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Refinancing in a Volatile Rate Market: Get the Facts First By Joe Szabo, Scottsdale Real Estate Team

November 22, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Mortgage rates hit 16-month lows in mid-October, spent three weeks slowly inching up, and have now dipped back to those lows. Rates rise and fall when bond markets sell off or rally, respectively, based on how they interpret daily economic news and data. This rate volatility will continue as the Fed winds down its six-year rate stimulus campaign. If you understand the loan process, you can capitalize on rate volatility by capturing the lows when they come. Ask your lender the following five questions to align your loan process with this volatile rate market.

1. Did I miss the mini refinancing boom of 2014?

No. Rates are low enough that the mini refi boom from mid-October could resume. But with economic uncertainty driving rate markets up and down daily, you must have a plan. You can’t just lock a rate when they dip and hope your loan closes on time (see #5 below). The best approach is to contact a lender if you’re considering refinancing. Taking this step ensures you will have the loan process underway, with a rate lock being the last thing you’re waiting for. Then you can set a rate target with your lender based on short- to medium-term rate market expectations, and give your lender a standing order to lock the rate when they see it during volatile daily trading.

2. How do I get accurate rate quotes without submitting all my documentation?

As you begin your loan process, you can find out exactly what lenders are quoting by submitting a custom loan request on Zillow. However, it is important to note that once your credit report is run and your financial and property documentation information is collected, any changes or updates to your original loan request can affect your loan amount and mortgage rate. Additionally, a lender will analyze whether the math supports paying points on a refinance given your objectives—paying 1 point (which is 1 percent of your loan amount) should lower your rate by at least .25 percent. In this case, the interest cost savings from the .25-percent lower rate repays the cost of the point in four years, and everything from that point forward is pure benefit from the lower rate. You should also work with your lender to determine whether a cost or no-cost refinance is better for you financially. Refis cost about $2,500 to $4,500 depending on your market, and your rate will be .125-percent to .25-percent higher if you choose a “no-cost” refi. Knowing this, you can prepare for a lender consultation by analyzing cost vs. no-cost refi options in advance.

3. Why should I submit my documents as soon as possible?

Your lender will need to pull your credit report, monthly debt, pay stubs, W-2s, tax returns, asset statements, and anything else impacting your financial profile such as promotions, career changes, job gaps, maternity leave, loans you’ve made or received, and income or debt from divorces. Your loan officer will have to collect and analyze these documents, which an underwriter at the bank will then have to approve. An appraiser must inspect your property, then submit a full report for the lender to review, along with a title report, insurance, and any other relevant property information (such as a full questionnaire, budget, bylaws, homeowners association rules, and Articles of Incorporation if your property is a condo). If you start the loan process early by submitting your application and required documents, you can avoid unpleasant surprises or adjustments before you lock a rate.

4. What if rates drop after I lock my rate?

You have options if this happens. Whether you’re locking a purchase or a refi loan, rate markets will move up or down after you lock your rate. If rates rise, your lock protects your rate as long as your loan closes within the rate lock period (see #5 below). If rates drop, ask about your lender’s “rate renegotiation” policy. Most lenders follow a model similar to this: If rates drop at least .25 percent, you can renegotiate your rate to capture about half of that drop. So if you locked at 4.125 percent with a lender that followed this type of model, and rates dropped to 3.875 percent, you could renegotiate your rate to 4 percent.

5. Will my loan close before my rate lock expires?

Ask your lender if their quoted rate allows enough time to close your refi given all factors of your profile and their bank’s “turn times.” It’s important to know refinance loans in a rate-fueled market don’t close as fast because lenders will always put their purchase loans ahead of their refis in line for approval. Be sure to ask your lender about their lock extension fees, and make them clarify who pays the extension fees: you or them? Lock extension fees range widely. They can be .125 percent of the loan amount for 15 extra days, or .125 percent for 5 extra days. On a $250,000 loan, that means a 15-day extension could range from $312.50 to $937.50. 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 Prepare Your Home for Holiday Guests By Joe Szabo, Scottsdale Real Estate Team

November 19, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team When friends or relatives are coming to visit for the holiday season, make their visit a pleasure by thinking ahead and offering them your gracious home. Fruit baskets and floral arrangements aren’t necessary — just a bit of thoughtfulness and good planning. The following steps will walk you through what you need to know to make your next hosting experience a great one for everyone.

