Archives for August 2015

First-Time Home Buyer’s Guide to Making an Offer By Joe Szabo, Scottsdale Real Estate Team

August 31, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

After months, maybe even years, of looking at homes online, going to open houses and stalking listing data, the time has come. You’ve fallen for a home, and you’re ready to make your first offer. It can be scary, but it’s exciting at the same time.

Here are some pointers to keep in mind as you throw your home-buying hat in the ring for the first time.

Have confidence in your search experience

Keep in mind that when it comes to making an offer, there is no single right answer and no “exact” price or terms for a home you covet. As a savvy buyer, you’ve got the market knowledge and experience it takes to analyze the deal. Believe in yourself.

Take what you’ve learned, partner with a great agent, and trust your judgment. Think about the homes you’ve toured and open houses you’ve attended, and you will naturally start to see where your home of choice fits in the context of the market.

Learn all you can before deciding on your offer

If you are ready to pull the trigger, first find out what the story is with the listing. In order to come up with the best offer, you’ll need to know how long the home has been on the market, if there are other offers on the table currently, and if there’s a specific day the sellers will review the offers.

You can uncover a lot by learning about the seller. Find out why they’re selling and what their motivations are. Pull all that information together and then mesh it with comparable homes’ sales data.

Reviewing comps is crucial

Your agent should send you the last six months of recent sales data to review and compare. These “comps” tell about the most recent market and what current buyers/sellers have agreed on for a sale price.

Look at the pending sales first and see if your agent can uncover some information about those transactions. You want to ask about the number of offers they received or a ballpark selling price. The pending sales represent the most up-to-date market statistics. Ask your agent what his opinion of the home’s value is and start to mull over this information.

Give your lender a heads up

Your lender should be on speed dial at this point. Let her know you plan to make an offer on the home. Not only will you need apre-approval letter with your offer, but you will want an update on mortgage rates and products, since these change daily.

From the time you applied for pre-approval until now, there could have been a massive shift in rates or a new product that could benefit you. For all you know, you can afford more, or that bonus you received last month could mean a higher down payment and qualifying for a better product.

Discuss terms

In addition to price, you will need to decide on terms. How long will you take for your inspections? Do you want to close quickly or take a longer time? Will you need an appraisal and loan contingency? How long should that be?

The terms of your offer can make or break your deal. If the seller wants a quick close, and you can do it, give it to them. If you are competing with a cash offer, make your loan terms foolproof. Marry all of the data from above and take your best shot.

Remember, there will be other houses

Rarely does a buyer score the first house they offer on. And it’s not the end of the world if you don’t. There will be other homes for sale.

People change jobs, get divorced, move closer to family, have children or pass away. All of these things can result in a home sale or purchase.

Have faith that another home will come along in the future. There’s no rush, and you should never buy real estate overnight. Have fun, and learn from each offer you make.

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.

How to Diplomatically Handle Disputes With Neighbors from Joe Szabo, Scottsdale Real Estate Team

August 27, 2015 Joe Szabo

from Joe Szabo, Scottsdale Real Estate Team

Much like neighborly quarrels, adversarial property laws have been around for ages. Accordingly, ancient lawmakers devised notions — such as deeds, boundary lines, and parcel numbers — to ensure owners and neighbors alike were apprised of property limits.

However, conflict between neighbors remains common, often prompting contentious lawsuits, unrelenting litigation, and serious tension at annual block parties.

Preventing property disputes with neighbors

Avoiding disputes altogether is one of the easiest ways to avoid a nasty legal battle. A common scenario in disputes between neighbors involves one of nature’s most majestic beauties: trees.

It may sound too simple to be true, but many lawsuits have ensued when a tree — which may have started out as a wee sapling — evolves into a problematic and potentially dangerous behemoth straddling the boundary line. In this scenario, neighbors are encouraged to negotiate ownership in writing at the first sign the tree might become a problem.

One of the quickest ways to escalate a conflict is to try and trim a tree back to the property line, which can cause unnecessary damage. If the boundary line — and resulting tree ownership — is unclear, ordering a new survey of the property might be the best way to avoid problems before they start.

