By Joe Szabo, Scottsdale Real Estate Team Do you have a bit of a fixer-upper on your hands? Or maybe you’re just ready for a major change? Remodeling your home can be a lot of work, but the results, when done well, are well worth it. Before you get too excited and start tearing down walls and ripping up the floors, read through this guide to keep yourself on track.

Check the space allocation

Having enough space, especially in bathrooms and kitchens, can make or break a home. You can install gorgeous flooring, countertops and fixtures, but if your knees touch the wall or the bathtub when you’re sitting on the toilet, the amenities won’t make up for it. And if you forget to take large kitchen appliances into consideration, you can end up with a cramped space that only looked great on paper. Before you gut the house and start moving walls, take the time to triple check your measurements. Draw out your space with accurate measurements of desired appliances included before you change a wall or buy a tub. Make sure there is enough room for doors to open and close with ease. Ideally, you should be able to open your cabinet door and your oven door at the same time. Remember — it’s easier and less expensive to make changes before you buy new appliances or knock down a wall.

Inspect the structure and foundation

Before you start gutting a home, look for problems that may be hidden beneath the surface. You don’t want to spend a lot of money on new flooring, for example, only to have to rip it out to deal with structure or foundation problems. Put simply, fixing structural problems is hard, expensive, and requires knowledge and experience that the average new flipper or homeowner doesn’t have. Attempting to minimize costs via DIY efforts can lead to mistakes that make the process even more expensive and difficult. This step is particularly important if your home (whether it’s a new-to-you fixer-upper or a house you’ve owned for years) has recently gone through heavy rain or flooding, natural disasters, or pest problems.

Shop around for professionals

Don’t wait until you need a professional ASAP before shopping around — you’ll quickly find yourself at the mercy of whoever is available with marginally good reviews. Before you start your remodel, do your due diligence and find professionals who fit your budget and project needs. You’ll thank yourself in the long run. It’s a good idea to find an electrician and plumber before you start your project. While you can probably learn how to handle small projects like installing an outlet, you’ll need help before your remodel is through. Unless you have a lot of experience, you shouldn’t tackle extensive electrical or plumbing fixes on your own. A trusted home inspector is also a must-have. Here’s a tip: Find an inspector who is used to houses similar to yours in age, design and location. They’ll be familiar with common problems others may miss. And don’t just read the report at the end. If possible, walk through the home with the inspector. You’ll learn more and have the opportunity to ask questions as they come up.

Know what sells houses in your area

If you’re remodeling your house in order to sell it, invest in changes that will help sell the house and increase the sale price. Don’t waste your money on updates that don’t give you a good return on your investment. Do your research. Talk to real estate agents in the area or tour houses in your neighborhood that are for sale. Do buyers looking in the area prioritize large windows or large bathrooms? Do they buy based on roof condition or flooring? Once you identify the factors that help houses in the area sell, build your budget accordingly. This doesn’t mean you can cut corners. Unless a buyer is looking to flip a home, they’ll expect the whole house to be up to a certain standard. However, if you have to pick between hardwood floors and top-of-the-line kitchen equipment, it’s good to know which one will be more likely to lead to a profitable sale. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team Your bags are packed, you’re ready to move and the last thing you want to do is follow your agent’s advice about putting time and money into your listing photos. But if you don’t, your photos could prevent the home from selling quickly. Consider these nine do’s and don’ts to help your listing attract the attention it deserves.

1. Do: Take a shot from the curb.

Keep your home’s curb appeal top of mind. Buyers often decide in a matter of minutes (or seconds) whether they want to keep looking or move on to another listing. Make sure you get the whole house in the shot, and don’t let cars or other objects block your line of sight.

Don’t: Create a landslide.

When taking a shot from the curb, be mindful of your camera’s angle. The roofline should be parallel with the photo’s frame to make it look level — not like there’s a landslide on the property.

4. Do: Capture your home’s selling points.

You may think it’s best to skip the bathroom when taking listing photos, but if yours was recently updated, show it off! Bathrooms are among the first spaces to be upgraded in newly owned homes, and research shows that blue bathrooms sell for more than expected.

