Choosing a Real Estate Agent Archives - Page 2 of 17 - Scottsdale Real Estate Team / Arizona Luxury Homes

Deck Out Your Patio for Summer By Joe Szabo, Scottsdale Real Estate Team

May 20, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team You’ve got your sunscreen out, your watermelon sliced, and your grill smoking. No matter if you’re on a balcony, patio or urban roof deck, outdoor entertaining is the best. While you’re gathering supplies to enjoy a lemonade or ice cold brew with friends and neighbors, pick up a few decorative add-ons to enhance your outdoor space. Setting the mood for a party in the sun or under the stars is easy with these tips and treasures.

Classic bistro lights seal the deal

Hang a strand or two of Edison bulb string lights above your table or in the entry way to your patio. These classic string lights blend with almost any style of furnishings and work year-round. Adding lights is a simple way to create ambiance — and since it isn’t permanent, it’s great for renters. They create a flattering light for your vainest of guests, and provide a gorgeous glow as the sun sets.

Snake eyes: decor and games are one and the same

These giant dice make for a cheeky center piece, and will inevitably add a lot of laughs — and possibly some competition — to your cookout. Or for a no-cost decor-and-party-game combo, fold tons of paper planes in vibrant colors to populate the table. They’ll take flight later in the night, and guests of all ages can take aim at the horizon — or each other.

Bring the beach with hanging lanterns

Hanging hurricane lanterns or these nautical lanterns modeled on vintage glass canning vessels creates a seaside vibe no matter where you’re celebrating. Candlelight is essential to your gathering, and hanging lanterns are perfect because they elevate the mood and won’t blow out.

Take a walk to easy seat

Temporary seating is a must when entertaining outdoors. These red-stripped canvas poufs are ideal if you’ve got a smaller outdoor area. A few of these placed in conversation clusters encourage a casual atmosphere while providing a comfy place to sip. Guests can scoot over easily to make room without having to handle clunky metal chairs or heavier seats. Poufs and large pillows are also easy to store away inside and bring out when you’ve got a party-crasher later on.

One-of-a-kind pillows, everywhere

When in doubt, just throw tons of pillows at your outdoor area. This abstract and summery design by a maker on Society6 is an affordable way to bedeck your deck with custom artworks. A stack of five or six pillows on a canvas drop cloth or outdoor mat make for a coveted horizontal hang in the rays. No need for your patio to feel matchy-matchy — grab tons of different colors and styles of pillows and throws so folks can create their own plush arrangement.

Waste not, paper cutlery

Make big waves with small details in your plates and cutlery. You can stay stylish and eco-friendly with this delightful compostable pack of forks and knives. No one wants to lug dishes and silverware outside and then back inside for the dishwasher. Have your guests toss these in the bin and recycle on your way downstairs tomorrow. An easier clean up and you can save the environment? Yes, please!

Chic and tiny table for two on the fire escape

From New York to Paris, this Euro-designed miniature wonder is exactly what we dreamed of. A table for two, perfect for sipping wine and people watching, or an opportunity to fly solo with coffee and a good book. This attachable shelf is an ideal solution for morning meditation or evening imbibing on your balcony or fire escape. No matter how tight the quarters, you can create a cozy moment to share with friends.

A vertical garden: easier than you think

This modular garden container attaches easily to an interior or exterior wall in your home. Wally One is one of the smaller and streamlined versions. Start with one pocket and grow a vibrant plant or herb garden. If your patio or deck is close to the kitchen, you can be the urban farmer you always envied, heading out to snag a pinch of basil or thyme. You can always order more pockets to expand your green thumb efforts all around your home. Want to try these and other hot outdoor trends in your own backyard or patio? Zillow Digs and hayneedle.com are teaming up to give one person a $5,000 shopping spree to hayneedle.com to create their own outdoor oasis. Enter now for your chance to win. 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.

What to Do If Your Home Purchase Appraisal Comes Up Short By Joe Szabo, Scottsdale Real Estate Team

May 8, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Since a home is collateral for your mortgage, your mortgage can’t be approved without an appraisal report on the home’s value. Appraisals aren’t guaranteed to come in at your contract price, and your loan options change if your appraisal comes in short. Here’s what to do if this happens.

