Sherry Hall

EVERYTHING'S NEGOTIABLE.

Sherry Hall — Tue, 24 May 2011 03:06:00 GMT

Never take the first offer. My client just received a very bullying "cash for keys offer" that told him to move out within 30 days and they'd give him $1500. I negotiated $3000 (their security deposit and prepaids from the deadbeat landlord that let the house foreclose). Remember - banks are there to make money. Don't let them take advantage of you! When in doubt, talk to an expert and find out your rights.

Passage of the "Job's Bill" a defeat for homeowners

Sherry Hall — Sun, 24 Apr 2011 21:08:00 GMT

A defeat for homeowners from the legislature, who are now taxing homeowners by default who then have to prove ownership otherwise:

"Currently, many homeowners are unaware that their residential property taxes are lowered by a payment made from the State General Fund directly to the county in which the property is located. This payment is paid to residential properties in Class Three of the property tax code. Class Three properties include owner-occupied primary residences and second/vacation homes. Currently, the rebate happens automatically without the homeowner having to apply for the tax reduction. To note, rental properties are required to be registered as Class Four of the property tax code and are not eligible for the homeowners rebate. Each homeowner can locate their home’s annual rebate by looking at a past year’s property tax bill for the words, “State Aid.”

Under the new legislation, owners of second or vacation property would be disqualified from receiving the homeowner’s rebate, which normally saves the homeowners up to $600 a year—their property taxes will go up. On top of automatically disqualifying some properties from the rebate, the bill further complicates the process of obtaining the rebate by requiring the homeowner to go through the cumbersome process of signing an affidavit beginning in 2012 and subsequent even-numbered years, under penalty of perjury, that they are living in the home or that the home is being leased or rented to a relative. The affidavit will be mailed along with the annual Notice of Full Cash Value sent to owners of Class Three Property. The forms must be completed and returned to the County Assessor within 60 days or the residential property will be reclassified as Class Four and the property taxes will go up as much as $600 depending on the home’s value.

The problem with the affidavit is that it treats the property as a rental until the homeowner can prove otherwise."

EXCERPTED from Passage of the "Jobs Bill" - Residential Property Tax Impacts By Nicole LaSlavic, AAR Government Affairs Director --- Arizona REALTOR® Magazine — April 2011

my comments: I think taxing by default is the most cowardly way possible by government. By strangling the homeowner and investor, we will only slow our real estate recovery even further. Why not just tax us whatever you want and then give us 60 days to protest? Oh, that's right, they already do that... Make sure you know about the different Classes and tax repercussions. They will thank you for it!

MARCH 2011 Sales Review

Sherry Hall — Sun, 17 Apr 2011 22:55:00 GMT

SALES Month over Month from ARMLS - STAT

The good news for March is its sales figure of 9,933, which is the highest monthly sales total in the previous sixty-six months. March figure is also the 5th highest sales record since 2001. This represents a 38.8% gain over February total sales and completes the upward pattern for the quarter, typical of every Q1 since ARMLS began keeping records in 2001. While the month over month gains since January are not unusual, March’s claim to the highest sales figure in five years is. Clearly Buyers are taking advantage of the phenomenal affordability of Valley housing.

SALES Year over Year
March’s 9,933 represents a 10.7% year over year gain, complementing the March over February gains of 2008 to 2009 (77.9%) and 2009 to 2010 (17.5%). Higher sales totals help deplete the market’s over supply of homes, inching it towards a more balanced supply.

NEW INVENTORY
New Listings added to the market increased 16.7% over February (+1,765) to 12,312. This represents only 1% increase over the previous 12 month new listing average of 12,152.

TOTAL INVENTORY
Total inventory which remained relatively flat in Q1, Q2 and Q3 of 2010, began a down-ward trend in late Q4 which continued into March. March inventory declined 7.5% from February to a total of 37,632 units. This figure is the lowest total inventory in the last twenty three months. This type of decline in total inventory chips away at the Valley’s oversupply which must be reduced in any plausible recovery scenario.

NEW LIST PRICES
Median and average new list prices have been on parallel declining trends over the last twenty-four months. Median new list price declined 3.2% in March to $120,000 and the average new list price declined 1.1% from February to $201,100. While the net losses from February are not steep, the drops from the all time highs of the past decade are far more painful. Median new list price fell in March to $120,000 from the decade high in February 2006 of $303,900, a 61% decline in value. Similarly, the average new list price of $201,100 in March fell from a decade high of $421,950 in January 2007, a 52% decline in value.

