Archives for December 2013

Merry Christmas! from Joe Szabo and the Scottsdale Real Estate Team

December 23, 2013 Joe Szabo

Merry Christmas from all of us at Scottsdale Real Estate.

We hope your holidays are unforgettable!

How to Negotiate Repairs After a Home Inspection By Joe Szabo, Scottsdale Real Estate Team

December 19, 2013 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Most would-be buyers and sellers believe the real estate “deal” is negotiated at the signing of the contract. By that point, the counteroffers have been made and the back and forth has happened, so it’s easy to assume that the deal will go on auto-pilot until closing.

The reality, though, is that in many cases, the deal-making and negotiations only start at the contract signing. Even in more competitive real estate markets, negotiations still happen once in escrow.

For example, if you’re a buyer, the property inspection or sellers’ disclosures — maybe the HVAC system has some issues — may prompt you to seek a credit. But where do you go from there?

Here are three tips for negotiating repairs after a home inspection.

1. Ask for a credit for the work to be done

The sellers are on their way out. If the property is moving toward closing, they’re likely packing and dreaming of their new home. The last thing they want to do is repair work on their old home. As a result, they may not approach the work with the same conscientiousness that you, as the new owner, would. They may not even treat the work as a high priority. If you take a cash-back credit at close of escrow, you can use that money to complete the project yourself. Chances are you may do a better job than the seller, too. Finally, if you get the credit, there will be less back and forth to confirm the work has been done.

2. Think ‘big picture’

If you know you want to renovate a bathroom within a few years, then you likely won’t care that a little bit of its floor is damaged, that there’s a leaky faucet or that the caulking needs to be redone. These things will get fixed during your future renovation. However, the repairs are still up for negotiation. Asking the seller for a credit to fix these issues will help offset some of your closing costs.

3. Keep your cards close to your chest

A good listing agent will walk the property inspection with you, your agent and the inspector. Revealing your comfort level with the home or your intentions, in the presence of the listing agent, could come back to haunt you in further discussions or negotiations.

For example, if you mention you’re planning a gut renovation of the kitchen, the sellers will certainly hear about it. And they’re going to be less likely to offer you a credit back to repair some of the kitchen cabinets. Also, if the listing agent hears you tell the inspector that you love the home so much you don’t mind replacing the HVAC system, the agent will surely let the sellers know about that.

Eyes wide open

A word of caution: You should never complete the original contract assuming that you can negotiate more as a result of the property inspections. If it’s a competitive market and the property inspection comes back flawless, there’s nothing to negotiate. If you attempt to negotiate anyway — to recoup what you lost in the initial contract negotiations — you risk alienating the sellers and possibly giving them an incentive to move on to the next buyer.

You need to go into escrow with your eyes wide open. A real estate transaction is never a done deal until all the money has been wired in and the deed transferred. Prior to signing the real estate contract, your main concern is that you may be competing with other buyers. Once you’re in escrow and doing inspections, however, it’s just you and the sellers. Stay on your toes. Otherwise, you may risk losing out on further viable negotiation opportunities, which could lead to buyer’s remorse.

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 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 for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Phoenix area will be among the fastest growing metro regions next year By Joe Szabo, Scottsdale Real Estate Team

December 16, 2013 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

A new national report predicts the Phoenix area will be among the fastest-growing metro regions of the country next year, posting figures well ahead of the more-plodding gains forecast by Arizona’s economists.

The report, released Monday for the U.S. Conference of Mayors, suggests the housing industry will again lead the Phoenix area’s relatively rapid growth in 2014. It predicts 3.3 percent growth next year for the Phoenix area in terms of gross metropolitan product, a measure of all the goods and services produced in an area.

It also projects 2.8percent employment growth over the next year. By comparison, earlier this month, the Arizona Office of Employment and Population Statistics was calling for 2.6 percent employment growth in the Phoenix area.

Nationally, the report predicts 1.7 percent economic growth this year and 1.6 percent among metro areas. Next year, it predicts 2.5 percent for national and metro growth.

Mesa Mayor Scott Smith, who is the president of the Conference of Mayors, acknowledged the report “may be more bullish on metro areas.” But the Phoenix area “economy is more diverse than people give us credit for,” he said.

Jim Diffley, senior director of U.S. regional economics for IHS Global Insight, said the area’s new growth remains at levels well below those seen during the frenzy of the housing bubble.

“There’s a lot of pent-up demand out there,” Diffley said.

The Phoenix area’s gross metropolitan product this year is about $210 billion and should pass metro Detroit as the 14th largest in the country, according to Diffley’s analysis.

In an effort to underscore the value of metro areas, the report also compares the largest to states and nations.

The Phoenix area economy is larger than Oregon and 25 other states. It is also bigger than the nation of Peru, the report found.

The Tucson area ranks 69th in the nation.

The Phoenix metro area accounts for 76 percent of Arizona gross state product. Tucson represents 13 percent of the state’s economy.

The Phoenix economy compares to Boston and Chicago for relative value to their respective state economies.

