chapel at Tlaquepaque
The Chapel at Tlaquepaque is for the more traditional couple who is looking for an intimate but spiritual ceremony. Designed to resemble a traditional Mexican chapel, the giant wooden doors, intricate arches, and stained-glass windows create a soft and romantic ambiance that resonates warmth and love. The chapel was built over 30 years ago and has acted as the backdrop to hundreds—maybe even thousands—of love stories for the ages. Working with the chapel’s coordinators allows for couples to create the exact feel and ambiance they want—including adding candles, flowers, flower petals, and even booking the space for sunset—couples can create a tailor-made wedding that exceeds their wildest dreams.
Calle Independencia
Tlaquepaque’s Calle Independencia is a larger, less intimate event space, meant for larger receptions, and decorated to the nines. The most spacious event space, Calle Independencia offers full staff, a full-service caterer, plenty of room for a full band or DJ set-up, and numerous beverage stations that are happy to create personalized libations. With the atmosphere of a small Mexican village, the cobble streets and stucco walls add a traditional feel that transports guests to another time and place. Romanticism is the name of the game at Calle Independencia—a space that offers the most quixotic of lighting to illuminate the path to wedded bliss for the happy couple.
Patio de la Campanas
For the couple who loves to feel at one with nature, Patio de la Campanas is a magnificent option. An intimate patio with cobblestone flooring, the Patio is a gorgeous setting of greenery and lush gardens, perfectly set just beneath Tlaquepaque’s iconic bell tower. The Patio is a perfect location for an intimate, private ceremony with your closest friends.
Tlaquepaque is not just a treasure to tourists, it’s a treasure to locals. A perfect setting for a weekend adventure, residents of Sedona have been escaping to the small community for decades to reconnect, re-energize, and reinvigorate. Local art is vital to a community—adding color and vibrancy to the mundane. Tlaquepaque Artist’s Village works to emphasize the importance of art, innovation, and inspiration and has been doing so for almost 50 years! May the art they offer, the artists they value, and the events they produce remain a mainstay in Sedona forever…