SALES PRICES
Sales prices follow a similar long term downward trending path forged by new list prices. In March median sales prices remained steady hovering around $110,000, hardly deviating from the downward trajectory established over the previous twelve months. Average sales prices increased slightly (1.4%) from February, settling at almost the same level as January at $157,800. The overall decline in just the last twelve months from a high median of $130,000 in May 2010 and a high average of $179,900 in June of 2010 is not very good news. Pricing is in the doldrums, and while a trailing indicator, still remains the bane of the Valley’s recovery.

FORECLOSURES PENDING
Foreclosures pending continue on the downward trend established over the last twelve months, which in April 2010 was 47,836 and in March was 37,037, 22.58% lower than a year ago. Lender owned sales are at the root of declining prices, so declines in the fore-closures pending which feed the lender owned sales is good news. Recovery is going to be a slow and painful process and eliminating the disproportionate influence of foreclosures is a must.

LENDER OWNED SALES
Lender owned sales rose 14.17 % from January to February, and 29% from February’s 3,553 to 4,586 in March. Over the last twelve months lender owned sales have ac-counted for a low of 36.5% of total sales in June 2010 to a high of 49.6% of total sales in February 2011. March’s lender owner sales as a percentage of total sales remained high at 46.2%. This metric is a double edged sword: increase in lender owned sales as a percentage of total sales exerts negative pressure on pricing. However, lender owned sales have to be greatly reduced to halt the declining prices. Thus, by being sold off, their elimination becomes an antidote to the Valley’s pricing woes.

DISTRESSED SALES
Distressed properties are a combination of lender owned sales and closed short sales. They represent transactions which are sold under duress by the home Seller or sold by the lender after foreclosure. Total distressed properties for March were 6,485 and rep-resented 65% of total sales. March short sales of 1,899 were up 25.8% over February’s 1,509. Short sales for March accounted for 19.1% of total sales. High percentages of dis-tressed properties is more medicine that the Valley has to swallow. In March, ARMLS launched the Fannie Mae Short Sales Assistance Desk (SSAD)(1) to assist Subscribers and their Sellers in transactions where the normal short sale approval process has bogged down. ARMLS hopes that this new assistance from Fannie Mae on properties where Fannie Mae is the first lien holder will move more short sale properties to faster closing.

AVERAGE DAYS ON MARKET
Average Days on Market (DOM) for March was 114, deviating by only one or two days since December. DOM has trended longer since May’s average of 96. Longer days on market contribute to negative pricing pressure. Average DOM for the entire market reflects overall market health and is not representative of DOM in smaller niche markets or individual price ranges.

COMMENTARY
April’s STAT brings with it good and not-so-good news. In the plus column are the five year sales high of 9,933, the lowest total inventory in the last twelve months of 37,632, an MSI below four months for the first time in twelve months and a 22.8% reduction in foreclosures pending from a year ago. All welcome news! On the not-so-good front is the median and average pricing picture for both new list and sales prices, which continue on a disappointing downward trend. The pricing metrics are influenced by distressed properties’ (both lender owned and short sales) disproportionate percentage of total sales. And as the PPI predicts, this is not going to right itself any time soon.
The pattern of good news mixed with not-so-good is all too familiar as the Valley marches through its long recovery. The real estate market cannot correct itself in a vacuum. It is dependent on jobs and net migration into the state which must precede its return to better days. Like the seasonal rebirth that occurs in nature each spring, there are positive signs emerging that support the real estate recovery. With the release in March of Arizona’s and the Valley’s census data, we now have a much clearer picture of net migration and how it has affected the real estate market. The Phoenix Metropolitan area (Maricopa and Pinal Counties) which grew 28.9% from 2000 to 2010, grew only .017% from 2008 to 2009 and 2009 to 2010(2). From August 2009 through July 2010, net migration into the Valley was negative, ranging from a loss of 1,000 in May of 2010 to a high of 25,500 in August of 2009, or an average monthly loss of 13,958. Starting in August of 2010 the loss pattern reversed and the Valley saw positive, albeit small gains, averaging 2,769 per month(3). Unemployment figures which had been under reported until the census data was released in March, now show that the unemployment rates for January and February in the Valley were 9.29 and 9.28 respectively. Yet, in February Phoenix metro saw a month over month increase of 16,700 non-farm jobs in the government and private sec-tors(4).
More promising are recent announcements which indicate that jobs are coming and soon. Jobs will entice positive net migration, put many back to work and will fuel the Valley’s real estate recovery. On March 29th Mayor Gordon announced that Phoenix will become the home to the world’s largest health care data center, Institute for Advanced Health, expected to attract thousands of biomedical jobs to the Valley(5). Yulex will be expanding its rubber production capabilities with a new facility in Chandler which will create 100 full time jobs and 500 part time, and grow to 300 full time in five years(6). First Solar’s new plant on the General Motors Proving Grounds site, is expected to bring 600 new jobs and potentially hundreds more if it entices its products’ supply chain to relocate here. It expects to start construction in Q2 and be completed by 2012. Gestamp Renewables plans to build a steel facility in Surprise which will employ 50 in the first phase, bring in 100 construction jobs and eventually employ 300 at the factory(7). What is clear is the Valley’s recovery has started and the factors that will insure its continuance seem full of promise.

