Avoiding Home Buyer’s Remorse By Joe Szabo, Scottsdale Real Estate Team
Thinking it through
How do you avoid getting into this situation? To avoid buyer’s remorse, stay grounded by asking yourself the following questions throughout the home-buying process. Must I ‘own’ this house or must I ‘win’ this house? Often, in a competitive situation, a buyer just wants to win. If you’re competing and forced into a multiple-offer situation, step back and ask yourself: Is this the home I really want, or do I just want to beat out the other buyers? Also, has the potential purchase price exceeded the list price? Putting an offer on a home at $475,000 is one thing. But a few rounds of counter offers may bring the price up over $500,000. A price $25,000 higher can create an entirely different set of circumstances, and the home may no longer be right for you. Have I seen the home more than once? There are hundreds of buyers who saw a house only once. Some international customers even purchase sight unseen. But this is the exception, not the norm. No matter how much you think you love a home, if you’ve only seen it once, you could be heading for buyer’s remorse. Going back in the evening or a different time of day provides another perspective. Also, you may see things differently the second time around. Often, you miss something in your first pass that stands out the second time around. Have I seen the home from every angle and spent time in every room? A quick tour of the home provides a basic understanding of the floor plan, condition, and size. But to really know a home, dig deep. Walk to the end of the lot and look at the back of the home. Open every closet and go in the attic, basement, and garage (park your car in there, if you can). And look at the neighboring houses, too. Have I seen a floor plan? Reviewing an architectural floor plan provides an opportunity to see the home in a different context. It’s possible you’ll pick up on things you might have otherwise missed. Have I reviewed the photos after seeing the home? Going back to the listing photos helps jog your memory. Seeing the pictures, which are snapshots in time, will give you a different perspective. Was the shade closed in the picture, and if so, why? Did you ever look out that window? Does the photo remind you that the bedrooms are small because there are only twin or queen-sized beds without any nightstands? These types of questions are a great way to evaluate if a home will work for you. Have I toured the home privately? Visiting a home with other buyers isn’t the best way to see it. You may feel cramped or rushed. You might want to sit in one of the rooms in silence for a few minutes, but it’s often not possible to do so at an open house. You may just want the time and attention of the listing agent, or maybe you don’t want anyone there but your agent. If you’re serious about a home, go back for a private showing, because it reveals more when you have time alone there. Have I done due diligence? If you haven’t seen or heard about any disclosures before making an offer, it could be a red flag. In many markets, disclosure packages are available before making an offer. If not, a good listing agent will reveal the major disclosure items verbally. Make sure the town sees the home as it is being presented to you, that all the rooms and renovations are legal and permitted. If you’re too busy to review the disclosures, you shouldn’t make an offer. Also, find out if there have been previous contractor’s inspection, termite, or other reports you haven’t seen yet. Is this home what I set out to look for in the first place? Sometimes your path changes once you’re in the market. You realize that another area will give you more for your money. Or a home that’s in the school district you want needs a lot of renovation, which you hadn’t counted on doing. You may discover that with lower rates and being open to a new or emerging area, you can afford a better home. When buyers are in the throes of a competitive home market, it’s easy to settle for a home that “kind of” works, or to lapse into autopilot mode. You may just be ready to buy and be done with it. You don’t think about things like the commute from the new neighborhood to your job, that you aren’t the renovating type, or that you never signed up for the lawn mowing and maintenance issues associated with homeownership. A good agent will bring you back to your original plan before you sign a contract. You and your agent should review all the reasons why the home isn’t the right option. It’s better to flesh that out in advance than to ignore the warning signs and cancel. If your agent tries to talk you out of a house, that’s a sign of a good agent.The contingency safety net
To help protect you from buyer’s remorse, always have an inspection contingency in your purchase agreement. Reserve the inspection contingency for something serious about the property you didn’t know before signing on the dotted line. Some agents call it the “cold feet” or “buyer’s remorse” contingency. It allows you to exit the agreement if something comes up. If you think you’ve found the home of your dreams but have the littlest doubt, or you can’t answer all of the above questions, think twice about accepting that final counter or even making the offer. Ultimately, never sign an agreement if you aren’t completely convinced this is the home for you. 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.3 Favorite Outdoor Spaces for Summer Fun By Joe Szabo, Scottsdale Real Estate Team
The rooftop deck
Those of us who aren’t blessed with the square footage to have a backyard, need to get clever to find other solutions. If you live in a townhouse or apartment in the big city, don’t hole yourself up in the living room. Head to the roof! Rooftop decks are making a comeback with stylish sunproof fabrics and durable appliances perfect for an outdoor soiree or afternoon sipping cocktails. With a smaller area to work with, every detail counts, right down to the trim on the cushions. Each piece should speak to your style, whether you’re going for a Hamptons retreat or Miami Beach-inspired entertainment area. Make sure you have plenty of seating with umbrellas available for an afternoon siesta. We love the way bright citrusy colors and patterns help brighten outdoor decks made of concrete or stone. Add a summery vibe with plenty of greenery potted in patterned vases, and flowers on every bistro table to greet your guests.The California room
