By Joe Szabo, Scottsdale Real Estate Team Someone being transferred for work or making a major move for personal reasons may end up selling in one market and buying in another. The ideal scenario would be to sell in a sellers’ market, like the San Francisco Bay area or Seattle, and buy in a buyers’ market, such as Providence, RI. The worst-case scenario is to do the opposite. Here are some tips for buyers and sellers in any market.

Know before you go

The days of a national estate market are gone. Today, markets vary by state, town, city and even block by block. But most people don’t realize this. So it’s important to start by researching the hyper-local market of the town or neighborhood that interests you. Read local blogs. Watch the number of days a home is on the market. Understand the sale price to list price ratio in the town where you’re buying. Upfront research can save you a lot of time and headaches. Plus, you don’t want to rely entirely on your real estate agent to tell you about that market. Get informed on your own.

How to sell in a buyers’ market

Selling your home in a buyers’ market can subject you to a harsh reality. Your market could be slow due to a high level of inventory, low demand from buyers or simply slow economic times. If you need to sell in a buyers’ market, put your best foot forward from the start. Make sure your home is priced to sell. You may not have the luxury of waiting for six months to test the market. Homes will sell, no matter the market, when priced right. Spend days or weeks removing junk and prepping your home for the market. You’ll have to pack up when you move anyhow, so it makes sense to start packing before you even list your home. Not only will it save time later, but it will help thin out the house, make more space available and help the home show better during open houses. Strongly consider any suggestions your agent makes for slight cosmetic fixes or staging.

How to buy in a buyers’ market

Who doesn’t love being a buyer in a buyers’ market? You have lots to choose from and the full attention of sellers. Take your time to see as many homes as possible to get the lay of the land. Focus on the most motivated sellers, as this is where you may uncover the best values. If a handful of homes meet your needs, ask questions such as: Why is the seller selling? What is the seller’s time frame for moving? How long has the seller lived in the home? You can ask these questions through your agent or by asking the seller’s agent directly. The more you ask, the more you may uncover just who is the most motivated seller. Be open to taking on some renovation work, because that can add value to the property. The market will eventually turn, and there’s no better feeling than knowing that you bought low, with some bonus equity.

How to sell in a sellers’ market

Along the West Coast, sellers are being overwhelmed with buyers at open houses and private showings. Demand is high, and things are moving quickly. But you still have to work at selling. If you don’t clean the home or present it to the market in its best possible light, you may leave money on the table for the buyer who is desperate for a “deal.” If you have the luxury of receiving multiple offers, focus on the best buyer and the best terms and not so much on the bottom line. You want the buyer who is going to close. The last thing you want is to have to go back on the market. When this happens, everyone will wonder what’s wrong with your home. It could be that the buyer got cold feet or remorse. If you aren’t sure who is the best buyer, ask your agent. The best buyer is the one who has seen the home multiple times, is pre-approved for a loan, has been in the market and has even lost out on recent home sales. This buyer is working with a local agent and committed to buying. Your agent will know who they are.

How to buy in a sellers’ market

Buyers in a sellers’ market find themselves frustrated over a lack of inventory and homes that sell quickly. The competition is fierce, and they need to invest a good part of their time on buying a home. For a serious buyer, then, finding a home becomes a part-time job. Have your ducks in a row and your team in place. Work closely with a good local agent and a local mortgage pro. When a home hits the market, get in ASAP. Don’t wait for the open house, because a more aggressive buyer might get in and take it away before you do. When competing with other buyers, have your inspections and do as much due diligence as you can before making an offer. An offer with swift, few or no contingencies is music to the sellers’ ear. They want to be sure the deal will close for the most money as quickly as possible. Find out what the sellers want and give it to them.

Reducing the stress of buying and selling

Today’s younger buyers and sellers, enabled by the global economy and the Internet, can live anywhere and move around multiple times in a short period of time. For them, as well as everyone else, understanding that all real estate markets are different, requiring different approaches, is always the first step toward success. After that, it’s important to plan well in advance. Buying and selling real estate can be extremely stressful. Approaching each transaction methodically, and with as much advance planning as possible, can help relieve some of that stress. 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

By Joe Szabo, Scottsdale Real Estate Team Buying a home can be a nerve-wracking experience, so can selling a home. Try to take on both tasks at the same time and you’re doubling the stress. Good news: Doing some advance planning can help reduce your number of sleepless nights.

What is a buyers’ market?

Real estate is a business based on supply and demand. If there are only a few houses for sale, buyers have to compete for those available homes, making it a sellers’ market. When hundreds of homes are on the market, house hunters find themselves in stronger bargaining positions relative to sellers, making it a buyers’ market. According to an analysis published by Zillow, the nation’s top five buyers’ metro area markets are:

• Cleveland
• Philadelphia
• Tampa
• Chicago
• Pittsburgh

In the Cleveland-Elyria-Mentor metro area, for example, the average listing spent 119 days on the market, and 28 percent of those properties had experienced a recent price cut, according to the Zillow analysis. Compare that to San Jose-Sunnyvale-Santa Clara, the nation’s top sellers’ market, where properties spent an average of 44 days on the market and the list price had been lowered on just 14 percent of those homes. Understanding your local housing market can help you determine how best to handle your own buy-and-sell scenario. “Buying and selling at the same time is something we help people do all the time,” said Leslie Ebersole, a real estate agent based in Chicago’s western suburbs. “The most important thing for people to realize is that, just like they’re out looking for the best home at the best value, people are looking at their home with the same lens. You have to realistically participate in the market.”

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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.

By Joe Szabo, Scottsdale Real Estate Team If you’re in the market for a vacation home but are looking to minimize costs as real estate prices rise and you face a stagnant paycheck, you might be considering going in with trusted friends or family members. Assuming you go that route, here are a few things to keep in mind so that you don’t turn your dream house into a nightmare.

Decide how the property will be used

Conflicts will arise if you approach the purchase of this second home with different assumptions. For example, one party may view the home as a money-making rental unit and may be fixated on its investment potential; the other side, however, may think of it primarily as a vacation spot for all to enjoy. For a house-sharing arrangement to succeed, you’ve got to be in agreement as to how this property will be used — in advance.

Put business before pleasure

Just because everyone gets along and is compatible doesn’t mean there won’t be conflicts down the line. To avoid possible disagreements (and keep the relationships in tact) consult with your attorney to draft an ownership agreement that specifies when each co-owner gets to stay in the house and how you’ll share costs and responsibilities. While how often you get to use the house is generally determined by how much money you put in, creative arrangements can work, too. After all, each situation is unique, but you will need to agree – not only on how and when you can use the house, but perhaps more importantly, how you’re going to handle the big-ticket expenses (mortgage, taxes, insurance, utilities) as well as minor repairs.

Consider an LLC                    

We’ve all heard the horror stories: An owner loses his portion of the home when a co-owner defaults on the mortgage; one homeowner dies, and that person’s portion of the investment goes to a co-owner rather than to the deceased owner’s relatives; there’s a lawsuit, and someone loses his/her stake in the property. The best way around these types of issues — and others — is to buy the property within a limited liability corporation, or LLC. Consider setting one up. It’s relatively inexpensive to do.

Have an exit strategy

Any sense as to how long you both plan to keep the property? What happens if one of you becomes financially strapped and can’t keep up with payments? Might you sell the property one day, and if so, under what circumstances? Can you sell to an outsider? How will pricing — and payouts — be determined? Could you prevent a sale by buying out your partner? An exit strategy is essential. 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.