Archives for May 2017

Picking a Moving Company: How Do Your Choices Stack Up? By Joe Szabo, Scottsdale Real Estate Team

May 27, 2017 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Selecting a moving company from among the many available options can be overwhelming. You probably have a few friends who have recently relocated and can recommend a company, and there are plenty of movers’ ads online and offline. You can easily find a moving company — but is it the right one?

The process of choosing a mover varies slightly depending on what kind of move you’re planning, but a few key factors are constant.

Licensed means safe

The first and most important point to investigate is the company’s legal status. Movers may claim to be licensed and insured, but unless you can confirm the veracity of that claim, do not take it at face value.

In-state moves. Many states have implemented rules and regulations to monitor household goods carriers at a local level. Usually the authorities responsible for overseeing intrastate movers are either the state Department of Transportation or the Public Utilities Commission. Contact the relevant authority.
Out-of-state moves. Check with the Federal Motor Carrier Safety Administration (FMCSA), the agency that grants permits to all moving companies engaged in the interstate transportation of household goods. The FMCSA regularly executes safety, economic and legal compliance audits to protect consumers, and the data is available as a public record. The agency’s Safety and Fitness Electronic Records System website allows you to check whether a mover is licensed and insured, as well as the results of their inspections.
Overseas moves. Make sure that the ocean transportation intermediary involved in the moving process is certified by the Federal Maritime Commission (FMC), the federal agency responsible for regulating U.S. international ocean transportation to protect U.S. consumers. Don’t even consider moving to another country without researching whether your chosen company has been approved by the FMC.

Reputation research

Once you have verified a mover’s legal status, size up its reputation. Moving businesses spend a lot of money on advertising, trying to persuade you that they are the best pick. Don’t be an easy catch — remember that ads are skillfully designed to attract you and sometimes mislead you.

Recommendations from other people who have experienced the difficulties of moving can be valuable and trustworthy. When you comb through reviews of movers, pay attention to comments about companies’ attitudes throughout the entire moving process.

Do not rush to write off a moving company just because someone had a bad opinion of it. Note how the company has tackled the problem. The customer who left the negative feedback might have been too picky. However, if there are too many bad opinions about the company, then you should steer clear of it.

When gathering information on movers, pay attention to features such as membership in moving associations and local communities, and other special accreditations. Involvement in moving industry groups implies that the company has adopted an innovative approach to business and keeps up with what’s happening in the industry.

A strong presence in social networks is a good indicator that the company keeps the lines of communication open.

Added-value services

By now you should have narrowed down a list of licensed and trustworthy movers. So far, so good — but don’t stop there. Explore how crafty movers can be when it comes to disassembling furniture and electronics, packing items of extremely high value, providing custom crates to ensure safe transportation for works of art, or using a rigging system and a lift to hoist items through a window.

Can the company provide professional cleaning service after the move is over? Does it have its own storage facility? Find out what other additional services are available, and at what price.

Red flags

If the company has no physical address, scratch it off the list. Ditto if the company doesn’t provide a written estimate after a home survey.

Other red flags include asking for a large deposit in advance, giving an unrealistically low or outrageously high price for the move, not providing you with the FMCSA booklet “Your Rights and Responsibilities When You Move,” or asking you to sign blank or incomplete documents.

Bottom line: The more you research your movers, the better equipped you’ll be to make a good choice.

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.

Making the Most of an Open House Visit By Joe Szabo, Scottsdale Real Estate Team

May 24, 2017 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Open houses are the gold standard in real estate. They’ve been around for decades and will be ingrained in the buying and selling of homes for years to come.

The average buyer attends three open houses, according to the Zillow Group Consumer Housing Trends Report, a survey of more than 13,000 homeowners, sellers, buyers, and renters. Seventy-one percent of all buyers attend at least open house, and first-time buyers are even more likely to go (77 percent attend one open house or more).

But as a buyer, are you making the most of your open house visits?

Here are some best practices and helpful questions for buyers at all ends of the home-buying spectrum.

Use the open house to learn the market without committing

For the most part, open houses are just that — open. They make it possible for anyone to see a property in a certain time period, without an appointment or even being a very serious buyer.

