Archives for June 2015

Get the Vintage Americana Look for 4th of July and Beyond By Joe Szabo, Scottsdale Real Estate Team

June 30, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Few things say classic summer like American-inspired decor. From Memorial Day to Labor Day, a little red, white and blue really brings in the spirit of the season. Instead of just hanging up a flag or two, go full-on Americana for a fresh take on patriotic.

This unique mix of finds gives a new spin to traditional Americana decor.

An obviously American-inspired item or two creates a great base, like the United States art and the flag pouf. Beyond that, layer on items that hint at Americana style without being over the top.

For example, a mix of pillows in red, white and blue prints that aren’t necessarily patriotic is a great way to add some subtle Americana touches. Items that hint at American history like the barn light and steer print are also great unexpected additions.

Embrace the “Land of the Free” this summer and mix up your decor with a bit of classic Americana style.

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.

Take Steps Toward Financial Independence This 4th of July By Joe Szabo, Scottsdale Real Estate Team

June 25, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

As you celebrate freedom this 4th of July, why not spend some time thinking about one day becoming more financially free?

Here are a few things you should consider doing now.

Save money automatically

Research shows that the less effort it takes to save, the more likely you are to contribute to savings. Make it easy on yourself and automate your finances.

Having money taken straight from your paycheck and deposited directly into your savings or retirement account is a critical — yet easy — money habit that boosts wealth. Plus, when you pay yourself first, you don’t see the money, so you’re not going miss it. You’ll avoid the mistake so many of us make when we pay ourselves last (after we’ve paid for everything from housing to utilities to groceries): there’s often nothing left over.

Round up your mortgage payments

If you’ve already refinanced or don’t qualify for a refinance, you may be wondering what else you can do to save on your mortgage payment, which is likely your biggest household expense. Have you considered rounding up your payments? Every little bit helps.

For example, say you have a monthly mortgage payment of $954.83. If you round up your payments to $1,000 by putting in an extra $45.17, you’ll pay off your debt two years and five months early. For further inspiration, run your own numbers using a mortgage calculator.

Budget, budget, budget

If you consistently spend more than you earn, the reality is that you’re going to accumulate more and more debt. Don’t live on the edge like this. You’ll be in deep — in no time.

Establish a budgeting system that works for you, whether that’s pen and paper, a computer program, a website, or an app like Mint.

Personalize your accounts

Some banks let you set up sub-accounts and designate them by name, such as “new laptop,” “wedding dress,” or “summer home.”

Consider doing this. Research shows that those who label their savings accounts put away 31 percent more money than those who don’t, in part because the name reminds you what you’re saving for. It makes it real.

Focus on the future

Many Americans think only about the here and now. For example, if they’re paying their bills and there’s food on the table and gas in the car, they feel they’re doing okay.

But you’ve got to think ahead, and connect your future aspirations with your present self. Why? Because research shows that when you do this, you’re more inclined to save money. Seeing an image of yourself in old age can make you better at saving (try an app like AgingBooth). So can leaving out photos of your goal – whether it’s a picture of your dream home or a hammock on the beach for your ultimate retirement spot. Visuals serve as reminders that the future is coming, and you’d better start planning for it — now.

Pick Your Favorite Party-Ready Pool By Joe Szabo, Scottsdale Real Estate Team

June 22, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

With temperatures rising as summer begins, a refreshing dip in a cool pool is at the top of most folks’ lists. Do you daydream about your ideal backyard oasis with a crystal blue pool and stylish lounge chairs? Zillow compared six gorgeous outdoor pools from professionals on Zillow Digs™ to find the leading pool design for the season.

Which pool is best primed for a party? The hard part is choosing just one. Get your vote in now and check back to see the winner on July 1, 2015.

Modern or Mediterranean luxury

If luxury designs with maximum privacy and all the high-end additions are right up your alley, check out these pools. The modern pool designs include geometric-shaped patios, fountains, outdoor kitchens and hot tubs. For something warmer, Mediterranean swimming pools offer elegant designs using a mix of earth-toned stone structures and extravagant features like fireplaces and built-in fire pits.

Traditional garden grandeur

Not into that celebrity look? Select a favorite from these peaceful, garden-forward designs. The lush green plantings accent the crisp blue water perfectly. Each includes a water feature and poolside patio with lounge chairs. Surrounding most traditional pool designs you’ll find pergola or trellis structures to support climbing vines with colorful blooms.