Water under the bridge

Another natural disaster waiting to happen involves ownership (i.e., the maintenance and upkeep) of water sources that straddle or create property lines. In these cases, working with a riparian rights attorney might be the best bet for reaching a solution, as water disputes can be extremely impactful, particularly if the water source is used for livestock or consumption.

For most people, however, disputes over fences and boundary lines are most common. These conflicts can easily be prevented with a little communication or help from a local surveyor. Assuming there are no interceding issues with the local homeowners’ association, a property owner can erect a fence on his property as he sees fit.

However, a property owner is generally advised against making an educated guess about legal boundary lines, as a slight misjudgment may end up requiring the fence to be relocated at his expense. Hire a surveyor to conclusively determine the exact boundary line, and always leave a reasonable buffer zone between the fence and that line.

Managing a dispute

Not every legal dispute is contentious in nature, and some disputes may be necessary to effect the proper legal transfer of property.

Imagine, for example, a parcel of land that has been passed down from one generation to the next for hundreds of years. Families often use quitclaim deeds to quickly pass on land and, as a result, may not bother with a survey or metes and bounds description for decades on end.

When it comes time to transfer this property to an outside buyer, he or she will likely insist on a survey, which may reveal that certain tracts actually belong to one side or the other, creating an instant dispute.

In this situation, hiring an experienced property lawyer might be prudent, as it may be possible to negotiate a new boundary line without court intervention.

If a legal dispute with a neighbor is unavoidable, be sure to rely on knowledgeable experts familiar with state and local property laws. Although it may seem pricey and unnecessary at the outset, working with a consultant familiar with tree law (yes, these exist!) or a riparian rights expert could help save valuable property rights in the future.

Property disputes gone wild

Think your neighborhood is too dignified for unseemly lawsuits and tree consultants? Think again. Historically, boundary line, nuisance, and property disputes have comprised a sizable portion of local courts’ equity dockets. Some of these disputes have reached epic proportions:

In Port Angeles, WA, a neighbor who was disgruntled over the height of an adjacent fence decided to level it with a bulldozer. After apparently failing to review the owner’s manual, however, the neighbor ended up damaging four homes and cutting power to 1,000 local residents, resulting in a Class B felony.
In Orange County, CA, a long-standing rivalry between neighbors resulted in a heated encounter over fireworks, which one neighbor deemed the last straw. When he tromped over to complain, the other neighbor fatally shot him through the screen door, a crime which landed him in jail for life.
In another dispute-related fatality, a North Carolina man cemented over a drainage ditch, resulting in significant overflow into the neighbor’s property. The neighbor, enraged, confronted the man and ultimately shot him over the dispute.

As you can see, even seemingly benign disputes with adjacent landowners can lead to disastrous conclusions. Take heed, and prepare to prevent conflict before it starts.

How to Stage a Home Everyone Will Want for Their Own By Joe Szabo, Scottsdale Real Estate Team

August 24, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

First impressions mean everything — especially when it comes to viewing a potential home. As visual beings, a cluttered space or a jarring wall color can be enough to make us turn around and walk out the door.

Successfully staged spaces provide two effects: they give a home an aesthetic appeal, and offer buyers an opportunity to dream themselves into the space.

If there’s one thing professional stagers know about designing spaces that appeal to buyers, it’s the art of selecting great decor pieces while utilizing space. The goal is making the most positive impact.

Here are five helpful staging tips a professional interior designer used to turn a listing into a sold home in no time.

Know your audience

Staging is less about your personal style, and all about the buyer or renter you’re trying to attract. You must always know your audience in order to create a successful staging design.

Discuss this matter with the broker, and research the neighborhood to understand the demographic that will be looking to purchase or rent your home.

Pack up the photos first

You want the potential buyer or renter to be able to envision themselves living in the space, but that’s a bit difficult when someone else’s family photos line the walls. Put all family photos away in a safe place to allow room for visitors to imagine themselves in the space.

Don’t be afraid of trends

While it’s true that some trends have a short lifespan, in staging the risk may be worth it. The timeline for renting or selling is typically short enough for design trends to thrive while a home is on the market.