New buyers should leverage the open house opportunity to get a feel for the market. In today’s world, using online search tools, mobile apps and the open house, a buyer can start to get a feel for pricing and the market before committing to an agent. Most importantly, open houses are some of the best ways for buyer and agent relationships to start.

You don’t have to sign in (but don’t be rude)

The biggest fear of some newer buyers is that a real estate agent at an open house will be all over them, ask for their contact information and then start harassing them for the next three weeks. It does happen, but it’s also common courtesy to at least recognize and say hello to the agent at the open house. Don’t forget, in addition to trying to sell the home for her client, for safety reasons, the agent is keeping a look out for who is coming and going. It’s polite to say hello and introduce yourself to the agent, but you can also politely decline to sign in.

If you’re an active buyer, you should make yourself known to the agent. Let the seller’s agent know who your agent is and don’t be afraid to express interest. When it comes time to review an offer with a seller, listing agents like to put a face to a name.

Watch the other buyers

You can tell a lot about the activity and marketability of a home by watching the other buyers. If you observe a lot of people walking in and out quickly, the home probably has some issues. Are the buyers hanging around, asking questions of the listing agent and huddling in the corner talking to their spouses or partners? If so, it could be a sign this is a well-priced and “hot” listing. If you’re interested, too, observing other buyers at the open house could help you learn about the competition.

Ask the agent questions

The real estate agent is there for a reason. It’s his job. If he is the listing agent, ask him questions. He is a direct line to the seller. He should know more than anyone about the property and the seller. Your agent can funnel your questions to the listing agent. But if you’re there, ask away. Watch the agent’s facial expression and reaction to your questions. If it’s a competitive market, ask questions such as: “Why is the seller selling?” “Is there a certain day to review offers or have you had a lot of showings?” In a slow market, ask how long the property has been on the market and what the seller’s motivations are. A good agent will engage you because it’s good for his seller.

Be open to meeting your future agent

When considering a new doctor, lawyer or CPA, you don’t get the chance to see them in their element until you’ve decided to work with them. Not true for real estate agents. Some of the best buyer/seller/real estate relationships begin at open houses.

A good agent is wearing two hats at the open house. In addition to watching the serious buyers and getting feedback for the seller, an active agent is also looking to interact with future clients.

Face to face, informal and relevant, the interaction with an agent at an open house is important. You can get a feel for a person just from a brief meeting. If you sense the agent could be someone you could work with, ask some open-ended questions, such as “How’s the market?” and “What areas do you cover?”

Why open houses have been around for decades

At any open house, there are people at every stage of the home-buying game, from just testing the waters to looking at homes daily, making offers and working closely with an agent. For someone new to the market, it’s helpful to know the best practices for visiting open houses and interacting with the real estate agent. For more experienced buyers, the open house is an opportunity to make a second or third visit, getting a closer look at the details and uncovering things you may have missed earlier. There are lots of reasons why open houses have been around for decades — and why you should take full advantage of them.

Take full advantage of the open house by asking questions to learn all you can about the home and listing.

What to Unpack First in Your New Home By Joe Szabo, Scottsdale Real Estate Team

May 19, 2017 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Once all the moving preparations have been made, all the arduous moving tasks have been taken care of, and everything has gone more or less according to plan on moving day, you finally find yourself in your new home, surrounded by piles of boxes, tired and glad that your relocation is about to end.

To fully complete your moving adventure, however, you need to unpack your belongings and make your new place feel like home. But how to even begin unpacking?

First things first

No matter how much you want to get it over with as soon as possible, there are several important things to do before you can actually start unpacking.

Clean and prepare your new home. It’s easier to wipe down shelves, clean windows, and mop floors before your belongings have been put in place. Make sure your home-to-be is spotless when your items arrive. If you can’t get to your new place early enough to do a thorough cleaning, consider hiring professional cleaners to do the job for you.
Inspect and organize your belongings. Check all the delivered boxes and household items against your inventory sheet to make sure nothing is damaged or missing. Then have each of your possessions taken to the room where it belongs. If everything was properly marked and labeled, sorting out your items will be a piece of cake.
Open your box of essentials. There should be tools, toiletries, clothes, medicines, packed food, basic kitchenware, and other “lifesavers” in it that will allow you to refresh yourself, open the sealed boxes, reassemble your furniture, and so on.
Set major furniture and appliances. Position your large furniture pieces and bulky household appliances first. Then you can put any smaller items you unpack later directly in their rightful places. Plan your interior design well in advance so you don’t end up moving heavy pieces around several times.

