Archives for August 2011

Should I Buy a Fixer Upper by Joe Szabo, Scottsdale Real Estate Team

August 29, 2011 szabogroup

Joe Szabo Scottsdale Homes for Sale

By Joe Szabo, Scottsdale Real Estate Team

There is a continual demand for housing in theUnited States, and supply almost never meets demand. TheU.S.has over 60 million homes that are at least 25 years old and 24 million are between 16 and 25 years old. That makes for a lot of older houses that need improvements. In addition, there’s a home improvement industry that’s only getting bigger which makes this process ever easier.

Buyers today want kitchens and bathrooms that fit a more casual lifestyle. Houses that are built today have large kitchens and more elaborate bathrooms. Older houses lack these features and are therefore passed over by buyers.

Today’s time strapped buyers are looking for homes they can move into without having to remodel or improve. But many homes are run down and don’t sell. That’s where improvement and remodeling come in. The right purchase and the right improvement can equal big profits when the home meets the expectations of a new buyer.

If you are time challenged, the best bet is to purchase a home in a good location and live in it while you make improvements yourself on your own schedule. If you have time, you’re in a good position to do the work yourself for quicker turn around time, or hire the work done. You profit either way.

Money is also an obvious factor. Investing requires capital.

If you like working with your hands and tools, this is right up your alley. If not there’s more than enough on the strategy end to keep you busy.

Most important after how you do all this is why. Finding a home that is below its true market value and making improvements that increase its value is what it’s all about.

Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of the best Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes forSale and Estates forSale inScottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Best Practices in Remodeling Your Scottsdale Home by Joe Szabo, Scottsdale Real Estate Team

August 25, 2011 szabogroup

Joe Szabo Scottsdale Homes for Sale

By Joe Szabo, Scottsdale Real Estate Team

The success of a rehab project greatly depends on the improvements that are made to the property. Whether you resell, rent, or live in the home, how you make the improvements is not a decision to take lightly. Obviously, many factors contribute to this decision. Are you retired with a lot of time on your hands? Do you have a full time job? Are you skilled and do you have stamina enough to do these upgrades yourself? Asses your situation and make a clear plan of how you will get this accomplished.

Your real decision will be – should you do all the work yourself, should you do some of the subcontracting work, or should you act as general contractor and manage the project? Only you can make the decisions about your life, your time availability, your energy levels, finances, and desire, along with many other factors that may pertain to you and your family’s unique circumstances.

If you do decide to hire the work done, when you speak with contractors, find out if they are licensed. Are they insured for worker’s compensation, property damage, and personal liability? Ask a lot of questions. Do they like working on investment property? Do they work alone or with helpers? How many different projects do they typically have going on?

Ask the contractor for names of satisfied customers. Talk to these people. A good idea is to see if they will let you come to their home and actually see for yourself the work that has been done. People are usually willing to let you take a look, especially if they like the contractor and think it will help to get them more work.

Whether you do the work yourself or use others to help you, keep a “punch” list. A list of everything you know needs to be accomplished. This will give you a clear vision and will act as a “to-do list” for anyone helping you.

Lastly, if you contract work, make sure to have a good written contract. The Remodelers Council of The National Association of Homebuilders has suggestions on how to make and what to put into your contracts. Don’t make the mistake of not being thorough here. Talk to people who have hired work done and find out what’s important. Many contractors work in a three stage process. One third is paid up front, one third when the work is about half way completed, and the last third when you are satisfied at the end of the project. Know before you get started how it will all play out.

Finding and Evaluating Scottsdale Home Properties by Joe Szabo, Scottsdale Real Estate Team

August 22, 2011 szabogroup

Joe Szabo Scottsdale Homes for Sale

By Joe Szabo, Scottsdale Real Estate Team

The first concern in the “fix it up and sell it” strategy is finding a good house. One that fits your budget falls into the time and effort comforts of your life, and that will demand the resale price you desire.

The first step in realizing your first concern is to find your target neighborhood. Choose an area that suits you (and your target market). Once you find that, your real estate agent can help you conquer the knowledge and gain a commanding mental handle on what’s happening in that area. A good real estate agent will give you insights into the neighborhood, show you the properties, and ultimately lead you through the process of buying and taking possession of your home. When looking at a property with an agent, he or she can tell you about comparable sales for an idea of the current value. If you are buying to rent, an agent can inform you about rental history and possibly even help you locate tenants.

