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Here in Tucson I think we have more than our share of Hummers and I’m not talking about the kind which fly around the yard fueling up on nectar from flowers. I still see them around town, quite a few of them actually. It looks like the one above is headed out of town.
I’m hearing there are quite a few Hummer’s that are being parked or traded in. Why? do I really need to answer this? How about $4.00 for a gallon of gas which won’t take a Hummer very far down the road. It seems there are so many Hummers available the trade-in price is below the Kelly Blue book price by several thousand.
Once a status symbol, they are now a symbol of American self indulgence and a waste of natural resources. Now to drive a Hummer is to fly in the face of the Going Green movement. It is to say “I have a carbon footprint the size of the state of Rhode Island, so what?” Now driving a hummer makes you more a social Pariah, than it is having a status symbol.
What Does This Have to Do with Tucson Real Estate
Maybe nothing, maybe I just don’t like Hummers, maybe I don’t like paying almost $4 a gallon for gas because we have been consuming oil at a rate unrivaled in the past. No, it isn’t any of these. The point is rapped up in the value of a Hummer today in the market conditions of today vs the value of a Hummer two years ago.
- Today it is a Pariah, two years ago it was a status symbol
- Today it isn’t worth any where near what it was two years ago
- Today you see a Hummer on the road and you say “I’m glad I don’t have to buy gas for that gas hog” two years ago you said “Wow I wish I had one of those”
Time and circumstances have changed.
The same is true of Tucson real estate, it isn’t the same as it was two years ago.
- Today there is high inventory in the Tucson Real Estate Market. Two years ago there was a shortage of available homes in Tucson
- Today there is a credit crisis in the mortgage industry. Two years ago there was a credit crisis as well which caused the current crisis, at the time no one saw it as a crisis, now they do.
- Today there are short sales, foreclosures and heavily discounted new construction homes. Two years ago there were none of these.
Just as a Hummer today isn’t worth what you could get for it or pay for it two years ago the same is true of Tucson real estate. Whatever value you might have thought you had on paper two years ago is not there today. You can not look at a comparative market analysis from two years ago and attain a value for your home today. You can’t look at an appraisal from two years ago and think it is valid in today’s real estate market.
The markets have changed for both real estate and Hummers. It is a fact of life and one we all have to face. It is easier with Hummers than real estate because we see the cost of gas everyday as we drive and fill our own tanks. It isn’t as easy with real estate, but the same dynamics of economy and supply and demand are in effect.
Comparative Market Analysis
If you want to know what the value of your home is today get a comparative market analysis. This will tell you how your home compares to homes that have sold in the past 6 month in your area which are comparable. We do these at no charge for anyone requesting one in the Tucson real estate market. (We can’t run comps for your home in Connecticut) And we won’t put you on any mailing list or send you junk mail in the future : ) (you will have to get your magnetic calendars somewhere else)
If your home is under contract and an appraisal is being done, don’t expect it to come back where it would have two years ago. Again, a lot of things have changed in the market and in the guidelines for appraisals.
I don’t know of any Hummers in foreclosure or being offered as short sales. I wouldn’t doubt at all there are some Hummer owners who are upside down on their loans. If you want one I’m sure you can pick one up “reasonable” whatever that amount might be. “A Smoke-in Deal”
Finally, here is a hummer that is conserving energy, with a very small carbon footprint and doing its part to “Go Green”.
I wonder what nectar is going for these days?
Gas is $4.69 for regular here in L.A. and I have to drive 130 miles round trip each day to the office. So I am trying to work out of the house one day a week to cut costs.
What happens if you accept an offer and the appraisal comes in lower? Do you have to accept the appraisal value? How can you find out beforehand what the appraisal number is likely to be?
Jim,
There is no way of telling beforehand what a property will appraise for. It really depends on the appraiser and the comps they use. In today’s market, you can get different appraisers who come up with two totally different values.
If you are the buyer and the appraisal comes in low, you can request the seller bring the price down, but if the seller refuses, your only option would be to pay for the difference yourself or cancel the contract. Now, if the appraisal contingency was removed from the contract, the buyer is stuck and could opt to pay for another appraisal or pay the difference and close. It really all depends on the contract.
