Choosing a Real Estate Agent Archives - Page 11 of 17 - Scottsdale Real Estate Team / Arizona Luxury Homes

What Is ‘Risk’ in Real Estate? By Joe Szabo, Scottsdale Real Estate Team

March 27, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team You’ve undoubtedly heard about reducing your “risk” in real estate, but have you ever really thought about what that means? The risks are significant, and even though they are clearly identifiable, few home buyers do anything to understand and reduce their risk. Here’s some guidance based on the example of two different people buying a used car and how their experiences relate to real estate.

Buying a used car

Risky Robert, a dice rolling Las Vegan, decides it’s time to buy a car. He drives to the nearest dealership, where he meets a very nice used-car salesperson. The salesperson shows Robert several cars on the lot, tells him about the great quality of each car and how the car he proposes for Robert was only driven by a grandma to church. Robert likes that tidbit about grandma and test-drives the car and likes it. The sales guy quotes the fair price, they haggle a little, Robert takes the dealership financing and he’s got a new used car. And that’s risky behavior!

There is a better way

Due Diligence Diane, a sensible Seattleite, starts her shopping online. She looks at Kelley Blue Book and Consumer Reports for the best value deals, car reliability information and pricing. She decides which car she wants and how much she’d like to pay before even leaving her home. She’s not going to get talked into a car model she knows nothing about, and worse, from a salesperson who gets the biggest commission if he can get her to buy the dud that’s been sitting on the lot for 180 days. Diane also checks the Better Business Bureau website to find a used-car dealership with a good rating. Also, she looks at car financing options and rates from local lenders, so she can compare those to what the dealership is offering. She still hasn’t left her house, but she is now armed with a bevy of valuable information that will help her make a smart and safer purchase. Then Diane goes to one of the BBB-accredited dealerships and test-drives one of the cars that she already knows is reliable. This salesperson too says the car was only driven to church by a grandma, so Diane demands a vehicle history report that will prove or disprove that claim. Diane also takes the car to her trusted personal mechanic for a quick look, requires that the dealer make it a certified used automobile and requests to see the prior owner’s maintenance records. She haggles on price a little and laughs and then rejects the dealership’s financing offer; instead taking a lower interest rate loan from the local credit union. She then buys the right car for her. Now Robert and Diane both bought cars today, but one of them significantly reduced risk, probably bought a much better car, at a better price, with better financing and from a reputable dealership.

The real estate connection

Most real estate buyers, probably 95 percent, are doppelgangers who follow Risky Robert’s behavior when purchasing property. Many times this occurs because people simply do not buy real estate often, so they “don’t know what they don’t know.” They look for houses, have a home inspection done, maybe breeze through the contract, accept the only loan financing offer they’ve received and don’t even look at the title policy, escrow or homeowners’ association documents before closing on their purchase. That’s risk — being the Risky Robert in the room and not taking every single prudent precaution that you can to mitigate the chances of something going wrong. 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.

How to Create a More Functional & Inviting Laundry Room By Joe Szabo, Scottsdale Real Estate Team

March 24, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Does anyone really love their laundry room? Perhaps that overly affectionate word is, and always will be, a bit much when it comes to a room dedicated to a basic, yet necessary, household chore. But laundry isn’t the task it once was, so why should the room dedicated to its purpose be? Even if your laundry room was ill-conceived from the start, there are some simple ways to turn it from a workroom into a performance room. Here are five ways to help you “love” your laundry room.

Create some counter space

Having adequate surface area for sorting and folding clothes is certain to make your life easier. If you have sufficient floor space, consider adding a center island (similar to one you would select for your kitchen). In addition to serving up a generously sized counter area, it will offer more storage options below. Not enough space in the center of the room? Consider adding a countertop over a side-by-side washer and dryer that load in the front. That way, you can be sure you’re making good use of the space and giving the room a custom, built-in look.

Maximize storage options

Regardless of your laundry room’s size, there are always ways to add storage options. Any storage will help keep things in their place and, if not out of sight, at least confined and organized. Stock cabinets are inexpensive and can be installed easily. Consider both base- and wall-mounted units wherever possible. If cabinets are not an option, you’ll find a myriad of specially designed products to improve the storage capacity of any laundry room.

Upgrade your old appliances

If your existing washer and dryer are old, replacing them with new models will not only make your life easier but help you save on energy and water costs. Today’s machines offer a wealth of special, high-efficiency features from larger-capacity washers and dryers to power-foam and steam-cleaning options. Take into account front- and top-loading machines to determine the best solution for your needs. And don’t overlook the option of having a stacked pair; it’s an easy way to open up floor space for a cabinet and counter or sink.

