Archives for September 2010

How Should I Hold Title To My New Home? by Joe Szabo, Scottsdale Real Estate Team

September 28, 2010 szabogroup

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By Joe Szabo, Scottsdale Real Estate Team

How you hold title, the ownership of your real estate, is important. If you are married you often get joint tenancy with rights of survivorship and if you are single you hold property in your own name. There are other ways of holding title that may help you in certain situations.

As an individual you may choose to take title in your own name or you can put your property in a trust. With a trust, in the event of your death, your property will not go into probate. Joint tenancy with rights of survivorship is the most common way married couples hold title but two nonrelated individuals can also own property as joint tenants. As joint tenants both tenants own the property as a whole. With rights of survivorship, in the event of the death of one of the tenants that tenants share is immediately transferred to the surviving partner.

Tenancy in common allows each person to own his or her piece of the property separately. Tenancy by the Entirety is similar to joint tenancy but does not allow creditors of one spouse to force the sale of home to pay the debt of that spouse. These are not options available in all states.

You should consult your real estate professional before making this important decision.

The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. If you are looking to buy or sell real estate in Scottsdale, Arizona, contact Scottsdale Real Estate Agent Joe Szabo. Award winning Realtors and Re/MAX top producers for Scottsdale, Arizona, The Szabo Group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020 480.688.2020 or visit www.scottsdalerealestateteam.com for more information.

How Do I Apply for a Loan? By Joe Szabo, Scottsdale Real Estate Team

September 23, 2010 szabogroup

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By Joe Szabo, Scottsdale Real Estate Team

Applying for a loan is different from getting prequalified for a loan. Getting prequalified involves going to a lender and having the lender analyze your financial situation and come up with an approximate amount you can borrow. You have to apply for a loan to get preapproved. The lender will want to see documentation and proof that you actually have the assets and debts you say you do.

You should have some key pieces of information to speed up the process. These include copies of bank statements for the last three months, copies of all account statements including stock accounts, copies of your most recent pay stubs, and your W2 forms for the past two years. If you are self-employed you will need the past two years of tax returns and a profit and loss statement for the year to date. If the money you are using to buy the house is a gift from a friend or family member have a gift letter as well.

You will need to make some other important decisions at the time of your application. These include what type of mortgage you should choose, if you should float the rate or lock it in, and how many points (if any) do you want to pay.

Keep all of this in mind and go in to a lender prepared, it not only speeds up the process but shows the lender you are a serious buyer.

When Should I Close Escrow and Why Does It Matter? by Joe Szabo, Scottsdale Real Estate Team

September 21, 2010 szabogroup

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By Joe Szabo, Scottsdale Real Estate Team

When you close your escrow is a negotiation point between you and the seller. Timing is everything. You should set the closing date according to when your current lease ends. If you close at the beginning of the month and your lease doesn’t end until the end of the month you will be paying double rent for nothing. This only works if you have work to do on your new home and need somewhere to stay in the meantime. In addition if you close at the beginning of the month the lender will require you to prepay the interest from the day of closing until the end of the month. If you close closer to the end of the month, the less money you will pay out of pocket.

Remember that you get to take deductions for your house in the year that it closes, even if it closes on the last day of the year. But make sure your deductible costs will be greater than the standard deduction allowed by the IRS. You may want to contact your accountant to find out how this may affect your situation.

How Much Will it Cost to Own and Maintain a Home? By Joe Szabo, Scottsdale Real Estate Team

September 16, 2010 szabogroup

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By Joe Szabo, Scottsdale Real Estate Team

In the movie The Money Pit, the homeowner, played by Tom Hanks, throws much of his life savings into renovating his new home. Maintaining a home can feel much the same way. Calculating the cost of home ownership appears easy at first. After all, if you can afford the mortgage, insurance, and real estate taxes you can afford it, right? Unfortunately that is not always the case. Some costs of home ownership can lighten your wallet or break the bank. Calculating these costs can be difficult as there are the fixed costs such as the mortgage payment and taxes and semi-fixed costs such as utilities, and then there are the variables which include repair and maintenance of the interior and exterior of the home and landscaping and maintenance. These costs can vary greatly. The extent of repairs needed and their cost will vary with the condition the house is in when you buy it. Utility bills can vary based on the season and usage.

In order to avoid breaking the bank it is a good idea to save up at least 6 months of expenses so that if a major repair is needed you have the funds available. Don’t let your house become the “money pit”.

When I Go for a Showing, What Should I Look For? By Joe Szabo, Scottsdale Real Estate Team

September 14, 2010 szabogroup

Kitchen, Joe Szabo, Scottsdale Real Estate, Scottsdale Homes for Sale, Scottsdale Real Estate Team By Joe Szabo, Scottsdale Real Estate Team

The most important thing you can do when go to a showing is to step back and view the home objectively. Don’t get caught up in the moment. Look at every nook and cranny, open every closet and look at the carpets and floors. Look at the house as if it were empty. Try to picture the house as it would look like without the grandfather clock in the corner or the paisley sofa. Realize that even though the house may not be decorated the way you would decorate it does not mean it doesn’t have potential. Don’t miss out on a great home because you don’t like the way the walls are painted.