Sounds just like our market.
I used to think Hummers were bad on gas until I heard about the H3 Hummer having a 3.5 Chevrolet engine in it, which is the same ‘EXACT’ 5 cylinder motor GM used in the Colorado and Canyon pick up trucks.
After hearing this, I went to Bergstrum GM in Milwaukee and asked verifying questions in this regard. The employee confirmed this and actually showed me on the lot that had an owner’s manual in it. Yes in deed! The H3 comes standard with a 5 cylinder 3.5 Chevrolet engine. There are some H3 Hummers that come with the Chevrolet 5.3 V8, but people who have those tend to hang on to them.
The employee then explained the differences between the H1, H2, and H3. The H3 is the smallest of the three, and is the most affordable to bring in a wider customer line.
The H1 is the biggest of the three, and not as easy on the eyes as the H2 or H3. The H1 was clearly built with a purpose in mind “A WORK HORSE” meant for either military or civilian job duties, and the H1 is the one with a very ‘utility’ look to it.
The H2 is in the middle of this group. The H2 really resembles its little brother the H3, with its civilian body style, but it is nearly the size of an H1. The H2 is the one with the 6.0 Chevrolet V8 under the hood. A 6.0 is a 454, the same engine used in Chevrolet and GMC 1-ton pick up trucks.
The employee told me that all Hummers have Chevrolet engines in them. There is no such thing as a Hummer motor. All Hummers a built with Chevrolet engines from the factory. Chevrolet engines are found in more than just automobiles. There’s a great many boats on the water that are built with Chevrolet engines in them.
Anyways, …of the three Hummers, it’s the H3 getting the bad rap. Most of the H3’s only have 5 cylinder engines. Don’t take my word for it, …Google it, do a little homework of your own to verify it.
The employee showed me the one we unlocked, which lead to a test drive, then sure enough …3 hours later I was taking it home with me. I bought it. My little H3 Hummer is yellow with black accents. That was a week ago. I’ve since learned that ‘YES’, this 5-cylinder engine gets much better gas mileage than my Silverado with a V8.
I realize there are people out there that already knew this, but on the other hand …I felt I should share this with everyone, because there are people that don’t realize that Hummer made a small version meant for everyone. Some people hear the word ‘HUMMER’ and immediately fault the name for a non-green vehicle. Sure, Hummer has the two lines of monsters, …the H1, and H2. They also have the little H3’s, which it seems people don’t realize. I’m really happy with the mileage of my H3.
I hope I was helpful to someone.
Take care.
chevy man,
That’s an interesting story, but you didn’t really answer the BIG Question. What is the MPG? I’m guessing that is still the elephant in the room.
Dave
Greetings again.
The Internet says the mileage is about 14/18. For a 4×4 SUV, I don’t think thats real bad. One has to realize those ratings are subject to the condition of the vehicle, and the operators driving habbits on a case by case basis of coarse.
Since I wrote my last entry on this site, I drove a little business road trip from Menomonee Falls Wisconsin to Fond Du Lac Wisconsin and back again. I’m still pleased to say it does much better on fuel consumption than my Silverado has been doing for me.
At one point I had a coworker in the truck with me, and he didn’t believe it had a 5 cylinder motor under the hood …defending his thoughts by making the comment ‘It’s a Hummer’. I pulled into the Richfield truck stop on Hwy 41, and opened the hood. There it was before his eyes, not a 8 cylinder, not a 6 cylinder, …he’s looking at a in-line 5 cylinder engine.
He, himself said “I honestly didn’t know Hummer did this”. I simply responded “Most people hear the word Hummer, and they think of the H1′s and H2′s, which are the big ones”.
As for me, …would I ever buy a H2 or H1. I guess if I were a business owner warrenting such a vehicle to do our heavy Wisconsin snow plowing or other work horse duties, I might consider it. As for buying them just as family transportation, …’NOT IN THIS LIFETIME’.
I’m happy with my little H3.
Thanks again. Take care everyone.
Glad to hear you are still enjoying your purchase and enjoyed it for your initial break in road trip.
Dave