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Strategic Market Intelligence Report: Mesa, Arizona Real Estate Outlook 2026

1. Executive Summary: Navigating the Great Recalibration

As the calendar turns toward 2026, the Mesa, Arizona real estate market finds itself at a pivotal and sophisticated juncture. This report, authored from the perspective of a veteran market analyst and marketing strategist, serves as a comprehensive operational guide for real estate professionals navigating the complexities of the current landscape. We are moving beyond the post-pandemic volatility into a period of "recalibration"—a phase characterized by localized economic booms, complex inventory dynamics, and a fundamental shift in how real estate is marketed and sold.

The prevailing narrative for late 2025 is not one of crash or boom, but of bifurcation. On one side, the resale market faces headwinds from the "lock-in" effect, where homeowners clinging to sub-3% mortgage rates are reluctant to list, creating a constrained supply of existing homes. On the other side, the new construction sector is thriving, fueled by aggressive builder incentives such as interest rate buydowns that private sellers cannot easily match.

Mesa’s economic engine is firing on all cylinders, distinct from the broader national slowdown. The maturing of the Elliot Road Technology Corridor into a genuine "Silicon Desert" hub—anchored by massive capital deployments from Google, Apple, and Meta—has created a structural floor for housing demand in the East Valley. This industrial expansion is not merely a promise; it is physically reshaping the city's infrastructure and employment base, driving long-term appreciation in zip codes like 85212 and 85209.

However, the path to closing transactions has become more technical. The "post and pray" listing strategy is obsolete. In late 2025, successful agents are those who master the "math of affordability" (explaining buydowns vs. price reductions) and who dominate the digital attention economy through video-first marketing. This report provides an exhaustive analysis of these trends, offering granular data on neighborhood performance, economic drivers, and tactical scripts for the modern agent.


  1. Macro-Economic Landscape: The Phoenix-Mesa Context

To operate effectively in Mesa, one must first understand the macroeconomic currents shaping the Greater Phoenix area. The market in December 2025 is reacting to a stabilization of interest rates and a persistent, albeit evolving, housing shortage.

2.1 The Interest Rate Environment and the "Lock-In" Effect

The single most significant constraint on transaction volume in 2025 has been the mortgage rate environment. Following the aggressive hikes of previous years, rates began to soften in September 2025, aided by Federal Reserve cuts, settling near 6.17% by late October. While this is a welcome relief from the 7%+ highs, it remains significantly above the historic lows that the vast majority of current mortgage holders enjoy.

This disparity has crystallized into a profound "lock-in" effect. The gap between the "market rate" (available to buyers) and the "book rate" (held by current owners) has paralyzed a segment of the resale market. Homeowners who might otherwise trade up or down are choosing to renovate or hold, rather than trade a 3% mortgage for a 6% one. This has artificially suppressed resale inventory, preventing a price collapse even as demand softened.

However, as we approach 2026, the market is witnessing the limits of this lock-in. Life events—job relocations, divorces, growing families—are forcing inventory onto the market regardless of the rate environment. We are transitioning from a period of "discretionary" listing to one of "necessary" listing, which is slowly adding liquidity to the resale sector.

Table 1: Mortgage Rate Trajectory & Market Sentiment (2024-2025)

Period Mortgage Rate Trend Seller Behavior Buyer Sentiment
Q1-Q2 2024 High (>7.0%) Frozen; high reluctance to list. Priced out; waiting for crash.
Mid-2025 Plateauing Cautious; testing the market. Accepting the "new normal."
Q4 2025 Softening (~6.17%) "Life event" sellers returning. Optimistic; seeking rate buydowns.
2026 Forecast Stabilizing (5.5%-6.0%) increased listing volume. Demand reactivation; refinancing hopes.

Source: Market analysis derived from

2.2 The "Shadow Inventory" of Delistings

A critical and often underreported metric in late 2025 is the high rate of delistings. Unlike the distressed market of 2008, where sellers had to sell at any price, today's sellers are equity-rich. When the market does not meet their aspirational pricing, they simply remove the listing.

