Archives for October 2014

Halloween cocktails at metro Phoenix restaurants By Joe Szabo, Scottsdale Real Estate Team

October 30, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team It’s fun to get in the mood for Halloween with decorations, costume shopping, and, for adults, themed cocktails. Some of these are classic drinks with scary-sounding names. Others are creative libations dreamed up by Valley bartenders. Whatever the case, get in the spirit and enjoy one of these creepy cocktails: Zombie This tropical cocktail was named for the way it’s said to make the imbiber feel. Invented in the 1930s by Donn Beach of the Don the Beachcomber restaurant in Hollywood, the drink features rums, liqueurs and fruit juices. At Crudo, Micah Olson created his version ($10) with four kinds of rum, absinthe, sweet falernum syrup, Don’s Mix (a grapefruit and cinnamon syrup made for tiki drinks), Angostura bitters, grenadine and lime. Details: Crudo, 3603 E. Indian School Road, Phoenix. 602-358-8666, crudoaz.com. Vampiro This New Age cocktail is similar to a Bloody Mary, but with a twist. The bartenders at Clever Koi made their version ($10) from tomato, orange and lime juices; tequila; hibiscus and ginger syrup; and Bittermens Hellfire bitters. The drink is $10. Details: Clever Koi, 4236 N. Central Ave., Phoenix. 602-222-3474, thecleverkoi.com. Bacon Bloody Mary There are many theories for how this popular drink got its name. The most well-known is that it was named after Queen Mary I of England. The icy queen was nicknamed “Bloody Mary” because of her order to execute Protestants. No matter the name, the drink is delicious with brunch. Fox Restaurant Concepts’ Bacon Blood Mary cocktail is made with spiced tomato mix, bacon vodka, cracked pepper and Worcestershire sauce. The cocktail is $9 at Culinary Dropout and $7 at Zinburger. Details: Locations Valley-wide. foxrc.com. Corpse Reviver No. Blue Although it sounds like it’s named for a zombie apocalypse, the Corpse Reviver family of cocktails is actually intended as “hair of the dog” hangover cures. Each version has different ingredients. The most popular is the No. 2, made with gin, lemon juice, triple sec, lillet and a dash of absinthe. Ross Simon of Bitter & Twisted created this No. Blue version ($10), a mix of gin, blue curacao, lillet blanc, lemon juice and a touch of absinthe. Details: Bitter & Twisted Cocktail Parlour, 1 W. Jefferson St., Phoenix. 602-340-1924, bitterandtwistedaz.com. El Diablo The bartending staff at Blue Hound created several Halloween cocktails, including El Diablo. The drink ($10) features hibiscus-infused tequila, creme de cassis and lime juice, shaken over ice, then topped with ginger beer and garnished with a lime wheel. Details: Blue Hound Kitchen & Cocktails, 2 E. Jefferson St., Phoenix. 602-258-1231, bluehoundkitchen.com. Vampire Bite and Vesper the Mansion Ghost Mixologist Charlie Zeiler is scaring up guests with his spooky concoctions. The Vampire Bite features Old Tom Gin, Campari, lemon juice, raspberry syrup, an egg white and Peychaud’s bitters, shaken over ice and strained into a coupe glass. Vesper the Mansion Ghost is a mix of gin, vodka and lillet blanc, mixed with ice and strained into a coupe. Details: Mix It Up Bar and T. Cook’s, Royal Palms Resort and Spa, 5200 E. Camelback Road, Phoenix. 602-840-3610, royalpalmshotel.com. See more here 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.

Tips for Baby Boomers Entering the Real Estate Market By Joe Szabo, Scottsdale Real Estate Team

October 27, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Many soon-to-be retirees own a home, have paid off their mortgage and haven’t been in the real estate market for 25 years or more. A lot has changed, however, and the tips and tricks of the trade that worked in the ’80s could backfire if applied today. Though technology and the flow of information have dramatically altered the process of buying and selling homes, at the heart it’s still an enormous undertaking, no matter your age or generation. Here are some tips for baby boomers and others who find themselves entering the real estate market for the first time in a while.