1 http://www.armls.com/training-and-events/fannie-mae-short-sale-assistance-desk.aspx
2 U.S. Census Bureau and EBR Database
3 EBR Database Online
4 http://www.azcentral.com/12news/news/articles/2011/03/29/20110329phoenix-mayor-phil-gordon-gives-final-state-city-address-today.html
5 http://www.azcentral.com/arizonarepublic/business/articles/2011/03/18/20110318biz-yulex0318.html
6 http://www.bizjournals.com/phoenix/news/2011/03/17/first-solar-jobs-coup-could-eclipse-600.html
7 http://www.bizjournals.com/phoenix/news/2011/02/22/gestamp-renewables-to-build-steel.html

Price Reduced on N. Silverdale Rd. in Queen Creek (Pinal County)

Sherry Hall — Sun, 13 Mar 2011 22:45:00 GMT

Queen Creek (Pinal County), Pinal County - Announcing a price reduction on N. Silverdale Rd., a lot / land. Now MLS® $130,000 - .

Property information

Price Reduced on 3433 S. First Water Trail in Gold Canyon

Sherry Hall — Sun, 13 Mar 2011 22:11:00 GMT

Gold Canyon, Pinal County - Announcing a price reduction on 3433 S. First Water Trail, a lot / land. Now MLS® $45,000 - Amazing Deal.

Property information

Lot / Land For Sale in Florence

Sherry Hall — Sun, 13 Mar 2011 22:00:00 GMT

• lot / land - MLS® $68,000 - Ready to Build

Florence, Pinal County - Wonderful homesite in finished subdivision with easy road access to town. All roads paved and maintained. Very buildable interior lot with power and phone already on it. Previous owner had a mobile home on it, was removed, so just add well and septic and you're ready to build. Saguaros all around, quiet lifestyle and desert sunsets - you can build a dream home here.

Property information

Huge Reduction! 5 acres in Queen Creek

Sherry Hall — Wed, 10 Mar 2010 00:33:00 GMT

Perfect flat acreage ready for your home or to invest and hold. This is a wonderful piece of desert lifestyle, perfect for a new home or small ranchette. Lovely San Tan Mtn Park views. Bring your horses for riding on the trails and you can hike in the foothills on paths. It's a quick drive into Queen Creek or Phoenix for shopping and business.

Flat lot, well and septic will be needed, within 50 feet of electric. Two 5acre lots are available at this price.

Property is sold AS IS, Disclosure will NOT be delivered & Buyer must waive VLSPDS. Seller will require additional Addendum for contract and will determine Title Agency.

Current Land Sales in Queen Creek

Sherry Hall — Sun, 28 Feb 2010 20:08:00 GMT

Queen Creek has been a hotbed of activity in 2009 - what is going on in 2010?

In January & February 2010, 16 lots of land have sold on the MLS, ranging from $18,000 for one acre to 3 acres for $90,000. As always, location, location, location.

With 225 lots currently for sale, price is the most important issue. Deals are being made and future fortunes being created. Buy your future now!

Sherry Hall

(480) 440-1191

28960 N. Brenner Pass in Queen Creek (Pinal County) is Sold!

Sherry Hall — Thu, 21 Jan 2010 23:06:00 GMT

Land in Queen Creek (Pinal County), Pinal County continues to sell - The lot / land at 28960 N. Brenner Pass has been sold.

Property information

This property received much interest while listed. If you are looking to buy or sell land, contact us!