Tackle the necessities

What matters most when unpacking your items after a move is ensuring that your essentials are immediately accessible. So prioritize your belongings, and unpack only the necessities first.

Bedding

You may not be able to unpack the entire bedroom right away, but you will definitely have to set up the bed the day you move into your new home. Reassemble it (if necessary), lay down the sheets, unpack the pillows, and spread the blankets so you can get a good night’s rest — you’re going to need it!

Provided that you have a change of clothes and some comfortable indoor shoes (as well as curtains on the windows to ensure your privacy), the rest of your bedroom items can wait until you find the time and the energy to deal with them.

Bathroom items

Without a doubt, your personal care items, toiletries, and medicines should top the list of the most important items to unpack after your move. Put out toilet paper and soap, find your toothbrush and toothpaste, hang the towels and the shower curtains, and unpack any other bathroom essentials you’re going to need in order to refresh yourself and wash away the weariness and stress of moving.

Also, fill in the medicine cabinet with the medications you have brought, and don’t forget to take your prescription drugs on time.

Kitchen necessities

You may have brought some food with you, or you may rely on delivery for the first day or two after the relocation, but you’re going to need a fully operational kitchen as soon as possible in order to prepare healthy, homemade meals for yourself and your family.

Kitchens tend to take a very long time to unpack and organize properly due to the large number of items that need to be sorted out and carefully arranged.

As soon as you’ve hooked up the large appliances, such as the fridge and the stove, move on to your smaller kitchenware. Plates, silverware and glasses should be the first to find their places in cupboards and kitchen cabinets, closely followed by cooking utensils, pots and pans, and pantry items.

Kids’ and pets’ items

If you have young children, you should unpack some of their favorite toys, books, games, blankets and such during the very first hours in your new home. Keeping your young ones happy and occupied will let you concentrate on your work and finish it faster.

Of course, you should also take care of your pets’ needs immediately upon arrival. It’s a good idea to pack adequate pet food, water and food dishes, and some of your animal friends’ favorite toys in your open-first box.

Finishing up

When you’ve unpacked the three most essential rooms in your home (bedroom, bathroom and kitchen), everything else can wait a bit. There are no deadlines to meet, so you can set your own pace when unpacking and decorating your new place — just unpack in order of priority and without procrastination.

If you stay organized, set reasonable mini goals and complete them promptly, clean after every unpacking phase, and dispose of the packing materials in a safe and eco-friendly manner, your new surroundings will soon stop looking like a warehouse full of boxes and start feeling like home.

If you have some fun in the process — listen to your favorite music, play “unpacking games” with your kids, and invite friends over to give you a helping hand — the exhausting unpacking endeavor may turn out to be much easier and faster than you expected.

Your Essential Moving Checklist By Joe Szabo, Scottsdale Real Estate Team

May 17, 2017 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

When it comes to moving, proper organization is the defining difference between ultimate success and complete failure.

Even if you’re already an excellent organizer, you might still feel overwhelmed by the number of relocation-related tasks you have to complete before moving day — unless you find a way to bring order to the chaos.

Here’s a moving timeline that will do the trick. It will help you organize your time, prioritize your tasks, track your progress, and reduce moving stress. What’s more, you’ll never forget anything important, because your week-by-week moving checklist will remind you of what to do every single day until moving day.

Eight weeks before moving day

Organizing a safe, efficient, and trouble-free relocation requires about two months of careful planning and hard work. So, start your moving preparations about eight weeks before the big day:

Start looking for an appropriate new home in your future area (you may have to start sooner if you’re moving to a particularly hot real estate market).
Inventory your possessions and decide what you’re going to take to your new home.
Research your moving options and decide if you’re going to move on your own or use professional moving services.

Six weeks before moving day

Contact a few trustworthy movers and request an in-house estimation of your relocation costs. If you’ve decided on a DIY move, contact several truck rental companies and compare their rates and conditions.
Review your finances and designate your moving budget.
Notify all the relevant people and institutions of your move: your landlord (if you’re a renter), employer, family physician, children’s school (if applicable), and bank, for starters.
Start looking for a trustworthy health provider and a good school for your kids in your new city.
Schedule your move and book your chosen moving company (or book a rental truck of appropriate size for the day of your move).

