By Joe Szabo, Scottsdale Real Estate Team If you’re in the market for a brand-new home, you’ve got a ton of options. Sales of new homes surged to an eight-year high in 2015, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, and single-family production is estimated to reach 840,000 units in 2016, an 18 percent increase over 2015, according to the National Association of Home Builders (NAHB). Unfortunately for home buyers, new residential construction is coming at a steeper price: Last year the average price of a new home jumped to $351,000, up $100,000 from 2009, reports the NAHB. Nonetheless, there are still ways you can save when buying a new home. It’s like shopping for a new car: You need the right strategy to nab the best deal. Ask prospective builders these six questions in order to find the right home at the right price. “What financial incentives do you offer for using your preferred lender and title company?” The bad news: Production builders are often reluctant to set a precedent for negotiating sales prices. (Custom builders tend to be more flexible.) “If a new home is listed for $370,000 and it sells for $360,000, the next buyer in the development is going to want to pay that lower amount,” says Craig Reger, a real estate broker at Keller Williams Realty in Portland, OR. However, many offer handsome incentives to buyers who use their preferred lender and title company. Some may even knock off up to $10,000 in closing costs, says Peggy Yee, a supervising broker at Frankly Real Estate in Vienna, VA. Others will sweeten the deal by negotiating prices on finishes, such as upgrading carpet to hardwood floors. You should still shop around and get quotes from at least two other lenders before making your decision. But don’t just pay attention to the interest rates. “You need to compare each loan estimate’s terms to make sure you’re getting an apples-to-apples comparison,” says Chris Dossman, a real estate agent with Century 21 Scheetz in Indianapolis. “Which are the standard finishes?” When you tour a development’s model home, keep in mind that you’re previewing a high-end version of the standard home. “The model has all the bells and whistles,” says Dossman. Therefore, you need to find out from the builder which options are standard, which options are upgrades, and what each upgrade costs. One way to cut costs: Move into the home without an upgrade, then hire a contractor to do the work. “Builders charge a huge markup on certain finishes and products,” says Reger. “The builder might charge $4,000 to $6,000 for a high-performance air conditioner, but you may be able to get another company to install that same unit for as low as $2,500.” Granted, opting for the latter means you’ll probably need to pay the contractor in cash. “For some people, the benefit of paying the builder to do upgrades is that they can roll the costs into their loan amount,” Reger points out. “What are your long-term plans for the community?” Depending on the size of the land, the builder might be planning several subdivisions. This could impact your decision to buy. For example, let’s assume that only a few homes have been built and sold. If the developer plans to construct an additional 50 homes and you’re one of the first people to move into the neighborhood, you may have to deal with loud construction crews for several months. There’s also the risk that the builder loses funding and another company takes over the development. Dossman advises proceeding with caution: “If the builder changes and a lower-quality builder takes over, that could affect the value of your home.” “What are the homeowners association rules and regulations?” Each homeowners association (HOA) has its own Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and bylaws. Get these from the builder and review them carefully. “I’ve seen HOAs that don’t allow storage sheds in the backyard, solar panels, or private fences,” says Reger. In most cases, the HOA can assess a homeowner penalties for infractions, and some associations are more restrictive than others. Also, look into when you’re required to start paying HOA dues. Many builders cover the costs until at least 50 percent of the homes in the development are sold, says Yee. “What warranties do you provide?” Most builders offer a one-year workmanship warranty and a 10-year structural warranty, says Reger. Make sure the warranties you receive explicitly state what is and isn’t covered, and what the limitations are for damages. You should also receive manufacturer’s warranties on the washer and dryer, hot water heater, air conditioner, kitchen appliances, and roof. “Can you connect me with some of your past clients?” Always check references when vetting home builders, says Dossman. Ask past clients questions such as, “How responsive was the developer when you expressed concerns?” and “Would you use the builder again?” Caveat: Most builders will only provide glowing references, so you should still scout out some past customers on your own. You can find these people through reviews on Angie’s List, or knock on doors of homes in the neighborhood that have already been built. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team Navigating the rental market isn’t easy. Between bait-and-switch listings on sites like Craigslist, deceptive landlords, and confusing legal language in lease agreements, finding the right apartment can be a time-consuming, mentally taxing process. But before you even begin your search, you’ll need to determine whether you’re looking for a short- or long-term lease. Not sure where you stand? Consider these advantages and disadvantages to month-to-month leases — then decide what makes the most sense for your needs.

Pro: You get greater flexibility

If you’re thinking about buying a property in the near future, or moving to a new city, a short-term lease gives you more flexibility and can save you money in the long run. When you sign a 12-month (or longer) lease, you’re legally obligated to pay 12 months of rent even if you decide to move before the lease expires. (Read: breaking a long-term lease will cost you.) Granted, “some landlords will let you terminate a 12-month lease early if you find a new renter to take your place,” says Joe DeFilippo, a real estate agent and rental specialist with City Chic Real Estate in Washington, D.C. However, if you want to be able to move on short notice without paying a penalty, a month-to-month rental is your best option. Bear in mind you’ll still need to give the landlord at least 30 days’ notice (or more, depending on the lease agreement).