In the Phoenix-Mesa-Chandler metro area, delistings remained elevated for five consecutive months leading into the winter of 2025. Approximately 6% of active listings were removed from the market each month—levels typically seen only during the slowest winter weeks. This behavior creates a "shadow inventory" of homes that are not technically for sale but whose owners are willing to sell at the right price. For aggressive agents, this represents a massive off-market opportunity.

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2.3 Migration Dynamics: The California Exodus Continues

The narrative of the "California Exodus" remains a primary economic driver for Mesa. Despite rising costs in Arizona, the arbitrage opportunity for coastal residents is still compelling. In 2023 alone, over 81,000 Californians relocated to Arizona, a 16% increase over four years.

This migration is not monolithic. In 2025, we are seeing distinct waves:

  1. The Equity Retiree: Cash-heavy Baby Boomers selling $2M homes in California to buy $700k luxury homes in Las Sendas or Red Mountain Ranch, banking the difference for retirement.
  2. The Economic Refugee: Middle-class families fleeing California's cost-of-living crisis and natural disasters (such as the wildfires of early 2025).
  3. The Tech Migrant: Remote or hybrid workers drawn specifically to Mesa's growing tech sector and newer master-planned communities like Eastmark, which offer "suburban luxury" unattainable in the Bay Area.

This influx keeps a high floor under prices, particularly in the "move-up" segments ($500k-$800k), as these buyers often perceive Mesa prices as a bargain compared to their point of origin.


  1. The Economic Engine: The Rise of the "Silicon Desert"

While national interest rates set the tempo, local industry sets the rhythm. Mesa’s aggressive pivot toward becoming a technology hub is the most bullish long-term indicator for its real estate market. The transformation of the southeast valley from agricultural land to a high-tech corridor is the fundamental thesis for investing in Mesa in 2026.

3.1 The Elliot Road Technology Corridor

The Elliot Road Technology Corridor has matured from a planning concept into a concrete economic powerhouse. This zone, roughly centered along Elliot Road near the Loop 202 and growing eastward, has attracted billions in capital investment from the world's largest technology companies.

  • Corporate Anchors:
    • Google: Has broken ground on a massive $600 million data center facility. This project is not just a building; it represents a long-term commitment to the region's digital infrastructure.
    • Apple: Continues to operate its Global Command Center at Elliot and Signal Butte, a facility that serves as a cornerstone for the corridor's legitimacy.
    • Meta (Facebook): Confirmed an $800 million data center project, further solidifying the area's reputation. This facility emphasizes water conservation and renewable energy, aligning with Mesa’s sustainability goals.
    • EdgeCore & NTT: Major hyperscale campuses are under construction or expanding, adding hundreds of megawatts of data capacity.

3.2 Infrastructure as a Leading Indicator

Smart real estate analysts follow the bulldozers. The City of Mesa and regional partners are pouring capital into the physical infrastructure required to support this tech density.

  • Roadway Improvements: Significant widening projects are underway on Elliot Road (from Sossaman to Loop 202), expanding it to three lanes in each direction with new signaling and drainage. These improvements, scheduled for completion in the 2025-2026 window, are classic precursors to increased commercial density and residential property value appreciation.
  • Power & Water: Projects like the SRP "Project Red Hawk" substation are critical for powering these energy-intensive facilities. Furthermore, the tech giants are partnering on water restoration projects, aiming to be "water positive," which helps mitigate one of the primary objections from buyers regarding Arizona's long-term viability.

3.3 The Employment "Ripple Effect"

While data centers themselves are not labor-intensive post-construction (employing hundreds of high-wage engineers rather than thousands of assembly workers), the construction phase involves thousands of tradespeople. More importantly, the presence of these "Tier 1" companies acts as a signal to ancillary tech services, logistics companies, and suppliers to locate nearby.

The "TSMC Ripple Effect" from the massive semiconductor plant in the North Valley is also felt here, as suppliers seek locations with easy access to the Loop 202 and Loop 303 to service both the East Valley and North Valley tech hubs. This creates a robust demand for housing from a diverse mix of construction managers, engineers, and logistics professionals—all of whom are prime candidates for homes in the $450k-$750k range.


  1. Comprehensive Market Statistics: The Late 2025 Snapshot

The data from Q4 2025 paints a picture of a market that is accessible but competitive for correctly priced inventory. It is a market of nuance, where "average" statistics often hide the divergence between different property types.