So, if you’re itching to try out all the Mediterranean Santorini blue accents popping up lately, go for it. Trendy designs and colors will give the home a current, fresh look.

A little color goes a long way

The goal in staging is to enhance a space, not distract from it. Usually a safe bet is to create a neutral space that any person, regardless of their taste, can appreciate. Bold colors and daring decor could be loved by some and loathed by others.

For instance, walking into an overwhelming yellow bedroom can make potential buyers forget all about those beautiful marble counters in your kitchen. The last thing you want is for buyers to remember your staged space as “the one with that tacky yellow room.”

That said, you shouldn’t be afraid of color. A trendy color applied in a tasteful way could leave buyers referring to the home as “the one with the gorgeous teal wall.”

Show how livable the space is

The most important reason for staging is to show the full potential of how a space can be used. You should try to bring in as many functional pieces as possible while not overcrowding the space.

Steer clear of oversized or bulky furniture. Details like this make a space feel cluttered and dysfunctional. Opt for full size beds with two night stands, armless side chairs, lifted case goods and round, pedestal-base tables.

Sometimes it’s a good idea to complete the picture. Even if you think a dining table crowds the space, at least show a two-seat dining set, as it’s more important to show that it could work than leave it out entirely.

The final thing to keep in mind is that staging doesn’t have to break the bank. Be creative and consider DIY options when you’re designing your space. In most cases, just keep these tips in mind and remember: Less is more. A few simple changes and you’ll be on your way to a space that other people are eager to live in.

Simple as Black and White: Stark Contrast Design By Joe Szabo, Scottsdale Real Estate Team

August 21, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Black and white is a pairing as old as time. These sharply contrasting shades add the perfect amount of chic to any room, whether used as a focal point or an accessory. Here are some classic ways to incorporate this winning combination in every room of your home.

Geometric giant

Wallpaper is a great way to reinvent a room, and an even better way to show off your interior design skills. Today’s trendy patterns combine black, white and geometric.

Sharp angles and lines are the perfect solution for a space in need of a face-lift. Accessorize your newly graphic room with glossy finishes and metallic trinkets for a contemporary look.

Pillows and blankets and linens — oh my!

Scared of commitment? Try on this stark style by adding throw pillows and comfy accents to a black or white outfitted bed for an instant style boost. Mix large patterned pillows with solid-colored lumbar sizes to create contrast.

Pile on textured throws in black and white (or both) for a voluminous take on the classic combo. Round out the look with pieces of abstract art in shades of gray and a bedside lamp or two in your favorite metallic tone.

Back to black

We’ve all seen white walls, but what about black accent walls? Though it is a little intimidating at first, a black wall adds just the right amount of contemporary contrast when you’re not sure how to go about painting your room.

Whether you like semi-gloss or super matte, a black accent wall is great for rooms with lots of natural light and plush furniture for some added edginess. Hang statement artwork on the wall or layer on interesting sconces for an eclectic twist.

Black and white and clean all over

For a classically styled black and white room, start with the kitchen. Because black and white is so crisp and clean, it’s the perfect spot to test out this smooth style. Alternate the colors between different areas of the kitchen — a black range, white cabinetry, black countertop, white backsplash—and you’ll find that you didn’t even notice you had only used two colors.

The alternating shades add depth and dimension throughout the space without adding too much color. Keep it clean with chrome or gold-toned faucets and hardware, and add freshness with colored glass accessories.

Sweet serenity

While the bathroom is often one of the last places to get any attention for its decor, it might be the first place you want to try the black and white trend. Black and white alternating tiles add texture and dimension to an accent wall.

Mix cool, dark cabinetry with shimmering light fixtures for extra glamour. Keep the rest of the room simple and serene by adding an unfussy floral arrangement and plush linens, and you’ll find that the bathroom might just be your favorite room in the house.

It doesn’t matter if your style is cool and contemporary or totally traditional, combining black and white paint, accents, and furniture is an easy to way to boost any room in your home, while adding sleek simplicity.