Tropical pool paradise

Alternatively, feel right at home in the summer heat alongside one of these tropical pools. Both boast palm trees and other tropical vegetation. Notice the curved pools common with this design. Enjoy tropical layouts on warm summer evenings with lighting features such as tiki torches, pathway lamps and built-in fixtures. Is one of these your dream pool?

Contingencies: A Home Buyer’s BFF By Joe Szabo, Scottsdale Real Estate Team

June 19, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Most home buyers organically begin and are comfortable with the real estate search process, but don’t know how to move forward once they’ve found a home they love. In order to put the search and discovery process into context, I sit down with every first-time buyer before we start searching together to go over the process, contract to close. If your agent hasn’t done this, ask them to.

One important aspect of a real estate contract is contingencies. These provisions for an unforeseen event or circumstance are important in case something goes south. At contract signing, buyers will put money in escrow — as little as $1,000 or up to 10 percent of the purchase price. That’s a lot of money to hand over to the seller before arranging financing and doing more due diligence than opening closet doors at the open house. Contingencies can help protect buyers if a problem arises.

Contingencies are always tied to a timeframe. If it’s a hard contingency, the buyer must sign off physically in writing. If it’s a soft contingency, it simply passes with time. Know the difference between the two, and mark your timeframes early.

Here are the three big contingencies to know.

Inspections

The biggest and best of the contingencies, the inspection is the “get out of jail free card” for buyers. It allows you to walk away once you’ve had an inspection if you discover issues with the home. For example, it is common for buyers to uncover broken or defective items, older systems or health and safety issues.

Some argue that it would be difficult to exit a contract from a brand new and flawless home, but the inspection contingency language in most contracts provides for an easy out.

If you do find something unexpected, you don’t necessarily have to abandon the contract. Go back to the seller and see what they will fix.

Unexpected inspection issues often result in a second round of negotiations. If the items are big enough to kill the deal, the seller may agree to fix them or issue a credit at closing. In competitive markets, the seller may leave the defects for you to deal with as the new owner.

Loan approval and home appraisal

Getting pre-approved prior to making an offer is only part of the lending process. Before it wires the funds for your mortgage, the bank wants to be sure that the property is worth what you offered the seller, by way of an appraisal (sometimes a standalone contingency).

The appraiser is an independent third party who will walk through the home, take pictures and measurements, and comment on its condition, then follow up with a written report.

Second, a title report will be issued so the lender can see if there are outstanding liens or clouds on title. For condominiums or planned unit developments, the bank wants to review the governing documents and financials to make sure all is in order.

The loan approval, which can take up to 60 days, is the longest contingency. In competitive markets, it can be done in less than two weeks. Be in touch with your lender before you make an offer, and strategize on timeframes.

Disclosures

Disclosures are meant to provide the buyer with as much information as possible to make an informed decision, as well protect their soon-to-be interest.

Sellers in most markets must disclose, via boilerplate local or state forms, their knowledge about the property and their experience living there. For example, if there was a leaky roof or if they know about a neighboring development that could affect the home’s value, they must disclose it.

Typically, sellers deliver the disclosures to buyers after their offer is accepted. Additionally, buyers will review local building department documents alongside local, state or federal disclosures about anything from earthquake hazard zones to flood zones to disclosures about proximity to airports.

Don’t sign a contract without reviewing your contingency options with your agent. Understand that contingencies are terms, and can sometimes be used for negotiation. If you can’t offer the highest price, the seller may appreciate moving fast once you sign a contract.

Flower Gardening for Beginners By Joe Szabo, Scottsdale Real Estate Team

June 16, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

There’s more to planting a flower garden than digging a hole and adding plants, but it’s still easy enough that anyone can have their own bountiful bed of blooms to adorn their home. Here’s what you need to know.

Placement

Unless you’re planting enough flowers to fill a large space, try to keep your flowerbed where it can be appreciated up close by yourself and passersby, such as along your front walk or around the mailbox.

Another reason to plant in an accessible area is so that you can easily water during dry weeks or cover during frosts. You can also expand existing borders, such as against hedges or around small trees, adding interest to areas that would otherwise go overlooked.

The most important consideration is that the flowers can thrive where they’re planted. Most plants need good drainage, meaning a spot where water will not collect, since soggy soil may rot the plants. Six or more hours of direct sunlight is also a must for most annual bedding plants.