Other For Sale in Queen Creek (Pinal County)

Sherry Hall — Thu, 21 Jan 2010 23:04:00 GMT

• 221,284 sq. ft. other "Land" - MLS® $94,900 - Reduced! REO Property

Queen Creek (Pinal County), Pinal County - Beautiful flat acreage ready for your home or to invest & hold. This is a wonderful piece of desert lifestyle, perfect for building a home or ranchette. Lovely San Tan Park views, sunsets. bring the horses for riding on the trails and you can hike in the foothills. Quick drive into Queen Creek and Phoenix Valley metro for all your needs. An additional adjacent parcel of 5 acres can make this into three buildable lots. This parcel is zoned for 3.3 ac single family. Water within 1/2 mile, phone and electric to property line. All weather road is bordered by paved roads. GREAT investment potential!

Property information

Lot / Land For Sale in Florence

Sherry Hall — Mon, 18 Jan 2010 22:35:00 GMT

• lot / land - MLS® $70,000 - Large Lot for Sale

Florence, Pinal County - This can be either a 10 acre parcel or two 5 acres is also allowed. Minor land division is being complete for two 5 acre parcels, but you can keep the ten if you prefer! This is beautiful flat land, perfect for a ranch or just some breathing room. Owner has completed some surveying and is finishing the rest. Property can be split up to 1.25ac by zoning allowance. Very nice custom homes and ranches in area, enjoy the desert views and sunsets. Great price for the area!

Property information

Influx/Outflux: Metropolitan Phoenix -- New Research From Urban Land Institute Examines Impact Of Population Shifts On Future Economic Growth

Sherry Hall — Fri, 08 Jan 2010 22:54:00 GMT

SH Note: I thought this article was very useful to those who speculate - Phoenix continues to show as a growth area

Influx/Outflux: Metropolitan Phoenix -- New Research From Urban Land Institute Examines Impact Of Population Shifts On Future Economic Growth

For more information, contact: Trisha Riggs, 202-624-7086; priggs@uli.org

PHOENIX (November 17, 2009) – Despite speculation to the contrary, the population of metropolitan Phoenix appears to have remained unchanged or has dropped only slightly since 2007, meaning the area could be better positioned for recovery than has been widely perceived, according to new research from the Urban Land Institute’s (ULI) Center for Balanced Development in the West.

The implications of population shifts in the area, in terms of future housing needs, job growth, and economic viability, were examined today during a forum, “Real Demographics: Positioning for a Recovery in Today’s Arizona,” hosted by the ULI Center for the West and ULI Arizona. ULI is a global non-profit research and education institute dedicated to responsible land use; its Center for Balanced Development in the West focuses on improving urban growth patterns throughout the Western U.S.; and ULI Arizona serves the Institute’s members in that state.

The event centered around the release of Influx/Outflux: Metropolitan Phoenix, new research that evaluates the degree to which the population of Phoenix has fluctuated since the beginning of the recession in 2007. The report notes that while the state government’s 2007 population estimate of 4.2 million is probably high, the level it actually reached – it was measured at 3.9 million in 2005 -- has likely not changed much, despite the housing market collapse, high number of foreclosures and precipitous job losses over the past two years. (The actual population total will not be known until the 2010 U.S. Census statistics are released.) The report was prepared to help guide plans for the area’s economic recovery and future growth.

Influx/Outflux suggests that a rebound in Phoenix will be reliant “not on an immediate resumption of rapid population growth, but on creating opportunities for those who have remained in the area,” said ULI Chief Executive Officer Patrick Phillips. “While another wave of real estate development is certain to come, a renewed emphasis on sustainable economic development would soften the sharp ups and downs in the real estate cycle and support ongoing population growth into the future.”

The report emphasizes the significance of pinpointing even small variations, either up or down: “Important decisions must be made during the coming year -- in both the public and private sectors -- that will depend on knowing how the population has changed. The difference between positive 1 percent and negative 1 percent population growth could translate into perhaps $1.5 billion in gained, or lost, income and sales tax revenues – and billions more in revenues for private enterprises,” Influx/Outflux report says. “In terms of land use, it could mean the difference between new housing demand on the order of perhaps 15,000 units or, alternatively, a 1 percent rise in total housing vacancy. The region’s decision makers cannot wait for data from Census 2010 to be released if they are to lay plans in anticipation of an economic recovery.”

The report is based on a review of three types of population data: population counts (an actual tally or survey); population estimates (statistical models including some types of U.S. Census Bureau information); and population indicators (including employment, births, deaths, undocumented immigrants, school enrollment, utility customers, and available housing and household size.)
Of these three main measurements, the population indicators offer perhaps the most up-to-date look at how the population is changing, the report explains. “They stand in contrast to population estimates that show steady and positive growth, as well as news reports that suggest significant population losses. Rather, these indicators show that the size of the region’s total population has probably remained unchanged from 2007 through the present.”