What you can bring to the relationship with your agent is a clear idea of what you want. What type of property are you looking for both in concept (renting or fixer upper, etc.) and in physicality? Also, how much are you willing to spend? Together you and your agent will work toward a common goal that is your vision.

Finding property can be done in many ways — looking through the newspaper, the real estate listings, face to face, etc. But when you find properties to evaluate, there are a few VERY IMPORTANT things to watch for. Standing water on the lot indicates bad drainage. Water and moisture damage in the home promote the growth of mold and mildew. Structural problems can be disastrous if left untreated and are often too costly to make it a worth while venture in the first place. Underground tanks can be problematic and environmentally hazardous. Well and septic systems should be avoided in favor of sewage systems and public water. If you can avoid these larger pitfalls in a property, you are doing yourself a tremendous service. Almost anything else can be fixed or repaired without great concern.

Figuring out your Real Estate Budget by Joe Szabo, Scottsdale Real Estate Team

August 18, 2011 szabogroup

Joe Szabo Scottsdale Homes for Sale

By Joe Szabo, Scottsdale Real Estate Team

If you keep careful track of your expenses, it’s not too difficult to estimate how much you can afford to spend on a house. Here’s a list of expenditures that you can use to help tally up your monthly expenses:

1) Rent

2) Electricity

3) Gas

4) Telephone

5) Auto Loan

6) Auto Insurance

7) Health Insurance

8) Renter’s Insurance

9) Savings/Retirement Contribution

10) Grocery Bill

11) Weekly Transportation

12) Restaurants/Food Delivery

13) Entertainment

14) Health Club

15) Child Care

16) School

17) Children’s Expenses

18) Housecleaning Expenses

19) Vacations (divide annual expense by 12 to figure monthly average)

20) Books/CDs

21) Newspapers/Magazines

22) Laundry

23) Gifts

24) Major Purchases (stereo/computer)

25) Furniture/Decorating

26) Clothing

27) Sundries/Drugstore Items

28) Miscellaneous Expenses

If your monthly expense total is too close to your monthly after-taxes take-home pay, you should start looking at ways to cut them down. One of the newest ways to get pre-qualified for a home loan in minutes is a system called “Computerized Loan Origination” (CLO). Some brokers use it in their offices, but they’re currently unregulated so there are still some potential problems with them:

1) Many CLOs only use mortgage packages from one lender. Therefore, the mortgage company and broker view you as a captive audience, and you could wind up paying more than market value for your loan.

Basics of Scottsdale Home Buying by Joe Szabo, Scottsdale Real Estate Team

August 15, 2011 szabogroup

Joe Szabo Scottsdale Homes for Sale

By Joe Szabo, Scottsdale Real Estate Team

Savvy investors agree that you make your money when you buy your home, not when you sell it. If you don’t buy right (below market value) it’s much harder to realize profit later. Investing in real estate introduces you to a host of professionals – bankers, appraisers, loan officers, insurance agents, and home inspectors—all of whom will require your attention.

In doing the deal, first you make an offer. The seller may counter offer and that’s when negotiations begin. Your broker earns his or her money here. They will help you through the process. Always make sure any contract you sign has two contingencies. One should let you out of the deal if the house doesn’t pass inspection and you and the seller can’t agree on a resolution for that. The second contingency should be the ability to exit the deal providing you cannot obtain appropriate financing following a certain time line.

In hiring a home inspector, make sure you are able to be with the person when the inspection is conducted. Ask questions; make sure you are well educated on what happens during this process.

There are a number of factors included for the buyer in the “closing costs” category. These include a current survey, appraisal, insurance binder, pest inspection, loan points, property taxes, and title insurance. Each is important, and each will require you to become aware of how they affect the purchase. Ask your agent/broker about these and make sure you are up to speed on all aspects of closing costs. You’ll be glad you invested some time in gaining that knowledge, especially if this is your first real estate venture.