Choosing plants

However, if you choose the right plants, there are always exceptions. If you don’t have a well-draining place to plant, select coleus, impatiens or pansies, which can tolerate wet feet for short periods.

While most flowers require lots of sun, begonias, impatiens, coleus and salvia can handle shade. Violas, petunias, pansies and alyssum can even handle light frosts!

You may choose to grow perennials in addition to the usual annual bedding plants, since they’ll likely return and get bigger in the following years.

It’s cheaper to start plants from seed if possible, but the downside is that it takes more time. And some plants, like sunflowers and morning glories, don’t handle transplanting from pots well. Before you check out at the garden center, slide the plants and their root masses out of their pots and ensure that the roots are white — and not so firmly packed that they won’t budge. Do not buy plants with obvious pests or signs of disease, as they may spread to your garden.

Preparing the bed

A well-prepared bed is the key to a successful flower garden, so don’t rush this step. There are two ways to prepare a bed.

One is to remove the grass and cover your future garden bed with compost. Then dig a trench along the edge of the bed, place the dug-up soil inside the bed and work your way inward until you’ve reached the middle. This way there will be plenty of room for roots to establish.

The other way to plant a bed is to smother the grass with layers of newspaper, then a few inches of compost, and wait a few seasons for the existing grass to die. This is more time consuming, but is the best option if you have a tough turfgrass (like St. Augustine grass) or persistent weeds, and it also preserves the soil structure and beneficial organisms like earthworms.

Planting

Before planting, thoroughly water the plants you bought from the nursery so that they won’t suffer transplant shock. Arrange the plants, still in their pots, where you’d like to plant them in the garden. Play around with different designs and see which one you like best.

Dig a hole for each plant that is as deep as the plant’s root ball and twice as wide, fluffing up the soil at the bottom of the hole with your trowel. This will help the plant put out long, strong roots. Place the plant in the hole, ensuring that the top of the root ball is level with the surrounding soil.

Fill the hole with either the soil you dug up or, better yet, compost. After planting, add a one- to three-inch layer of mulch over the garden bed and water thoroughly to help the soil settle in around the roots.

Fertilizing

It might not seem as important as say, watering, but feeding your plants will make them fuller and more resilient to drought, pests and other abuses. Not all fertilizers are great for flowers, though, so either choose one labeled for flower gardening or one that is low in nitrogen, since nitrogen promotes leaf growth at the expense of flowers.

Both synthetic and organic fertilizers will work, but each has its strengths and weaknesses. Synthetic fertilizers are fast acting, but can also quickly leach away from the soil or burn plants. Organic fertilizers may cost more and take a little longer to show results, but they’re generally considered safer for plants and gardeners.

Since each fertilizer is unique, feed plants according to package instructions.

Weeding

Even a well-prepared bed has its weeds, but a badly prepared one will have a lot more. Weeds are not just unattractive; they steal water and nutrients from your plants, and foster pests and diseases.

Do not use chemical sprays to kill weeds, since they can damage or kill surrounding plants. Instead, just use your hands. Grip the weed at the base of the soil and pull up firmly, disposing of the weed (the compost pile is best) so that it doesn’t resprout in the bed later. You can quickly and easily dislodge new weeds with a hoe or cultivator, but be sure to get the roots so that they don’t come back.

Watering

All garden beds need to be watered in the weeks following planting, since they haven’t yet established a sufficient network of roots. The best ways to water are with drip irrigation or by hand.

With drip irrigation or soaker hoses, you are watering the soil itself rather than the leaves, where the moisture can evaporate or cause diseases.

The other way to water is by hand, with a hose and nozzle. This is useful since you have more control over which plants get watered and how much. After the plants have become established, water only when they show signs of drought stress — such as limp, wilting leaves.

How to Budget for Home Renovations By Joe Szabo, Scottsdale Real Estate Team

June 12, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Ready for a new kitchen? Anxious to redo the bathroom? The easy part is knowing what you want to remodel and why — whether you’re trying to keep up with your growing family, add office space, or increase your home’s value.

But figuring out how to renovate without breaking the bank can be tricky. Here are five key steps in planning your home renovation project.

Estimate costs

As a general rule of thumb, you should spend no more on each room than the value of that room as a percentage of your overall house value. (Get an approximate value of your home to start with.)

For example, a kitchen generally accounts for 10 to 15 percent of the property value, so spend no more than this on a renovation. If your home is worth $200,000, for example, you’ll want to spend $30,000 or less.

