Agents vs. Brokers Archives - Page 7 of 10 - Scottsdale Real Estate Team / Arizona Luxury Homes

The Nation’s Most Affordable Homes Also the Most Likely to Be Underwater By Joe Szabo, Scottsdale Real Estate Team

May 19, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

The affordable homes most likely to be sought after by first-time home buyers are also those most likely to be kept off the market because their current owners are in negative equity, or underwater. Underwater homeowners — those who owe more on their mortgages than their homes are worth — have a very difficult time listing and selling their homes, even if they want to, without engaging in a short sale or dipping into their savings. Among all homeowners with a mortgage nationwide, roughly 1 in 3 (30.2 percent) who owned homes within the bottom third of home values were underwater in the first quarter, according to the first quarter Zillow Negative Equity Report. That’s almost three times as many as in the top third of homes (10.7 percent). Among the middle tier, 18.1 percent of homeowners with a mortgage were underwater in the first quarter. The national negative equity rate fell to 18.8 percent in the first quarter, with almost 9.7 million American homeowners with a mortgage underwater. More than one-third of homeowners with a mortgage (36.9 percent) are effectively underwater, unable to sell their homes for enough profit to afford down payments on new ones and comfortably meet expenses related to selling, such as real estate agents’ fees and closing costs.

“The unfortunate reality is that housing markets look to be swimming with underwater borrowers for years to come,” said Zillow Chief Economist Dr. Stan Humphries. “It’s hard to overstate just how much of a drag on the housing market negative equity really is, especially at the lower end of the market, which represents those homes typically most affordable for first-time buyers. Negative equity constrains inventory, which helps drive home values higher, which in turn makes those homes that are available that much less affordable.”

Negative equity has fallen for eight consecutive quarters, but fell at its lowest pace in almost two years in the first quarter as home value growth slowed. Negative equity fell from 25.4 percent in the first quarter of 2013 and 19.4 percent in the fourth quarter, while the pace of annual home value growth slowed to 5.7 percent in the first quarter, from 6.6 percent at the end of the fourth quarter. Looking ahead, the national negative equity rate is expected to fall to 17 percent of all homeowners with a mortgage by the first quarter of 2015, according to the Zillow Negative Equity Forecast. More underwater homeowners are freed from negative equity as home values rise, eventually surpassing the amount still owed on a mortgage. If home values rise more slowly, negative equity will recede more slowly. Homeowners are also freed from negative equity if their homes are foreclosed on, as homeowners’ debt is wiped from lenders’ books following foreclosure.

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.

Don’t Buy The Best House on the Block By Joe Szabo, Scottsdale Real Estate Team

May 8, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team As the real estate market starts to heat up again in some markets, we sometimes forget what’s happened in the past. We get caught up in the home search and the desire to own. Some buyers even forget the old real estate adage: location, location, location. So it helps if you step back for a second. Look into the future. Think about the home you want to buy now and imagine yourself selling it years later. What problems might you face then? If you take this into consideration, you might avoid making a mistake that all too many people make: Buying — or building — the best house on the block. For example, consider the fate of what became a conspicuously large house for sale in an Atlanta suburb.

Don’t Super Size!

A few years ago, at the top of the market, the owners purchased a small fixer-upper, then renovated and significantly expanded it. Once completed, the owners tried to sell their McMansion in one of the worst real estate markets ever. After a year without success, they had to lower the asking price multiple times — and ultimately walked away with a big loss. The fact that they bought at the top of the market and tried to sell during a decline in values certainly didn’t help. But it wasn’t the only factor by any means. On one side of the house was an apartment building. On the other sat a home that was an eyesore. The proximity of these two properties should have been a warning to the owners: Don’t super-size your house when it’s surrounded by properties that aren’t at least equal in value. Instead, the owners had gotten caught up in the market frenzy. They didn’t think about what would happen when it came time to sell.