Don’t: Capture yourself in the mirror.

While a vanity can be a selling point, you want buyers to picture themselves in the mirror — not you. Stay out of your listing photos by avoiding angles where you or your camera’s flash may be reflected.

5. Do: Stage each room.

The goal is to put your home’s best foot forward. That means staging each roomto sell shoppers on the lifestyle your home offers. Create cozy vignettes in each photo so it’s easier for shoppers to envision themselves living there.

Don’t: Stage a mess.

If there’s one absolute “don’t” for listing photos, it’s capturing a mess. Tidy up each room before taking any photos so your home looks its best.

6. Do: Play up the season.

Even if your home has been on the market for a while, it will feel up-to-date if the photos reflect the season. If it’s summer, take a sunny photo of the backyard. If it’s winter, create a cozy feel with a fire and a warm blanket.

Don’t: Play up your holiday decor.

Over-the-top holiday decor can be a turnoff, especially if buyers don’t celebrate that holiday. Instead, consider ways to decorate for the season as a whole and take photos of rooms without themed decor.

7. Do: Show off the view.

If the view is one of your home’s selling points, you’ll definitely want to show it off. It’s best if you can capture it with a part of the house in the shot, like the deck or porch. That way, buyers can picture themselves there.

Don’t: Show off your pets.

Focus on the parts of your home that will be there when a buyer moves in. Unfortunately, your pets don’t fall into that category, as cute as they are!

8. Do: Show off architectural details.

Archways, beams and other architectural quirks may be hard to photograph, but they give your home character. Try to capture a few of the architectural details if you can.

Don’t: Show off architectural blunders.

Every home has its blemishes, but that doesn’t mean you have to capture them all in the photos. The listing is the time to put your best foot forward — the open house and inspection are when the buyer can take note of the imperfections. You may also want to consider making a few small improvements, like updating the bathroom, before listing your home.

9. Do: Take a night shot with the lights on.

While it’s easy to assume daytime shots are ideal, a nighttime exterior shot can create the right amount of contrast to make your photos stand out. The key is to leave your home’s interior and exterior lights on while you take the photo.

Don’t: Capture a dark room.

When it comes to interior photos, you want all the light you can get. Use lamps and daytime window light to make your photos as bright as possible while still looking natural. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team Buyers making a cash offer on a house are active in many markets, and they can strike fear in new buyers who are bidding on a home. Cash home buyers can perform and close quickly and provide sellers with a sense of comfort. But does this mean a solid buyer putting down 20 percent or more shouldn’t attempt to compete with cash home buyers? Absolutely not.

What if you can’t make a cash offer on a house?

The truth is, a buyer getting a mortgage can still compete against cash home buyers and win. These are the questions that can make the difference:

• Do you have a 20-percent down payment?
• Are you well employed?
• Do you have cash reserves in addition to your down payment?
• Do you have very little debt?
• Do you have good credit?

If you answered yes to most or all of these questions, your purchase should be as bulletproof as a cash home buyer’s.

How can you compete against cash home buyers?