Four weeks before moving day

Obtain your and your family’s medical records and your children’s school records.
Take your pet to the vet for a complete checkup and get all the necessary papers: vaccination records, health certificates, etc.
Get rid of unwanted items. Organize a moving sale, sell items online, donate them to charity, or give them away to relatives and friends.
Obtain packing supplies and start packing the items you won’t need before moving day. Make sure you don’t pack any nonallowable items.
Cancel subscriptions to delivery services and memberships to clubs and organizations.

Two weeks before moving day

If you’re driving to your new home, have your car serviced to make sure your road trip will go as smoothly as possible. If you’re flying to your new city, book your ticket and find a trustworthy auto transporter to ship your car.
Change your address with the United States Postal Service.
Transfer utilities — arrange for services in your old home to be disconnected the day after your move. Contact service providers in your new city to have utilities running in your new home on move-in day.
Reserve a parking place for the moving truck (directly in front of the entrance to your home) and an elevator for the time of your move (if applicable).

One week before moving day

Contact your moving company and confirm that everything is going according to plan.
Say your goodbyes — organize a farewell party, spend some quality time with your closest friends, visit your favorite places in town, etc.
Check on your packing progress. Most of your belongings should be packed up and labeled by this point.
Prepare an “open first” box that contains all the essentials you’re going to need as soon as you arrive in your new home.
Hire a sitter to look after your children and/or pets on moving day (if necessary).
Check if you’ve paid all the bills, picked up your clothes from the dry cleaners, returned library books and borrowed items, etc.

Two days before moving day

Finish packing — leave out only a few items you can’t do without during the last couple of days in your old home, and the cleaning supplies you’re going to need to clean the place before leaving it for the last time.
Defrost and clean your fridge and get all your household appliances ready to move — empty them, clean them, and make sure they’re fully dry and safely wrapped for transportation.
Disassemble large furniture pieces and pack them for shipment.
Make sure you have all valuables and important documents with you.

Moving day

Have a good night’s rest and get up early in the morning to have enough time for last-minute moving tasks.
Double-check your home for forgotten items.
Meet your hired movers and provide them with all the information they need to perform a quick and efficient move.
Keep kids and pets away from the hectic moving procedures.
Carefully read all the paperwork you need to sign.
Prepare some refreshments for your movers and have some cash ready to tip them if you’re satisfied with their work.
Give the truck driver your exact new address and your phone number.
Clean your old home, lock it safely, and bid it farewell. The time has come to set foot on the road to your new life!

Even though most moving tasks are common for all residential moves, you can modify them to meet your personal needs and requirements. Certain aspects of your move will be unique and will require a different approach, so personalize this moving timeline checklist and make it work perfectly for you.

Is Your Home Trying to Kill You? By Joe Szabo, Scottsdale Real Estate Team

May 13, 2017 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Home is where you feel comfortable and safe. It’s where you tuck your kids into bed and lazily watch hours of Netflix on the couch.

Without your care and vigilance, however, your home may develop conditions that can make you severely ill — or even kill you.

Here are five ways your home can potentially harm you, and expert advice on preventing them from affecting your household.

1. Mold

Though mold isn’t a pathogen (a disease-causing agent), it’s still an allergen that you don’t want hanging around your house.

“When people say they have a mold allergy or they have a mold condition, it’s an allergic reaction,” says Peter Duncanson, director of business operations for disaster restoration specialists ServiceMaster Restore. “[Molds] generally considered toxic are ones like stachybotrys, which are black in color — but not all black molds cause the same reactions.”

Molds, including black molds like stachybotrys, form if moisture concentrates in an area where a food source is present, such as skin cells or paper. You know you have mold growing in your home if you smell an earthy, musty scent. Though mold exposure won’t severely harm the average person, repeated exposure is not advised for your health.

“The buildup [of mold] causes a more violent reaction, and those reactions are generally respiratory in nature and pulmonary, so you have trouble breathing,” Duncanson explains. “A very severe reaction to mold, like a bee sting, can be anaphylactic — you can’t breathe, and you go into an anaphylactic shock.”