How a low appraisal changes your loan options

When you’re buying a home, lenders will extend a loan on the lower of either your contract price or the home’s appraised value. This is a critical distinction, because if an appraisal comes in lower than you’ve agreed to pay, you must either increase your down payment or increase your monthly budget in order to buy that home. Suppose a home in a very competitive neighborhood is listed for $300,000. You know there are multiple bidders, so you offer $325,000. Your offer is accepted, and you begin obtaining a loan for 80 percent of the $325,000 contract price, planning to put down 20 percent. When the lender’s appraisal comes back, it shows the value of the home is $300,000. When your process started, your $325,000 contract price minus your 20-percent down payment of $65,000 made your loan amount $260,000. The low appraisal of $300,000 takes that option off the table, and instead you have two other options.

1. Increase your down payment to avoid paying mortgage insurance

The most you can borrow without paying mortgage insurance is 80 percent of the $300,000 appraised value, which is $240,000. This means that instead of $65,000, your down payment now must be $85,000 to bridge the gap between your $325,000 purchase price and the $240,000 loan amount that’s available with no mortgage insurance. You’ll need to decide whether this extra $20,000 is something you can afford. If so, the lender also must determine if you’ll have enough reserves left over after closing to still qualify for the loan. One offset for putting the extra $20,000 cash into the deal is that your monthly payment will be $95 lower. The original deal with the $260,000 loan using a 30-year fixed at 4 percent gave you a total monthly payment of $1,633, comprised of $1,241 mortgage payment, $325 taxes, and $67 insurance. The new deal with the $240,000 loan gives you a total monthly payment of $1,538, comprised of $1,146 mortgage payment, $325 taxes, and $67 insurance.

2. Keep the same down payment amount, and add mortgage insurance

If you can’t afford or don’t want to bring in the extra $20,000 to cover the short appraisal, you can still get your target loan of $260,000. However, if you divide this by the $300,000 value, the loan is 86.7 percent of the home’s value, so you’ll have to pay mortgage insurance. If you’re getting a 30-year fixed loan at a rate of 4 percent, your total monthly payment will be $1,761, comprised of $1,241 mortgage payment, $128 mortgage insurance, $325 property tax, and $67 insurance. If you compare the $1,538 payment you end up with by putting in the extra $20,000 (to cover the short appraisal and avoid mortgage insurance) with the $1,761 you’ll pay if you stick with the original down payment (giving you a larger loan plus mortgage insurance), you can see that you’ll save $223 per month if you pay the extra $20,000 upfront.

Disputing low appraisals

All of this assumes you can’t get the appraised value above $300,000. However, when an appraisal comes in short, you can work with your lender and real estate agent to evaluate whether the appraiser included all relevant comparable sales on the report to derive their value. An appraiser’s selection of comparable sales is based on many factors like location, size, age, and condition of the sold homes being compared to the property you’re buying. How recently the other homes sold is also a factor. Your lender — usually after consulting with your real estate agent — will advise if they think a value dispute is warranted. If so, they will write up a case for a dispute and present it to their bank’s appraisal department. Federal appraisal regulations make the dispute process complicated and often slow, so make sure that your contract allows you enough time for a dispute. If the value is revised to your contract price, you can use your originally intended deal structure. If the low value is validated during the dispute process, you can ask the seller for a price reduction. If they refuse and you still want to buy the property, you can revert to the options laid out above. 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.

Where Can Millennials Afford to Buy Homes? By Joe Szabo, Scottsdale Real Estate Team

May 5, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Now that we’re well into the year of the millennial migration — when young adults are expected to overtake Generation X as the largest group of home buyers — it’s time to consider where millennials can afford to buy. The answer is discouraging for those wanting to settle along a coast. In New York, Boston and Miami, fewer than 60 percent of the homes for sale on Zillow in the fourth quarter 2014 were affordable for typical 23- to 34-year-olds. Zillow determined this by taking the median income of young adults in each metro, and assuming they put 5 percent down and spend 30 percent of their monthly income on mortgage payments. The situation out west was even worse, with just a quarter of homes in Los Angeles and Honolulu affordable. Prices have increased so much even in smaller California metros like Sacramento, Fresno and Modesto that more than 60 percent of what’s on the market is out of reach for millennials. Nationally, 70 percent of homes on the market were affordable to young adults, with many coastal cities falling short of that, including Portland (51 percent), Seattle (63 percent), Washington, D.C. (64 percent) and Houston (68 percent). Metro areas in the middle of the country offer more choices. Here are some of the most affordable:

Metro	% Homes for Sale That Are Affordable for Millennials
Akron, OH	90
Buffalo, NY	86
St. Louis, MO	85
Des Moines, IA	85
Pittsburgh, PA	82
Louisville, KY	80
Kansas City, MO	80
Indianapolis, IN	79
Omaha, NE	77
Minneapolis, MN	75

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.