• Be up front about your finances. Make your competitive offer as strong as cash by providing the seller the confidence they need to accept your offer. In addition to a pre-approval letter from your lender, be open to allowing your agent or lender to provide financial information with your offer. Tell them what you make, and how much money you have in the bank. Show bank statements and even a copy of your credit report. Overload the seller to show them that you’re as solid as the cash buyer.
• Ask your lender to get a head start on the mortgage. See if your mortgage professional can move the process along sooner. Send the lender a copy of the preliminary title report, if available. If you’re buying a condo, find out if a condo questionnaire is available and give it to your lender. If you take any of these steps, let the seller know. Of course, if you have not already, provide the necessary financial documentation to your lender right away.
• Shorten the loan and appraisal contingencies. Ask your lender how quickly they can send an appraiser to the property, and how long the loan would take to turn around. In some parts of the country, loans are being approved in less than 14 days — sometimes even 10.
• Pre-order an appraisal. This may not be as easy with a bigger bank. But smaller banks, direct lenders or mortgage brokers can line up the appraisal in advance. At the time your offer is written, tell the seller the appraisal has already been ordered. If you can get the appraiser out within 24-48 hours of coming to terms with the seller, it’s half the battle.
• Inspect quickly. Along with the quick appraisal and loan contingencies, get your inspector in and out. Shelling out a few hundred dollars and getting the inspections done within days of having your offer accepted shows the seller you mean business. It also gives them comfort that they’ll get over the biggest hurdle quickly.
• Overpay. Cash buyers nearly always expect a discount from the seller simply because they’re offering cash and are a sure thing. As a result, the cash buyer will often make a lower offer. To increase your chances, top the cash offer, even if means paying a little more than you think the home is worth. If a seller is faced with a few thousand dollars’ difference, the seller probably wouldn’t risk it. But what if your offer is five percent higher than the cash buyer’s? The seller, perhaps wanting the best of both worlds, may ask the cash buyer to raise his or her offer. Some cash buyers will offer more, but not always enough to match. If you plan to live in the house for many years and it’s the home of your dreams, paying a little more to get the deal might only translate into $20 per month over the course of a long-term mortgage.
• Make yourself known to the seller. Some buyers write “love letters” to sellers, hoping to appeal to their personal side. Does this work? Sometimes! If you’re competing with a cash buyer, particularly an investor who plans to rent the home out, it can’t hurt to get a little personal with your real estate offer letter. The seller almost always wants to know more about the potential buyer. Ask your agent to write a cover letter and an introduction. Let the seller know who you are, why you like the home and what your intentions are.

Do the best you can and be realistic. Make sure your financial “‘house” is in order. Work with a good local real estate agent, and start working with a local mortgage professional well in advance. Structure your offer to show that you’re ready to roll. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team While a bathroom might not be the first room a potential home buyer asks to see, it can make or break the sale. Here are five common mistakes both rookie and seasoned flippers and homeowners make when renovating a bathroom.

Mistake 1: Ignoring proper spacing and layout

Bathrooms may seem straightforward, but a lack of spatial awareness in the renovation planning stages can lead to problems down the road. Remember: Just because you can fit something into the bathroom design doesn’t mean it can function within that space. Always keep function in the forefront of your mind and in your design. For example, if you choose a shower with a door, your bathroom layout should leave plenty of room for it to fully open. No potential home buyer will want to squeeze out of a partially opened shower door every morning. Other considerations include providing enough space to comfortably get on and off the toilet, open cabinet doors, etc. Spatial considerations also include making sure elements of the room are close enough together to function. For example, the toilet paper holder should be within a child’s arm’s reach of the toilet, and outlets should be easily accessible from the counter.

Mistake 2: Choosing the wrong materials

Because of the sink, toilet and shower, bathrooms deal with more moisture than any other room in the house. Homeowners also use many of the strongest cleaning products on bathroom surfaces. Both of these factors, if not taken into consideration, can lead to significant damage if you don’t select the right materials for the job. Go with materials that can stand up to harsh cleaners and are not highly susceptible to mold, warping or distortion. Avoid porous materials that will retain moisture and allow hidden mold to grow.

Mistake 3: Ignoring storage space

No one complains about having too much storage in the bathroom. When planning a bathroom remodel, incorporate plenty of storage space into the design. Consider how many people will use the bathroom. Don’t make the mistake of providing only enough bathroom storage space for one person in a 4-bedroom house. Additionally, most people prefer a bit of privacy with bathroom storage, so a set of floating shelves, while helpful, will not be sufficient on its own.

Mistake 4: Forgetting about ventilation

Ventilation isn’t a glamorous part of a bathroom renovation, but it is essential. Forgetting to work in enough ventilation can lead to mold, mildew and other costly problems in the future. It can also make a bathroom uncomfortable if it’s not properly ventilated during or after a shower. If possible, work in a combination of natural and artificial ventilation sources. A well-placed window can go a long way, but it won’t be very helpful during cold winter months, when a homeowner won’t open it. Make sure to install a quality ventilation fan that can handle the size of the bathroom.