Among the indicators suggesting that the population has leveled:

Employment – The jobs/population ratio at end of 2008 was 0.44, the lowest in 15 years. However, two-income families who have lost only one income are more apt to stay in the area and get by on one income than relocate.
Births – Live births declined by 4.8 percent annually since 2007, but the birthrate is down nationwide as people adjust their plans because of the recession.
School enrollment – Growth in student enrollment dropped to almost zero during the last two years.
Utility customers – Virtually no growth in customer accounts has occurred since mid-2009, but no significant account cancellations have been recorded.
Available housing/household size – While housing vacancies have risen due to economic hardship, so has the number of households “doubling up” and expanding to accommodate family members who have lost their homes.

If the 2010 Census data supports the contention that the population of metro Phoenix has leveled off, the area must adapt to a new growth dynamic vastly different from the 3 to 5 percent annual growth rate it experienced during much of the past four decades, Influx/Outflux says. “It will take sustained growth in the region’s base economy to reignite population growth, since there are already many more workers in the region that must be absorbed before the employment base can support new residents,” it states. “This means taking steps to create a regional economy where a greater share of business activity is dedicated to building wealth by producing goods and services that are globally competitive.”

The Influx/Outflux report was the result of ULI’s Influx/Outflux Initiative, a series of meetings hosted by ULI’s Center for Balanced Development in the West and ULI Arizona to convene a wide range of key data producers and analysts, including utilities, health statisticians, developers and educational institutions, to examine demographic trends in the region. All contributed data that collectively produced a composite measurement of change. The program is an example of coordinating ULI resources to create positive impact for land use decision makers in Arizona.

The complete report is available at www.uli.org/centerwest and arizona.uli.org.

About the Urban Land Institute
The Urban Land Institute (www.uli.org) is a global nonprofit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. Established in 1936, the Institute has nearly 34,000 members representing all aspects of land use and development disciplines.

The mission of the ULI Center for Balanced Development in the West is to advance the work of ULI by providing responsible leadership in ensuring more sustainable urban growth patterns throughout the West. ULI Arizona began in 1984 as a means to expand ULI membership resources needed to support the Institute’s program of work in Arizona.

8829 E. Canyon Vista Dr. in Gold Canyon is Sold!

Sherry Hall — Fri, 01 Jan 2010 18:16:00 GMT

Gold Canyon, Pinal County - The lot / land at 8829 E. Canyon Vista Dr. has been sold.

Beautiful property in Superstition Mountains in a gated lane. Quiet solitude in a gated cul de sac in the golf course community, with all the amenities. Quick trip to Mesa or Phoenix for all your needs!

Three lots of approximately this size and this price were sold.

Property information

Lot # 34G-3513 W Josiah Trail in Bonanza Highlands is Sold!

Sherry Hall — Wed, 02 Dec 2009 04:11:00 GMT

Bonanza Highlands, Queen Creek (Pinal County) - The lot / land at Lot # 34G-3513 W Josiah Trail has been sold.

Land in Queen Creek, just outside of Phoenix is selling at discount prices. Get yours today!

Property information

You can Wine in Arizona - Really!!!

Sherry Hall — Thu, 05 Nov 2009 05:08:00 GMT

You have a very unique opportunity to get involved in the wine industry here in Arizona. If you haven't noticed, there are wineries popping up all over the state and there is no hotter area than the Kansas Settlement located around Willcox. Right now, thanks to the economy, prime vineyard acreage is still extremely reasonable - but that will not remain the case for long. But don't take our word for it, I've copied a fantastic article published on the AZCENTRAL.COM website on November 2, 2009.

Dick Erath confident Arizona wine can excel

by Richard Ruelas - Nov. 2, 2009 02:08 PM
The Arizona Republic

Arizona attracts retirees, and Dick Erath, who was a pioneer in creating Oregon's billion-dollar wine industry, had certainly earned the right to relax in his Green Valley home and enjoy the fruits of his vineyard labor.

But Arizona also attracts those seeking reinvention, and that's the path Erath chose, both for himself and the land around him. Erath bought a plot of desert in a remote section of southeastern Arizona and started growing grapes on it.