First-Time Home Buyer’s Guide to Choosing a Neighborhood By Joe Szabo, Scottsdale Real Estate Team

April 20, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team When you’re ready to buy your first home, you’ll probably remember those three important words we always hear about real estate: location, location, location. While the geographic location is important, it’s also the amenities around the location that make a house a home. Every buyer is different in what they desire, so you need to find a neighborhood with the location and amenities that fit your desires — and, just as importantly, your budget.

Affordability

Location is one factor that will heavily influence the price of a property. You don’t want to shop in locations you can’t afford — even though it might be fun. The first task in your home purchase process is getting pre-approved by a bank or mortgage lender so you understand the ballpark within which you will be playing ball. Inform your real estate agent about your price range so they can identify the locations where you can afford to purchase.

Neighborhood type

You also need to figure out what works for you when it comes to the type of location you like: urban, suburban, or rural. Many people live in and love high-density areas where retail, restaurants, gyms, and grocery stores are all within a few blocks’ walk. It’s nice to be able to walk to everything — but with that comes lots of cars, people and sometimes noisy neighbors. Other home buyers prefer quieter suburban developments that are probably going to require driving for one’s commercial and entertainment needs. Then there are rural folks who want full quiet and no nearby neighbors. Make sure before you shop that you are shopping in the right type of area for you.

School district

Schools also make a big difference for many buyers, and a buyer will certainly pay for the best school district. School quality is one of the top items on a parent’s mind when looking for property. You can search the Internet for school ratings and check with the city or county for more information. Of course, if you don’t have children, it’s not as big a deal.

What’s next door — or could be

You should also always consider what is next door to the property you buy. Will you be living among lots of single-family houses, or big apartment buildings? It’s also important to know if there are currently or once were gas stations or chemical plants nearby. Drive around and look, plus check Natural Hazard Reports to see what is or was in the area. Additionally, be cautious about empty developable lots or empty retail/warehouse properties nearby, as you never know what might end up being built there. It’s also smart to understand the zoning on your property, as it might let the single family home next door be torn down and developed into a 4-plex rental property. That might or might not be okay with you, but you should be aware if it’s a possibility.

Holdability

One more important item to consider regarding location is your chances of owning the property a long time. If you are not sure you’ll be happy staying a while, you’re better off passing on buying for the time being. Considering all these issues — as opposed to making a quick purchase decision based on what your heart is telling you — should help you buy a home that is a good fit, will serve you well, and will be a good investment for your future. 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 Reasons to Keep Your Lender in the Loop When You Make an Offer By Joe Szabo, Scottsdale Real Estate Team

April 16, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Of the many things that can trip you up when buying a home with mortgage financing, writing offers is one of the most common. When you’re finally writing a home purchase offer (also called a purchase contract) after a long home search process, it’s easy to forget about your lender in the excitement. However, your lender must be involved because of these five ways purchase contracts impact the lending process.

1. The purchase offer must match loan documents

Names in the “buyer” section of your offer must match the names on the loan application exactly. This small but critical detail can delay or kill a deal. For example, if your significant other is out of town when you’re writing the offer, your real estate agent may advise you to write it solely under your name. But if your loan application has both names, the lender will require you to add that missing person and have everyone, including the seller, re-sign the contract. Or worse, if you use an entity like a trust or a business as the buyer, you’ll be forced to change the contract to human buyers that match the loan application. Mortgage loans must be made to humans, and you can transfer to entities post-close if that’s your goal.

2. The lender must approve home inspections you request

Your offer contract will ask you to select which home inspections you want. Appraisal inspections are required by lenders. Optional inspections include contractor, structural, engineering and pest. Not all lenders will ask to review and approve every optional inspection report, but they study contracts and other property documentation (like listings on Zillow and local MLS sites) to look for red flags that may cause them to request a certain inspection report. For example, if a public listing noted that a seller had already obtained a pest report and it contained $5,000 worth of repairs, the lender will require that pest report for review, and they’ll also require that the repairs are completed prior to approving and closing your loan, which can create timing issues. Mapping this out with your real estate agent and lender before you submit your offer enables you to execute the rest of the process with ease.

