Joe Szabo, Author at Scottsdale Real Estate Team / Arizona Luxury Homes

Create an outdoor dining space to add value to your home By Joe Szabo, Scottsdale Real Estate Team

January 13, 2014 Joe Szabo

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By Joe Szabo, Scottsdale Real Estate Team When you buy a Scottsdale home, it is your space to live in and enjoy and you can renovate and redecorate in order to improve your surroundings in any way that you choose. One of the ways that you can enhance your enjoyment of the property as well as add to the value of the home is to create an outdoor dining space. On a beautiful summer day, what could be nicer than having a place where friends and family can gather and enjoy a few drinks, barbecue up some tasty food and breathe the fresh air? Here are some tips to keep in mind when you are adding an outdoor dining space to your home:

·Choose the right location. You want your backyard dining area to be peaceful, quiet and private, so find the best spot on your yard that will be screened from view and sheltered from street noise.
·Clear a space. Choose an open area where you can place the outdoor dining table. If you put it underneath a tree, you run the risk of having leaves, sap, or insects drop into your food!
·Lay the groundwork. Create a patio surface with stones or tiles first, which will give you a stable and flat place to put your table, chairs and barbecue.
·Invest in sturdy furniture. Outdoor tables and chairs take a lot more wear from rain, sun, and the elements than their indoor cousins. Make sure you buy solid items that will last you many years.
·Create some shade. If you want to enjoy yourself even in the direct heat of the afternoon, add a sun umbrella to your table. There are many different styles, and many can be adjusted and tilted to provide shade as the sun moves through the sky.
·Make sure your barbque or cooking area is in a safe spot. Check that it is nowhere near anything flammable, or that it is not too close to trees or the side of the house.
·Decorate and set the scene. Improve the surroundings of your backyard dining room with some beautiful flowers, a fountain or a tranquil rock garden.

Once you have created the ideal outdoor space, it’s time to invite some good friends over to have a few drinks, barbecue up some burgers and relax! 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.

Rising demand for new construction presents opportunities for real estate agents By Joe Szabo, Scottsdale Real Estate Team

January 10, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Do you know what niche has a demand so large that it could someday account for up to 35 percent of all sales? You may be surprised to learn that niche is new construction. Laurence Yun, chief economist for the National Association of Realtors, predicts that in 2014 there will be approximately 5.1 million home sales. This is about the same pace as 2013. While new-home sales had a 25 percent increase from 2012 (from 400,000 to 500,000), they still accounted for less than 10 percent of the total sales in 2013. Demand is outpacing new-home construction Yun predicted that while housing starts will increase by 25 percent to about 625,000 in 2014, to keep pace with the demand, new-home starts would have to increase by another 50-60 percent. A Harvard study estimates the shortfall to be approximately 1.8 million new homes per year. Majority of buyers would consider buying new construction A builder consortium that included 32 builders across 25 markets found that 54 percent of the buyers surveyed said they would consider purchasing new construction. A sales pace of 5.1 million units translates into 2.75 million home purchasers who would like to consider new construction as part of their home search. Given that there will be only 625,000 actual new units built, the potential shortfall could be more than 2 million new homes. What can you do to capitalize on this opportunity? 1. New-home sales drive resales The National Association of Home Builders reports that 70 percent of their buyers have an existing home to sell. The agents who represent builders seldom take outside listings. This means that if you represent new-home purchasers, you have a very high probability of listing their home as well. A second opportunity occurs when the builder has sold out most of its inventory. In many cases, the builders close down their sales office and then list the final one or two properties with an outside agent. If you have been actively showing and selling that builder’s product, there’s a good chance you may obtain that listing as well. 2. Infill: the real opportunity While many agents would like to represent the big builders, most fail to realize that the greatest opportunity may be with small builders. While it takes special training to represent a large builder, which often includes being able to lay out changes to blueprints, the real opportunity for most agents is with “infill.” The term “infill” refers to creating new construction in areas that are already built out. This opportunity is greatest in major metropolitan areas. In fact, the prediction from NAR’s new-home panel was that by the end of 2014, 30 percent of all new construction would be due to “infill” properties. These smaller projects are usually of no interest to big-name builders and also fly under the radar of most real estate agents. One of my former real estate partners in Los Angeles capitalized on this approach by working with several different condominium developers. Sometimes the builder found the property, or my partner located it. Prime targets for acquisition might be three houses on adjoining lots with zoning that would allow for six to 12 units on the property. Other times, the opportunity might be with two adjoining fourplexes where the property could be zoned for 20-24 condos. This agent not only sold the units, she also obtained listings on what the buyers had to sell. Even after the project was sold out, she continued to be the listing agent of choice for her past buyers when they decided to move. You can take advantage of this opportunity by becoming an active member in your area’s local builders association. Familiarize yourself with the zoning laws, environmental requirements, absorption rates, and the spread between the property’s current value vs. what it could bring once it’s replaced with new construction. Your goal is to make yourself the indispensable expert. Help the builders you meet keep abreast of what is occurring in the market, where it is trending, as well as how quickly their project may sell once they complete construction nine to 24 months from now. 3. Single-family opportunities An entirely different option is to locate foreclosures or dilapidated properties that can be acquired for lot value, torn down, and then replaced with new construction. This is an especially good option in many luxury markets, since most of these areas are already built out. The beauty of working with a smaller builder is that you obtain a commission on the land sale and on the listing side once the property is built out, as well as possibly selling it to a buyer who has another property to sell. That’s a total of four commissions! 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.