Look at Comps

In today’s market, potential buyers — having weathered the real estate bust and the recession — should take one look at the biggest, best house on the block and say to themselves: “No way.” From an investment standpoint, owning the biggest house on the block has never been a good strategy. Home values in a neighborhood are intertwined because comps are so important in determining how to price — and what to pay for — a home. So the value of your McMansion will be limited if it’s surrounded by homes of considerably lesser value. For similar reasons, you should avoid buying a house on a block with a parking garage, one full of apartment buildings,or rented homes. It is thought that renters don’t care for the properties where they live, as are absentee property owners. Their indifference can only hurt the value of nearby homes.

Buy the worst house on the block best instead

A better strategy, no matter what kind of market, is to buy the worst house on the best block. You can always improve the property and therefore increase its value. And because it’s on a great block, improvements you make to the home will be practically guaranteed to give you a top return on your investment. Just don’t get carried away and turn the worst house on the block into the biggest and most expensive one. 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.

5 Types of People Who Attend Open Houses By Joe Szabo, Scottsdale Real Estate Team

May 5, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team In real estate showings, the Sunday open house is the gold standard. As the name implies, a property is open to just about anyone who learns of the showing in an online or print ad, drives by and sees the agent’s A-Frame sign, or receives a notification postcard in the mail. But not everyone who goes to an open house is a potential buyer. Here are five types of people likely to pass through a property during an open house.

1. The real buyer

These people are somewhere in the home-buying process. They’re either testing out the market or they’re serious and fully qualified, ready to take action. For the seller, these are the ones you want coming through the door.

2. The nearby neighbor

This guy or gal has been waiting for years for an excuse to get inside your home, for various reasons. Their home may be similar to yours — maybe even designed by the same architect — and they want to compare their property to yours. There might be other reasons to see it, too: They may have heard late-night music/noise and want to see what it’s all about. Your open house might also give a neighbor the chance to see how much privacy they actually have. For example, at an open house of a view property in San Francisco, a neighbor came into the house and made a beeline for the back deck. Meanwhile, in the neighboring home across the backyard, the neighbor’s son sat in the window. What followed was a cell phone conversation in which the father instructed his son to move to the right, to the left, go upstairs, and so on. The father’s goal was to determine from exactly which points in his home he and his family were visible to their neighbors. You’ll no doubt encounter nosy neighbors, too. They live nearby and just want to satisfy their curiosity about your home — or even about you.

3. Agents scoping out the place for clients

Agents constantly check out properties for their buyer clients. The vast majority of the time, they’re professional and courteous. There are exceptions, of course. Not long ago, in the living room of a packed Sunday open house, an agent sat on the couch and spoke to her client on the phone. The agent summarized the property loudly and in none-too-complimentary terms. “The finishes are cheap, the floor plan is off, and the bathrooms need updating. Don’t waste your time coming over here,” she said. Needless to say, the seller’s listing agent — who witnessed the conversation — was flabbergasted. Even some of the buyers touring the property felt uncomfortable. The listing agent politely asked the other agent to continue her conversation outside.

4. The agent who lost the listing

In many cases, a seller interviewed multiple agents before selecting their listing agent. Sometimes agents spend a lot of time, and even some money, working with a potential seller to secure a listing. Obviously, not every agent interviewed will get the listing. When the property lands on the open house circuit, an agent who lost the listing may visit. They want to know if the seller took any of their suggestions. Did the seller paint the orange room a more neutral color or renovate the kitchen or bathrooms as suggested? The open house is sometimes the losing agent’s chance to run through the property anonymously, as most agents usually won’t know with whom they competed for the listing.

5. A previous owner, or one of their relatives

Over years of open houses, a busy listing agent will surely run into an old seller, or their children or grand kids who grew up in the home. These people come to the open house to see how it looks and to reminisce. Lots of memories happen in a home, and the opportunity to go back in time can be a real treat. Usually, there’s no harm done. But you might encounter the former seller’s cousin Steve, who tells the listing agent about how the current sellers did a horrible job on their backyard makeover. Even worse, you might get a relative who starts crying on the listing agent’s shoulder about her grandmother, a previous owner, who recently died. A good listing agent will let any and all of this roll off their shoulders, keep a professional game face on, and keep their eye on the ball. They solicit feedback from buyers and make notes of their comments, reactions and questions. If you’re attending an open house with no intentions of buying, keep it to yourself. Be as subtle and unobtrusive as possible and don’t waste the listing agent’s time — unless you have some helpful feedback for the agent or seller. 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.