You can and should begin the process independently

A fact is a fact. Buyers and sellers can start the education process on their own today, in the comfort of their living room recliner. Many of today’s buyers and sellers leverage the Internet and mobile apps to begin the research phase. While you may still prefer a good old fashioned live person, it’s helpful to understand that it’s common for initial search and discovery to begin independently. Aside from listings and photos of nearby homes for sale, you can uncover real estate advice, statistics and forecasts that will help inform your home search or sale. Finding an agent can also happen using the Internet today.

A good local real estate agent still adds a lot of value

It’s easy to think that spending a few hours poring through data is all that’s needed to get in the game today, but a good local agent can still make a huge difference on a real estate purchase or sale. The data and information found online is meaningless without some context behind it. For example, you may see a home that recently sold for a lot less than one you are interested in making an offer on. A strong local agent would know that there was an issue with open permits or violations, that it wasn’t a true arm’s length transaction or some other factor that made it less valuable and, in fact, not a comparable sale. A good agent will have the inside track on off-market listings or knowledge about the final sale price of a home that is pending. Good agents earn their keep not by having access to the listings, but by having years of experience and local market knowledge under their belt.

The actual transaction and paperwork can happen without meeting in-person

When it comes time to make offers and negotiate a contract, buyers today can do so without ever having to meet with their agent in person. No more standing over the hood of a real estate agent’s car signing an offer to purchase and then having to meet up later that night to sign a counteroffer or wait for a fax the next day. Today mobile applications and technology allow buyers, sellers and agents to collaborate, review documents, sign contracts and complete the paperwork portion of the transaction without ever having to meet in person. Few people pay any attention to real estate processes and technology outside a personal transaction. Knowing what to expect before you get started can help make re-entering the market a lot easier. Even though a lot has changed, some of the basic reasons for buying and selling have not. Real estate will always be a highly personal and emotional, not to mention financial. 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 By Joe Szabo, Scottsdale Real Estate Team

October 24, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Mortgage rates for 30-year fixed mortgages were unchanged this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.81 percent, identical to this same time last week. The 30-year fixed mortgage rate hovered around 3.85 percent for most of the week, dropping to 3.70 percent Wednesday before rising to the current rate. “Last week mortgage rates experienced dramatic inter-day volatility, falling Wednesday to their lowest level since May 2013 fueled by global economic concerns and the potential threat of an Ebola epidemic,” said Erin Lantz, vice president of mortgages at Zillow. “With little mortgage market-moving data scheduled to be released next week, we expect rates to remain stable.” Additionally, the 15-year fixed mortgage rate this morning was 2.97 percent, and for 5/1 ARMs, the rate was 2.80 percent.

Purchase Mortgage Application Activity Zillow predicts tomorrow’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity increased by 5 percent from the week prior. To learn more about this Zillow analysis, click here. What are the interest rates right now? Check Zillow Mortgages for mortgage rate trends and up-to-the-minute mortgage rates for your state. 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.

Quick Tips for Staging Your Home to Sell By Joe Szabo, Scottsdale Real Estate Team

October 20, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team There are a number of tactics you can employ in an effort to sell your home quicker, but one of the top tricks is to stage the house. “When a seller decides to put their house on the market, they need to recognize that they are now selling a product and that product should be marketed as best as possible,” explained Nicole Rorem of Su Casa Staging. “This is where staging comes in.” Not only that, says Lori Livers of Interiors by Lori, home buying can be emotional and staging a home can help the buyer feel that connection. “Buyers purchase the house they are most drawn to — the house they want to make their home,” she said. Here are five quick tips for staging a home to sell.

Forget about empty

An empty house makes it hard for the new buyer to visualize themselves living there. Empty rooms can also appear smaller than they are, without furniture to provide context to the space. “We think about placing furniture to make the space feel large, open, functional, warm and inviting,” said Rorem.

Lead the eye

When arranging furniture, make sure it enhances the room’s best features. Don’t block huge windows, or crowd furniture next to a statement fireplace. Often, less furniture is more. You can even arrange the furniture so it “downplays the negative characteristics, by leading the eye of potential buyers,” says Livers.

