Archives for July 2014

4 Ways to Gain the Competitive Edge When Home Shopping By Joe Szabo, Scottsdale Real Estate Team

July 29, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team If you’ve been out there house hunting, you’re likely aware of the many challenges and obstacles that come with the territory. A major factor driving this fiercely competitive market is the lack of for-sale inventory, especially in the lower end. Want to have the upper hand? Here are some ways to gain that competitive advantage.

Find properties before everyone else does

Time is key in a competitive market with very little for-sale inventory. To expand your search and get the edge on the competition find properties before they hit the market. Try using Zillow’s new Coming Soon feature, which allows you to search for properties that will be listed for sale within 30 days but are not yet on the market. This is especially useful in competitive markets where inventory moves quickly and bidding wars are all too common.

Make an all-cash offer

While the cash-buyer trend is happening nationwide, it’s most predominant at the lower end of the market and specifically in markets such as Tampa, Detroit and Miami. In those metros, more than 80 percent of all sales in the lowest price bracket during the first quarter were cash deals, according to a recent analysis by Zillow. Have the money in hand? Not waiting for a loan approval or to collect that down payment from relatives? From the sellers’ perspective, an all-cash offer is going to be hassle-free, and at the end of the day, that’s what they want, regardless of whether they’re in a rush to close.

Be well-qualified

If you’re a serious buyer, you’ll only be taken seriously if you’re well-qualified one — i.e., you’re gainfully employed, able to make a substantial down payment (20 percent or more) and, of course, have good credit (think: mid-700s). This is really important in general, but particularly if you’re up against the aforementioned cash buyer. It’s your best defense.

Write a personal letter

Are you perhaps interested in buying the home you once grew up in? Does it evoke fond memories of happier times? Have you found your perfect abode? Why is it so perfect for you and your family? Let the seller know, particularly if there are multiple offers on the property. A personal, handwritten letter expressing your love for the home and the beautiful surroundings could be just the thing you need to tip the scale in your favor. 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, info@ScottsdaleRealEstateTeam.com 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.

How Much Further Does the Housing Recovery Have to Go? By Joe Szabo, Scottsdale Real Estate Team

July 25, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Roughly three years after the housing recovery began, how far do we still have to go until homes in the majority of local markets have regained all the value lost during the recession? In many areas, the answer is years and years, at least. The housing recovery is still very much in its middle stages. Nationally, home values remain 11.3 percent below their 2007 peak. Looking ahead, U.S. home values are expected to rise another 4.2 percent through the second quarter of 2015, according to the Zillow Home Value Forecast. It will take 2.7 years for national home values to re-achieve their pre-recession levels, assuming a steady rate of appreciation at the forecasted level.

In other words, national home values won’t get back to their prior peaks until at least the first quarter of 2017, almost a decade after the beginning of the housing recession. And full recovery could take even longer, as the pace of home value appreciation is expected to slow in coming months and years. Locally, in 50 of the nation’s 100 largest metro markets, it will take three years or more for home values to reach prior peaks. Notable large metros where full recovery in home values will take longer than a decade include Minneapolis (14.5 years), Kansas City (12.5 years) and Chicago (11.7 years). “In dozens of markets, homeowners who bought at the peak of the market in 2006 or 2007 will have to wait until 2017 or later to get back to the breakeven point on their homes, a lost decade in which they will have built up no home equity. This is reflected in stubbornly high negative equity and effective negative equity rates, with more than a third of Americans with a mortgage lacking enough equity to realistically list their home for sale and buy another,” said Zillow Chief Economist Dr. Stan Humphries. “But there is a silver lining as we navigate these tricky middle innings of the recovery. Because home values remain so far below their peak levels in so many areas, it is still possible for buyers to find bargains. This will be critical to maintaining home affordability over the coming years, especially as mortgage interest rates rise.” U.S. home values climbed 6.3 percent year-over-year in the second quarter to a Zillow Home Value Index of $174,200, the slowest annual pace of appreciation recorded so far this year and a sign that the market is returning to more normal levels. In a more normal market, home values appreciate at roughly 3 percent per year. Home values nationwide were up 1 percent compared with the first quarter and 0.5 percent from May. Nationally, rents rose 2.5 percent year-over-year in the second quarter, to a Zillow Rent Index of $1,310 but fell 0.3 percent compared with the first quarter. The quarterly decline was the largest recorded since Zillow first began publishing the Zillow Rent Index in late 2010. U.S. rents were flat month-over-month. For a deeper analysis and to see what home values and rents are doing in your area, visit Zillow Research. 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, info@ScottsdaleRealEstateTeam.com 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.

How to Determine What You Want in a Home By Joe Szabo, Scottsdale Real Estate Team

July 22, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team From the moment a first-time home buyer begins searching until the final closing papers are signed could be as short as three months or as long as three years.