Here in California, we can’t imagine a home without a space that easily transitions into the great outdoors. Enter the California room: a space perfectly situated just outside a sliding glass door with transitional elements like interior furnishings and exterior fabrics. This space usually consists of a small outdoor kitchen and dining area for nights when the weather is too beautiful not to enjoy. The California room is often home to an entertainment center like a television for the big game, or speakers to enjoy relaxing music. The key to creating the perfect California room is to keep it fluid. Use gauzy curtains and outdoor fabrics to maintain a soft vibe while also adding elements usually found indoors like couches, chaise lounges, and coffee tables for an interior-inspired look.The outdoor kitchen
Last but certainly not least, the outdoor kitchen is the epitome of an inspired space. Whether you’re enjoying a dinner for two or a summer-themed fete, an outdoor kitchen is key to keeping your guests happy all evening long. An outdoor kitchen usually consists of a few major components. First, you need a grill and complementary appliances. We love a great stainless steel grill with multiple features for when you’d rather serve fish than burgers, or vegetable skewers instead of tri-tip. Equally stylish and useful features could include a built-in wine fridge or drink cooler, a sink, and a food prep station. Next, pick materials that are both durable and fashion-forward like stone and quartz to help make after-meal cleanup that much easier. Finally, choose accessories that help create a dining area suitable for families and guests like placemats, centerpieces, and plenty of lighting. 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.Why Home Buyers and Agents Need to Have Each Other’s Backs By Joe Szabo, Scottsdale Real Estate Team
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.New Mortgage Rules For Self-Employed Borrowers By Joe Szabo, Scottsdale Real Estate Team
Self-employed borrower basics
Two of the most important things lenders review to qualify you for a mortgage are income and assets, which respectively, determine how much monthly payment you can afford and where your down payment is coming from. When it comes to income, self-employed borrowers report income as sole proprietors or owners of entities like corporations, partnerships, or limited liability companies (LLCs). As a sole proprietor, you will file your self-employed income on IRS Schedule C, which tracks your income and expenses for a given year. Unlike with salaried employees, who get to use their gross income for loan qualifying, sole proprietor borrowers must qualify using their net income from Schedule C. Furthermore, lenders calculate a 24-month average of net income for sole proprietors (as opposed to sometimes requiring just one year from salaried borrowers), and if the most recent Schedule C has lower net income than the previous year, lenders will use worst-case income by calculating a 12-month average of the most recent year. If you’re self-employed and conduct business via a corporation, partnership, or LLC, the IRS requires these entities to file separate sets of tax returns. If you own 25 percent or more of the entity, you will need to provide lenders with these full business tax returns, as well as your personal returns. Just like with Schedule C, lenders will average income for 24 months using two years of filed business (and personal) returns, and if the most recent year is lower, they will average 12 months of the lower year. When it comes to assets, self-employed borrowers sometimes have a lot of their money in their business, and may want to use those funds for down payment. Some lenders will let you do this, and if so, they often require that your tax preparer verifies that use of business funds for a home purchase won’t have a material impact on the business.New rules for self-employed borrowers
In February 2016, Fannie Mae updated self-employment income calculation guidelines for borrowers who own partnerships and S corporations. These guidelines impose stricter analysis on income and debt trends of a company to determine whether the company has sufficient assets to support the withdrawal of earnings to pay its owners. If you own an entity like this, your income from the entity shows up on a form called Schedule K-1. This form is part of the entity’s tax filing, and the figures on this form get carried over to your personal tax return as income. This income most often comes in two main forms: “ordinary business income” and “distributions.” New rules for self-employed borrowers now impose conditions on whether you can use either of these forms of income. For example, if distributions are greater than ordinary business income, then ordinary business income may be used to qualify. But if distributions are less than ordinary business income (or distributions don’t exist), then there are a host of guidelines to determine how you qualify. These guidelines will be specific to your profile and they will vary by lender, so the best way to determine whether you qualify for a loan as a full or part owner of a corporation or partnership is to find a local lender who can analyze your tax returns for you. 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.The Luxury Collection | Scottsdale Real Estate Team
Simple 3-Step Program for Houseplant Maintenance By Joe Szabo, Scottsdale Real Estate Team
Find a reference