Tips for Sellers in a Buyer’s Market By Joe Szabo, Scottsdale Real Estate Team

April 24, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Selling your home in a market where there are more homes available for sale than there are buyers means that you really have to work at it. Buyers in a seller’s market are looking for value. They want the best house for the money. Buyers can be picky and simply won’t settle. You have to get in front of the buyers, have your home showing in its best possible condition and have the home priced right from the start. You must know the competition and see your home as a “product” listed on the open market. Make it stand out from the competition, either in how it is delivered to the market or how it’s priced.

Know the competition

It’s common that a would-be seller will receive “comps” from their agent around the time that they agree to work together. As part of the comparative marketing analysis, an agent will show a seller what is on the market, pending and sold. Oftentimes, it could be weeks or months before the seller actually lists his home. A slow market means more inventory and more competition for sellers. A seller must know what other homes are available and price their home accordingly. Hit the open house circuit the weekend before you list or keep a search going online of similar homes. Knowing the competition will help you decide how to price your home. You want to be the home that stands out from the crowd….in a good way.

Consider pre-marketing your home

A generation ago, buyers needed an agent to know exactly how long a home had been on the market. Why? Because that data was locked up in agent-only databases. Today, once a listing goes active, the days on market or DOM starts ticking for all the world to see online. The DOM is the best way for a buyer to gauge how your home fares in the market. If the DOM hits three months and your home is still listed, chances are slim you will get a full-price offer. These days, it’s smart to put out feelers before your listing goes live. Work with a good local agent and have them do some pre-marketing of your home to test the price and the market’s response to it. How does this work? In most communities, it’s not uncommon for agents to announce upcoming listings within their firm or on social networks. In some communities, there are entire websites dedicated to “pocket” listings.

Make sure your home is widely marketed

Buyers are everywhere today and your listing needs to be where they are. Most are online, specifically on mobile devices at all times of day and night. If your home is not listed where buyers are looking, that’s one less opportunity. In a buyer’s market a seller can’t afford to miss one buyer. If your agent doesn’t understand the concept, you should be working with another agent.

Work with the right agent

Speaking of the right agent. Having the best agent representing your home will make the difference between selling and moving on or having your home sit on the market. A good agent is someone who actively sells in your local community. They know the customs and trends, not to mention governing laws. Agents like to work with agents they know. Work with an out-of-area agent or someone not familiar with your area and you risk being poorly represented.

Photos are key

A generation ago, a photo shoot wasn’t always necessary when selling a home. Today, it is potentially the most important part of the home-selling process. A buyer’s first impression of your home today will likely be online, via an email alert online or a text with the listing from their agent. You should spend as much time and attention on your photo shoot as you would for the first open house. Also, make sure that your listing photos are high resolution and optimized for the web and mobile.

Spend the right money to get the home ready

There is nothing worse than an eager seller spending a fortune to renovate their home prior to selling, only to do so in a manner that is not neutral or buyer friendly. A recent survey by Zillow Digs shows that the ROI on these projects isn’t high. If you want to get your home ready for sale, take a step back and spend money the right way. The best thing a seller can do is to clean and de-clutter. Investing in storage is one of the smartest things a seller can do. Also, smart cosmetic fixes like painting, cleaning and changing out some fixtures or finishes is money well spent when getting your home ready to sell. Succeeding in a buyer’s market is not simply a matter of hiring an agent and listing your home. You need to do your homework: Know the competition and what is selling. Work with an agent who has relationships with the local community and knows your market. Don’t list your home with an agent who doesn’t have a plan to make sure that your home is widely marketed across the Internet and on mobile devices — that is where buyers are today. Be open to non-traditional means of marketing your home. One misstep in the selling process could set you back weeks or months. 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 Being Pre-Approved for a Loan Matters By Joe Szabo, Scottsdale Real Estate Team