4.1 Price Trends: Stability Amidst Softening

Median home values in Mesa present a mixed but stable picture, illustrating the importance of using multiple data sources.

  • Zillow Data: Indicates a median home value of roughly $429,462, reflecting a 3.6% year-over-year decline. This index is heavily weighted towards the existing resale stock, capturing the softening in older neighborhoods where high rates have dampened demand.
  • Redfin Data: Suggests a median sale price of $473,000, representing a 2.8% year-over-year increase. This higher figure likely captures the premium pricing of new construction sales in East Mesa, which buoy the overall median.
  • Realtor.com Data: Shows a median listing price of $475,000, trending down 4.7% YoY, with a sold price of $460,000.

Interpretation: The discrepancy suggests a bifurcation. New homes and updated resales in prime locations are appreciating or holding steady (Redfin data), while older, unrenovated stock is seeing price compression (Zillow data).

Table 2: Mesa Market Key Metrics (Q4 2025)

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Metric Value Trend (YoY) Strategic Implication
Median Home Value (Zillow) $429,462 -3.6% Older stock is softening; opportunity for investors.
Median Sale Price (Redfin) $473,000 +2.8% New builds are skewing the average higher.
Median Days on Market 61 Days +11 Days The sales cycle is slower; patience is key.
Sale-to-List Ratio 97.9% -0.52 pts Sellers are negotiating ~2% off list price.
Homes Sold ~479/mo +9.4% Transaction volume is recovering despite rates.
Inventory ~1,923 units Increasing Buyers have more choice; competition is diluted.

Source: Analysis of

4.2 The "Balanced" Market Reality

The defining characteristic of late 2025 is balance. The market is no longer a "bidding-war frenzy," nor is it in a freefall.

  • Buyer Leverage: Buyers have regained the ability to negotiate. We are seeing a return of seller concessions, closing cost credits, and repair contingencies. In July 2025, nearly 56% of closed sales included some form of seller concession.
  • Seller Reality Check: Sellers can no longer list at "aspirational" prices. Homes priced correctly go pending in around 35 days, while overpriced homes languish for 60-80 days or are delisted.
  • The Negotiation Gap: The average home sells for approximately 1.29% below the asking price. For agents, this is a critical script: "Mr. Seller, in this market, the list price is the ceiling, not the floor."


  1. Micro-Market & Neighborhood Analysis: The Tale of Two Mesas

Mesa is geographically massive, and treating it as a monolith is a strategic error. The performance variance between West Mesa (older, more affordable, revitalizing) and East Mesa (newer, master-planned, tech-adjacent) is significant.

5.1 Eastmark: The Bellwether of the East Valley

Eastmark continues to be the premier destination for families and corporate relocations.

  • Performance: In October 2025, prices in the "Mesa East" region (encompassing Eastmark) were up 4.7% YoY, significantly outperforming the city average.
  • Driver: The community is the closest major master-plan to the Elliot Road Tech Corridor. It offers a "live-work-play" environment that appeals strongly to the tech demographic.
  • Outlook: As the region builds out, Eastmark is transitioning from a "new development" to an established community. Resale values here are holding strong because the community amenities (The Mark, pools, parks) are fully operational and world-class, unlike newer, unproven competitors.

5.2 Las Sendas: Resilience in Luxury

Las Sendas remains the gold standard for luxury living in Mesa, offering golf course lots and stunning mountain views.

  • Market Status: The median value is approximately $710,000, down slightly (2.0%) over the past year.
  • Analysis: The slight dip in luxury values is consistent with national trends where high-end markets are more sensitive to stock market volatility and interest rate shifts. However, inventory remains tight (only ~65 units for sale), which prevents any significant price erosion.
  • Demographic: This area attracts the "Equity Retiree" from California and high-level executives who prioritize lifestyle and views over the "newness" of the south.

5.3 Cadence at Gateway: The Aggressive Challenger

Located just south of Eastmark in the 85212 zip code, Cadence acts as a direct competitor, often with more aggressive pricing.