Mistake 5: Putting off lighting plans until the end

Many people think of lighting as a finishing touch to a renovation. While lighting is often installed later in the process, you should plan your lighting fixtures at the beginning of the renovation. Bathrooms are often where people get ready for the day, which is why lighting is essential. Recessed lighting can create shadows on your face in the mirror, and the last thing you want when trying to sell a bathroom is unflattering lighting. Waiting until the end to address lighting can also lead to dark patches within the bathroom. Depending on your preferred shower style, you may or may not need lighting above the shower or tub. Similarly, no one wants to use the toilet in darkness. When drawing up your plans, consider what type of lighting will best accommodate your space and room design. Making adjustments in the planning stages will be much easier than making them at the end of a project. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team For most Americans, their home is their most important financial asset. But in the past, homeowners only knew how much it was worth when they bought or sold their home. Zillow was founded to democratize this sort of information — starting with the Zestimate, Zillow’s estimated market valuation tool. To understand how much your home is worth, it’s important to understand the variety of factors that go into assessing the value, both existing (assessed and appraised) value, as well as potential real value on the market. The Zestimate is Zillow’s tool for extrapolating real market value of your home based on existing home-related data and actual sales prices in your area. Thousands of data points correlate with home values and sale prices — some of which are obvious (like the condition of the home), and some that aren’t so obvious. Here are several surprising things that can affect either the existing value of your home or the price someone is willing to pay for it, all based on data.

1. How close you are to a Starbucks

How far do you have to drive to get a Frappuccino? If the answer is “not that far,” you’re in luck. A 2015 Zillow report found that, between 1997 and 2014, homes within a quarter-mile of a Starbucks increased in value by 96 percent, on average, compared with 65 percent for all U.S. homes, based on a comparison of Zillow Home Value Index data with a database of Starbucks locations. To evaluate if this effect is isolated to Starbucks, or if it extends to other caffeine purveyors, the research team also looked at another coffee hot spot (one with particular pull on the East Coast): Dunkin’ Donuts. The analysis of that data showed that homes near Dunkin’ Donuts locations appreciated 80 percent, on average, during the same 17-year period — not quite as high as homes near a Starbucks, but still significantly above the 65 percent increase in value for all U.S. homes.

2. Blue kitchens and blue bathrooms

Beyond America’s obsession with lawns and all-around “curb appeal,” what’s inside your house counts a lot, too — especially the colors you’ve painted the rooms (particularly the kitchen). According to Zillow’s 2017 Paint Color Analysis, which examined more than 32,000 photos from sold homes around the country, homes with blue kitchens sold for a $1,809 premium, compared to similar homes with white kitchens.

Blue is also a popular bathroom shade. The same analysis found that homes with light pale blue to soft periwinkle blue bathrooms sold for a whopping $5,440 more. Walls painted in cool neutrals like blue or gray can be signals that the home is well cared for or has other desirable features.

3. Trendy features

Joanna Gaines’ aesthetic is permeating more than just your YouTube search history. Zillow listings mentioning some of the shiplap queen’s favorite features — keywords like “barn door” and “farmhouse sink” — sell faster and for a premium, according to a 2016 Zillow analysis of descriptions of more than 2 million homes sold nationwide. Listings with “barn door” in the description sold for 13.4 percent more than expected, and 57 days faster than comparable homes without the keyword. Meanwhile, listings touting “farmhouse sink” led to a nearly 8-percent sales premium. This “barn door” effect doesn’t seem to increase the value of the home off the market, but is seemingly due to the popularity of this style at the time of the analysis. Sellers can use the listing descriptions to highlight trendy details and features that might not be noticeable in the photos.