Along the way, the journey is filled with twists, turns and probably some bumps in the road. So how do you navigate the journey? Once you get “in the game,” you should start setting the top criteria for your home early on. Establishing your most important factors upfront will help you stay on track as you move through the home buying process. It also will help you know when to compromise and when to stick to your original list. As the home buying process evolves, your criteria may change as well. Nobody ever gets everything on their list. In fact, many buyers, around the closing table, have a chuckle as they compare their original list of criteria to what they eventually got. Here are the three phases of the home buying journey where your criteria will be established.

1. Dreaming

Leveraging the Internet and online listings, buyers in this next generation of real estate have the opportunity to consider all options, get a feel for what they want, see what’s out there and start to understand their must-haves, nice-to-haves and the bonus stuff. As the journey evolves, you should begin to nail down requirements and prioritize your wants and needs. The search often changes, and part of the process is to learn what works and what doesn’t. But starting out with a fairly concrete, realistic “wish” list will inform your search.

2. Getting in the game

Any serious buyer working with a great local agent, and with a bank pre-approval in hand, will take the home search up a notch. At this point, it’s important to determine the two biggest pieces of the puzzle: price and location. Without these criteria, you’d simply be shooting from the hip. Price trumps all criteria. What you can afford generally dictates where you’ll live as well as the type of home you’ll purchase. Location is one of the three magic words in real estate, and it comes a close second in the home search. The thing about location is that it can’t ever be taken away from you. But a home can be altered to adapt to a location. Many buyers, keen on a certain neighborhood or school district, will consider buying a home that needs work or one that’s not ideal for their situation simply to be in the right location.

3. Compromising

After determining price and location, a buyer needs to consider things such as number of bedrooms, bathrooms and the size of the home. While there are times when you’ll choose size over location, generally the location informs the size. After that, considerations such as a finished basement, large lot, pool or open floor plan, while important, may get trumped because of location and price. The important thing is to prioritize what you really must have vs. what you want to have. Also, try to think ahead. Are today’s top priorities likely to remain your top priorities a few years from now? Or would it make more sense to get a 3-bedroom house, for instance, instead of a 2-bedroom home, as you may have children later or might need a home office down the road. It’s not easy to set your criteria for buying a home, given how important the purchase will be. But if you don’t, you’ll be all over the map in your home search, wasting valuable time and effort. And if you’re busy chasing properties that don’t really meet your needs, you may overlook something that does. 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, info@ScottsdaleRealEstateTeam.com 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.

June 2014 Paradise Valley Arizona real estate market update

July 15, 2014 Joe Szabo

Happy July all! Let’s take a glance at the Paradise Valley real estate market in June. New listings are down from May with a total of 54 new listings in June. This is a 28.9% drop! This statistic along with the median sold price on the rise (at $1,125,000) and a higher number of closed sales (43 total) makes for a good market to sell! It is important to note, however, that new contracts are down from May by 28.8%, which means fewer closed transactions in the coming months. During these up and down activity months it is more important than ever to consult a real estate professional that knows the Scottsdale market.

June 2014 Paradise Valley Arizona real estate market update

Considering a purchasing or selling a property in Paradise Valley? Call Joe and Linda Szabo – The Real Estate Experts! We hope that you enjoy reading and analyzing the Paradise Valley Luxury Home Report and should you have any questions or comments, please feel free to Contact Joe Szabo at 480.688.2020 or email him directly at Joe@ScottsdaleRealEstateTeam.com or Joe@AZLuxuryHomes.com. You can also visit https://www.AZLuxuryHomes.com or https://scottsdalerealestateteam.com to find out more about Paradise Valley Homes for Sale and Estates for Sale in Paradise Valley and to search the Paradise Valley MLS for Scottsdale Home Listings. Please note that this Paradise Valley Real Estate Blog is for informational purposes and not intended to take the place of a licensed Paradise Valley Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale and Paradise Valley 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 Paradise Valley, The Szabo group delivers experience, knowledge, dedication and proven results.

June 2014 Scottsdale Arizona real estate market update

July 14, 2014 Joe Szabo

Happy July all! Let’s take a glance at the Scottsdale real estate market in June. New listings are down from May with a total of 777 new listings in June. This is a 22.5% drop! This statistic along with the median sold price on the rise (at $399,500) and a higher number of closed sales (686 total) makes for a good market to sell! It is important to note, however, that new contracts are down from May by 12.4%, which means fewer closed transactions in the coming months. During these up and down activity months it is more important than ever to consult a real estate professional that knows the Scottsdale market.

June 2014 Scottsdale Arizona real estate market update

Considering a purchasing or selling a property in Scottsdale? Call Joe and Linda Szabo – The Scottsdale Real Estate Experts! We hope that you enjoy reading and analyzing the Scottsdale Luxury Home Report and should you have any questions or comments, please feel free to Contact Joe Szabo at 480.688.2020 or email him directly at Joe@ScottsdaleRealEstateTeam.com. You can also visit https://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. 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.

7 Tips to Get the Best Mortgage By Joe Szabo, Scottsdale Real Estate Team

July 10, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team As the real estate market begins to perk up, many people find themselves in a good position to start looking for a home. Even though interest rates continue to hover at the lower end of the spectrum, shopping for a mortgage is still a tricky process, especially if you’re doing it for the first time. But don’t fret. These seven steps will help you navigate the treacherous waters of mortgage shopping, and they’ll save you time and money in the process.