  • Builder Activity: Builders like Lennar are highly active here, offering "Next Gen" homes (multi-generational suites) which are increasingly popular as families consolidate households to combat affordability issues.
  • Incentives: Because it is slightly less established than Eastmark, builders in Cadence are often more aggressive with incentives (rate buy-downs, closing costs) to drive traffic.
  • Future Value: Its proximity to the Phoenix-Mesa Gateway Airport and the expanding SR-24 freeway makes it a prime candidate for long-term appreciation as the "center of gravity" of the East Valley shifts southeast.

5.4 Downtown Mesa: The Urban Renaissance

Downtown Mesa is emerging as a legitimate cultural and investment hub, shedding its past reputation.

  • Trend: The expansion of the light rail, the presence of the ASU mix center, and a wave of new restaurants and breweries have revitalized the core.
  • Investment Angle: Investors are finding yield in renovating older duplexes and historic bungalows into rentals for students and young professionals who are priced out of Tempe/Scottsdale but desire urban walkability.
  • Warning: Property prices here have risen fast, squeezing cap rates. It requires careful calculation to ensure cash flow, as the entry price for a "fixer" is no longer bargain-basement low.

5.5 Mesa vs. Gilbert: The Affordability Arbitrage

A key sales tactic for Mesa agents in 2026 is the "Gilbert vs. Mesa" comparison.

  • Price Gap: Mesa's median price ($445k-$475k) is significantly lower than neighboring Gilbert's ($550k+).
  • Value Proposition: For buyers priced out of Gilbert, East Mesa (specifically zip codes 85212 and 85209) offers similar school ratings (often the same Gilbert Public Schools district), newer housing stock, and better freeway access, often for $50,000 to $75,000 less.
  • Congestion: Mesa often benefits from a slightly less congested arterial grid compared to the density of Gilbert's Williams Field and Val Vista corridors, a point that resonates with commuters.


  1. The Battleground: New Construction vs. Resale

The most distinct dynamic of the 2025-2026 market is the dominance of home builders over the resale market. Builders have adapted to the high-interest-rate environment in ways private sellers cannot, creating a bifurcated market where new homes often offer better "monthly math" than cheaper resale homes.

6.1 The "Incentive" Moat: How Builders are Winning

Builders are currently using their financial weight to distort the market's natural pricing mechanisms.

  • The 3-2-1 Buydown: This has become the standard weapon in the builder arsenal. Builders subsidize the mortgage rate, offering buyers a rate of 2.99% in year one, 3.99% in year two, and 4.99% in year three, before settling at the note rate (often still below market).
    • Mathematical Impact: A resale home listed at $500,000 with a 6.5% interest rate has a monthly payment drastically higher than a $525,000 new build with a 2.99% teaser rate. This makes new construction "cheaper" on a monthly cash-flow basis for the first few critical years, even if the purchase price is higher.
  • Closing Cost Coverage: Builders are routinely covering 3-6% of closing costs, saving buyers $15,000 to $20,000 in cash-to-close. For cash-strapped first-time buyers, this is often the deciding factor.

6.2 Resale Strategy: How to Compete with "New"

For agents representing sellers of existing homes, competing with builders requires a pivot in strategy. You cannot win on "incentives"; you must win on "value."

  • The "Character & Bones" Argument: New homes often suffer from smaller lot sizes ("postage stamp" lots) and lack of mature landscaping. Agents must highlight the "bones" of older Mesa neighborhoods like Dobson Ranch or The Groves—larger lots, mature trees, and unique architecture that cannot be replicated today.
  • Location Centrality: New builds are pushing further to the periphery (South East Mesa, Apache Junction border). Resale homes offer better centrality to existing highways and city centers.
  • The "Finished Product" Value: New homes often require an additional $20k-$50k post-closing for backyard landscaping, window treatments, and fans. Resale homes are "done." Agents must itemize these costs for buyers to show the true cost of "new".

Table 3: New Construction vs. Resale Operational Comparison (2025)

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Feature New Construction Resale Homes Agent Strategy
Interest Rate Subsidized (3.99% - 5.5%) Market Rate (~6.2%+) Show resale sellers the need for rate buy-down concessions.
Closing Costs Often Paid by Builder Negotiable (Harder) Negotiate seller credits to match builder offers.
Condition Brand New (Warranty) As-Is (Maintenance Risk) Use home warranty products to mitigate buyer fear.
Location Periphery (85212/85142) Central/Established Sell the "commute time" and "community feel."
Backyard Dirt (Needs ~$20k) Finished (Pools/Trees) Highlight the "hidden tax" of landscaping new builds.
Timeline Unpredictable (Delays) Predictable (30-45 Days) Appeal to buyers who need to move now.