4. How close you are to a city

If you own a home in a major metropolitan area in America, you’re most likely sitting on a significant (and rapidly appreciating) financial asset. Case in point: Home values in the New York, NY metro area are worth $2.6 trillion, per a recent Zillow analysis — which is more than the value of the entire French economy. The average urban home is now worth 35 percent more than the average suburban home. Since 2012, the median home value in urban areas have increased by 54 percent, while in suburban areas the median home value is up 38 percent. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team In 15 years of real estate, I can honestly say that I’ve seen it all. Toilet seats up in listing photos, shag carpet covered with dog hair, bedrooms doubling as marijuana growing centers, and avocado green appliances from the ’70s. Sellers aren’t required to get their homes in their best condition before showing them — let alone cleaning their home before listing. But one seller’s laziness can spell a giant upside for the right buyer. Here are three sights that may be off-putting when you’re shopping for a home, but shouldn’t stop you from considering making an offer — particularly if you love the home, layout or location.

Odd wallpaper and dirty carpet

Today’s buyers generally prefer a home that’s turn-key or move-in ready. They’re too busy with their day-to-day lives to take on a renovation — and this is especially true for the continuously connected, mobile-ready millennial home buyer. But painting walls and replacing carpets isn’t always time-consuming or expensive, and you can do these projects before moving in. If a seller won’t replace their shag carpet or paint the interior a neutral color, they’re shooting themselves in the foot. A fresh coat of paint and finished floors or new carpet won’t break the bank or take more than a week, and the end product will be a like-new home for you to move into.

Rooms being strangely used

It’s not uncommon to see a home’s dining room transformed into a full-fledged office. Some homeowners even have a bedroom doubling as a walk-in closet. I once saw a first-floor bedroom turned into a wine-tasting room. Just because the homeowner uses these spaces in a way that suits them, doesn’t mean you have to. These rooms might stand out as odd to you, but try to forget that the seller lives there. Once they’ve moved out, the dining room will be a space that just needs a great light fixture and table. The walk-in closet can be turned back into a bedroom in less than a day.

A too-strong seller presence

It’s difficult for a buyer to imagine themselves in a home if it’s full of the seller’s photos, diplomas and other personal belongings. The best homes for buyers are those that are neutral and lacking any items specific to the owner. What’s worse is when the seller is present at a showing. It makes everyone uncomfortable. The buyers feel like they need to be on their best behavior and can’t explore the house, dig deep into closets or cabinets, or feel free to talk out loud about what they see. A home that is too personalized or where the seller is always present can sit on the market and get a bad reputation over time. A smart buyer will use that to their advantage and snag it below the asking price. Sellers who sabotage their home sale — whether intentionally or not — leave money on the table for the buyer. But typical consumers today have a hard time seeing through a seller’s mess, personalized design style or custom changes. If you see a home online that’s in a great location with a floor plan that’s ideal, go see it. Ignore the things you can change, and think about whether you can make the home your own. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team A generation ago, few would consider trekking out in a foot of old dirty snow to shop for a home on the weekend. But with our always connected, information-flowing society, today’s buyers shop and make deals all year long. If you’re a buyer looking in a part of the country where you may not see a home’s front lawn until May, keep these points in mind as you shop.

Seeing a home at its worst is a plus

Let’s face it, no home shows at its best in the middle of the winter. It’s cold, dark and often wet. And that’s great news for the buyer. Why? Because you can discover its flaws, such as a lack of privacy, abundant street noise, leaks or drafty windows. You’ll see the home in its worst “light” — and in some cases, you’ll realize it’s just too dark or exposed. Come spring, the flowers, grass, landscaping and foliage will only enhance the home.

You can ask to see summer or fall photos

Smart listing agents get exterior photos from their sellers to show off the pool, lawn, flowers, and gardens in bloom. Even though they’re listing in January, they should promote the home’s assets from other times of the year. If the listing doesn’t include photos, ask to see some. It means fewer surprises when the snow melts, the ground thaws, and it’s now your home and your responsibility.

What about features you’re unable to test?