Before closing, make arrangements with utilities to have your name put on the accounts and the day before, arrange a walk through to confirm everything is in working order.

A good broker will shepherd you through this entire process and act as a go-between for your loan officer, and the seller’s broker.

Clutter does affect the Sale of your Home by Joe Szabo, Scottsdale Real Estate Team?

August 11, 2011 szabogroup

Joe Szabo Scottsdale Homes for Sale

By Joe Szabo, Scottsdale Real Estate Team

Clutter is anything that gets in your way that you don’t really need. It may be cheap or high-priced, but you just have no more use for it. Clutter is a prime cause of stagnant chi. If clutter gets in the way of your house’s energy flow, it’ll make you more lethargic and unsure of yourself. Eliminating clutter can not only improve your house’s appearance it may even improve your own by increasing your energy level, helping you lose weight!

Clearing out clutter creates room for new relationships, responsibilities, and rewards, and helps provide the energy and freedom to pursue them. The most important space to free of clutter is the Tai Chi – the center of your home. Since it connects to all the other areas, it’s important that the energy flows freely through it. Always keep it neat, well lighted, and presentable.

If you find that any aspect of your life seems stuck or confused, clearing out the clutter from the corresponding area of your home could help solve the problem. Since red is a very energizing color, wearing it while clearing clutter will keep your enthusiasm high. If clearing any clutter seems particularly troublesome, banging a gong or ringing a bell over it will help release stuck chi, providing an energizing boost. Clutter-clearing tips:

1) Commit a few minutes every day to the task.

2) Create a clutter-free zone where you can relax.

3) Focus on one space at a time.

4) Be decisive and prioritize.

5) Think about recycling or charity before throwing anything away.

6) Prepare for uncomfortable emotions. Some items may provoke deep feelings.

Clutter-clearing traps:

1) Don’t feel guilty. Everyone has clutter problems.

2) Don’t procrastinate. Clutter just gets worse.

3) Clutter takes time to clear. Don’t expect it to disappear overnight.

4) Don’t throw anything away until you know you’re ready to let it go.

If you’re really having problems, you can always hire a professional organizer to help out.

Typical Closing Costs by Joe Szabo, Scottsdale Real Estate Team

August 8, 2011 szabogroup

Joe Szabo Scottsdale Homes for Sale

By Joe Szabo, Scottsdale Real Estate Team

Various fees associated with a home purchase are called “closing costs.” Both buyers and sellers usually pay closing costs. Ask your real estate agent about which you’re responsible for.

Sellers’ costs include:

1) Paying off loan charges

2) Brokerage fee

3) Transfer tax

4) Title insurance and escrow fee

5) All or part of a home protection plan.

Buyers’ costs include:

1) Home loan fees

2) Title insurance

3) Transfer taxes

4) Inspector fees

5) Mortgage insurance

6) Attorneys’ fees

7) Hazard insurance.

To qualify for a home loan, you must show the lender enough cash on hand for the down payment and closing costs. In addition, you usually have to have enough for several months’ mortgage. One way to reduce closing costs is to get a no-point loan; you may have to pay a higher interest rate, but it saves you money up front.

Another way is to purchase a home late in the month – less interest will be owed to the lender.

Lenders won’t allow a seller to credit money towards a buyer’s cash down payment, but will allow them to cover some, or all, of the non-recurring closing costs. One way to convince a seller to cover non-recurring closing costs is to increase the purchase price; the catch, however, is that the lender will have to appraise the property at the higher price or the deal might fall apart.

Lenders’ policies vary: some permit credit for all non-recurring closing costs; others limit it to 3.6% of the purchase price. Some portfolio lenders, however, are more lenient: they’ll pay all non-recurring closing costs in exchange for a higher interest rate. In a slow market, a seller or builder will usually pay at least some of the non-recurring closing costs.

Feng Shui and Happy Meal Times in Your Scottsdale Home by Joe Szabo, Scottsdale Real Estate Team

August 4, 2011 szabogroup

Joe Szabo Scottsdale Homes for Sale

By Joe Szabo, Scottsdale Real Estate Team

Sadly, formal dining rooms are usually just used on special occasions, left empty the rest of the time, draining their energy. The best way to raise the energy of the room is to dine there, as a family, as often as possible. Clearing your dining room of any clutter is the first step to improving its energy flow. Also, avoid hanging any clocks or calendars or the meal might feel rushed.