Add a sink

If you don’t have a utility sink in your laundry room, investigate whether there is a way to add one. The cost may be less than you think and the convenience of having it for hand-washed clothing and other cleanup jobs will be well worth the consideration. If plumbing lines are already in place, you can probably do the installation yourself.

Paint the walls a soothing color

There is nothing like a fresh coat of paint to enliven a room. Think about painting the laundry room in a color that sets the right mood for you — perhaps a soothing blue or green, or a more energy-infused color like Tangerine Tango. Hang some art, install a new chandelier, add decorative window treatments — anything to make it seem less like an afterthought and more like any other room of the house. The simple decorative touches will create a more inviting space, one you could even grow to “love.” To see some examples of stellar laundry rooms, and to get some inspiration for your own, take a look at some laundry rooms we love. 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.

Put Your Home To Work For You…Again By Joe Szabo, Scottsdale Real Estate Team

March 20, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Last year, homeowners recouped about $1.9 trillion in lost value, according to estimates from Zillow. That put more equity in our hands, and in turn led to a return in home equity lending. Granted, we’re not at pre-crash levels in terms of total home equity lending, but as values continue to rise in 2014, albeit at a slower pace, lending will continue to rebound. Have you gotten a pitch from your bank? As the home equity lending business heats up, and banks step up their outreach, here are a few things you need to know:

You need equity

To qualify, you need to own more than 20 percent of your home. Lenders are going to want you to have at least an 80 percent loan-to-value ratio, which is the remaining balance on your loan compared with the value of the property. With almost 3.9 million U.S. homeowners freed from negative equity in 2013 and the rate steadily declining across the country, more people will qualify for these home equity loans. During the housing boom, you may recall that standards were just a little “different” … in some cases, non-existent.

Income, credit score important

Sure, banks are looking to speed up sluggish revenue growth by jumping back into the lending game, but they’re being cautious about who they lend to — and rightly so. Don’t expect the loan approval process to be easy. In addition to having ample equity in your home and a strong credit score, you must also have income to make your payments. Remember: you’re using your home as collateral. Fail to make your payments and you run the risk of losing your home. Banks are also making sure that you understand the repayment period.

Know what you want

Does your house need a new roof? Are you interested in consolidating high-interest debts or do you have a large, single expense you need to borrow money for? Then a home equity loan, which usually comes with a fixed monthly payment and interest rate, is best for you. If, on the other hand, you need access to money over a period of time for ongoing expenses (perhaps you have some long-term home improvement projects you’d like to work on), then a home equity line of credit (HELOC), would make better sense. HELOCs usually have a variable rate that’s tied to the prime rate, plus or minus some percentage.

Shop around

While big banks used to dominate the home equity lending market (and you should certainly discuss your objectives with banks with which you currently have relationships), credit unions, regional banks, and others have emerged as formidable competitors. These players avoided much of the fallout from the housing bubble, and have been leading the way in granting new home equity loans and lines of credit to creditworthy borrowers. Plus, they tend to charge lower rates. 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.

How to Get the Best Home Loan for Your Needs By Joe Szabo, Scottsdale Real Estate Team

March 18, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Location, school ratings, number of bedrooms, outdoor spaces. These are the things potential homeowners focus on when they start house hunting. They’re all important factors, for sure. Even more crucial: How will you pay for your home? Home loans are not a one-size-fits-all proposition. They differ based on their type, such as fixed or adjustable rate, and their loan term. Loans also vary in interest rate and annual percentage rate (APR). To ensure you’re getting the best home loan for your situation, you’ll want to do your homework, talk to reputable credit counselors and lenders and follow these tips:

Fixed or adjustable?

There are two main types of mortgages: fixed rate and adjustable rate. Most homeowners today opt for fixed-rate mortgages. With a fixed-rate mortgage, you are locked in to a set interest rate, resulting in monthly mortgage payments that remain the same for the entire term of the loan. The No. 1 benefit of this type of mortgage is inflation protection. If mortgage rates go up, your rate will not follow suit. Conversely, if rates drop, your interest rate will not drop. (Of course, you could refinance your mortgage if rates dropped significantly.) Most lenders offer 15- and 30-year fixed mortgages, and some also offer 20-year terms. The longer the term of your fixed mortgage, the lower your monthly payment because you’re paying over many years. With a 30-year term, however, you will end up paying more interest over time. A 15-year fixed mortgage will have a higher monthly payment because you’re paying for fewer years. On the other hand, you’re building equity at a faster rate and will pay less interest over the life of your loan. The shorter the term of your loan, the lower your interest rate will likely be. An adjustable-rate mortgage (ARM) is a loan with an interest rate that will change over the life of the loan. ARMs have adjustment periods that determine how often their interest rates can change and they have initial “fixed” periods during which their interest rates won’t change at all — most often 3, 5 or 7 years. After this period, rates can readjust. These loans are often considered riskier because the interest rate and payments can increase when the loan adjusts. However, if you’re planning to live in your home for a shorter period of time, these loans may make sense for you, especially because you’re likely to obtain a lower interest rate than with a fixed mortgage.