Something else to keep in mind: contrary to popular belief, kitchen renovations offer among the lowest return on investment, according to analysis from Zillow Talk: The New Rules of Real Estate. Every dollar you spend on a new kitchen only increases the value of your home by 50 cents.

The highest return on investment? A mid-range bathroom remodel.

Consider loan options

If you’re borrowing money for the project, assess how much the bank will lend you (be sure to shop around!), and determine what type of loan would work best for you.

If you have a one-time project, then a home equity loan might make sense. If, however, you need access to money over a period of time to fund ongoing home improvement expenses, then a home equity line of credit is preferable.

Get quotes from contractors

Some contractors will give you an estimate based on what they think you want done, and work completed under these circumstances is almost guaranteed to cost more. You have to be very specific about what you want done, and spell it out in the contract — right down to the materials you’d like used.

Get quotes from several contractors, tossing out the bid from the one who gives you the lowest estimate. Going with this choice could be asking for problems, as low-priced contractors are known to cut corners — at your expense.

Stick to the plan

As the renovation moves along, you might be tempted to add on another “small” project or incorporate the newest design trend at the last minute. But know that every time you change your mind, there’s a change order, and even minor changes can be costly. Strive to stick to the original agreement, if possible.

Account for hidden costs

Your home may look perfect on the outside, but there could be issues lurking beneath the surface. In fact, hidden imperfections are one of the reasons renovation projects end up costing more than you anticipated.

Rather than scramble to come up with extra money after the fact, give yourself a cushion upfront. Factor in 10 to 20 percent (or more) of your contracted budget for unforeseen expenses, as they can — and do — occur. In fact, it’s rare that any project goes completely smoothly.

May 2015 Scottsdale Arizona real estate market update

June 11, 2015 Joe Szabo

Can you believe it is already June! As things really start to heat up in Scottsdale let’s take a look at how the real estate market faired in May 2015. New listings are down 11.8% from April with a total of 909 new listings vs. 1,031 in April. New contracts were down by 5.1% but closed sales were up slightly by 0.7%. The median sale price is down from $390,000 in April to $380,000 in April. During these up and down activity months it is more important than ever to consult a real estate professional that knows the Scottsdale market.

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 [email protected]. 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.

May 2015 Paradise Valley Arizona real estate market update

June 11, 2015 Joe Szabo

Can you believe it is already June! As things really start to heat up in Paradise Valley let’s take a look at how the real estate market faired in May 2015. New listings are down 34.9% from April with a total of 56 new listings vs. 86 in April. New contracts were down by 35.8% while closed sales jumped 36.4% from April. The median sale dropped from $1,295,000 in April to $1,150,000 in May. During these up and down activity months it is more important than ever to consult a real estate professional that knows the Paradise Valley market.

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 [email protected] or [email protected]. 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.

The 5-Step Plan for Buying a Vacation Home By Joe Szabo, Scottsdale Real Estate Team

June 9, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Do you dream of owning a vacation home, but find the idea of buying one too intimidating? It’s actually easier than you may think. Here’s a guide to help you analyze your options.

1. Match housing choices to your lifestyle

Many people assume they must own a primary residence before owning a vacation home, but this isn’t a rule you must follow. What’s really important is matching your housing choices to your lifestyle.

You may live in a city and want lots of space that you can’t afford there. You could rent a modest condo in the city, and buy a large vacation home outside the metro area.

Or you may live in a large country house and want to enjoy city life as much as you can. In that case, you could own your country home and also buy a vacation condo in the city.

Either way, the financing and tax implications are almost the same.

2. Determine how you’ll use your vacation home

From a financing and tax standpoint, you need to consider how you intend to own and use your property. You have three options:

Primary residence. You can buy for as little as 3 percent down (if your loan doesn’t exceed $417,000), mortgage rates are the lowest they can be, and you get significant homeowner tax benefits.
Second home. You can use your second home any time you want, but lenders won’t let you rent the home. Buy for as little as 20 percent down, and qualify for the loan using your full primary residence cost plus your full second home cost. Mortgage rates and tax benefits are the same as primary residences.
Investment property. You can rent the home, plus use it when it’s not rented. Rates are .25 percent to .375 percent higher than second home rates, and your down payment usually starts at 30 percent. You qualify for the loan using your full primary residence cost plus your full investment home cost, but you can use rental income to help qualify. Tax treatment is less beneficial, but the extra income can help with affordability.