3. The lender must be able to perform on your closing timeline

Your purchase contract must state how fast you can close. In low-inventory markets where sellers have the upper hand, buyers who can close fast get the most attention. You need your lender’s input on closing timing. They’ll tell you how long it will take to appraise the property, review title history, approve the condo project (if applicable), and finish approving you, if they haven’t already. All you have to do is tell your real estate agent to get the timing from your lender.

4. The lender must be able to perform on your due diligence timeline

Another critical point in contract timing is requesting how many days you need for each stage of due diligence, like completing your appraisal, securing your financing, approving seller disclosures, and completing inspections. These “contingencies” protect you by enabling you to break the contract until you’ve released them. Just like with the closing timeline, sellers respond well to speed, so make sure your real estate agent is discussing timing of each contingency with your lender before you write and present the contract.

5. The lender must approve credits you ask for

Often real estate agents will advise buyers to seek a credit from the seller at closing in lieu of reducing a purchase price. A seller credit enables buyers to negotiate better terms for themselves while also conserving cash because the credit will be used to offset closing costs. You can ask for credits in the beginning, but often they’re requested after an inspection reveals a minor property issue such as scuffed walls or damaged window screens. In these cases, your lender will require a contract addendum (signed by the buyer and seller) to show the credits, which the lender must approve before having the appraiser amend the appraisal report to reflect the credit. These tasks can take two to six days for a lender to process, so you must keep the lender in the loop on all credits from the seller, real estate agents, or any other third parties. 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 Most Expensive Streets in America By Joe Szabo, Scottsdale Real Estate Team

April 6, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team No helicopters, no mega yachts. At first glance, Indian Creek is just a small private island in Biscayne Bay. But South Florida real estate agent Cory Waldman begs to differ. “It’s a city within a city,” the Coldwell Banker associate said. “They have their own police force. The lot sizes are enormous. It’s top-notch.” Across the country, luxury real estate agent Kofi Natei Nartey has a similar reaction — but not about Indian Creek. “Beverly Park is the most exclusive gated community in Los Angeles,” The Agency‘s Sports & Entertainment Division director said. “With guard-gated access only, it attracts some of the highest net worth individuals and celebrities in the world.” They’re not exaggerating. New data shows Indian Creek Island Road and Beverly Park Circle are the most expensive streets to live on in the U.S. Indian Creek, known locally as Billionaire Bunker, is home to four of the richest people in America, the Miami Herald reports. Beverly Park Circle is home to Denzel Washington and Eddie Murphy, among other big names. So what does it cost to live there? Based on Zillow’s analysis of streets with at least 10 homes, here’s a look at the median home value for the top 15:

Rank	Street	State	Median Home Value
1.	Indian Creek Island Rd	FL	$21.48 million
2.	Beverly Park Cir	CA	$16.238 million
3.	Beverly Park Ter	CA	$15.813 million
4.	Lazy Lane Blvd	TX	$15.42 million
5.	Conyers Farm Dr	CT	$13.033 million
6.	Strawberry Park Ct	CO	$12.421 million
7.	Field Point Cir	CT	$12.113 million
8.	Coopers Neck Ln	NY	$11.872 million
9.	Nimes Rd	CA	$11.445 million
10.	Arvida Pkwy	FL	$11.209 million
11.	Cameldale Way	AZ	$10.834 million
12.	Nelsons Walk	FL	$10.496 million
13.	Broad Beach Rd	CA	$10.272 million
14.	Tahiti Beach Island Rd	FL	$10.267 million
15.	Copa De Oro Rd	CA	$10.264 million

Names vs. numbers

Interestingly, all of the priciest streets are names, rather than numbers. In “Zillow Talk: The New Rules of Real Estate,” co-authors Spencer Rascoff and Stan Humphries explore what’s in a street name. By digging into the data, they’ve found a named-street premium exists across the country. Among the 20 largest metro areas, “we only found three places in the entire nation where named streets don’t have the advantage,” they write. “In Atlanta and New York, named and numbered streets come out roughly equal. Denver is the solitary example of a place where numbered streets are more valuable — probably because homes in its premier neighborhood of Country Club are located on numbered streets.” What gives named streets a higher price tag? Rascoff and Humphries say in general, the most valuable street names describe something about a home’s location. Indian Creek Island Road is a great example because “island” indicates the homes are near water, and therefore probably worth more than non-waterfront homes in the area.