"I like a challenge," the 74-year-old said with a twinkling smile. "And you get them here." OAS_AD('ArticleFlex_1')

Erath started coming to Arizona in the early 1990s to escape the rain in Oregon. The idea of growing wine grapes here seemed impossible. But, over time, he studied the terrain and soil and became convinced southeastern Arizona provided one of the planet's best climates for grape growing.

He feels blessed by the vines, but he also is helping the area by his mere presence. Other Arizona winemakers believe the Erath name - recognizable from wine bottles stocked on grocery-store shelves nationwide - could help convince the wine world that Arizona wine is worthwhile.

In Arizona, Erath sees hints of what he saw in Oregon during its initial years as a wine producer. It's a largely undiscovered growing region that has the potential to produce wines coveted for their unique flavors and textures. Just as a serious wine list now must include an Oregon Pinot Noir, within the decade, he predicts, those lists will have to include an Arizona wine as well.

"We're just scratching the surface here," he said.

Arizona has produced wines commercially since the 1970s, but the quality began improving significantly in the early 1990s, after wine from Callaghan Vineyards in Elgin was praised by noted wine critic Robert Parker.

There now are more than 30 wineries in the state, from the high country up north to the grasslands of southeastern Arizona. Wines from Arizona have been poured in the White House and have earned praise by national wine magazines.

Just a gimmick?

Still, the state suffers under a stigma: the notion that wine can't be made in the desert. That Arizona wine is a gimmick that belongs in the gift shop with the scorpions embedded in Lucite. That it's a novelty, like pineapple wine in Hawaii or blackberry wine in Tennessee. The state's winemakers say even Arizona residents register skepticism that good wine can be had so close to home.

For those wine snobs, hearing that Erath - the man whose elegant Pinot Noirs have been lavished with praise - has chosen an area near humble Willcox for his vineyard could get their attention.

"Maybe in some small way I can help out this area," Erath said.

Erath still spends his summers in the Dundee Hills of western Oregon, which means he misses the Arizona growing season. When he landed in Arizona in late August, it was time for the 2009 harvest, and Erath wandered through his Cimarron Vineyards, located in the farming community of Kansas Settlement, to see how his grapes were doing.

He was dressed in a denim shirt and blue jeans, shielded from the intense early-morning sun by a beige hat. He plucked a purple grape off a vine, put it in his mouth and chewed. His face held a look of concentration.

He later described his grape-tasting routine: hold the grape against the palate with the tongue, break it to taste the juice, then chew the skin. He declared the grape ready to be picked.

"Intense flavor," he said, spitting the seed into his hand for inspection. The grape was a Montepulciano, an Italian variety. "We probably want to plant more of this one."

Erath stands more than 6 feet tall but walks in a perpetual stoop through his vineyards, so his head is always just beneath the canopy created by the leaves on the grapevines.

His hands reached quickly to snag a grape to taste. It was a Tempranillo, the grape that Erath thinks has the best potential in Arizona's harsh climate.

"They taste like they have a lot of sugar," he said after his sample, "but not a lot of flavor."

Learning the way

Walking alongside Erath was Todd Bostock, 32, owner of Dos Cabezas WineWorks in Sonoita, who has agreed to make wine out of Erath's grapes. Bostock had the vineyard map that showed the dozen or more varieties of grapes planted in Erath's 40 acres. He also was quietly soaking up Erath's vineyard knowledge.

"He's a problem solver," Bostock said. "You come to him with an issue and, two days later, he'll say he's been thinking about it. . . . 'This is what your problem is and here's what I would do.' "

Erath has had plenty of problems of his own to solve on his new Arizona vineyard, which he bought in 2004 and planted in 2006.

First, his vineyard manager, Juan Alba, told Erath he was having a problem with rattlesnakes.

"The reason the snakes are here is we have all these little ground squirrels," Erath said. "So we'll put in an owl's nest, and the owls will eat the ground squirrels and the snake population won't explode on us."

The owls' nests, wooden boxes perched high on poles, are all occupied, Erath said. He's now installing more.

There also were the rabbits, which had been munching on the bark of mesquite trees.

"All of a sudden, they wake up one morning and dine on grapevines," Erath said. "They think, 'My God, this is heaven on Earth. Call everyone in the county.' "

The 2-foot-tall rabbit fence went up shortly afterward, but a new problem emerged.

"It was a dry spring," Erath said, "and a herd of 14 deer started roaming through, saying, 'Wow, this tastes good, too.' "

The 8-foot-tall deer fence followed.

Timing is all

On this day in late August, the harvest was Sangiovese grapes. Bostock, clad in shorts and a ball cap, brought some freshly cut grapes to Erath.