Remove personal items and clutter

The easiest thing to do to prep a home for staging is to hide personal decor and accessories. “Put away all extraneous items like papers, personal bathroom items, pill bottles and personal collections,” said Rorem. “You want buyers to see all the features of the home and fall in love with the space as soon as they walk in. If the house is full of personal items and collections, the buyer may get distracted.” If you are still living in the home and want to display personal items, store them in a decorative basket during showings.

Create a sense of comfort

Fluffy, luxurious towels in the bathroom and pillows arranged on the couch or bed will give your home a more luxe look and are easy additions to a space. Decorative candles, even when unlit, are a great styling tool and provide a light scent in the room.

Clean

No one wants to tour a dirty house. Cluttered, dusty rooms will be the first thing the buyer notices, rather than the great view your home has, or the convenient open kitchen. Cleanliness matters when selling. And, if all else fails, call in a professional. Many real estate agents offer staging services, or can connect you to a staging professional that can help you see your home objectively and make changes that a potential buyer will enjoy. 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 Plunge to Lowest Rate in 16 Months By Joe Szabo, Scottsdale Real Estate Team

October 16, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.81 percent, down from 3.96 percent at this same time last week. The 30-year fixed mortgage rate dropped Wednesday, then hovered around 3.88 percent for most of the week before falling to the current rate. “Rates dropped to the lowest level since June 2013 on news that the Federal Reserve has more reservations about the health of the U.S. and global economy than expected, which in turn, may delay rate hikes,” said Erin Lantz, vice president of mortgages at Zillow. “With little economic news planned to overshadow the Fed’s latest comments, this week we expect rates to fairly remain stable, hovering just shy of 4 percent.” Additionally, the 15-year fixed mortgage rate this morning was 2.96 percent, and for 5/1 ARMs, the rate was 2.70 percent.

Purchase Mortgage Application Activity Zillow predicts tomorrow’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity was unchanged from the week prior. To learn more about this Zillow analysis, click here. What are the interest rates right now? Check Zillow Mortgages for mortgage rate trends and up-to-the-minute mortgage rates for your state. 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 Buy a Home in One Market While Selling in Another By Joe Szabo, Scottsdale Real Estate Team

October 13, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Someone being transferred for work or making a major move for personal reasons may end up selling in one market and buying in another. The ideal scenario would be to sell in a sellers’ market, like the San Francisco Bay area or Seattle, and buy in a buyers’ market, such as Providence, RI. The worst-case scenario is to do the opposite. Here are some tips for buyers and sellers in any market.

Know before you go

The days of a national estate market are gone. Today, markets vary by state, town, city and even block by block. But most people don’t realize this. So it’s important to start by researching the hyper-local market of the town or neighborhood that interests you. Read local blogs. Watch the number of days a home is on the market. Understand the sale price to list price ratio in the town where you’re buying. Upfront research can save you a lot of time and headaches. Plus, you don’t want to rely entirely on your real estate agent to tell you about that market. Get informed on your own.

How to sell in a buyers’ market

Selling your home in a buyers’ market can subject you to a harsh reality. Your market could be slow due to a high level of inventory, low demand from buyers or simply slow economic times. If you need to sell in a buyers’ market, put your best foot forward from the start. Make sure your home is priced to sell. You may not have the luxury of waiting for six months to test the market. Homes will sell, no matter the market, when priced right. Spend days or weeks removing junk and prepping your home for the market. You’ll have to pack up when you move anyhow, so it makes sense to start packing before you even list your home. Not only will it save time later, but it will help thin out the house, make more space available and help the home show better during open houses. Strongly consider any suggestions your agent makes for slight cosmetic fixes or staging.

How to buy in a buyers’ market

Who doesn’t love being a buyer in a buyers’ market? You have lots to choose from and the full attention of sellers. Take your time to see as many homes as possible to get the lay of the land. Focus on the most motivated sellers, as this is where you may uncover the best values. If a handful of homes meet your needs, ask questions such as: Why is the seller selling? What is the seller’s time frame for moving? How long has the seller lived in the home? You can ask these questions through your agent or by asking the seller’s agent directly. The more you ask, the more you may uncover just who is the most motivated seller. Be open to taking on some renovation work, because that can add value to the property. The market will eventually turn, and there’s no better feeling than knowing that you bought low, with some bonus equity.