Suffixes matter

It’s easy to gloss over the letters tacked on at the end of a street name. But as shown above, living on Beverly Park Terrace versus Beverly Park Circle could cost you hundreds of thousands of dollars. In their analysis, Rascoff and Humphries discovered the most common suffixes — street, boulevard and avenue — tend to be the least valuable. Way and place, meanwhile, make up only 4 percent of street name suffixes nationwide, and their homes’ are typically worth more. These findings shed light on the myriad factors at play in local real estate markets. Of course, at the end of the day, lot comes down to perception. “There’s nothing else like [Indian Creek] in South Florida,” Waldman said. “It’s the most prestigious address.” 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.

Selling a Home: Your Legal Checklist By Joe Szabo, Scottsdale Real Estate Team

March 23, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team If you’re thinking it’s time to sell your home, there are a few legal issues to consider before posting that “For Sale” sign. Whether you are parting ways with your spouse, planning to upgrade or downsize, or selling out of financial necessity, you should protect yourself from pitfalls awaiting the unsavvy seller. Here are four steps you can take to avoid common issues that pop up during the residential home sale process.

Resolve debts, encumbrances and liens

If your property has incurred any sort of debt, encumbrance or lien, you will need to take care of this prior to settling with your buyer. This obstacle can arise in any number of ways, including through:

Federal, state or local tax liens
Civil court judgments
Child support or spousal support missed payments
General unpaid debts
Failure to pay homeowners association dues

Of course, the outstanding amount will vary greatly from homeowner to homeowner, but one thing is certain: The lienholder will get paid. If you are facing a major tax lien or civil judgment attached to your property, selling your home will not get you out of trouble, especially if you try to hide the debt or defraud the buyer. The lien will, without question, appear on a title search ordered by the buyer and will become a deduction from your sale proceeds on the day of closing.

Get joint tenants on the same page

The ownership structure of your property may impact your ability to sell, especially if you inherited the property with several family members as joint tenants. If this is your situation, your options for selling the property are limited. You can either gather consent from all owners or try to divide the property in your state’s court of equity, which is usually a lengthy, expensive and highly combative process. In other words, before you attempt to sell jointly owned property, you need to get everyone on the same page and agree on how to split the net proceeds after the sale. The same holds true if you and your spouse are going through a divorce and have mutually decided to sell the marital home. If the property was owned through joint tenancy or tenancy by the entirety, both owners will need to sign the transfer deed over to the new buyers and agree to split the proceeds accordingly. Trying to sell the house out from under your ex probably won’t work, and you could face serious fraud consequences for trying it.

Draft a home sale agreement, if needed

While other countries have set up laws granting property and ownership rights to unmarried domestic partners, the vast majority of U.S. jurisdictions have yet to catch on to this trend — much to the dismay of domestic partners seeking to sell their home or purchase property. One of the best ways to ensure the process goes smoothly is to encourage open communication and clearly set contract terms that determine the profit division after the sale, especially if one partner is not on the deed. Prior to engaging real estate professionals, sit down with your partner and go over the current financials of the property, including outstanding mortgage debt, asking price and your agreed-upon bottom line offer threshold. From there, discuss the ownership expectations of both parties: Is it 50/50? 40/60? 25/75? This conversation may feel awkward at first, but it is the best way to protect each party’s investment in the property, which includes payment toward the mortgage, improvements, sweat equity and upkeep. Once these issues are decided, have an experienced real estate attorney draft a home sale agreement that sets forth the allocation of proceeds upon sale, the responsibilities of each party with regard to debts or encumbrances, and any other terms agreed upon between you and your partner. With this agreement in place, you are both protected from the pitfalls of litigation in the event the relationship — or the deal — crashes and burns. Otherwise, the court will only be able to help the party named on the deed as the owner.

Gather important documents

Finally, as you prepare for the sale of your home, it helps to compile all the important documents related to the value of the property, such as:

Deed
Evidence of encumbrances, liens, judgments, etc.
Surveys
Appraisals
Documentation of major repairs, damage or improvements
Any agreements made between tenants or co-habiting partners
Comparable sales in the area (if available)
Any agreements made between you as the seller and your real estate agent (if applicable)
Copies of restrictive covenants imposed upon the community, as this information will be highly relevant to prospective buyers