Bostock wondered whether he should have waited a little longer to pick.

"It's a good color, and they're popping right off (the cluster)," he said.

An analysis of the sugar level also showed the grapes were ready. But these grapes didn't leave a telltale stain on the stem when removed, as do other ripe grapes.

"So how long do you wait?" Bostock asked.

Erath popped one in his mouth. It tasted promising.

"Maybe they don't do much staining on the stem," he said. "It's not a high-pigment variety anyhow."

Erath has high hopes for Sangiovese grown in Arizona.

"I call the Sangiovese sort of like the Oregon Pinot (noir). It makes a more elegant wine," he said.

He spit out the seeds and skins and inspected them before brushing them off his hands.

"Well," he said, "I don't have much experience with them."

Erath bottled his first wine made entirely with Arizona-grown grapes in May. It's under his Cimarron label and called Monsoon Red. And although Erath made this wine to be fun and simple, it garnered 85 points in Wine Spectator magazine.

Erath expects his age-worthy bottles will be phenomenal.

"I'm very enthusiastic about what's going on down here," he said.

Widely respected

And other Arizona winemakers are enthusiastic about Erath's new venture.

"I about fell down," said Rod Snapp, owner of Javelina Leap winery in Cornville and vice president of the Arizona Wine Growers Association. "Dick Erath picked us? ... It's like, 'God bless you, Dick.' "

Snapp said winemakers already felt fortunate that Maynard James Keenan, the lead singer of the hard-rock band Tool, had become a vintner in Arizona. He has the name, and resources, to sell wine nationally and generate publicity.

In a similar way, Snapp said, the state can benefit from Erath's reputation.

"We got a wine star," he said. "We've got Dick Erath."

Erath, before he became a noted winemaker, was an electronics engineer in California. He acquired grapes from a friend who had a vineyard in Oregon's Willamette Valley and made his first barrel in his garage in 1965. That's when he became a believer that Oregon could produce world-class wines.

Three years later, he planted a vineyard in the Dundee Hills. Within two decades, the region was ripe with vineyards, as his Pinot noir gained critical acclaim. His 1984 bottling was named best in America by Wine and Spirits magazine.

But the transplanted Californian grew weary of Oregon's rainy skies. A cousin who had retired to Sun City West invited Erath to visit and enjoy the sunshine. He took her up on the offer in 1991, stopping off at the Phoenician resort for an event put on by area wine distributors.

Although he liked the weather, "I didn't like Phoenix," he said. "It was too big a place for me."

He favored the Tucson area.

"Tucson reminded me of Portland," he said. "Same kind of town (that) you could get your arms around."

Sunshine prescription

He kept coming back to Arizona when he needed relief from the rain. In 1995, he bought a house, where he planted his first vines.

"I kept looking at this blank wall in my backyard," he said, "and there's nothing growing against this wall. I've got to do something. Everybody else is putting in flowers and stuff."

In 1997, Erath planted six vines of Sangiovese grapes, two Zinfandels and one Nebbiolo. He made some wine out of it and became intrigued.

"I got interested in why weren't people growing wine down here," he said. "I found out there were some small wineries."

He said he wasn't too impressed with what he tasted. Most of the wineries, he said, were growing Chardonnay and Merlot grapes because that's what sold in the supermarket.

At one farm, he remembered, he asked a worker about the vineyards.

"And he said, 'Oh yeah, we've got these grape bushes here,' " Erath recalled. "I said, 'Whoa, I'm in trouble now.' "

Sarcasm aside, Erath was impressed by the soil, the climate and the terrain of southern Arizona.

Plunging in

That same year, he discovered a test vineyard and winery operated in Tucson by the University of Arizona, under the direction of Professor Mike Kilby. He also met Frank DiChristofano, who was working with Kilby at the UA project and making his own wine in his backyard.

By 2004, Erath wanted to start an experimental vineyard. He asked Kilby to help him find land. Kilby took him out to Kansas Settlement, where Erath took the first piece of property Kilby showed him. It was a slope with good soil and a natural wind pattern that would hold off frost.

"You're not going to find a better place," Kilby told Erath.

The vineyard, Kilby said, might be small by California or Oregon standards, but at 40 acres it was one of the largest in Arizona.

Kilby said he had known Erath only by his name on the bottle but was excited that he was looking to come to Arizona.

"It was like, 'Dick Erath wants to come here, woo hoo,' that type of thing," he said. "It really gave us a boost."