Valet welcome

If parking in your neighborhood is limited, be sure to reserve your off-street spot for your guests. Go out ahead of time and track down a convenient street spot if you need to — just don’t make your guests spend their first moments at your place looking for a parking space.

Prep the porch

This area is the first thing guests see when visiting your home, so make sure it is well lit, freshly swept and outfitted with clean cushions and fresh plants.

Grab-and-go

Create a simple breakfast station by keeping fresh fruit, breakfast cereals and other essentials together on the counter for early risers. Give guests a quick kitchen tour the night before so they can get their morning coffee or tea without waiting for you in the morning. If you want to set an extra-special table, adding a monogrammed mug and a small flower arrangement is lovely and doesn’t take much extra effort.

Make it casual

Cleaning your home before guests arrive is a must; however, keeping the atmosphere around the house as close to normal as possible will help put guests at ease. Newspapers on the coffee table and a casual playlist in the background set the stage for relaxation.

Stock the essentials

Your guest room doesn’t need to be outfitted like a four-star hotel, but certain basics should be in place to make your visitor comfortable. The essentials include fresh sheets, pillows and blankets on the bed, window coverings, a working light, bath towels, a wastebasket and a cleared shelf and hanging area in the closet. Bonus items include a fan, iPod docking station, clock, hairdryer, snacks, mini toiletries such as razors, aspirin and hairspray, and a surge protector for charging devices.

Allow for downtime

It’s too easy to over-plan activities for holiday guests. Having a few tentative outings or other visitors on the agenda can be helpful, but avoid the urge to fill every last minute. Most guests will really appreciate some blocks of unstructured time to relax, chat, read, nap or even venture out on their own.

Jump right in

When dinnertime rolls around, feel free to have guests pitch in with a few simple tasks in the kitchen. Ask them to set the table, pour the wine, choose the music, or prep greens for a salad, and soon your visitors will be feeling right at home. 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.

Full Disclosure: Reveal Your Home’s Flaws to Speed the Sale By Joe Szabo, Scottsdale Real Estate Team

November 10, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team In most states, the law requires sellers to fill out paperwork regarding their knowledge of the property they intend to sell. Many agents and sellers see disclosures as a thorn in their side. Why would they badmouth their property or listing? Why not say as little as possible and see if the buyer discovers any issues on their own? This is a penny-wise and pound-foolish mentality. Non-disclosure can lead to major headaches during escrow. You could lose the buyer, be forced to renegotiate the price or have to put the property back on the market. Non-disclosure can also lead to litigation months or even years after the sale. Self-disclosing, pre-inspections and putting it all out there prior to a buyer making an offer helps to usher the sale along and make the process simpler. It’s smart business, and ultimately saves time and money. If handled well, disclosures and calling out known issues helps inform your pricing and marketing strategy. Here are five tips to use disclosure to your advantage.

Order a building report

Each municipality has a building department that keeps records on every property. For a small fee, they provide building reports that contain valuable information about the home, such as the building’s history, permits issued, closed permits, violations, zoning information and sometimes landmark or historic status. Buyers or their banks will likely request this report. When they see open permits or violations, you better believe they are going to ask you to cure them, request a credit or walk away. Be prepared by ordering a building report early in the selling process. If you have issues to address, you can take care of them before you list the property. The potential buyer will then see a clean report, which will inspire confidence — not only in the property, but also in you as a seller.

Have inspections done prior to listing your home

Most sellers balk at this idea. Why pay to have the home inspected if you plan to sell? The answer is so that you can ultimately make more money. A home listed for sale at a great price gets a buyer in the door to make an offer, but that buyer will have his or her inspection regardless. It they find dry rot in the garage, they will either walk away from the deal or ask you for money. If you lose the buyer, the property goes back on the market with a stain on the listing. Everyone will ask what happened to the first deal, and you will likely be forced to disclose this new, known issue. If you credit the buyer, your ultimate net proceeds will be lower than if you had priced the termite work into the asking price and let buyers know about the issue up front.

Be the bearer of the bad news

Provide buyers with disclosure documents before they make an offer. Let them know you recently replaced the roof, completed some electric work without a permit or once had a window leak but remedied it by replacing some flashing. By revealing these issues, you’ll let the buyer know they are working with a fair and honest seller, and they will know more about the home. They will likely pay more for that piece of mind, and might even feel more comfortable moving ahead — even with some issues.