5.2 Million Renters Plan to Buy in the Next Year By Joe Szabo, Scottsdale Real Estate Team

March 17, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Jackie Bigness and her family are finally ready to buy a home. After years of renting, plus 8 months of living with her parents while they saved for a down payment, Bigness and her husband are house-hunting in earnest — and in the snow. “Because we have such an early start [to house-hunting season] here in Chicago, we’ve been trudging through the snow — and what’s out there in our price range is insulting,” Bigness says. She hopes the listings will improve as home-selling season ramps up. The Bignesses are at the front end of a wave of some 5.2 million renters who plan to buy homes in the next year, according to the Zillow Housing Confidence Index (ZHCI), which is sponsored by Zillow and developed by Pulsenomics LLC. That’s an almost 25-percent boost from the same time last year. Homeowners remain more confident overall than renters, but renter confidence is growing faster than homeowner confidence in 14 of the 20 metro areas surveyed. People with the most confidence about the housing market are in San Jose, Miami and San Francisco. Confidence rose the most since last year among respondents in Dallas, Detroit and St. Louis. “As home affordability continues to look great and rental affordability looks abysmal, many current renters clearly seem to be re-thinking their attitudes toward homeownership, and are expressing more confidence in the overall housing market as a result,” says Zillow Chief Economist Stan Humphries. Still, Humphries cautions, wanting to buy is not the same as being able to. “Saving a down payment, qualifying for a mortgage and finding an affordable home to buy all remain formidable challenges for many,” he says. The ZHCI polls homeowners and renters about housing market conditions, expectations for the future and their attitudes toward homeownership in general, across 20 large metro areas. You can read more about the results at https://www.zillow.com/research/housing-confidence-jan-2015-9097/. Survey respondents were most confident in these places: 1. San Jose, CA 2. Miami, FL 3. San Francisco, CA 4. Dallas, TX 5. Los Angeles, CA 6. San Diego, CA 7. Washington, DC 8. Denver, CO 9. Phoenix, AZ 10. Seattle, WA 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.

Tax Benefits of Homeownership By Joe Szabo, Scottsdale Real Estate Team

March 12, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Owning real estate can make tax season more complex, but many homeowners receive considerable benefits — especially if they sold a home or relocated for a job in the previous year. Here’s a look at three ways homeownership can pay off at tax time.

Mortgage interest

When you purchase a home, you will likely get a mortgage. Your monthly mortgage payment is made up of both principal (paying money to pay down the loan) and interest (what the lender charges for supplying the loan). As a way to incentivize homeownership, the federal government provides a tax benefit when it comes to the interest portion of your mortgage payment. A homeowner can write off, dollar for dollar, the interest portion of their mortgage payment. Say, for example, a homeowner’s annual salary is $100,000. Their mortgage payment is $1,200 per month, and the interest portion of that payment is $1,000. At the end of the year, they have a $12,000 tax write-off. In essence, their taxable income is reduced to $88,000.

Capital gains

Homeowners also get a tax break when they sell their home. If you purchase your home for $200,000 and sell it for $400,000, you have a $200,000 gain — that’s income. If you have an income by way of a job, a contract position or the sale of stock or mutual funds, you pay income tax on that gain. With homeownership, it’s different. If you are single and lived in the home for at least two of the past five years, you do not have to pay any income tax on that $200,000 gain — in fact, you don’t have to pay on gain up to $250,000. Married couples filing tax returns jointly and following the same owner occupancy guidelines are exempt up to $500,000. Where else can you generate income without paying taxes on it?

Tax credits for moving

If you purchase a home in one state and sell one in another, you should check with a CPA in both states. There may be benefits realized in one state but not the other, such as tax credits for moving expenses, if the move is a part of a job transfer. And, for the year you are between states, you will likely need to file a return in each state. It’s always smart to check with a CPA before a real estate transaction. 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.

Mortgage Rate Update By Joe Szabo, Scottsdale Real Estate Team

March 10, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.73 percent, up 3 basis points from this time last week. The 30-year fixed mortgage rate rose Friday to 3.83 percent, where rates hovered through the weekend before dipping to the current rate on Tuesday.

“Rates remained flat for most of last week but jumped sharply after Friday’s exceptionally strong jobs report, before easing back down early this week,” said Erin Lantz, vice president of mortgages at Zillow. “We expect rates to hold steady this week due to little incoming data and the official start of the European Central Bank’s bond purchases.” Additionally, the 15-year fixed mortgage rate this morning was 2.92 percent, and for 5/1 ARMs, the rate was 2.89 percent. Check Zillow Mortgages for mortgage rate trends and up-to-the-minute mortgage rates for your state, or use the mortgage calculator to calculate monthly payments at the current 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.

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