Since each plant has entirely different needs, it’s essential to find trustworthy references that will tell you everything you need to know about each specific plant. While you can find info on any plant with a quick Internet search, you’ll find that some sites have more information on certain plants than others. If you own a collection of houseplants, I highly recommend picking up a book such as “The House Plant Expert” by D. G. Hessayon.Inspect while you water
Even with all the knowledge in the world at your fingertips, your senses are the best tools in your arsenal. Every time you water, inspect each plant for problems such as pests, yellowed leaves or slow, lanky growth. A plant needs to be watered more if:- The top inch of potting mix is dry
- Leaves are wilting (unless soil is moist)
- Water runs over the soil and drains along the sides
- The plant feels lighter than usual
- The soil feels more soggy than moist
- The roots are beginning to rot
- You see fungus gnats every time you water
- It has been over a few months since purchasing the plant
- The time-release fertilizer pellets or fertilizer spikes are spent
- The palm fronds are yellowed
- The plant is growing at a glacial pace
- It’s been over a year since you fertilized
- You can’t remember the last time you fertilized
- The existing potting mix drains too quickly or slowly
- The plant’s roots coil tightly together in the pot, forming a solid mass
- The potting mix is practically older than dirt
- The exposed leaves are getting scorched and bronzy
- It’s a shade-loving plant but is receiving direct rays of sunlight
- Its new growth is spindly and stretched out
- The plant actually appears to reach for more light
- The leaves are very dark green
- It’s in a room without a window, such as a bathroom
Create a care sheet for each plant
You can solve a lot of problems with a good reference and eye for detail, but it can be difficult to keep track of an entire collection of plants around the house. For example, two rubber trees (Ficus elastica) in the same house require different care depending on a number of factors: the brightness of the room, your home’s heating system, the type of potting soil, the overall health of the plants and even the type of fertilizer being used. Instead, create care sheets for each plant. (We have one you can download and use.) Print one sheet for every houseplant in your collection, or keep notes on your computer, tablet or phone if that’s more convenient for you. Fill in the basic needs and take notes whenever you feed, repot, move and prune plants, so that it will be easier to diagnose problems that arise. Place the worksheets in a folder and use them to pencil in dates on the calendar to remind you when it’s time to fertilize or prune. 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.Listing Your Home? How to Avoid Seller’s Remorse By Joe Szabo, Scottsdale Real Estate Team
Develop a solid pricing strategy
Agents often encourage their sellers to list their homes competitively, so that the market receives it well. Sometimes sellers see that as the agent pushing for a quick sale. But often, it’s truly the agent looking out for the seller’s best interests. Whatever the scenario, pricing is the most important discussion a seller can have with an agent. When there’s a disconnect on price, raise it as a red flag from the get-go. If you find yourself resisting your agent’s suggested price, talk through the options or get a second opinion. You might try starting out with a higher number. This might be against your agent’s better judgment, but it can be worth a shot. If there’s no activity in the first few weeks, you can always reduce the price. Alternatively, sellers who increase their asking price after the home has gone on the market are often seen as frenetic, lacking a strategy and having a clear disconnect with their agent. Bottom line: If you haven’t had a serious pricing discussion with your agent or you aren’t sold on your list price, don’t go on the market.Have a clear post-sale plan
The sellers of an Essex, CT home heard the market there was hot and that they could get the price they had tried but failed to get just six months earlier. They’d already done the appropriate clearing out, painting, and fix-it work, and even had the property inspected. So, for them, going on the market was easy. However, they didn’t expect to receive three offers, all of them above the asking price, within hours of their first open house. The buyers they chose wanted to close in 30 days. The problem: The sellers had nowhere to go. They didn’t have a plan. Like many sellers today, they heard the market was healthy again. And after dreaming for years of finally getting what their home is worth, they jumped in while “the getting is good” without thinking it all the way through.Be ready to negotiate with buyers
Feeling strong and in the driver’s seat, the Essex homeowners decided to wait and see if they could get terms that would suit them better. The sellers’ listing agent negotiated a quick close with a 30-day-free rent-back and another 30 days rent, in which the sellers would pay the new buyer’s PITI (Principal, Interest, Taxes and Insurance). It was a win-win for all. While this couple in Essex had the luxury of a competitive bidding situation, it may not always be the case. That’s why having a clear plan in place for all conceivable outcomes and a willingness to negotiate can help you get through the sale process successfully.When in doubt, stay out
Home selling is happening quickly in many parts of the country. While this is great news for the housing market and most homeowners, sellers need to plan for the sale months in advance. Hooking up with a good local agent early on in the process and staying engaged is the best way to approach this new market. If you have any doubts about your physical or financial situation, hold off on listing. Watch from the sidelines, and only jump in when you’re truly ready. The biggest mistake a seller can make is to go on the market and fail to sell — at a time when everything else is selling. 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.April 2016 Paradise Valley Arizona real estate market update
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