Luckily, you can prevent mold by keeping your home dry, running the exhaust fan when taking a shower, and purchasing a dehumidifier for the basement in the summer.

If you do find black mold (or what’s commonly referred to as toxic mold) in your home, don’t panic. Contact a professional who can safely remove the mold and eliminate the water source feeding it.

2. Exposed asbestos

Asbestos was a commonly used building material up until the mid-20th century, when it was determined to be a very dangerous carcinogen that causes mesothelioma cancer. Though builders aren’t legally allowed to use asbestos in building materials and other products anymore, traces of it are often found in older homes.

“Asbestos is not harmful to you if you don’t disturb it,” Duncanson says. “The problem arises when you start cutting or doing demolition and asbestos becomes airborne.”

It may be tempting to DIY an open-concept living space in your vintage bungalow, but if your home was built before the 1980s, seek the advice of a professional before you start knocking down any walls. The latency period of mesothelioma cancer can be years, so problems may not arise until much later in your life.

Handling asbestos is a dangerous task, and professionals have the equipment to remove it safely without risking your health.

3. Carbon monoxide poisoning

Carbon monoxide poisoning, which kills thousands of people each year, occurs when there’s too much carbon monoxide in your blood, resulting in tissue damage or death.

Improperly ventilated appliances like stoves, water heaters, or gas appliances release carbon monoxide. Andy Kerns, a home maintenance researcher with Digital Third Coast, says that improperly cleaned chimneys cause smoke to circulate throughout the home, which can also give you carbon monoxide poisoning.

Properly ventilating appliances and cleaning heat sources like wood-burning stoves every year before use should protect you from carbon monoxide poisoning. Call a professional if you have any doubts about the safety and security of your appliances or ventilation within your home.

4. Fire

Seven people in the U.S. die each day from house fires, according to the National Fire Prevention Association. Most of these house fires are caused from normal, everyday use of appliances, candles, and cooking equipment. The most surprising fire starter, however, lives in the laundry room.

“Dryer lint can collect in the dryer and become an electrical fire starter,” says Kern. “Dryers are the number one cause of house fires.”

To prevent house fires, ensure that your appliances have the right rating before you plug them into outlets. Also, always blow candles out after usage and carefully watch the stove when cooking.

5. Slippery bathroom surfaces

The bathroom is often ranked as the most dangerous room in the home. Wet, slippery surfaces often lead to falls that result in anything from embarrassment to a fractured hip.

“Bathtubs, especially, are an area where you can fall and hit your head,” notes Kern. “A lot of people get pretty severely injured in the bathroom, particularly when they’re older.”

As we get older, bathroom safety gets more pertinent, so install things like a grab bar or a walk-in tub for ease of use as you age. Be sure to also wipe down any wet surfaces, and place a bath mat by the sink and the tub to prevent bathroom falls.

Keep tabs on your home

Taking the time to slow down and keep your home safe is essential for any homeowner. Give your home a monthly, semiannual, and annual checkup to keep it in tip-top condition for years to come.

“Given how busy our lives are, and all the different things we have to keep track of in our digital environments, it’s harder and harder to keep some of the physical maintenance issues top of mind. I think a lot of people tend to let things go until there’s a problem,” says Kern. “Don’t leave it up to your memory. Have a good, reliable organizational system that keeps you up to date.”

5 Essential Steps for Buying an Investment Property By Joe Szabo, Scottsdale Real Estate Team

May 10, 2017 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Taking your first step into the world of real estate investment can feel both thrilling and daunting. As with anything new, there’s a learning curve, but with a little time and research, you’ll find the results can be very rewarding.

Before you buy your first property, here are five things you’ll need to do.

Prepare for the down payment and interest rates

Financing the purchase of an investment property is not the same as purchasing an owner-occupied home. Mortgage insurance isn’t available for properties you intend to rent, and you should expect a down payment of at least 20 percent.

Interest rates are different for investment properties, too. Don’t rely on low interest rates for home buyers — make sure you research the investment property rate.

Decide if you want to rent or flip the property

Renting and flipping investment properties require different strategies, so it’s important to know which method you intend to pursue from the beginning.

Flipping a home requires a lot of upfront cash and energy to buy, fix, and sell the home. If you’re able to sell quickly, however, it also offers a faster profit.