Arm your agent with knowledge

The listing agent is the only person who sees, meets and knows every member of the transaction. They should know as much about your home as possible before taking the listing. Knowing about defects helps the agent advise you on price and strategy for going to market. If your home needs a new roof and some electrical updating, the agent will likely factor that into your list price. Your listing agent is your team member. Keeping information from them will make you appear to be dishonest when the issue eventually comes up.

Get buyer sign-off on disclosed information

Nobody wants to be bothered with a legal issue after the sale. But when markets slow, or a buyer feels remorseful about their purchase for any reason, it’s not uncommon for them to go after the seller. To avoid post-sale legal hassle, document any issues in writing, and get the buyers to sign off on all reports, inspections and disclosures. This step is especially important with known issues or big-ticket disclosure items. No one likes surprises and you, the seller, ultimately lose when you don’t properly disclose information about your property. Think of the buyer as your customer, and treat them well. You’ll be better off in the long run. 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.

Is It Too Hard To Get a Mortgage? By Joe Szabo, Scottsdale Real Estate Team

November 6, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Six years after loose lending guidelines caused the worst financial crisis since the Great Depression, many still argue it’s too hard to get a mortgage in this country. The debate was framed well recently as USA Today squared off with the Mortgage Bankers Association (MBA), the country’s top housing finance advocate. USA Today said that human discretion has been taken out of mortgage decision making at banks, and they rely too heavily on transferring loan risk to government-backed entities Fannie Mae and Freddie Mac. The paper printed a rebuttal from MBA head David Stevens saying lenders are running scared because unclear regulations and heavy-handed enforcement can put them out of business overnight for lending to imperfect borrowers. Both make a similar point in different ways: Home lending got too tight post-crisis and is still too tight. But before we discuss how it’s loosening, let’s remember how we got here.

Brief history of the mortgage industry

The global financial crisis that began in August 2007 was set off by bad mortgage lending. Until the 1980s, consumer banking held to a simple “savings and loan” model in which community bank reps knew their clients’ finances intimately and could make common sense loan approval decisions; and lenders funded home loans from deposits with modest home price increase expectations. Then an innovation called loan securitization enabled community banks to sell pools of loans to Wall Street firms, who would create investment funds out of those mortgage pools. Instead of keeping loans on their books until more deposits could be raised to lend more, banks could unload loans in bulk to raise money to fund more loans. This approach placed more emphasis on the originate-and-sell-your-loans model. Over time, this practice made it unclear whether the lending bank or a future investor was accountable for loan quality. Two other trends also blurred accountability: a banking mergers and acquisitions wave changed community banking to global banking, and a deregulatory wave meant “savings and loan” banks became Wall Street trading firms that could package and sell their loans.

Further complications develop

Simultaneously, as the 1990s and 2000s progressed, home prices began an upward trajectory that — thanks to loose monetary policy, looser loan guidelines and unregulated mortgage securities trading — continued without interruption until home prices started falling in mid-2006. Banks lent more and transferred the risk elsewhere. As such, loan standards virtually disappeared, and loans were being made to borrowers with poor credit, and no jobs, income or assets. When these loans started going bad and set off the crisis, accountability was hard to pin due to loans being sold and securitized. A massive re-regulatory wave followed the 2008 crisis. By 2010, a new body of laws was created (called Dodd-Frank), and the laws have been implemented slowly each year since then. It’s now illegal to make loans without verifying a borrower’s income, assets and credit score, and it’s illegal for banks to sell loans without retaining some sort of accountability.

The new lending landscape

It took more than 20 years of loosening loan guidelines to spark a full-blown financial crisis. However, it’s only been four years since Dodd-Frank began the slow process of re-regulating, so it’s not yet fair to say that lending is too tight. As lenders slowly get more comfortable with the new laws, it’s also important that you practice common sense. A lender is there to serve you and do the home buying math for you. The math you most need to understand is your debt-to-income ratio. This is a number that tells you what percentage of your income is going to housing and other debts. The debt side of your debt-to-income ratio only includes your full monthly housing obligations and items from your credit report such as car loans, student loans and credit cards. It doesn’t include costs like food, utilities, clothes and spending money. The income side of the ratio uses gross income, not take-home pay. So while lenders sometimes will allow for a slightly higher debt-to-income ratio, you need to determine if you can really afford a home and still maintain your desired spending habits. As for how loan guidelines are evolving, here are some highlights: Low down payment options: Fannie/Freddie is currently working on an option for borrowers to put only 3 percent down on homes, with the loan maxing out at $417,000. And the Federal Housing Administration (FHA) still does 3.5 percent down. In both cases, mortgage insurance is required, and lenders can choose whether they layer more conservative requirements (for income, credit scores, etc.) on top of the Fannie/Freddie/FHA guidelines. Low credit score options: The average credit score on loans Fannie/Freddie is buying today is about 740, but they will buy loans with credit scores as low as 620. Again, it’s up to the individual lender to decide whether they layer more stringent credit score requirements on top of Fannie/Freddie guidelines, so ask your lender. Lower or inconsistent income options: If your debt-to-income ratio is slightly higher because you’ve had a gap in income, you’re self-employed or your income is heavy on bonuses or commissions, certain lenders might make exceptions on this. Find a retail bank lender that doesn’t sell its loans to Fannie, Freddie or other investors. It’ll be the most likely to make these exceptions, and will only make them if there are other compelling factors like strong credit scores, and money left over after you close. 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.