Clear up your finances and credit rating

Even before you start shopping for a mortgage, you need to take a good, honest look at your finances. Most financial experts agree that your mortgage payment — including taxes and insurance — should not exceed 30 percent of your take-home pay. Yes, you may get a raise down the road — or you may not. Your mortgage payment should correspond with your current financial reality. You’ll also want to check your credit rating. Why? Because your credit rating may be the most important piece of financial information you have to obtain a mortgage at the best possible interest rate. Checking your credit rating before you find your ideal home will give you time to correct reporting errors and to clean up less-than-spectacular ratings. It can take up to 90 days to get erroneous information off your report, so don’t delay.

Shop for several quotes

Home loans are available from commercial banks, mortgage companies, thrift institutions and credit unions. You’ll want to get quotes from several different lenders to make sure you’re getting the best price. If you don’t want to shop for loans yourself, you may decide to work through a mortgage broker. Rather than lending money directly, brokers find lenders for clients. Working through a broker may give you access to an even broader selection of loan products and terms. Brokers are not obligated to find the best deal for you unless they have a contract with you and are working as your agent. Consequently, if you go the broker route, you’ll want to talk with several, just as you should with banks or credit unions.

Get ratings and reviews

After you’ve narrowed down the list of lenders or brokers you’re interested in working with, you should check into their backgrounds. How long have they been in business? If found online, are they accessible? Can they provide third-party reviews and ratings? This unbiased feedback from people who have worked directly with the lenders can prove invaluable when separating the great from the not-so-good. Once you settle on a lender, you’ll want to get pre-approved. Through this process, the lender will determine how much you can afford to spend on your new home. You can get a pre-approval letter in minutes through Zillow. Fill out this form, pick your pre-approval lender, and if you meet the lender’s guidelines, you’ll get your pre-approval letter that you can print and email. In a competitive market, pre-approval letters are almost essential. If you make an offer on a house without a pre-approval, your offer will not be taken as seriously as an offer from another person with a pre-approval and you could lose your dream home. Most bank-owned properties require a pre-approval letter from a lender before an offer can be accepted. 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.

Control Your Home From Afar With ‘Smart’ Upgrades By Joe Szabo, Scottsdale Real Estate Team

March 13, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Earlier this year, Google announced its $3.2 billion cash purchase of Nest Labs Inc., best known for its smart thermostat and smoke alarm for residences. If Google is headed in the direction of smart home services, rest assured this trend isn’t going away anytime soon. Want your home to stand out as an energy-saving, tech-savvy gem? Consider adding one or more of these features:

1. Programmable energy savers

The pros at Consumer Reports say programmable thermostats can slash your energy bill by about $180 per year by automatically reducing your heating or cooling when you need it least. The Nest Learning Thermostat takes this concept a step further by learning your schedule and programming itself to raise and lower temperatures according to your routines. Not only will you be saving money, the next family to live in your home can also enjoy the financial benefits of a smart thermostat.

2. Smart lighting

Forget to turn off the lights when you leave a room? That simple failure to flip the switch can definitely affect your energy bill. Companies are beginning to offer “smart lighting” options, which allows you to control your home’s lighting via computer or mobile. “Connected” by TCP offers a starter pack that includes three bulbs, a remote and a gateway that controls your lighting. The home lighting kit works with both iPhone and Android devices, so you can easily control your LED lights at home or on the go.

3. Fiber-optic technology

When it comes to cable and Internet, fiber-optic technology is a green alternative to traditional coaxial copper wires because it is more energy efficient, lasts longer and is safer because the cables produce less heat. With more and more smart devices operating at the same time in your home – not counting your tablets, laptops and gaming consoles – you’ll probably notice a serious drain on your Internet connection if you’re using broadband Internet from cable, DSL or satellite providers. Fiber-optic Internet technology gives you the capacity for greater Internet speeds – meaning you can have more wireless and smart devices in your home operating simultaneously with little to no effect on your online activities. The largest providers in the country are Verizon FiOS, Google Fiber and AT&T U-verse — but they have limited service areas. If your neighborhood is serviced by one of these providers, it’s a definite selling point.

4. Tankless water heaters

Heating water accounts for up to 30 percent of the average home’s energy budget, since your standard water heater keeps 40 to 80 gallons of water heated to 120 degrees or higher at all times during the day. Tankless water heaters have been gaining more and more traction in the past few years, since they heat water on-demand, reducing utility costs and environmental impact. The best part? You won’t run out of hot water mid-shower.