Renting requires fewer, less expensive repairs, but it will take longer to make your initial investment back. Rental properties require long-term commitments for maintenance and finding tenants; however, they also offer long-term, more passive income. (See our Rentals Resource Guide for more information on managing a rental property.)

Understand the local economy

A little local knowledge can go a long way. If you intend to rent, it’s especially important to think long-term when buying an investment property. Does the city show a lot of new employment growth? Or does it mainly rely on dying industries? You want an economy that attracts tenants in your rental price range for a long time or one that appeals to quality buyers.

Research goes a long way, but nobody understands a city like a local. Learning the ropes of renting or flipping a property while also learning about a new economy can be overwhelming. It’s often easier to start out by investing in a property near where you already live.

Research the market

If you’ve got your eye on a building, check out similar properties in the area. It’s helpful to approach this task as if you were a buyer or potential renter. Look through local listings to get a firm idea of the going rental rate or asking price for comparable homes or apartments.

Don’t just skim through the prices — dig into the details to get a better look at the current market trends. Are rental properties listing lots of incentives, like free months? Or do they mention a waitlist when you call?

If real estate agents and rental managers are eager to offer incentives, that often indicates a competitive market with too few renters/buyers. If you’re waitlisted or average prices seem higher than usual, there may be more potential lookers than there are available properties.

Factor in repairs and other costs

Your approach to considering properties that need repairs depends on whether you intend to flip or rent the property. For either route, bring in a home inspector who can find hidden problems you might miss like mold, lead, and more.

If you plan to flip, you’ll want to determine the after-repaired value of a property or how much a house could sell for after you do the necessary renovations.

Next, look at repair costs. Factor in both what you can do on your own, and repairs that require a professional. Houses that need mostly cosmetic repairs and renovations will cost a lot less than homes with structural damage or electrical problems.

As you calculate the price of purchase and repairs, don’t forget to include closing and holding costs. Depending on how long it takes to sell, you could end up losing money on the flip if you don’t include these factors in your assessment.

If you plan to rent, it’s best to avoid major, expensive repairs. Because renting is a long-term investment plan, you want to minimize your upfront cost. Thankfully, there are many resources available to help you maximize your investment, such as Success Path.

What Is a Home Warranty, and Do You Need One? By Joe Szabo, Scottsdale Real Estate Team

May 5, 2017 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

First-time homeowners may be in for a shock when their water heater breaks on a cold winter morning, or their dishwasher starts to leak all over the new hardwood floors in the kitchen. The instinctive call to the landlord won’t work this time around. Welcome to the joys of homeownership. So, when this happens, what do you do?

Many homeowners aren’t equipped to perform even small repairs, particularly when they come at inopportune times. For some, a handy family member nearby could do the trick. Or a new home buyer may know a plumber or an electrician — but they likely won’t have a lot of time to get bids and figure out the cause of the problem, much less get it repaired.

What’s the next best thing to a landlord for a new homeowner? A home warranty.

What is a home warranty?

Much like insurance or the extended warranty you buy for your smartphone or flat screen television, a home warranty covers the costs of repairing or replacing almost any malfunctioning system in your home. It typically costs between $300 and $900 a year.

If you had a home warranty, you wouldn’t have to call around to get estimates for repairs when a problem occurs. You wouldn’t have to pay out of pocket to get the problem fixed or have equipment replaced, either.

Instead, you would just call your home warranty provider or submit a ticket online. The warranty company would call the appropriate tradespeople with whom it has made arrangements, and send someone to fix the problem, if possible, or replace the malfunctioning appliance with a brand new one. Your home warranty premium will cover the costs — though you’d probably be responsible for a co-pay of about $50 per incident.

Who should buy a home warranty?

Home warranties are particularly great for first-time Gen X/Y and Millennial home buyers who’ve been renters until now. They’re used to calling the landlord whenever there’s a problem, and a home warranty company takes over that role.

These homeowners are often working long hours, and might not have the time or energy to call around to find a plumber or an electrician to get quotes or bids, let alone wait through the noon-to-4 p.m. window for the repair person to show up.

Sometimes, it takes just one costly and unexpected system repair — and the drama associated with it — to realize the savings of a one-year home warranty.