Having two entrances to the room will help keep the chi flowing, but if the entries are directly aligned, the energy may flow out too quickly. In that case, hanging a crystal chandelier will balance the chi, helping the diners embrace healthier eating habits. In addition, a mirror that reflects the food visually doubles it, symbolically doubling your financial fortunes as well.

Although feng shui normally indicates that a room’s center be empty, the dining room is the one space where the center of the room should be occupied – by the dining table. If you wish to focus the conversation on the present, get rid of clutter that may hold the room’s energy in the past. Photos or keepsakes should be kept in the family section of the room, not distributed throughout the space.

The room should inspire calm, peaceful thoughts. Earth tones, soft yellow, peach and beige are good colors to facilitate that. Curtains soften blinds, and a thick rug or carpet will help quiet the space. The lighting should be soft or indirect, bringing the energy level down enough for a tranquil meal. Likewise, don’t watch TV or talk on a cell phone while dining. Treat the dinner hour as a special time to relax, visit, and transform your mood. Oval tables are best, because they help the energy flow around it. The head of the house should sit at the end of the table farthest from the entrance, commanding the room.

Common causes of sha chi (bad energy) are ceiling fans, exposed beams, and sharp angles. If it’s not possible to avoid these, hanging crystals can help cure them. Your special linens and silverware should be used occasionally, so you can savor their good chi in the present instead of always saving them for some future event. Regularly plan special dinners to bond with your loved ones, and even allow different people to sit in the command chair and/or decide the menu. In order to keep the room’s energy balanced make sure each of the five elements is somehow represented:

1) Metal: flatware, candlesticks.

2) Water: drinking glasses, flower vases.

3) Wood: fresh flowers, green tablecloth.

4) Fire: candles, red napkins.

5) Earth: porcelain plates, yellow tablecloth.

Feng Shui for Family Bonding in the Scottsdale Home by Joe Szabo, Scottsdale Real Estate Team

August 1, 2011 szabogroup

Joe Szabo Scottsdale Homes for Sale

By Joe Szabo, Scottsdale Real Estate Team

If your living room, family room, or den has a poor layout, it can affect how well you communicate with your friends and loved ones. The proper feng shui in these spaces, however, can help ensure harmonious relationships.

The greatest challenge in arranging your living room is making sure that the energy flows calmly enough to be relaxing, but not so peacefully that you fall asleep as soon as you sit down after dinner. Too much furniture in too small a space is a common cause of blocked chi. Furniture should be evenly spaced, to allow the chi to flow freely through the area.

All sitting areas should be protected from any sources of sha chi (bad energy):

1) If a seat is facing directly away from an entrance hang a faceted crystal between them.

2) Move a seat if it’s over an exposed beam, a sharp corner, or a ceiling fan.

3) Use low-ceilinged areas for bookcases or entertainment centers, not seating.

Place the most prominent seating in the “Command Position” (farthest from the entrance, facing it, with a wall behind). This should be where the head of the house usually sits. If the TV is there instead, it risks becoming the focus of attention.

If the room’s energy still seems too frantic, a gentle mobile, as well as cool colors (green, blue, or lavender), in the Family area may calm it. If it’s too calm, use a wind chime in the Family area, and perhaps some warmer colors (red, orange, or yellow), to liven things up.

To encourage communication, make sure the seating is comfortable and close to each other. Also, place warm objects nearby, such as candles, a bowl of polished river stones, or family photographs. The Fame area of the room (center of the rear wall) is a great place for images that reflect your future ambitions.

A room full of happy, friendly imagery will help nourish a happy, friendly family life. While elderly households may enjoy family mementos and older photographs, younger one should focus on more recent ones, displayed in the Family area.

Try not to display photos of people in bad times, even if those emotions aren’t revealed in the picture. These can still emit sha chi. If two family members aren’t getting along, check to see how their photos are displayed. If needed, moving their photos apart can help create space for them to cool down. Or if distance is the problem, moving them closer together can likewise have beneficial effects.