If the home has a pool that can’t be inspected because the seller closed it for the winter, you need to request that they leave money in escrow or extend the closing time frame. When warm weather returns, you can inspect the pool and its systems to be certain it’s in good working condition, and free of leaks or damage. Unless a seller provides a disclosure about some part of the pool not working, they’re responsible for remedying any issues. If all works out, the attorney or escrow company will release the funds.

Documentation can help alleviate uncertainties

Frozen ground prohibits digging for contaminates of previous underground oil storage tanks. And homeowners typically winterize sprinkler systems, accessory apartments or cottages. In the event you can’t inspect every feature or get escrow funds negotiated, ask for documentation. The plumbers, pool company and outside vendors should have records, so you can request documentation showing that all was shut down or closed out properly. Even better, ask to meet with the tradespeople who did the work.

It doesn’t hurt to ask

Although homes sell all year-round, it takes a determined customer to trek through the snow and ice to initiate a real estate transaction. For the right house, a winter purchase could spell opportunity. Double up on due diligence, and don’t be afraid to ask for a longer closing or to arrange to have the home inspected come spring. Everything is negotiable, so smart buyers should protect themselves. Once a deal closes, there is rarely sufficient recourse. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team Even with new homes, things can go wrong. That is why many buyers of newly built homes are interested in warranties, which promise to repair or replace certain elements of the home. Many home warranties are backed by the builder, while others are purchased by builders from independent companies that assume responsibility for specific claims. In other cases, homeowners purchase coverage from a third-party warranty company to supplement coverage provided by their builder. In fact, the Federal Housing Authority (FHA) and the Department of Veterans’ Affairs (VA) require builders to purchase a third-party warranty as a way to protect buyers of newly built homes with FHA or VA loans. The key to any of these warranties is to understand what’s covered, what’s not covered, how to make a claim and the process for resolving disputes that might arise between you and the builder or warranty provider. Most warranties for newly constructed homes offer limited coverage on workmanship and materials as they relate to components of the home, such as windows, siding, doors, roofs or plumbing, electrical and HVAC systems. Warranties typically provide coverage for one to two years, although the specific time period may vary by from component to component; coverage may last up to a decade on major structural elements. Warranties also routinely define how repairs will be made and by whom. Warranties generally do not cover household appliances, tile or drywall cracks, irrigation systems or components covered under a manufacturer’s warranty. Most warranties also exclude expenses incurred as a result of a warranty repair construction, such as the need to store household belongings while a repair is being made. Before you close on your new home purchase, you should ask your builder – or your third-party warranty provider – these questions:

• What does this warranty cover?
• What is not covered by this warranty?
• What’s the process or timeliness if I have a claim?
• Is it possible for me to dispute your decision to deny a claim?
• What is the extent of your liability?
• Can you refer me to other new home owners with whom you’ve worked so I can speak to them about warranty coverages?
• Where are some of you previous projects so I can speak with owners there?

The information you gain may not be enough to send you running from your new home deal, but it should help you understand where you’ll stand if you ever need to file a claim. You should also check with your state’s Attorney General Office or contractor licensing board to make certain your builder is offering all warranties he’s required to provide. To learn more about builders’ warranties, contact your state or local builders’ board. If you’re making your home purchase with an FHA or VA loan, those organizations can also provide you with additional information. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team Searching for a home and engaging with a real estate agent today is not the same as it was a generation ago. The space (both physical and virtual) between the buyer and the real estate agent was much larger, and coming together was slower and more methodical. If a buyer saw a For Sale sign or an ad in the paper, they might call the real estate agency’s office, get some information, and move on. Or they could walk into an open house solo. They could be rather anonymous. But today’s home buyers live online. They can click, text or email with agents, and seriously engage within hours. But does that mean they are active and serious buyers ready to transact? Not necessarily.