4 Tips for Selling a Home Far Away By Joe Szabo, Scottsdale Real Estate Team

August 18, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Just a few years ago, at the height of the real estate crisis, if homeowners were transferred for work or moved for personal reasons and couldn’t afford to sell their homes, they often opted to become “accidental” landlords.

Not experienced real estate investors, they became such as a result of the market. Now that the economy has picked up, many of these landlords are finally selling their investments.

If you know that you’ll be selling a home remotely, don’t wait until the last minute. It’s hard enough to sell a home, and being far away makes it even more difficult to prep the home, deal with tenants and make sure that you have the best agent for the job. Here are some tips for making your sale a success.

Make sure you’ve lived in the home for at least two of the past five years

The federal government allows homeowners to sell their home without paying taxes on the first $250,000 in gain for single people, or $500,000 for married folks. The catch is that the home has to have been your primary residence for at least two of the past five years.

Many people don’t realize this requirement, nor do they plan for it, and they end up with a taxable gain. Still others don’t account for timing and end up selling “under the gun” to make the deadline.

To benefit from this amazing tax break, the sale has to close within the appropriate window. Know this and plan ahead. Otherwise, the home will be taxed as an investment property.

Get a good agent on board early

The smartest remote sellers have a solid agent with their feet on the street. A good agent provides a local resource for their clients. They can field late night calls from owners with leaky faucets, or intervene with tenant issues.

If you don’t know a good local agent, try to identify one before you move away, or on a visit back to the old home. Solidify the relationship well before you plan to sell, and do it in person, because that agent’s time can be invaluable.

Once the time comes to sell, it could be as easy as picking up the phone and asking the agent to execute the listing.

Stay on top of the home’s market

Put together a search of your property and stay on top of what’s selling in the area. Follow similar-sized homes that go for sale and keep an eye on their listings.

A smart homeowner will keep a search open at all times, in addition to staying in touch with their real estate agent. Just one or two comparable sales, at the right price, could motivate you to take action.

Take care of your tenants

Nobody wants to be displaced. Moving is incredibly disrupting. If you’ve been renting your home and are likely to sell to someone who will want to live there, as opposed to inheriting your tenant, then give your tenant some notice of your intention to sell.

A smart homeowner will tell the tenant upfront of their long-term plan and write language into the rental agreement stating that the tenant needs to cooperate for showings at the end of the lease.

If you have a good relationship with your tenant, drop their rent while the home is for sale, in return for their cooperation. It will go a long way towards a solid relationship.

July 2015 Scottsdale Arizona real estate market update

August 17, 2015 Joe Szabo

As things really start to heat up in Scottsdale let’s take a look at how the real estate market faired in July 2015. New listings are down 3.3% from June with a total of 783 new listings vs. 810 in June. New contracts were down by 11.2% and closed sales were down by 3.7%. The median sale price is down from $377,000 in June to $399,000 in July. 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.

July 2015 Paradise Valley Arizona real estate market update

August 17, 2015 Joe Szabo

Can you believe it’s already March? The Valley is swarming with snowbirds and sports fans and with all of the poor weather conditions around the country more and more people seem to be eyeing the Phoenix area as a possible new home. Let’s take a look at how the Paradise Valley real estate market faired in February. New listings are down 48.4% from January with a total of 64 new listings vs. 124 in January. The new listings in January were driven by homeowners waiting until after the holidays to list their home; it is typical for February numbers to be lower than January for this reason. New contracts were up in February by 14% with 49 new listings and closed sales remained consistent with January numbers at 24 closed sales. The median sale is up from $947,000 in January to $1,304,125 in February. February closed with some motivating numbers – Sellers on the fence are strongly encouraged to take advantage of the low inventory and high demand! 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.

Move This, Not That: 10 Items to Get Rid of Before Your Next Move By Joe Szabo, Scottsdale Real Estate Team

August 14, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

When it comes to moving, deciding what to take with you — and what to leave behind — can be stressful. Spending a little time clearing out dead weight before the move will make settling into your new place much more freeing. Check these 10 areas of your home for items that aren’t worth the square footage in the moving van — or your new home.