5. Remote-controlled shades

Closing the blinds to your windows is another way you can maintain the temperature in your home. Serena Shades are one remote-controlled product that can help you conserve energy and money each month. The Android- and iOS-controlled shades are also available as part of a whole-home lighting package offered by Lutron. Wireless shades allow you to raise and lower them from your phone – allowing you to easily manage your home’s light and heat from any location. 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.

The Anatomy of a Real Estate Purchase By Joe Szabo, Scottsdale Real Estate Team

February 24, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team The steps, process and details of buying real estate can be intimidating and overwhelming to the first-time (and even the veteran) buyer. If you’ve never done this before, you likely have no idea how the process begins or what to expect. Every market does things a little differently, and you should ask your real estate agent how the process works in your community. For the most part, however, the transaction should follow these seven steps.

Make an offer and write up a contract

When you love a place and think it could be your future home, it’s time to take a serious and legally binding step toward purchasing it. This means writing up a purchase offer and signing a real estate contract. Yes, at this early stage of the game, you need to sign a legally binding contract. By signing on the bottom line, you’re committing to moving forward on the purchase with the seller. There are contingencies, or “outs,” to many real estate contracts, however. Most contracts will be contingent on inspections, disclosure review, loan approval, appraisal or other matters. These “contingencies” are ways to exit the contract should something not go as anticipated.

Disclosure review

By law, the seller must provide the buyer with disclosure documents, a preliminary title report, copies of city reports and any specific local documents. For example, in California, an earthquake hazards report or a geological survey is required. In areas of the South, near the Gulf or on a riverbed, flood maps and floor reports should be provided to the buyer. Aside from any mandated reports, the seller needs to disclose to the buyer any issues or flaws with the property that would affect the value or habitability. Generally, sellers are required to answer a series of yes or no questions about the property, the neighborhood and their experience there via a transfer disclosure statement. If there were leaky windows in the past, violations from the city, work done without permits or plans for a major nearby development, the seller is required to disclose them. This provides additional color about the property you’re considering purchasing. If there are major flaws, the seller’s agent would likely have brought them up before the contract signing. However, if something is disclosed here that is a negative factor for you, this is your out.

Appraisal

Most buyers will put a certain amount of money down toward the purchase price. The balance will come as a loan from the bank. But the bank isn’t going to hand over that money without doing its due diligence. The appraisal is the financial institution’s way of making sure the contract price is the right price. The bank sends out a third-party appraiser, which the buyer pays for, to confirm that the contract price is in line with the neighborhood’s comparable sales. If it’s not, the bank can deny the loan or change the terms.

Inspections

A home is a huge purchase — likely the biggest of your lifetime. And so, as part of the real estate contract, you have the right to a property inspection. The most common is a “general” property inspection. The inspector will check the home from the foundation to the roof and investigate all major systems and components. You, as the buyer, should follow alongside the inspector to learn more about the property. You’ll want to know about the components (such as the water heater) and have a plan in place for maintenance. As a result of the general property inspection, the inspector may suggest having a specialist come out. This could be a roofer, electrician, HVAC specialist or even an engineer. Listen to the inspector and have any follow-up inspections as necessary. This is your one chance to approve the property from top to bottom. If issues arise, you might go back to the seller and negotiate some sort of fix or credit. If something major arises and it’s just not what you signed up for, you can exit the contract via your inspection contingency.

Loan approval or commitment

In addition to making certain the property appraises at no less than the contract price, the bank will want to fully approve your credit, debt and income history. It’ll also want to approve the property’s preliminary title report to make sure there aren’t any liens recorded against the property that might affect its value. The bank can take up to a month to do its full review, which should result in a loan commitment or full loan approval. Once that’s completed to the bank’s satisfaction, you’re guaranteed a loan, and you’re one step closer to closing.

Final walk-through

A day or so before closing, you’ll want to walk back through the property to make sure it’s in the condition it was when you last saw it. You want to be certain that the seller didn’t remove any fixtures, make modifications or leave behind garbage or debris. You also want to make sure any fixes you negotiated with the seller were indeed completed.

The closing

Depending on the market, the closing may happen at an attorney’s office or with an escrow officer at a title company. In some jurisdictions, the buyer and seller don’t ever meet. Each goes in to sign their closing papers separately, and the property closes in the background. In others, the buyers and sellers sign the closing documents together. Regardless of how a closing happens, if you’re a buyer and getting a loan, plan on signing dozens of documents at closing. You’ll have to show up to the closing with a photo ID, as your signature will be notarized. Prior to the closing, your real estate agent, attorney or escrow officer should send over a closing statement to review. This will spell out your final closing numbers and what money you need to bring to closing. The funds can be wired in or paid with a cashier’s check on closing day. Be sure to ask for the statement early, so there aren’t any last-minute surprises. 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.

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