How to sell in a sellers’ market

Along the West Coast, sellers are being overwhelmed with buyers at open houses and private showings. Demand is high, and things are moving quickly. But you still have to work at selling. If you don’t clean the home or present it to the market in its best possible light, you may leave money on the table for the buyer who is desperate for a “deal.” If you have the luxury of receiving multiple offers, focus on the best buyer and the best terms and not so much on the bottom line. You want the buyer who is going to close. The last thing you want is to have to go back on the market. When this happens, everyone will wonder what’s wrong with your home. It could be that the buyer got cold feet or remorse. If you aren’t sure who is the best buyer, ask your agent. The best buyer is the one who has seen the home multiple times, is pre-approved for a loan, has been in the market and has even lost out on recent home sales. This buyer is working with a local agent and committed to buying. Your agent will know who they are.

How to buy in a sellers’ market

Buyers in a sellers’ market find themselves frustrated over a lack of inventory and homes that sell quickly. The competition is fierce, and they need to invest a good part of their time on buying a home. For a serious buyer, then, finding a home becomes a part-time job. Have your ducks in a row and your team in place. Work closely with a good local agent and a local mortgage pro. When a home hits the market, get in ASAP. Don’t wait for the open house, because a more aggressive buyer might get in and take it away before you do. When competing with other buyers, have your inspections and do as much due diligence as you can before making an offer. An offer with swift, few or no contingencies is music to the sellers’ ear. They want to be sure the deal will close for the most money as quickly as possible. Find out what the sellers want and give it to them.

Reducing the stress of buying and selling

Today’s younger buyers and sellers, enabled by the global economy and the Internet, can live anywhere and move around multiple times in a short period of time. For them, as well as everyone else, understanding that all real estate markets are different, requiring different approaches, is always the first step toward success. After that, it’s important to plan well in advance. Buying and selling real estate can be extremely stressful. Approaching each transaction methodically, and with as much advance planning as possible, can help relieve some of that stress. 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

Getting Your Home Ready for Trick-or-Treaters By Joe Szabo, Scottsdale Real Estate Team

October 9, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team At summer’s end, once school is back in session, many of us start looking forward to Halloween. It’s a holiday adults can enjoy as much as kids. But, homeowners do have one serious obligation on this fun night: If you expect trick-or-treaters, you must make sure the path to your door is a safe one.

Take no trips

Inevitably, some giddy ghosts and ghouls will race excitedly to your door. Be prepared. In the full light of day, inspect your lawn, driveway and front path for trip hazards like exposed tree roots, cracks in concrete or missing pavers. Make repairs where possible or, at the very least, cut off access to unsafe areas. Meanwhile, if you’ve decorated the front yard with decorations like light-up pumpkins and animated figures, relocate the electrical cords so they’re not in anyone’s way.

Light the way

Make sure the path to your house is bright enough for trick-or-treaters to approach safely. You don’t need to install a full suite of year-round landscape lighting simply to accommodate visitors on Halloween night. There are plenty of temporary and affordable options for illumination, from glow sticks to tea lights. And though it may seem more in keeping with the mood of this spooky night to switch off your porch light, it’s much safer — not to mention more inviting — to keep it on.

Resist flammable decor

Whether vandals or accidents are to blame, there are many more fires on Halloween than a typical October night, according to Federal Emergency Management Agency (FEMA). Holiday decorations are often quite flammable, involving materials such as paper, hay and dried cornstalks. If you can’t resist adorning your home and yard with such potentially dangerous items, then be sure to keep them away from candles and other heat sources. If jack-o’-lanterns or luminaries figure into your celebrations, illuminate them using LED tea lights, not open flames.

Curb your dog

Chances are yours is a friendly dog. But if some Halloween costumes are so convincing as to be frightening to small children, those same getups could be equally disturbing to your pooch — particularly on such a high-energy night. It’s good sense to contain your dog in an indoor space that’s both comfortable and secure. A festive parade of goblins and ghouls, princesses and superheroes will soon be marching to your house. Do your part by clearing the path and lighting the way. Be safe out there, and have a Happy Halloween! 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.