When scheduling your first showing, look at your basic needs. Is it within the right distance to work, family, and friends? Does it have enough bedrooms and bathrooms? Is there enough storage space? Is there parking? Is it safe? Is it in the right school district? If the home meets these basic requirements then see if it has some of the items you would like. For example, is there an extra bedroom or bathroom, is there a garden or a deck, is the garage attached, and what is the overall condition of the house.

Keep in mind those things that you cannot live without in a home and those things that aren’t as important. Look at every house to see how well it fits your needs and look at the house’s potential to not only be a house but a home.

The Best and Worst of Using the Internet to Look for a Home by Joe Szabo, Scottsdale Real Estate Team

September 13, 2010 szabogroup

The internet can be a great tool in researching a new home. It is a good place to identify potential cities or neighborhoods you may want to live in. You can map out the distance to work or school. You can research the city or neighborhood you are interested in living in. Using a website like schoolmatch.com you can see how the schools rank in your area. You can check the demographics of the area and get a taste of what is on the market in the area. You can even shop around for a home loan online.

There are lots of great school sites that you can visit when looking for homes in a particular school district. If you have school age children, some of these sites can be very helpful in identifying the student teach ratio, the rankings of the school on a state and national level and you can often navigate to the school’s site itself and look at the facility, the curriculum and the sports and activities offered by the school.

Unfortunately the internet doesn’t offer information on every home available in every neighborhood. Websites may be out of date. Seeing a house online isn’t like walking around a neighborhood. You can’t get a feel for a neighborhood unless you see it in person. Last but not least, you can get overwhelmed with the information. Most importantly, some of the information on the internet can be complete incorrect or so outdated as to make it a detriment rather than an aid to your home search.

If you do decide to buy a home on the internet, remember buyer beware. Make sure you know what you are getting yourself into.

The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. If you are looking to buy or sell real estate in Scottsdale, Arizona, contact Scottsdale Real Estate Agent Joe Szabo. Award winning Realtors and Re/MAX top producers for Scottsdale, Arizona, The Szabo Group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020 or visit www.scottsdalerealestateteam.com for more information.

What are the Advantages and Disadvantages to Buying a Home That Needs Renovation by Joe Szabo, Scottsdale Real Estate Team

September 8, 2010 szabogroup

There are three types of homes available to buy: move in condition, good condition, and the fixer-upper or handyman’s special. The first two types are generally move in ready with the basic structure of the home in good condition and the appliances in working order. The fixer-upper could be anything from a home that needs minor repairs to a home that needs complete renovation.

When considering a home that needs renovation, the most important question you should ask yourself is, how much money do I have to spend? Most first-time home buyers don’t have much left to spare after coming up with the down payment and buying a few new things. If you have the money to renovate and you see the potential in the fixer-upper to become the house of your dreams then go with it. Be sure you know what the cost to renovate is going to be. Often the estimates given by the broker are not accurate. Have a contractor you trust give you an estimate that is likely to be closer to the mark so that you know how much to budget for the renovation.

Fixing up or renovating a home can be a deeply gratifying experience. By renovating, you are making the house your own, creating it in the image you have of the perfect home. If you have the money and the time to create the perfect home then consider the fixer-upper.

The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. If you are looking to buy or sell real estate in Scottsdale, Arizona, contact Scottsdale Real Estate Agent Joe Szabo. Award winning Realtors and Re/MAX top producers for Scottsdale, Arizona, The Szabo Group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020 or visit www.scottsdalerealestateteam.com for more information.

Should I Buy A New Home or an Existing Home by Joe Szabo, Scottsdale Real Estate Team

September 4, 2010 szabogroup

One out of every six home buyers will purchase a newly constructed home this year. The question is, should you? The following are some guidelines that can help you make this very important decision.

New homes generally cost more than existing homes. This can be explained by the fact that it may be larger than a similar existing home with the same number of rooms. New homes also have more appliances and upgrades. In addition, part of the cost of a new home goes to impact fees, these are fees charged to the developer by the community to cover the cost of development of sewers, roads, and even new schools. They then distribute these fees amongst buyers. If money is an issue you are better to buy an existing home and add the amenities of a new home at a later date. New neighborhoods may not be established. You may need to travel to get to the nearest market. This is something to take into consideration if you have small children. Always make sure the developer is well funded so they don’t go bankrupt before the project is finished, leaving you with nothing to fall back on. On the upside, new homes may appreciate faster than an existing home. Existing homes have their benefits as well. They are usually in more well established neighborhoods. You won’t have the added burden of the impact fees increasing the price of the home. Many existing homes already have upgraded appliances. Of course if you enjoy renovating then an existing home is just the ticket.

Before you buy any home, existing or new, be sure you know what you want. Check out the neighborhood, the schools, the markets, and the general overall feel of the area to make sure this is where you want to live.

The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. If you are looking to buy or sell real estate in Scottsdale, Arizona, contact Scottsdale Real Estate Agent Joe Szabo. Award winning Realtors and Re/MAX top producers for Scottsdale, Arizona, The Szabo Group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020 or visit www.scottsdalerealestateteam.com for more information.