Reasons why that extra bedroom might be worth it by Joe Szabo, Scottsdale Real Estate Team

January 7, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team You are looking at buying a Scottsdale home, but you are wondering whether or not it is worth it to pay a little extra for a home with one more bedroom. It’s a tough decision to make, especially when balancing other factors such as location, price and the other features of the home. However, having one more bedroom than you think you need could end up being a good thing for a number of reasons. Expanding Family Perhaps you only planned on having two children, but a third one might come along as an unplanned surprise… will you have enough room for everyone? One of your children’s friends might have a bad home situation and need a place to crash for a while. One of your elderly parents might need to live with you for a while. There are many situations when the family living under your roof might expand, (even if it’s just having guests over the weekend or holidays) so make sure that you have the space to accommodate. I posted an earlier blog on buying a home for guests that might be of interest. Search www.arizonasrealty.com for my other blogs. A Home Office If you are working from home or have your own business, a private space in the home to work can be worth its weight in gold. It’s really difficult to be productive when you are trying to work at the kitchen table with the rest of the family buzzing around you, so turn your extra bedroom into a home office.

Resale Value Buying a slightly larger house with one more bedroom means that the home will be easier to sell in the future. This is especially true if all of the other homes in the area have similar amounts of bedrooms. Buyers these days want more rooms and an added bedroom gives them options that could be the deciding factor between yours and the home down the street. 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.

Low-End Home Prices More Useful in Predicting Big-Picture by Joe Szabo, Scottsdale Real Estate Team

January 4, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team In the most recent issue of CoreLogic’s MarketPulse on-line magazine Sam Khater suggests that low-end home prices can be useful in predicting the future direction of all home prices. Analysts, he says, frequently base their forecasts on aggregate national price trends or on geography. The former can sometimes mask large changes in different price segments that could provide useful information. Khater uses the example of low-end prices hitting bottom in March 2011, nearly a full year earlier than the trough for high-end properties and for prices overall. “Not only can turning points be different,” he says, “so can the momentum in low-end versus high-end price changes.” Pre-crisis year-over-year house price increases peaked at 19.3 percent for low-cost houses in March 2005 then decelerated to 9.3 percent 12 months later. On the high-end of the price range however, prices in March 2005 were up 15.2 percent from the previous year and 12 months later the annual increase was still 10.8 percent. Khater says that looking at high versus low-end price trends reveals that low-end changes and levels lead high-end counterparts by six months to a year and that prices at the low-end are much more volatile than those at the high end. The latter occurs because there are three major buyers at that price level; first-time buyers, lower income repeat buyers, and investors. Although there are different reasons, each segment is more sensitive to economic trends than high-end buyers. The high-end/low-end variances are more marked still when viewed on the metropolitan statistical area level. The author looked at prices in 21 geographically diverse markets and found that over the last six months low end price growth decelerated in six while high-end slowed in four. But while that is not a significant number, the intensity at the low end was very large compared to the high end. In Boston for example the annual price increase in March 2013 was 17.0 percent, in September it had dropped to 4.2 percent. High-end prices in contrast have risen in recent months. Likewise in Las Vegas the price grow on the low end has decelerated from 34.1 percent in March to 25.9 percent in September and in Phoenix from 23.3 percent to 15.5 percent. Among the 21 markets studied for high-end patterns the largest decrease was in Phoenix, a decline in growth from 16.2 percent to 14.6 percent.