1. Dine in

This may seem obvious, but food takes up a lot of space and often gets a bit lost in the moving shuffle. In the weeks before your move, eat anything that isn’t shelf-stable, brand-new or a specialty item. Don’t forget about the perishable foods in the fridge and freezer (steak for dinner, anyone?). Take a break and throw a pantry dinner party with friends who are helping you move.

2. Pass on low-quality furniture

Low-quality furniture, typically made of particle board, is very susceptible to being ripped and chipped in a move. Ask family and friends if they can use any of these pieces or bring them to your local donation center. Upgrade or replace when you get to your new home.

3. Clean closets

Anything old, stained or that no longer fits should go straight into the donation bin. Moving cross-country? Transitioning from a cold climate to Florida will allow you to shed even more weight as you let go of snowsuits and boots that won’t be of use in the Everglades. Donate to a local thrift store or have a garage sale to make extra cash.

4. Tame the bathroom cabinet

There is no sense moving 20 crusty nail polishes and every curling mousse you’ve ever tried and abandoned. Anything expired or unused lately should be tossed. Cull these and only keep your essentials, as anything else may spill in transit and many are flammable.

5. Make a pitcher of margaritas

While you’re throwing your pantry party, be sure to bring out the open bottles of alcohol. Chances are they’re in glass, making them a no-no for most moves, so you might as well enjoy them now.

6. Burn those candles

This may sound odd, but many moving companies won’t take candles. They’ll most likely melt and get misshapen anyway, so give these to friends or use them as décor at your clean-out party.

7. Donate excess kids’ toys

Toys take up a massive amount of space, even if they are lightweight. Anything that has been outgrown or unused should be donated or passed along to friends or family. Bigger items such as outdoor pools, sports equipment and bicycles should also be assessed.

8. Toss old linens

Sheets and towels are bulky to move, so anything that’s seen better days should be put in the donate pile. Choosing fresh sheets and towels after you’ve moved is a fun part of feeling settled in your new home.

9. Clear out garage clutter

This includes outdoor furniture, hoses, planters and trash cans. With garden items, it’s best to start new instead of moving a potentially invasive weed or insect species to a new area. Outdoor furniture often has glass, which is easily shattered, and flimsy outdoor fabric, which is easily torn in a move. Try selling these pieces and using the cash for a new set.

10. Hobby supplies

Excessive amounts of craft or hobby supplies are often not worth the space. Use this as a time to freshen things up and pare down your supply stash. Bonus? An excuse to buy new supplies in the future.

Once you’ve tamed these 10 areas, you should be able to breathe a little easier and pack a little lighter. You’ll be left with high-quality furniture, sentimental pieces and daily-use items, all things that help make a house a home.

Staging Strategy: 5 Reasons Every Room Needs a Clear Purpose By Joe Szabo, Scottsdale Real Estate Team

August 11, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

When staging a house for sale, it’s crucial to consider every space with the buyer’s perspective in mind. Once you’ve accomplished the five basic staging steps, make sure every room in your house has one clear purpose.

Defining how to use a room is incredibly important for buyers because it helps them connect to a home. Here are the top 5 reasons every room needs a clear purpose:

1. Buyers subconsciously feel lost if they don’t know what to do with a room

They will wander in and out of a room very quickly if they cannot easily tell what the room should be used for. The house will not feel comfortable, which will make it hard for them to imagine it as home.

2. Buyers don’t know how to place furniture in a room they can’t define a use for

When buyers walk into a room they feel comfortable in, they’ll start to picture their belongings where yours are now. A big comfy bed signals “This is a bedroom,” so buyers will be able to imagine their own bed in the space. This is exactly what you want them to do.

But if buyers can’t tell the room’s purpose, they won’t know if they need new furniture to fill it, or if they have something perfect for it already.

3. Buyers assume they don’t need a room they can’t see the purpose of

If a buyer can’t see what a room’s purpose is, they go one of two ways. They either assume they don’t need the space, or they decide your home doesn’t have a room that will serve a purpose they do need. Either way could cause them to pass on your house and go on to the next.