April 21, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team So much has changed in the past few decades that the old ways of buying or selling a home simply won’t work today. For decades, buying a home was pretty much the same thing: You shopped around, made an offer and then went to the bank to get a loan. If you were denied or there were problems, you walked away. Today, a buyer needs to speak to the bank and get approved prior to shopping and definitely before making an offer on a home. Not being pre-approved today won’t get you past the front door. Here’s why:

Markets move faster today

With online listings and so many real estate resources available to buyers and sellers, it’s easy to quickly get a property in front of the masses. Buyers aren’t waiting on a call or fax from their real estate agent like they did in the 1980s. Instead, motivated buyers get push notifications from Zillow or texts from their agents and see homes as soon as possible. It’s more efficient. Transactions happen at the same speed. If you’re not approved for a mortgage when you make an offer, the seller risks waiting weeks to see if your loan will go through. That’s not good for them. Show that you’re pre-approved, and you’ve eliminated one huge hurdle for the seller.

Know what you can afford

People today are focused on their monthly payments more than the total purchase price. Why? Because, unlike the typical buyer a generation ago, many of today’s buyers don’t plan on staying in their homes for 30 years. Instead, they can commit to 7 to 10 years and are open to alternate mortgage options that could save them money on their monthly payments. It’s helpful to know exactly what a $425,000 mortgage will cost vs. a $500,000 mortgage on a monthly basis. Also, in some parts of the country, there are options for FHA loans with as little as 3 percent down. Knowing all your options before you start shopping allows you to shop and buy smarter. There’s no sense looking at homes in the $400,000 range if you can afford more, and vice versa.

Competing with pre-approved buyers

Few buyers today get into the real estate market without forging a relationship with a local mortgage professional. It’s simply smarter to have your ducks in a row. In a competitive market, you may face multiple offers on one property. If you don’t have a pre-approval letter to go with your offer, you have zero chance of getting your offer accepted. Not being pre-approved means you aren’t a serious buyer in the eyes of the seller. Getting pre-approved means organizing all your documents, documenting your income, debt and credit, and understanding all the loan options available to you. There should never be a cost to be pre-approved for a loan. And you aren’t committed to a mortgage when going through the pre-approval. Got a signed contract from a seller? Then you’re ready to lock in a rate and choose the mortgage that’s best 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.

Best Times to Buy, Sell or List a Home By Joe Szabo, Scottsdale Real Estate Team

April 14, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team A common question from a buyer or seller is: what is the best time to buy or sell a home? In the clothing world, it makes sense to get the best “deal” on winter clothes at the end of winter and that you will likely will pay top dollar for a swimsuit in April. Does the same trend hold true for real estate purchases and sales? Not really. But there are some considerations a buyer or seller should make as they enter the market that could have an impact on the transaction.

Spring and fall are better times for buyers

Let’s be clear. You can’t ever time a home purchase. Buying a home isn’t like buying a car or an iPad. The home buying process is a journey, one that happens on your own time and only after you’ve done enough research, seen enough homes and have your financial house in order. At any one time there is a brand-new buyer entering the market and then another who has done enough research and becomes a very serious buyer. Nobody can control the evolution. But something for a buyer to consider is that real estate inventory tends to fluctuate by season. Each spring and fall we tend to see an increase in home inventory due to the seasons. More inventory means more options for buyers.

Holidays and winter are best times for sellers

It’s not conventional for a seller to list their home before the holidays or in the dead of winter for obvious reasons. But serious, eager buyers don’t care about the season or timing. At any one point of the year, there will be a very motivated, experienced buyer ready to make an offer, no matter the season. I’ve written contracts on Thanksgiving, closed escrow on New Year’s Eve and even had a serious buyer make an offer using DocuSign from a beach in Hawaii. Sellers believe that it’s more conventional to list for the spring “selling” season and then again after the summer. If you go the conventional route, you will see more competition. If you can sell “off season” you might fare better because there are still serious buyers, but less homes for sale.