There are some markets where low-end price increases have picked up over the referenced six month period. Khater singles out Chicago where prices went from flat to a 9.8 percent annual increase by September. Chicago has also shown the most rapid growth in owner-occupied home purchases over the last two years of any market in the country. Raleigh, North Carolina has gone from a 1.4 percent annual loss in March to a 9.1 percent gain in low end prices. On the high-end the strongest acceleration has been in California, particularly San Diego and Riverside. Khater says that while there are caveats, lower end home prices are clearly decelerating, especially in the Southwest and that “the magnitude of the declines presages lower growth for prices overall.” When prices bottomed out in early 2012 prices on the low end were still 14 percentage points (growth rate) above those on the high end; currently the difference is 22 percentage points, the biggest gap in two decades. “This indicates that the low-end price correction is over and overall price growth will be markedly slower heading into 2014.” 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.

30-Year Fixed Mortgage Rate Declines for First Time in 6 Weeks By Joe Szabo, Scottsdale Real Estate Team

January 1, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team The 30-year fixed mortgage rate on Zillow Mortgage Marketplace is currently 4.38 percent, which is down slightly from last week, but up eight basis points from 4.30 percent at this time two weeks ago*. The 30-year fixed mortgage rate steadily rose during the past two weeks, peaking at 4.43 percent last Wednesday before dropping to the current rate this morning. “Rates were essentially unchanged last week after gradually climbing back up during the past few weeks to approach the three-month high we saw in September,” said Erin Lantz, director of mortgages at Zillow. “This week, we expect rates to remain at this higher plateau until normal market activity returns after the New Year’s holiday.” Additionally, the 15-year fixed mortgage rate this morning was 3.34 percent and for 5/1 ARMs, the rate was 2.93 percent. What are the interest rates right now? Check Zillow Mortgage Marketplace for mortgage rate trends and up-to-the-minute mortgage rates for your state.

Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [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.

Merry Christmas! from Joe Szabo and the Scottsdale Real Estate Team

December 23, 2013 Joe Szabo

Merry Christmas from all of us at Scottsdale Real Estate.

We hope your holidays are unforgettable!

How to Negotiate Repairs After a Home Inspection By Joe Szabo, Scottsdale Real Estate Team

December 19, 2013 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Most would-be buyers and sellers believe the real estate “deal” is negotiated at the signing of the contract. By that point, the counteroffers have been made and the back and forth has happened, so it’s easy to assume that the deal will go on auto-pilot until closing. The reality, though, is that in many cases, the deal-making and negotiations only start at the contract signing. Even in more competitive real estate markets, negotiations still happen once in escrow. For example, if you’re a buyer, the property inspection or sellers’ disclosures — maybe the HVAC system has some issues — may prompt you to seek a credit. But where do you go from there? Here are three tips for negotiating repairs after a home inspection.

1. Ask for a credit for the work to be done

The sellers are on their way out. If the property is moving toward closing, they’re likely packing and dreaming of their new home. The last thing they want to do is repair work on their old home. As a result, they may not approach the work with the same conscientiousness that you, as the new owner, would. They may not even treat the work as a high priority. If you take a cash-back credit at close of escrow, you can use that money to complete the project yourself. Chances are you may do a better job than the seller, too. Finally, if you get the credit, there will be less back and forth to confirm the work has been done.

2. Think ‘big picture’

If you know you want to renovate a bathroom within a few years, then you likely won’t care that a little bit of its floor is damaged, that there’s a leaky faucet or that the caulking needs to be redone. These things will get fixed during your future renovation. However, the repairs are still up for negotiation. Asking the seller for a credit to fix these issues will help offset some of your closing costs.

3. Keep your cards close to your chest

A good listing agent will walk the property inspection with you, your agent and the inspector. Revealing your comfort level with the home or your intentions, in the presence of the listing agent, could come back to haunt you in further discussions or negotiations. For example, if you mention you’re planning a gut renovation of the kitchen, the sellers will certainly hear about it. And they’re going to be less likely to offer you a credit back to repair some of the kitchen cabinets. Also, if the listing agent hears you tell the inspector that you love the home so much you don’t mind replacing the HVAC system, the agent will surely let the sellers know about that.