But home warranties aren’t limited to Gen X, Gen Y or other first-time home buyers. Any owners of any age home can purchase a home warranty at any time.

If you had your home inspected, you’ll know the condition and life expectancy of many of your systems. If some systems are on the outs, you will welcome the home warranty. Many appliances and systems start to break down after 15 or 20 years, and you don’t want to deal with multiple systems falling apart at the same time.

Real estate agents often purchase a home warranty for their clients as a closing gift. If not, you can buy one on your own. Be sure to shop around to compare premiums and coverage. The older the home, the more coverage you will want.

Home warranties are also great for investors or “accidental landlords,” who don’t necessarily want to be in the business of fielding repair calls from their tenants. If you’re not an experienced real estate investor and don’t have a network of repair folks, it might be easier to pay for the home warranty. The last thing you want is a tenant without hot water calling you all day long. If you have a home warranty, you can cut right to the chase, keep tenants happy, and minimize stress.

Home warranties can save home buyers a lot of time and money — particularly in the first year of ownership, when they are short on both.

3 Things You Should Know About Preliminary Title Reports By Joe Szabo, Scottsdale Real Estate Team

May 2, 2017 Joe Szabo

Front Elevated View

By Joe Szabo, Scottsdale Real Estate Team

Among the dozens of records that serve to inform or disclose to the buyer significant knowledge about the property, the title report is one of the most important. It documents ownership, vesting, and detail regarding anything recorded against the home, such as liens, encroachments, or easements.

The title company compiles the report from a search of county records to issue title insurance, and any liens against the property are listed as “exceptions” to a title policy.

Here are three important pieces of the title report you should review carefully.

The legal description

The legal description is everything you won’t see in any real estate agent marketing or advertising. It’s the written description of the property’s location and the boundaries of the property in relation to the nearby streets and intersections.

In the case of a condominium or planned unit development (PUD), the legal description will include the property’s interest in any common areas, exclusive or non-exclusive easements, and details on any parking or storage that conveys with the property.

Here’s an example of a legal description from a preliminary title report of a property:

“Beginning at a point on the Westerly line of Fifth Avenue, distant thereon 250 feet Southerly from the Southerly line of Balboa Street; running thence Southerly along the Westerly line of Fifth Avenue 25 feet; thence at a right angle Westerly 120 feet,” and so on.

Legalese? Absolutely. But it’s precise, and necessary.

Taxes

Property taxes always show up as the primary “lien” on a title report. A property cannot be transferred to a new owner with outstanding property taxes due.

As the top lien, the report will indicate whether taxes are due or paid in full. Taxes must be settled before any debt holder gets paid.

Mortgage liens

Mortgage liens are generally listed directly below property taxes, and they’re always ordered first, second, and third. The largest lien holder generally takes first position.

When a sale closes, the liens must be paid in the order that they appear on the title report. In the case of a short sale, there are not enough proceeds from the sale to pay off the property taxes and all of the lien holders. So one or more lenders will get “shorted” by the amount they’re owed. In order for the sale to close, the lender must agree to the short payoff.

Though this list is in no way exclusive, there are a variety of other items that could show up on a title report outside of taxes and loans.

Easements. If another property owner has access to the property via an easement, it would be recorded on the title report. This stays on the report until both parties agree to remove it. The title company can pull the original easement agreement for review.

CC&Rs. In the case of a condo or PUD, there are Covenants, Conditions and Restrictions (CC&Rs), recorded against the property. Any new buyer purchases subject to the rules and regulations documented in the CC&Rs. This is why it’s important for potential buyers to pull these from the report and review them. Once you’re the owner, you’re subject to those rules.

Restrictions, historic oversights, planning requirements. From time to time, there will be items on the preliminary title report that aren’t run of the mill. If the home is located in a historic district and therefore subject to the rules and restrictions of that community, it will show up on the title. In this case, if there are restrictions about changing the facade of a house or requirements that facade alterations comply with a local historical oversight committee led by the local planning department, a potential buyer needs to know this.

The last word

As a potential buyer, you and your agent or real estate attorney should scrutinize the preliminary title report. You want the title to be delivered as clean as possible.

If the property is subject to special items, or there are issues on the title that would affect your homeownership, you need to know and understand them thoroughly before you close.