Best time of day to list a home

The Sunday open house, particularly the first Sunday, is the holy grail of real estate. For decades, agents and sellers worked hard on a listing with a deadline being the first open house. The “for sale” sign, which made the listing official a generation ago, would go in front of the house the days leading up the first open house. In the digital age, the listing goes “live” online. Sellers and agents work hard to clean, paint or prep the home in time for the photo shoot. Agents and sellers tend to rush to the finish and you will see many listings hit the market late Thursday afternoon or Friday morning, with Sunday being the first showing. Instead, try listing on Monday or Tuesday and don’t do any showings until the open house on Sunday. You can build momentum and have a very strong first open house. As much as buyers and sellers try to strategize the timing of a real estate purchase or sale, its never that easy. Unlike Macy’s or Target, who control inventory and monitory competitive activity, there isn’t one seller in real estate. Sellers are unrelated and disconnected and the types of homes are different making it nearly impossible to “time” a purchase or 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.

Expecting a Tax Refund? Invest It In Your Home By Joe Szabo, Scottsdale Real Estate Team

March 10, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Sitting by the mailbox, waiting for your tax refund? Stop waiting and start thinking about the best ways to invest that money in your home. Your home is likely one of your biggest assets, so it makes good financial sense to take care of it. Keeping your home up to date will contribute to its longevity, heighten your enjoyment and help you sell your home if you ever decide to. So, instead of a fleeting ski weekend, why not consider investing at least a portion of your refund in your home? Even modest investments can improve your home’s value and make it more livable. Drawing inspiration from Zillow Digs, here are five home improvement projects you may want to consider, all under $3,000:

New front door

TrueHome Design Build brought an urban feel to this farm house with a contemporary front door. First impressions mean a lot. A new front door can enhance curb appeal, improve security and lower utility costs. According to Remodeling magazine’s Remodeling 2014 Cost vs. Value Report, a $1,162 steel entry door replacement project returns 96.6 percent of your investment. Fiberglass doors are generally more expensive, but they’re still a smart investment. According to the same report, a $2,822 fiberglass entry door project will yield a return of 70.8 percent.

Garage door replacement

Tuckahoe Creek Construction, Inc. gave this colonial home character with a new garage door. The appearance and condition of your garage door also plays a big role in your home’s overall appearance. According to the Cost vs. Value Report, an uninsulated, 16-by-7-foot garage door costing $1,534 will increase your home’s resale value by $1,283, a return of 83.7 percent.

Weatherized windows

Lindus Construction uses a variety of custom-fit, maintenance-free, energy-efficient windows proven to reduce heating and cooling costs. For just a couple hundred dollars, a do-it-yourselfer with the most basic of skills can install insulation, caulk and door seals, reducing household energy consumption by almost 35 percent in the typical weatherized home. Willing to invest more? Windows can allow major losses of heat in the winter and cool air in the summer, requiring more energy — and money — to keep your home comfortable. Replacing old windows with Energy Star-qualified windows can reduce household energy bills by 7 to 15 percent and will shrink your home’s carbon footprint.

Fresh coat of paint

Isola Homes used bold blue and green paint to give this Wallingford craftsman some Pacific Northwest flair. This may be the perfect time to kiss your dated mint bathroom or mauve rec room goodbye. A gallon of paint typically costs less than $40 and will provide one-coat coverage for about 350 square feet. If you think you might be putting your house on the market sometime soon, opt for neutral colors that have more universal appeal. Even if you’re staying put, a fresh coat of paint can update and personalize your space for a fraction of the cost of a total remodel.

Lighting

Titled “Serenity in the Woods,” this TN home by Eddie Miles has a warm, yet contemporary feel with under-cabinet lighting. Updated home lighting can enhance your decor, save on energy costs and increase your safety. Even if a new chandelier isn’t in your budget, dimmer switches will allow you to control the intensity of light throughout your home while saving electricity. A basic dimmer costs less than $15 while fancier, remote-control and programmable dimmers can be purchased for $40 and up. Metal can or recessed lights will brighten dark corners while under-cabinet light strips can add much-needed light to kitchens, craft rooms and laundry rooms. Unless you have knowledge of electrical wiring, you’ll need to hire a pro to handle the installation. 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.