Eyes wide open

A word of caution: You should never complete the original contract assuming that you can negotiate more as a result of the property inspections. If it’s a competitive market and the property inspection comes back flawless, there’s nothing to negotiate. If you attempt to negotiate anyway — to recoup what you lost in the initial contract negotiations — you risk alienating the sellers and possibly giving them an incentive to move on to the next buyer. You need to go into escrow with your eyes wide open. A real estate transaction is never a done deal until all the money has been wired in and the deed transferred. Prior to signing the real estate contract, your main concern is that you may be competing with other buyers. Once you’re in escrow and doing inspections, however, it’s just you and the sellers. Stay on your toes. Otherwise, you may risk losing out on further viable negotiation opportunities, which could lead to buyer’s remorse. 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.

Phoenix area will be among the fastest growing metro regions next year By Joe Szabo, Scottsdale Real Estate Team

December 16, 2013 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team A new national report predicts the Phoenix area will be among the fastest-growing metro regions of the country next year, posting figures well ahead of the more-plodding gains forecast by Arizona’s economists. The report, released Monday for the U.S. Conference of Mayors, suggests the housing industry will again lead the Phoenix area’s relatively rapid growth in 2014. It predicts 3.3 percent growth next year for the Phoenix area in terms of gross metropolitan product, a measure of all the goods and services produced in an area. It also projects 2.8percent employment growth over the next year. By comparison, earlier this month, the Arizona Office of Employment and Population Statistics was calling for 2.6 percent employment growth in the Phoenix area. Nationally, the report predicts 1.7 percent economic growth this year and 1.6 percent among metro areas. Next year, it predicts 2.5 percent for national and metro growth. Mesa Mayor Scott Smith, who is the president of the Conference of Mayors, acknowledged the report “may be more bullish on metro areas.” But the Phoenix area “economy is more diverse than people give us credit for,” he said. Jim Diffley, senior director of U.S. regional economics for IHS Global Insight, said the area’s new growth remains at levels well below those seen during the frenzy of the housing bubble. “There’s a lot of pent-up demand out there,” Diffley said. The Phoenix area’s gross metropolitan product this year is about $210 billion and should pass metro Detroit as the 14th largest in the country, according to Diffley’s analysis. In an effort to underscore the value of metro areas, the report also compares the largest to states and nations. The Phoenix area economy is larger than Oregon and 25 other states. It is also bigger than the nation of Peru, the report found. The Tucson area ranks 69th in the nation. The Phoenix metro area accounts for 76 percent of Arizona gross state product. Tucson represents 13 percent of the state’s economy. The Phoenix economy compares to Boston and Chicago for relative value to their respective state economies. 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.

Homes to Dream About in 2014 By Joe Szabo, Scottsdale Real Estate Team

December 12, 2013 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team You don’t have to be in the market for a new home to start compiling your ultimate real estate wish list. Perhaps you’re dreaming about a water slide or home theater. Or maybe an indoor basketball court is calling your name. For some dream house inspiration, here are a few standout properties on the market boasting ultra luxurious amenities.

Ninole, HI

32-1056 Old Mamalahoa Hwy, Ninole, HI For sale: $26.5 million

If living on a tropical island wasn’t already enough, this Hawaii oasis comes with its own helicopter pad, a 52-inch tube elevator and several first-class athletic facilities: an Olympic-size swimming and diving pool, a private golf course and a tennis/basketball court. See more here Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [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.

30-Year Fixed Mortgage Rates Rise Slightly By Joe Szabo, Scottsdale Real Estate Team

December 9, 2013 Joe Szabo

Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.14 percent, up from 4.06 percent at this same time last week. The 30-year fixed mortgage rate spiked to 4.17 percent on Wednesday and hovered between 4.16 and 4.18 percent for the majority of the week before dropping to the current rate this morning. “Mortgage rates jumped on Wednesday as lenders reacted to the Federal Open Market Committee’s minutes reminding lenders that the Federal Reserve has delayed, not canceled, its plans to taper the economic stimulus,” said Dr. Svenja Gudell, director of economic research at Zillow. “Looking ahead, mortgage rates should remain fairly steady during the slow holiday week. The following week should be watched closely, as several potentially market-moving economic data releases, including the jobs report, come out.” Additionally, the 15-year fixed mortgage rate this morning was 3.13 percent, and for 5/1 ARMs, the rate was 2.72 percent. What are the interest rates right now? Check Zillow Mortgage Marketplace for mortgage rate trends and up-to-the-minute mortgage rates for your state.

*The weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals. 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.

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