Homes to Dream About in 2014 By Joe Szabo, Scottsdale Real Estate Team

December 12, 2013 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

You don’t have to be in the market for a new home to start compiling your ultimate real estate wish list. Perhaps you’re dreaming about a water slide or home theater. Or maybe an indoor basketball court is calling your name. For some dream house inspiration, here are a few standout properties on the market boasting ultra luxurious amenities.

Ninole, HI

32-1056 Old Mamalahoa Hwy, Ninole, HI
For sale: $26.5 million

If living on a tropical island wasn’t already enough, this Hawaii oasis comes with its own helicopter pad, a 52-inch tube elevator and several first-class athletic facilities: an Olympic-size swimming and diving pool, a private golf course and a tennis/basketball court.

See more here

30-Year Fixed Mortgage Rates Rise Slightly By Joe Szabo, Scottsdale Real Estate Team

December 9, 2013 Joe Szabo

Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.14 percent, up from 4.06 percent at this same time last week.

The 30-year fixed mortgage rate spiked to 4.17 percent on Wednesday and hovered between 4.16 and 4.18 percent for the majority of the week before dropping to the current rate this morning.

“Mortgage rates jumped on Wednesday as lenders reacted to the Federal Open Market Committee’s minutes reminding lenders that the Federal Reserve has delayed, not canceled, its plans to taper the economic stimulus,” said Dr. Svenja Gudell, director of economic research at Zillow. “Looking ahead, mortgage rates should remain fairly steady during the slow holiday week. The following week should be watched closely, as several potentially market-moving economic data releases, including the jobs report, come out.”

Additionally, the 15-year fixed mortgage rate this morning was 3.13 percent, and for 5/1 ARMs, the rate was 2.72 percent.

What are the interest rates right now? Check Zillow Mortgage Marketplace for mortgage rate trends and up-to-the-minute mortgage rates for your state.

*The weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.

Home Values Remain Strong in November, Expected to Slow During 2014 By Joe Szabo, Scottsdale Real Estate Team

December 5, 2013 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Home values rose in November, up 0.6 percent from October, according to the latest Zillow Real Estate Market Reports. Home values were also up annually, increasing 7.1 percent from November 2012, reflecting a continued slowdown from the summer selling season, when annual home value appreciation peaked at 7.3 percent.

A majority (77.1 percent) of the metros covered in the reports experienced home value appreciation between October and November, with only 95 of the 485 metro areas, or 19.6 percent, experiencing declines. On an annual basis, 88 percent of metros experienced home value appreciation.

Major markets that saw home values edge upward from October to November include the Atlanta, Riverside, Miami and Detroit metros with 1.7 percent appreciation, as well as Tampa and Las Vegas with 1.6 percent appreciation rates.

“The pace of home value appreciation has leveled off and is beginning to slow down after peaking this summer. Much of this year’s rapid growth in home values can be attributed to very strong demand, as low mortgage interest rates, relatively low home prices and a slowly improving economy helped draw buyers into the market,” said Zillow Chief Economist Dr. Stan Humphries. “Those dynamics are now giving way to more moderating influences, including rising mortgage interest rates, flagging investor demand and slowly increasing for-sale inventory. This slowdown in home value appreciation will contribute to a more balanced market and will help to ease some emerging affordability problems in a handful of very hot markets, particularly in California.”

On the rental side, U.S. rents continue to rise, climbing 0.3 percent month-over-month and 2 percent annually. For more information on November’s report, head to the Zillow Research page.

What are home values and rents doing where you live? Dive into Zillow’s data, available all the way down to ZIP code and neighborhood levels, here.

Phoenix area luxury home listings rise as sales fall… By Joe Szabo, Scottsdale Real Estate Team

December 2, 2013 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

The number of high-end homes on the metro Phoenix market grew last month for the first time since April while sales took a slight dip, according to a new report released this week by Michael Orr.

There were 1,935 luxury homes for sale in the Valley on Oct. 1 on the Arizona Regional Multiple Listing Service, up 9 percent from Sept. 1 and 15 percent year-over-year. It was still down, however, by about 14.6 percent from April 1, when there were 2,267 active luxury listings.

Even despite the decline in luxury listings over the past several months, the luxury market has maintained a relative balance of buyers and sellers. This is in stark contrast to the lower-end price ranges, which have been grappling with a chronic supply shortage for more than a year.

Orr is a real estate expert at Arizona State University’s W.P. Carey School of Business and author of the Cromford Report in Phoenix. The report looks at homes priced above $500,000 and located in the Northeast Valley, including Carefree, Cave Creek, Fountain Hills, Paradise Valley, Rio Verde, Scottsdale and the Arcadia and Biltmore areas in Phoenix.

Distressed properties are also whithering away in this high-end sector.

The number of bank-owned properties listed for sale on Oct. 1 — 13 — was down 55 percent year-over-year, while the number of short sales — 52 — was down 63 percent during the same period, the report said.

Luxury sales, however, took a 9 percent month-over-month dip in September to 233.

That was still 32 percent higher than a year ago and the strongest September sales figure since 2006, the report said.

The average price per square foot — $243 — has remained stagnant over the past six months but is still up 8 percent year-over-year, the report said.