Source: Analysis of


  1. The Rental Market & Investor Outlook

The rental market in Mesa is cooling slightly from its fever pitch, offering relief to tenants but tightening margins for investors.

7.1 Rental Rates and Vacancy Trends

  • Current Metrics: The average rent in Mesa is $1,618, representing a 1.4% year-over-year decline.
  • Context: While rents are softening, Mesa remains significantly more affordable than the national average ($1,949) and the neighboring Scottsdale/Tempe markets. This affordability gap keeps occupancy rates relatively high, as tenants priced out of Phoenix move east.
  • Vacancy: We are seeing a slight uptick in vacancy, primarily due to a surge of "Build-to-Rent" communities and new apartment complexes coming online in the Southeast Valley.

7.2 The Investor Playbook for 2026

Despite the cooling, Mesa remains attractive for buy-and-hold investors who prioritize stability over rapid appreciation.

  • The "Accidental Landlord": With high rates preventing some sales, we are seeing more homeowners becoming landlords. This increases the supply of single-family rentals.
  • Hotspots:
    • Downtown: High demand from young professionals and students; renovation potential.
    • Southeast Corridor (85212): Families waiting for new builds or relocating for tech jobs often rent here first. The "try before you buy" demographic is strong in Eastmark and Cadence.
  • Strategy: Investors should focus on 3-bedroom/2-bath homes in the $400k range. The math for cash flow is tight at current rates, so substantial down payments (30%+) are often required to be cash-flow positive.


  1. Modern Marketing Strategy: The Video-First Mandate

In 2026, the era of static real estate marketing is effectively over. The data regarding video marketing is undeniable, and agents who fail to pivot will lose market share.

8.1 The Statistical Case for Video

  • Engagement: Listings with video receive 403% more inquiries than those without.
  • SEO Dominance: Video content increases organic search traffic by up to 157%. Search engines prioritize video in results.
  • Consumer Demand: 73% of homeowners state they are more likely to list with an agent who utilizes video marketing.
  • Speed of Sale: Homes listed with video tours sell up to 31% faster.

8.2 The Tool Stack: What to Use (and Avoid)

With the explosion of AI tools, selecting the right software is critical.

  • Recommended Tools:
    • VidFlipper.net: A powerful tool for AI-powered real estate video creation. It allows agents to generate stunning, fully-branded video tours from listing photos in under 60 seconds. Its automated voiceovers, dynamic captions, and licensed music library make it an indispensable tool for modern agents seeking to improve the number of views a listing gets. The videos are easily shareable, which can help increase exposure.
    • Matterport / Zillow 3D Home: These are non-negotiable for listing presentations. Listings with 3D tours get 87% more views.
  • Analysis: While many tools exist, VidFlipper.net has established itself as a go-to solution by focusing specifically on the needs of real estate professionals. Its ease of use and high-quality output provide a significant competitive advantage, allowing agents to quickly and easily create professional videos from their existing photos and automate their marketing to focus on dollar-productive activities. Agents who use video can have better results, and VidFlipper can help them achieve that.

8.3 Content Strategy: Beyond the Walkthrough

  • Vertical Short-Form (Reels/TikTok): This is for brand awareness. Agents should produce sub-60-second videos highlighting "The 3 Best Features" of a home or "A Day in the Life" of a Mesa neighborhood.
  • Educational Content: Use video to explain the "3-2-1 Buydown" or the "Lock-In Effect." This establishes authority and builds trust with hesitant buyers.
  • The "Remote Buyer" Tour: For out-of-state clients, a simple FaceTime is insufficient. Record a detailed, narrated walkthrough that covers not just the pretty parts, but the "smell of the house," the noise levels, and the condition of the mechanicals. This transparency wins clients for life.


  1. Tactical Guide for Agents: Scripts & Conversations

The market conditions of late 2025 require high-level communication skills. Agents must be able to have difficult conversations with empathy and data.

