Hummer Hip A Status Symbol Turned Pariah
June 18, 2008
Post Tags: Comparative-Market-Analysis , Home-appraisal , Hummer , hummingbird , Tucson Real Estate Market , Tucson-AZ-Real-Estate
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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?
June 19th, 2008 at 10:29 am
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?
June 19th, 2008 at 4:07 pm
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.
June 21st, 2008 at 5:05 am
Sounds just like our market.