The real estate agent’s experience

Meanwhile, real estate agents, who are commission-only independent contractors, will sometimes drive around for hours showing homes. They may take these buyers around for days or weeks, thinking they have a live client they can help. They might make an offer or two on behalf of the customer, even be present at a two- to three-hour-long home inspection … all before the buyer decides to back out. They may buy a different house from the agent, or they may not. Well-intentioned, hardworking agents can end up feeling like their time isn’t valued — particularly when they never hear from that buyer again.

Who’s responsible?

Is it incumbent on the agent to be better at time management and qualifying their potential buyer clients? Or should the buyer be clear with the agent early on if they aren’t serious just yet? I think that the consumer comes first, and it’s up to the agent to better qualify — as best they can. But it’s also part of the business, and par for the course. Agents sign up for a sales job, and they can’t win every deal. They need to ask lots of questions of their new “client” before offering up their time and cashing a paycheck that doesn’t exist. Some consumers relish the attention they receive from this new “friend” who will drive them places, show them around, and teach them something new about the world of real estate. If the buyer isn’t paying for the agent’s time, the reasoning often goes, why not take a few rides and see some great houses? But soon-to-be homeowners should be mindful of their intentions, and considerate of the resources the agent is delivering.

So what’s a buyer to do?

Should everyone stop looking online or clicking the “Contact Agent” button? No way. Consumers should always feel free to click away, ask questions and gather information. But they should be mindful of how things work once they start seriously engaging. Most buyers don’t realize that there is a process to buying a home, and that it rarely happens overnight. From the time they first click on the photo of the killer master bathroom until they get the keys, it might be one year and three dozen (or more) house tours. And if things don’t feel right with the agent with whom you engage early on, move on. Keep researching independently, or get a referral for a good local agent. Or, better yet, just go with the flow and the right agent will come along organically.

And what about agents?

Real estate professionals need to understand that one text, click or email does not make an active buyer. A good agent has a handle on the sales process, and asks buyers lots of questions to get a read on them. A good agent fills their sales funnel with a mix of folks in all parts of the home buying process. Early on, an agent needs to be a guiding light, resourceful and ready to answer questions. As some of their buyers get more serious, smart real estate pros know where to direct their attention. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team Navigating the purchase of a home can be overwhelming for first-time buyers. Lenders require documentation of seemingly every detail of your life before granting a loan. And of course, they will require a credit check. A question many buyers have is whether a lender pulls your credit more than once during the purchase process. The answer is yes. Lenders pull borrowers’ credit in the beginning of the approval process, and then again just prior to closing.

Initial credit check for preapproval

In the first phase of acquiring a loan, pre-qualification, you’ll self-report financial information. Lenders want to know details such as your credit score, social security number, marital status, history of your residence, employment and income, account balances, debt payments and balances, confirmation of any foreclosures or bankruptcies in the last seven years and sourcing of a down payment. This is only a portion of the total information needed for your mortgage application. Once you’re ready to get preapproved for a loan, lenders will verify your financial information. During this phase, lenders require documentation to confirm the information in your application and pull your credit history for the first time. You may be required to submit a letter of explanation for each credit inquiry in recent years, such as opening a new credit card, and for any derogatory information in your history, like a missed payment. Once you find a home within budget and make an offer, additional or updated documentation may be required. Underwriters then analyze the risk of offering you a loan based on the information in your application, credit history and the property’s value.

Second credit check at closing

It can take time for your offer to be accepted, and for your loan to pass underwriting. During this period from the initial credit check to closing, new credit incidents may occur on your history. Many lenders pull borrowers’ credit a second time just prior to closing to verify your credit score remains the same, and therefore the risk to the lender hasn’t changed. If you were late on a payment and were sent to collections, it can affect your loan. Or, if you acquired any new loans or lines of credit and used those credit lines, your debt-to-income ratio would change, which can also affect your loan eligibility. If the second credit check results match the first, closing should occur on schedule. If the new report is lower or concerning to the lender, you could lose the loan. Alternatively, the lender may send your application back through underwriting for a second review. It’s important for buyers to be aware that most lenders run a final credit check before closing, so the home-buying window is a time to prudently mind your credit. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.