Rise in land prices

Once Erath bought, land prices in the area went up.

"Which is kind of nuts," Erath said. "I haven't done anything. I'm trying to do something, but I haven't. I can't say I've proven the area."

Erath said his initial vineyard in Oregon was done, by necessity, on the cheap and with some improvisation.

"I had $7,000 in my pocket and I had to do everything from scratch," he said.

This time, though, he has the resources to apply three decades of knowledge into his Arizona vineyard.

Erath sold his namesake winery to mega-winemaker Chateau St. Michelle in 2005. The wine world had seen an increase in Pinot Noir sales following the success of the 2004 Oscar-winning film "Sideways," and Chateau St. Michelle had none in its portfolio.

"After I sold the winery, I had a few bucks, and I thought I could come down here and do things right," Erath said. "Do the right systems and don't take any shortcuts and see what we can come up with."

Unlike his Oregon wines, Erath doesn't expect his Arizona-grown Cimarron wine to be nationally distributed to grocery stores. He wants his winery to remain small but desired.

"Notable," he said.

Oregon upside down

Erath is continuing to experiment with what grows well in Arizona's desert climate.

"You take everything you learned in Oregon and turn it upside down," Erath said. "You try to figure out how to extrapolate it to Arizona."

One thing he quickly learned: His beloved Pinot noir, the grape that put Oregon, and himself, on the wine map, was not going to work in Arizona.

"It ripens too early," Erath said. "High sugars, not much flavor."

In Oregon, Erath figured out what would grow by looking at other hilly, wet climates.

"I spent a lot of time in France and Germany and Alsace to see how they grow the varietals there," he said.

So for Arizona, he started looking at hot places: southern France, Spain, Chile and Argentina.

"You're selecting a grape variety that will fit the growing season you have," Erath said. He has tried several varieties new to Arizona, including Tinta cao, Souzao and Picpoul blanc.

Once a grape starts maturing, Erath said, the acids inside it fall and the sugars rise.

"If that all goes very fast, the flavors seem not to develop very well," he said.

The idea is to get the grape to ripen slowly, over the summer months of the growing season.

"Think about simmering something on the stove for a long time," he said.

The area tucked between the Dos Cabezas and Dragoon Mountains, bordering the Willcox Playa, provides just that simmer.

"Those mountains were probably 25,000 feet," Erath said. "They've eroded down and made all this."

The land slopes slowly, Erath said. When heavy summer rains come, water roars across his land but drains quickly.

Ripe with possibility

Erath's vineyard has neighbors. Across the fence is Arizona Stronghold Vineyard, planted by Eric Glomski of Page Springs Cellars, in collaboration with Keenan and his Caduceus label. Across the way is Sam Pillsbury's vineyard and winery. Down a dirt road is Sweet Sunrise Vineyard, which provides grapes to the Canelo Hills winery in Elgin.

It feels familiar. It's just like the Dundee Hills of Oregon. The state feels ripe with possibility.

For now, most state wineries are remaining small, making a profit by selling to mainly Arizona residents who venture out to the tasting rooms. But a decade from now, Erath said, the area could see large-scale vineyards growing acres of Tempranillo "or whatever we get going," he said.

Erath's original plan was to buy 240 acres in conjunction with a partner, but that didn't work out. So Erath tapped Bostock to make his wine.

Quick learner

Bostock, a Phoenix native, started as an apprentice at Dos Cabezas. He remembered bagging some dirt for Erath because the legendary vintner wanted to take it back to Oregon and test it out.

"It's exciting," Bostock said. "He was supposed to retire, but he couldn't help it."

Bostock had worked at Dos Cabezas for just eight months when DiChristofano left. Bostock, who had made only one batch of wine before, found himself the chief winemaker. A few years later, his family bought the Dos Cabezas name, the equipment and the barrels of wine Bostock had made. Bostock found himself owning a winery much sooner than he had expected. And, now, that winery is processing grapes planted by Dick Erath.

This day's harvest is put in covered bins to keep cool and trucked from Willcox to Bostock's winery in Sonoita.

As the grape clusters tumble in a de-stemming machine, Erath leans on a bin, watching the machine spin the grapes free. A fine mist of grape juice rises toward his face.

"This is satisfaction," he said. "Seeing things like this happen."

He isn't referring to the empty clusters shooting out of the machine, but to the growing number of people growing grapes and producing wine all around him.

"Not a lot of people take Arizona wine seriously," he said, with a broad smile. "I take it seriously."