30-Year Fixed Mortgage Rates By Joe Szabo, Scottsdale Real Estate Team

October 24, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Mortgage rates for 30-year fixed mortgages were unchanged this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.81 percent, identical to this same time last week. The 30-year fixed mortgage rate hovered around 3.85 percent for most of the week, dropping to 3.70 percent Wednesday before rising to the current rate. “Last week mortgage rates experienced dramatic inter-day volatility, falling Wednesday to their lowest level since May 2013 fueled by global economic concerns and the potential threat of an Ebola epidemic,” said Erin Lantz, vice president of mortgages at Zillow. “With little mortgage market-moving data scheduled to be released next week, we expect rates to remain stable.” Additionally, the 15-year fixed mortgage rate this morning was 2.97 percent, and for 5/1 ARMs, the rate was 2.80 percent.

Purchase Mortgage Application Activity Zillow predicts tomorrow’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity increased by 5 percent from the week prior. To learn more about this Zillow analysis, click here. What are the interest rates right now? Check Zillow Mortgages for mortgage rate trends and up-to-the-minute mortgage rates for your state. 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.

Quick Tips for Staging Your Home to Sell By Joe Szabo, Scottsdale Real Estate Team

October 20, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team There are a number of tactics you can employ in an effort to sell your home quicker, but one of the top tricks is to stage the house. “When a seller decides to put their house on the market, they need to recognize that they are now selling a product and that product should be marketed as best as possible,” explained Nicole Rorem of Su Casa Staging. “This is where staging comes in.” Not only that, says Lori Livers of Interiors by Lori, home buying can be emotional and staging a home can help the buyer feel that connection. “Buyers purchase the house they are most drawn to — the house they want to make their home,” she said. Here are five quick tips for staging a home to sell.

Forget about empty

An empty house makes it hard for the new buyer to visualize themselves living there. Empty rooms can also appear smaller than they are, without furniture to provide context to the space. “We think about placing furniture to make the space feel large, open, functional, warm and inviting,” said Rorem.

Lead the eye

When arranging furniture, make sure it enhances the room’s best features. Don’t block huge windows, or crowd furniture next to a statement fireplace. Often, less furniture is more. You can even arrange the furniture so it “downplays the negative characteristics, by leading the eye of potential buyers,” says Livers.

Remove personal items and clutter

The easiest thing to do to prep a home for staging is to hide personal decor and accessories. “Put away all extraneous items like papers, personal bathroom items, pill bottles and personal collections,” said Rorem. “You want buyers to see all the features of the home and fall in love with the space as soon as they walk in. If the house is full of personal items and collections, the buyer may get distracted.” If you are still living in the home and want to display personal items, store them in a decorative basket during showings.

Create a sense of comfort

Fluffy, luxurious towels in the bathroom and pillows arranged on the couch or bed will give your home a more luxe look and are easy additions to a space. Decorative candles, even when unlit, are a great styling tool and provide a light scent in the room.

Clean

No one wants to tour a dirty house. Cluttered, dusty rooms will be the first thing the buyer notices, rather than the great view your home has, or the convenient open kitchen. Cleanliness matters when selling. And, if all else fails, call in a professional. Many real estate agents offer staging services, or can connect you to a staging professional that can help you see your home objectively and make changes that a potential buyer will enjoy. 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.