Buyers Expected to Gain More Leverage This Year as Inventory Across US Rises By Joe Szabo, Scottsdale Real Estate Team

March 6, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Home values saw their smallest monthly increase since May 2012, up just 0.2 percent in January from December according to the latest Zillow Real Estate Market Reports. Year-over-year, U.S. home values rose 6.3 percent in January, down from peak gains of 7.1 percent in August 2013. This slowdown is in part due to the rise in inventory of for-sale homes across the country. The number of homes listed for sale on Zillow was up 11.1 percent annually in January, the fifth straight month of rising year-over-year inventory.

According to Zillow Chief Economist Stan Humphries, home shoppers should expect to have more buying power this spring as more inventory comes onto the market and home prices start to level off. This slightly more balanced market is another step on the road back to normal, and will help offset the impact of rising mortgage rates and more expensive homes for buyers. Inventory rose year-over-year in 82 percent of metro areas covered by Zillow, with the largest inventory gains coming in some of the areas that were hit hardest by the housing recession, including Las Vegas (up 42.8 percent), Phoenix (up 30.5 percent) and Sacramento (up 26 percent). These metros also experienced significant cooling in the pace of home value appreciation in January, as buyers had more homes to choose from and were less apt to engage in the kinds of bidding wars that helped drive prices up so quickly last year. Want to know what the current state of the housing market is where you live? Dive into Zillow’s data, available all the way down to ZIP code and neighborhood levels, 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, 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.

U.S. Negative Equity Rate Dips Below 20 Percent in Q4 By Joe Szabo, Scottsdale Real Estate Team

March 3, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Zillow released the fourth quarter Negative Equity Report. Nationally, the share of homeowners with a mortgage that are underwater, owing more on their home than their home is worth, has dropped below 20 percent for the first time in years. As home values have continued to rise over the past year, millions of underwater homeowners have come up for air and are finally able to put their home on the market. This increase in inventory should, in turn, help create a more balanced home shopping season than we’ve seen in the past few years, with buyers having more choice and perhaps less competition. According to the most recent numbers, nearly 10 million people were underwater on their mortgage in the fourth quarter 2013, collectively owing $657 billion more than their homes are worth. But the number of underwater homeowners is slowly but surely receding. Almost 3.9 million U.S. homeowners were freed in 2013, and the negative equity rate fell to 19.4 percent at the end of the fourth quarter, from 27.5 percent at the same time in 2012. Nationwide, the negative equity rate is expected to fall to 17.2 percent by the end of 2014, signaling further stabilization of the market and likely freeing up even more inventory. The detailed Zillow Negative Equity Report is also available on the Zillow Real Estate Research page. 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.

10 Things That Make a Home a Good Home By Joe Szabo, Scottsdale Real Estate Team

February 27, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Buyers spend a lot of time looking at properties online, touring homes on the Sunday open house circuit, and talking to their real estate agent. They’re laser-focused on finding the best home that meets their needs. The problem is, buyers sometimes don’t take the long view of a property. They’re only looking at a home as a potential buyer — and not as someone who, years down the road, may also have to sell the property. Given that homes are such a big investment, there should be a little inside your head, picking away at your options and decisions. As the home buying market starts to heat up again, here are ten things you should consider when choosing your next home.

1. Location, location, location

Perhaps nothing is more important than the three L’s, and there’s a reason why it’s said three times. Location is extremely important when it comes time to sell. You can have the worst house in the world with the ugliest kitchen and bath. But put it on a great block or in a good school district, and your home will be coveted. Location location location matters on so many different levels. At the highest level is the town where the house is located, then the school district, then the neighborhood and the block — right down to the location of the lot on the block. Keep all of this in mind when shopping. Also remember that while real estate markets rise and fall, no one can take a great location away from you.

2. The school district

The school district is right up there on the list of what’s most important to many buyers. It’s not uncommon for buyers to start their search based solely on the school district they want to be in. Parents want their kids to go to the best school, which can drive up prices of homes in those districts. Even though you might not have children, buying a home in a good school district is always smart. If the schools are desirable, homes tend to hold their value. As a homeowner, you should always be aware of how the schools are doing, not unlike being aware of your roof’s condition, the neighborhood development or city government.