September 2014 Paradise Valley Arizona real estate market update

October 9, 2014 Joe Szabo

Fall in the Phoenix Metro area has finally arrived! The temperatures are cooling off but the Paradise Valley real estate market is heating up! Let’s take a look at how the Paradise Valley real estate market faired in September. New listings are up from August with a total of 70 new listings vs. 43 in August. New contracts and closed sales are up by 33.3% and 28%, respectively. This is great news because a higher number of closed sales mean a higher number of closed sales in the coming months. The median sale price has really jumped, from $875,000 to $1,035,000. All in all, the Paradise Valley market is soaring! Buyers will have a nice amount of inventory to choose from, and sellers are seeing a lot of activity and higher sale prices! During these up and down activity months it is more important than ever to consult a real estate professional that knows the Paradise Valley real estate market.

Sept 2014 Paradise Valley detailed 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.

September 2014 Scottsdale Arizona real estate market update

October 8, 2014 Joe Szabo

Fall in the Phoenix Metro area has finally arrived! Let’s take a look at how the Scottsdale real estate market faired in September. New listings are up from August with a total of 867 new listings vs. 705 in August. New contracts and closed sales are down slightly by 10.7% and 4.8%, respectively. Current closed sales are also down this month, as expected, based on the previous month’s activity. The median sale price has dropped from $359,900 to $347,500. For buyers on the fence now is a great time to invest in real estate! Inventory is high and prices are dropping. During these up and down activity months it is more important than ever to consult a real estate professional that knows the Scottsdale market.

Sept 2014 Scottsdale detailed 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.

Retirement Investments & Condo Insurance By Joe Szabo, Scottsdale Real Estate Team

October 6, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Real estate investor and Zillow Blog contributor Leonard Baron answers questions from readers regarding buying, selling and investing. Have a question? Send it to Leonard@ProfessorBaron.com

Rental properties vs. stock market

Hi Leonard — I will retire in the next few years with a little over $1 million. I fear the stock market at this time. Will property rentals be a good way for income in my retired years? If yes, is it better to buy the property with cash and have no debt and have rental income? Robert W., Buffalo, NY Hi Robert — You’ve got some good questions and significant decisions herein, and you need some expert guidance. A good fee-only certified financial analyst (CFA) or certified financial planner (CFP) should be able to walk you through options on what you can do with that million, and what income you can expect based on the risk you are willing to take with your portfolio. This will help you determine whether rental real estate, which generally has much higher risk than a well-diversified portfolio of stocks, should be part of your portfolio. After an education from a financial adviser, if real estate is part of the plan, that’s where my guidance could help. So to your questions:

Will property rentals provide good retirement income? The answer is probably not. Most real estate investors who have cash flow properties bought them decades ago, and now they are starting to pay off. But in general, don’t expect cash flow for a long time.
Should I buy with cash instead of debt? Having a significant amount of money tied up in property during retirement is probably not a good idea. What if you need the money, your tenants stop paying rent, the property is destroyed or you need long-term care? Owning dirt won’t pay the bills! It’s much easier to obtain cash from liquid assets when in need.

By the way, congratulations on having over $1 million saved!

Condo insurance

Hi Professor — I bought a condo – with all cash – where the HOA insurance covers the structure and common areas. My insurance agent says I should get a policy for the interior of the unit. They’re not very expensive, so I’m going to do it. However, it’s going to be a rental property so I don’t own anything inside, so I don’t really see a need for it! Is this just another revenue generator for insurance companies with a product that isn’t really needed? Mike H., Portland, WA Hi Mike — NO, NO and NO! Get a new insurance agent if yours can’t explain why you need an interior policy. I agree with you: Who cares about the interior property? The issue with condos, whether a personal residence or investment property, is liability. Wait until you or your tenant causes a fire, smoke damage or a flood that damages nine of your neighbors’ units. The HOA is going to say it’s your problem, which it might very well be. Then your neighbors are all going to be coming after you for reimbursement for their losses. Without an interior HO-6 condo policy with adequate liability insurance, it’s not going to be a pleasant experience. Get that policy in place today. 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.