Con: You pay more in rent

Owners want rental property occupied at all times so they can continually collect rent. But when a tenant moves, finding a replacement can be a hassle — and there’s a chance the unit will be vacant for a while. Therefore, month-to-month renters pay a premium, says Rae Wayne, an agent with The Bizzy Blondes Real Estate Team in Los Angeles. How much more you’ll pay depends on the market. In Washington, D.C., month-to-month leases cost on average 50 percent more than 12-month leases, says DeFilippo. In Manhattan, landlords usually charge 15 percent to 20 percent more — and rent is high in New York, points out Marin King, an attorney and real estate agent at Keller Williams NYC.

Pro: You can (usually) switch to a long-term lease

In general, if you’re a good tenant, the landlord will be open to you converting to a 12-month lease, but there are some circumstances where that’s not the case. For example, if the owner is planning to make the property their primary residence in the near future, you’ll eventually need a new place to live. Find out what the landlord’s motivation is before signing a lease.

Con: Your rent isn’t fixed

Arguably the biggest benefit of signing a 12-month lease is that you get to lock in your rental rate, which makes it easier to manage your budget. Meanwhile, when you’re on a month-to-month lease, the landlord could decide to raise your rent on a whim and — depending on where you live — may only need to give you 30 days’ notice.

Pro: Many are fully furnished

Some apartments are specifically designed for short-term renters and come furnished. Residential buildings near universities, for instance, are ideal for summer interns, who are often willing to pay more since they don’t have their own furniture. The good news: many jurisdictions place a cap on how much landlords can increase rent within a 12-month cycle, so you’ll probably have some protection. But you’re still in a less favorable position than you would be in a long-term lease.

Con: Moving ain’t cheap!

A month-to-month lease might make sense in the short term, but if you start going from one short-term lease to the next, you’ll burn money that you could be saving for a down payment. Even if you don’t hire a professional mover, your lease may require fees to cover your application, utility transfer, and cleaning. Also, some buildings charge new tenants a move-in fee of up to $500. Moreover, there may be lag time in terms of your previous landlord releasing your security deposit. “There can be a lot of money in flux during a move,” says King. Not to mention that packing boxes and carrying heavy furniture isn’t exactly a pleasure cruise.

Con: You may have to do some digging

Landlords tend to prefer a long-term lease, since it offers guaranteed income over a set period of time, and reduces the risk of the property sitting vacant in between tenants, says DeFilippo. Hence, you have fewer options if you’re looking for a short-term rental. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team When I talk about prime real estate, I’m not talking about a fabulous suburban location for your new home. As a professional organizing expert, I refer to prime real estate as the best storage locations in your home. These are the superior spaces that provide the easiest access. Topping the list is the cabinet under your kitchen or bathroom sink. Most of us struggle with these spaces because we want to store so much in them that they become overfilled and frustrating to use. The other sneaky drawback of these ever-so-available cabinets is that they are usually quite deep. On the one hand, it’s great that they’re deep because you can store so much under there. But it’s also annoying, because you can’t reach the back of the cabinet very easily. When these cabinets are a jungle of items piled or crammed in, we sometimes have to get down on our hands and knees, and practically crawl inside to locate and pull out our squeegee for the shower or our favorite vase. Not to worry, though — there are fabulous ways to bring order to your cave of cleansers. You can turn it into the serviceable, accessible and organized under-the-sink cabinet you have hoped it always would be.

Entry points

Before you get started on this mini do-it-yourself organizing project, hold off on deciding to install bins, racks or shelves. Instead, do these tasks first:

• Pull out all the items from under the sink.
• Wipe down the cabinet, which seems to collect more dirt than three kids playing in a sandbox.
• Take a moment to check for leaks, and tighten pipes so any stored items won’t get ruined.
• Be sure to group like items together, then check for duplicates. This is not the place to store three identical bottles of glass cleaner. It’s best to just have one sponge, one bottle of lotion, or one can of floor wax stored under your sink. If you have a lot of under-the-sink paraphernalia, relocate the duplicates to a nearby linen closet or shelf in the garage. If you don’t have that extra space, then keep your buying to a minimum.

Hold everything

Next, it’s time to think about your storage options. Use bins or shower caddies. Consider using small but solid storage bins to keep your bottles, cans, vases, bags and boxes upright. Shower caddies are perfect for this space because they have a handle at the top. If you opt for bins instead, don’t put lids on them — it will be easier and faster to grab what you want from inside. Make sure each caddie or bin is easy to take out of the cabinet and lift up to the counter. This allows you to bring your items up to eye level so you can easily see what you have, retrieve it and replace it. Get hooked on hanging storage. Try a small over-the-cabinet door towel rack for hanging dishwashing gloves, towels, and wash cloths. Hooks can accommodate these items, too. Repurpose storage tools from other parts of the house. Many families use a “Lazy Susan” to store salt, pepper and toothpicks on the dining room table or kitchen counter. Considering using this spinning storage unit under the sink, too. A Lazy Susan keeps all your items front and center. With just a spin of the wheel, you can see what’s in the back of the cabinet. No crawling into the cabinet to find what you need! And be sure to use all the space available to you. A spice rack attached to the inside of the cabinet door is a great solution for holding small items like sponges, tools, and plant food (in the kitchen), or hairbrushes, nail polishes, and vitamins (in the bathroom). Install a pull-out shelf under your sink. With just a bit of effort and a small hand drill, you can easily install metal pull-outs. This is a super solution for both the bathroom and kitchen. One important caveat: Be sure to account for the pipes. You don’t want to have taller items located in the back of the pull-out shelf, because they’ll hit the pipes when the shelf is being pulled toward you — and then everything falls like dominoes. Congratulations on investing in your prime real estate. It will definitely pay off. 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.