3. The home’s position on the lot

Where the home sits on the lot in relation to the street or the overgrown oak are key elements in picking out a home. In the case of a condo, an end unit vs. an interior unit is a key consideration. You may have chosen the most beautifully renovated home in the best school district and figure all is good. But if the main living areas are shaded by a neighbor’s extension or the master bedroom looks into the neighbors’ family room, you may have a location problem. Light or privacy may not be a hot button for you, but chances are, they might be concerns for a future buyer.

4. Crime

It’s a good idea to check the latest crime figures for a neighborhood. It can give you a good snapshot about the number and severity of crimes over a time period. So much information is online nowadays that when you find your perfect home, a quick Internet search on the area should provide you with the much-needed information. Most municipalities post their police blotters or crime statistics online these days. Don’t freak out if you notice more crime than what you’d have expected. Crime, especially petty crime, is everywhere. If you’re new to the area, consult with your real estate agent if you have concerns.

5. Walkability

More than ever, ‘walkability’ is becoming a key factor in the search process. There are entire websites, apps and algorithms that help people figure out how walkable their future home is. As a matter of fact, Zillow even has a Walk Score for most homes. As people get out of their cars and slip into their Keds, they want a home in a walkable neighborhood. People put high value on the ability to walk to a store, school, work or public transportation. The more we move away from cars and the more we see invested in public transportation over the coming decades, the more of a huge value-add walkability will become.

6. The neighborhood’s character

You may have found the absolute most perfect home, on the best block, in the best school district and on a great lot. But there could be circumstances outside your control that may give you pause — specifically, the character of the surrounding neighborhood. Check out the area late at night, early morning and in the middle of the day. See if there are any odd weather or traffic patterns and try to observe some of the neighbors. You may even go so far as talking to some neighbors. It’s important to walk around, open your eyes and ears and make sure there isn’t anything you’re overlooking. That next-door neighbor practicing drums in the garage at 9 p.m. could be a source of immediate neighbor conflict. Go into it with eyes wide open.

7. Don’t buy the best house on the block

Simply put, avoid buying the best house on the block because there may not be any room for your investment to grow (unless you physically have the house moved to a better neighborhood). It’s better to buy the worst house on the best block, because you can improve the house to add value to an already great location.

8. Is it a fixer-upper?

If you’re buying a fixer-upper, make sure you understand what you’re getting into. Did you set out to buy a home that needed work? Or does the home just happen to be in the most desirable neighborhood, the block of your dreams? Do your homework upfront. If you want to build an extension or add another story to the property, make sure it is within local zoning or building codes. Have the property inspected so that you know exactly what you’re getting yourself into. Sometimes, what appears to be a simple kitchen needing cosmetic work turns out to be a huge project. Ask yourself repeatedly if your life can support a home renovation. Not only does a renovation take money, it takes time, energy and emotional stress.

9. Will the home hold its value?

A good real estate agent who’s been working the neighborhood for some time can vouch for the long-term value or investment potential of the property. But be sure to find ways to add value, or at least be certain the home will hold its value. The market may be strong when you purchase, but ask yourself, “Am I in a seller’s market?” “What would happen to this property if the market changed tomorrow”? Check out the median home value in the neighborhood as it compares to neighborhoods around it. The Zillow Home Value Index gives you one, five, and 10-year snapshots of how home values have gone up or down in neighborhoods and cities.

10. Taxes, dues and fees

Many people overlook the monthly fees associated with homeownership. Nearly every property will have taxes, and any sort of planned community or homeowners association (HOA) will have regular assessments. Be sure that the amount of property tax and assessments are clear from the get-go. If in doubt, go to city hall or do research online. If you’d be buying into a condo complex, be sure to get your hands on the meeting minutes, financials of the HOA and the condo documents. Any mention of changes coming down the pike? Does the HOA seem well funded? It could take one quick $10K assessment to immediately affect property values if you need to turn around and sell your new home. And any uncertainty about the building, its integrity or the financials could scare off buyers when it’s time to sell. 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.

« Previous Page