4. Buyers don’t have time or energy to figure it out for themselves

There is so much competition for buyer dollars – even in a seller’s market. Buyers have no time, energy or need to “figure out” a house. They can simply go visit the next one or go visit the new home builder they’ve seen advertised. You can bet the builder will show them exactly what every space is for and tell them why they need it.

5. Buyers can’t emotionally connect to rooms they can’t see themselves using

You want buyers to picture their sofa in your living room so they can start seeing themselves living in your house. This is when they truly connect with a house and decide they have to have it as their own home. This connection brings you the best offer possible.

Many homes today feature a “great room” that contains many spaces to be used as individual rooms. This is what the term “open concept living” refers to, and it is highly desired by modern buyers. Mixed purpose rooms can confuse buyers. They may think that if one room has to be used for multiple purposes, the home must be too small.

If your house fits this description, be sure to clearly define spaces within the great room to serve only one purpose. For instance, define a family room space and a dining space separately so that buyers know how they can use these areas.

Staging your house for sale is a lot of work. But as difficult as it can be, don’t skip it. The way you present your home makes a big difference in finding a buyer.

4 Local Factors That Impact Your Mortgage Process By Joe Szabo, Scottsdale Real Estate Team

August 7, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

If you’re like many people, you look online to find the best rate quotes when you first start shopping for a mortgage. Sometimes this can lead to selecting a lender who isn’t local to your area.

This is fine, as long as your lender is familiar with mortgage processes specific to your area. Keep the following local factors in mind to ensure a positive mortgage experience once you choose a lender.

Local rate quotes

Often a friend or real estate agent refers you to a local lender. To get rate quotes for your profile before talking to that local lender, you can check mortgage rates in seconds by entering your purchase price, down payment and credit score range. You can also enter your ZIP code to tailor quotes to your area.

Online lenders compete heavily on rates to win your business, so this search will usually represent the best rates available for your profile. You can use these rate findings to make sure a local lender is offering the best rates.

This is a fast, safe way to screen rates without having too many lenders run your credit. Of course you always want to shop, but you don’t want shopping for a mortgage to prevent you from getting one.

Communication with local real estate agents

Local lenders will be known by local real estate agents. This can help when you’re writing offers to buy homes. Because real estate is so localized, sellers’ agents sometimes advise their clients to be cautious when they see an offer financed by an out-of-area lender. Likewise with your own real estate agent: Because agents specialize down to the city, neighborhood and street level, they often encourage their buyers to work with lenders who have the same local expertise and reputation.

Local lenders also know title and escrow officers, insurance agents, inspectors and other specialists associated with your local property transaction. And because local lenders live in the same community they can offer useful advice about neighborhoods, schools or even good restaurants — just like your real estate agent.

Non-local lenders can quickly win the trust of real estate agents and all other vendors, and you should ask them how they go about doing this. Make sure they’re using a proactive approach to working with all of the parties in your transaction, instead of waiting to be contacted by agents or other vendors.

Local settlement procedures and fees

All local markets have specific settlement procedures and associated vendors. For example, in California a financed real estate transaction is settled by a single escrow company, whereas in New York, it’s settled by separate attorneys representing buyer and seller.

Additionally, each city and state has specific rates for various property-related taxes and local customs for how these taxes are paid by buyer and seller. The same goes for title, escrow and attorney fees.

If you’re working with a non-local lender, make sure they know these local processes and fees. Failing to correctly quote or associate (to buyer vs. seller) these third-party fees on your loan documents can cause your transaction to be delayed or fall apart entirely.

Local property knowledge

Loans are made based on borrowers and properties. Any lender can do a pre-approval, but in the pre-approval phase, lenders are just pre-approving you as a borrower. The loan won’t be finalized until a lender also conducts a thorough review of the property’s title report, contractors and pest inspections (if called for by the purchase contract), and the property condition and value using an appraisal report ordered by the lender.

A local lender will have the appropriate appraisal network in your area, and you need to make sure any non-local lender you use also has this network. Some neighborhoods, for example, have off-market sales that a non-local appraiser may miss. This could cause your appraisal report to come in lower than expected.