1. Have your credit report ready

Lenders use your credit score as one of the major factors in determining if you will get approved for a loan, as well as what kind of interest rates you qualify for. That is why it’s important to review your report at least once a year to make sure everything is in order. If there are any errors that affect your credit score, you could be missing out on a few points here and there that will make a huge difference when you walk into a loan office. Interest rates could skyrocket, or you could even be denied a loan if your score is lacking.

If you can, try to get a credit report at least six months prior to applying for a loan. You will have time to review it and get in touch with a credit agency if you find any errors. You also can use this time to start sprucing your score up a bit by avoiding big purchases that put your finances in jeopardy and not opening up any more lines of credit.

2. Work on improving your debt-to-income ratio

Your debt-to-income ratio is the amount of money you make versus how much you owe. Lenders also take this into consideration when you apply for a loan, so it might be a good idea to try to reduce your debt or increase your income. Make bigger payments on credit card debt to boost your ratio, or pay off any outstanding loans you may have. You will be a more desirable candidate, and you might save some money in the long run.

3. Plan for a big down payment

A big down payment saves you lot of money. Save up for the biggest down payment you can afford so you can take advantage of bigger loans, smaller interest rates, and more attractive closing fees. It also helps lenders determine your property’s loan-to-value ratio. Most loan programs usually require a down payment that falls somewhere between 5 percent to 20 percent. In some cases, if you can’t afford a 20 percent down payment, your lender might require you to pay for mortgage insurance because they’re increasing their loss risk by loaning you more money.

Click here to see the final tips to get the best mortgage

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, info@ScottsdaleRealEstateTeam.com 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.

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

July 7, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Mortgage rates for 30-year fixed mortgages dipped slightly this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 3.98 percent, down 5 basis points from this time last week. The 30-year fixed mortgage rate hovered around 4 percent for the majority of the week, before dropping slightly to the current rate on Tuesday morning. “Last week, rates hit 4-week lows after a weaker-than-expected gross domestic product report suggested some softness in the U.S. economy,” said Erin Lantz, vice president of mortgages at Zillow. “This week, we expect mortgage rates to remain fairly flat unless the jobs report, out Thursday rather than Friday this week, reveals an unexpectedly strong gain in the labor market.” Additionally, the 15-year fixed mortgage rate this morning was 2.98 percent, and for 5/1 ARMs, the rate was 2.77 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.

Are You Ready to Buy a Home? By Joe Szabo, Scottsdale Real Estate Team

July 3, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Your parents did it. Your friends are doing it. But how do you know if you’re ready to buy a home? The decision to become a homeowner is a personal one that must be based on your life situation and finances. Ask yourself these six questions to determine if you’re real estate-ready.

1. Can I afford it?

Homeownership brings with it many new expenses. Beyond your mortgage, you’ll be paying for insurance, utilities and taxes, not to mention maintenance costs and perhaps homeowner’s association fees. If you don’t already have a budget, start one. It will help you manage your money, your spending and help you understand how much you can afford for a home.

2. Do I have money for a down payment?

Most conventional lenders require a down payment of 5 percent to 20 percent of the home’s price. The U.S. Census Bureau reports the median price of new homes sold in March 2014 was $290,000; 20 percent of that amount is $58,000. Less than 20 percent down will require that you take out private mortgage insurance (PMI), which protects the lender against default. PMI rates vary, but monthly premiums can range from $30 to $70 for every $100,000 borrowed. VA loans, available to consumers who have served or are presently serving in the U.S. military, require no down payment. Additionally, low-income borrowers with credit scores of at least 580 may qualify for an FHA loan (insured by the Federal Housing Administration) with a down payment of 3.5 percent.

3. Do I have a reliable source of income?

If there are murmurs of layoffs at your company or you’re thinking you might want to quit your job, where will your mortgage payment come from? Make sure you have a steady source of income.

4. How’s my credit?

Everyone has a credit score, also known as a FICO score (Fair Isaac & Company), which can range from 300 to 850. If your credit score is below 620, you’ll likely have a tough time getting a loan. If you do obtain a loan, it will probably require a higher down payment and a higher interest rate. If your credit score isn’t great, you should take some time to repair your credit and raise your credit score.

5. Am I planning to stay put for the next three to five years?

Real estate transaction costs are high enough that, unless you’re in a thriving real estate market, you’ll likely lose money if you don’t stay in your home for at least three to five years. Research your breakeven point, which is the amount of time that buying makes more sense than renting.

6. Am I ready for some DIY projects?

Owning a home means maintenance, such as mowing the lawn or making minor repairs. Do you have the time, skills and interest to maintain the property? Or, can you afford to hire someone to handle these tasks?

Summary

Once you have examined your financial health and decided you are ready for homeownership, take the time to choose your advisers wisely and enjoy the hunt.