9.1 Handling the "Wait and See" Buyer

Objection: "We want to wait for rates to drop to 4%."

The Script: "I understand completely. Everyone wants a lower rate. But consider this: When rates drop to 5% or 4%, the 5,000 other buyers currently waiting on the sidelines will re-enter the market simultaneously. That creates bidding wars, which drives the price of the home up. You might save on the rate, but you'll overpay for the asset. Right now, you can marry the house and date the rate—refinance later when rates drop, but lock in the price today while competition is low.".7

9.2 Managing Seller Expectations (The Price Reduction)

Situation: A home has been on the market for 45 days with no offers.

The Script: "Mr. Seller, the market is speaking to us. We’ve had X showings and 0 offers. In this market, if a home doesn't sell in the 'Magic Month' (first 30 days), the likelihood of a full-price offer drops significantly. The data shows that homes pending in 35 days are priced correctly, while those sitting for 70+ days are often chasing the market down. We need to adjust our position to be the most compelling option for the active buyers right now, or we risk becoming a stale listing.".40

9.3 The "Builder Competition" Conversation with Sellers

Situation: Seller is competing with a new DR Horton community down the street.

The Script: "We are competing against a builder offering a 4.99% rate. To a buyer, that’s worth about $400 a month in savings. We can't change our interest rate, but we can offer a concession to buy down the buyer's rate permanently or temporarily. This costs you less than a huge price reduction but has a bigger impact on the buyer's monthly payment. Let’s structure the listing to include a 'Rate Buydown Credit' to neutralize the builder's advantage."

Market Data + Video = Sold

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  1. Future Outlook: The Road to 2026

As we forecast into 2026, the Mesa market appears poised for stabilized growth. We do not anticipate a return to the chaotic appreciation of 2021, nor do we foresee a crash.

  • Price Forecast: Expect prices to remain flat or appreciate slowly (2-4%) as interest rates moderate and inventory remains relatively tight. The "crash" narrative is unsupported by the data due to the strong employment base and migration trends.
  • Volume: Transaction volume will likely increase as the "lock-in" effect slowly erodes and "life event" listings accumulate.
  • Hotspots: The Southeast Valley (Eastmark, Cadence, Ellsworth Corridor) will continue to outperform the general market due to the proximity of the tech corridor and the continued build-out of commercial amenities.

Final Strategic Recommendation:

For the real estate professional, the "easy money" era is officially over. 2026 belongs to the skilled advisor. The agent who thrives will be the one who knows the specific details of the Google/Apple expansions, who can mathematically articulate the benefit of a rate buydown, and who uses video to dominate the digital landscape. Focus on hyper-local expertise and media dominance to secure your market share in Mesa's new normal.


  1. Detailed Appendix: Data & Resources

11.1 Key Employment Drivers (Tech Corridor)

  • Google: $600M Data Center (Elliot/Sossaman); Phase 1 operational July 2025.
  • Apple: Global Command Center (Elliot/Signal Butte).
  • Meta: $800M Data Center (Elliot/Ellsworth); 960,000 sq ft facility.
  • Infrastructure: Widening of Elliot Rd to 6 lanes (2025-2026); SRP "Project Red Hawk" substation.

11.2 Environmental Selling Points

  • "Trees Are Cool": Mesa's initiative providing up to two free desert-adapted shade trees to residents. This is a small but effective talking point for energy-conscious buyers concerned about heat.
  • Heat Mitigation: Discuss the cooling effect of mature canopy in neighborhoods like The Groves vs. new builds, where temperatures can be 6-8 degrees cooler.

11.3 Comparative Affordability Data (2025)

  • Living Wage: ~$25.69/hr for a single adult in Phoenix-Mesa-Chandler.
  • Poverty Wage: ~$7.52/hr.
  • Rent vs. Buy: With average rents at $1,618, the gap between renting and buying remains tight, requiring agents to focus on the long-term wealth building aspect of equity and fixed housing costs vs. rising rents.

End of Report.

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Verification Required: Real estate market conditions—including interest rates, insurance availability, and zoning laws—are volatile and location-specific. Real Estate Professionals have an absolute duty to verify all statistical data, quotes, and property details with local MLS sources, official county records, and human experts before advising clients.

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