3. Understand the total cost of owning a vacation home

You can determine what you can afford in seconds. Then you’ll find a lender to formally analyze the cash available for down payment, closing costs, and reserves. You’ll also calculate the total monthly cost on your existing home (whether you rent or own), plus the total monthly cost on the vacation home.

You also need to plan for personal budget items that lenders don’t use in their qualifying calculations:

Gas, electric, cable TV, and internet
Furniture and housewares
Travel costs to your vacation home
Total cost of property maintenance items like cleaning, landscaping, and pool/spa upkeep

4. Review monthly and transactional cost line items

Suppose you live in San Francisco and want to purchase a home in the wine country of Sonoma County, CA for $600,000. Here’s how much it would cost as a primary residence, second home and investment property.

	Primary Residence or Second Home	Investment Property
Estimated monthly costs
Mortgage payment	$2,223 (30-year fixed mortgage at 3.75%)	$2,035 (30-year fixed mortgage at 4.125%)
Insurance	$100	$100
Property tax	$600	$600
TOTAL ESTIMATED MONTHLY COSTS	$2,923	$2,735

Estimated cash to close
Down payment	$120,000 (20%)	$180,000 (30%)
Lender fees	$2,500	$2,500
Title/escrow/inspection fees	$3,500	$3,500
TOTAL ESTIMATED CASH TO CLOSE	$126,000	$186,000

5. Make an offer using a local realtor and lender

Many vacation properties are in specialized local markets, so it’s best to find local real estate agents and lenders.

Your real estate agent will clarify local transaction fees, taxes and commissions, as well as advise on local zoning and property rental rules. For example, the town of Sonoma doesn’t allow short-term rentals for vacation homes, but other towns in Sonoma County do allow this.

In destination areas, real estate agent commissions can be higher and can also be seller- or buyer-paid, depending on the area. Only a local expert can advise properly. And, of course, they will structure your offer for you, and negotiate on all facets of the deal that are a priority to you.

Likewise, local lenders will be comfortable with appraisals and lending in rural areas. Appraisals are more difficult in less populated areas because comparable sales can be old and hard to find.

If you follow these steps, your closing will be a snap, and you’ll be relaxing in your vacation home before you know it.

Building Credit 101: Tips for Recent Grads By Joe Szabo, Scottsdale Real Estate Team

June 4, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

If you’re a recent college grad, you’ve likely heard speeches about pursuing your passions and believing in yourself, but you probably haven’t heard much about establishing a good credit history. Here’s what you need to know.

It matters — a lot

Qualifying for mortgages, auto loans, apartments and even jobs has become dependent, to some degree, on your credit history.

Find out where you stand

The first step is knowing your current status. Access your credit report by visiting Annual Credit Report.com. Make sure all the information on the report is accurate, because errors can — and do — occur. Damaging discrepancies need to be corrected right away.

Build a credit history

Your credit history is one of the key factors making up your credit score, the all-important three-digit number that determines the rates you pay on everything from credit cards to mortgages to auto insurance.

The best time to build a credit history is when you’re young, and the best way to start a credit history is to get a credit card. This may sound counterintuitive, but if you don’t have a credit card, the scoring system has no information to go on for assessing your creditworthiness, so you come across as a credit risk.

Research credit card options

While many of the major issuers offer cards geared toward new applicants with little or no credit history, you might stand a better chance of getting a card at a credit union. Size up your card options on a site such as LowCards.com.

Gas cards and department store cards are also typically easy to get and can be a good place to start if your options are limited.

Another possibility — especially if you don’t have any credit history or your credit is damaged — is to get a secured card. These cards work just like a regular credit card, except that you place a security deposit with the credit card issuer to obtain one. They typically require $200 or more for the deposit, and this amount becomes the credit line for the account.

Use credit responsibly

The way to keep your credit score high is to spend responsibly within your means. Don’t use more than 30 percent of your available credit, and pay off your balances in full and on time every month. Your payment history contributes to 35 percent of your credit score, so this point is important.

Chip away at student loans

Student loans are a form of debt, and are therefore taken into account as part of your credit score. And while you may be worried about a lender seeing all of this debt (likely tens of thousands of dollars), there’s no need to be concerned if you’re handling your finances properly. Just be sure you’re managing your debt obligations and repaying them on time, every time.