30-Year Fixed Mortgage Rates Plunge to Lowest Rate in 16 Months By Joe Szabo, Scottsdale Real Estate Team

October 16, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.81 percent, down from 3.96 percent at this same time last week. The 30-year fixed mortgage rate dropped Wednesday, then hovered around 3.88 percent for most of the week before falling to the current rate. “Rates dropped to the lowest level since June 2013 on news that the Federal Reserve has more reservations about the health of the U.S. and global economy than expected, which in turn, may delay rate hikes,” said Erin Lantz, vice president of mortgages at Zillow. “With little economic news planned to overshadow the Fed’s latest comments, this week we expect rates to fairly remain stable, hovering just shy of 4 percent.” Additionally, the 15-year fixed mortgage rate this morning was 2.96 percent, and for 5/1 ARMs, the rate was 2.70 percent.

Purchase Mortgage Application Activity Zillow predicts tomorrow’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity was unchanged from the week prior. To learn more about this Zillow analysis, click here. What are the interest rates right now? Check Zillow Mortgages for mortgage rate trends and up-to-the-minute mortgage rates for your state. 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 Buy a Home in One Market While Selling in Another By Joe Szabo, Scottsdale Real Estate Team

October 13, 2014 Joe Szabo

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

Know before you go

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

How to sell in a buyers’ market

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

How to buy in a buyers’ market

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

How to sell in a sellers’ market

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

How to buy in a sellers’ market

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

Reducing the stress of buying and selling

Today’s younger buyers and sellers, enabled by the global economy and the Internet, can live anywhere and move around multiple times in a short period of time. For them, as well as everyone else, understanding that all real estate markets are different, requiring different approaches, is always the first step toward success. After that, it’s important to plan well in advance. Buying and selling real estate can be extremely stressful. Approaching each transaction methodically, and with as much advance planning as possible, can help relieve some of that stress. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, 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

Uptick in US Housing Confidence Driven by an Unlikely Generation By Joe Szabo, Scottsdale Real Estate Team

October 2, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

As the housing recovery continues, Americans are growing more confident in the housing market in general. And that confidence comes in part from a potentially surprising source: millennial renters, who to date have been perceived by many as largely uninterested in and/or unable to attain homeownership. But even as younger renters express a strong desire to one day buy a home, the question remains if they will be able to just yet, as difficult buying conditions persist. Millennial renters (aged 18-34) often have a lot of student debt and pay very high rents in many of the nation’s largest cities, which can make saving for a down payment difficult. In addition, the inventory of the least expensive, entry-level homes is also tight, according to Zillow’s August Real Estate Market Reports. According to the second edition of the Zillow Housing Confidence Index (ZHCI), overall confidence in the U.S. housing market is up, driven by a perception of strong current market conditions and strong homeownership aspirations among both current owners and renters. Confidence was tempered somewhat by general expectations for slower growth going forward. The ZHCI, sponsored by Zillow and developed by Pulsenomics LLC, is measured on a 0 to 100 scale, with readings above 50 indicating positive sentiment. The headline index is comprised of three sub-indices:

The Housing Market Conditions Index (HMCI), which measures prevailing market trends and buying/selling conditions.
The Housing Expectations Index (HEI), which measures expected changes in home values, home affordability and the value of homeownership.
The Homeownership Aspirations Index (HAI), which measures household home-buying plans and attitudes toward the social value of homeownership.

The ZHCI rose to 64.2 over the summer, up from 63.7 in January, and housing confidence increased among residents of 11 of the 20 major metro areas surveyed. Both the HMCI and HAI rose in the most recent survey, to 62.1 and 62.7, from 60 and 62.4 in January, respectively. The HEI fell from January, to 66.1 from 66.3. Consumers’ expectations for more modest home value growth going forward are in line with Zillow’s predictions for slower home value growth over the next year. The Zillow Home Value Forecast predicts home value growth of 3.1 percent through next August, down from 6.6 percent over the past year. Among millennial renters (aged 18-34), 82 percent said they were confident or somewhat confident that they will be able to afford to own a home someday, compared to 64 percent of Generation X renters (those aged 35-49) and just 48 percent of Baby Boomer renters (aged 50-64). Millennials overall were also far more optimistic about future home value appreciation. One-third of millennials (33 percent) said they expected home values to rise more than 6 percent per year over the next decade, compared to 21 percent of Generation X and just 15 percent of Baby Boomers. “It’s heartening to see younger renters express so much confidence in their ability to buy a home in coming years, because today’s renters by necessity are tomorrow’s buyers,” said Zillow Chief Economist Dr. Stan Humphries. “Cynics might argue that these results represent no more than youthful exuberance, or perhaps some naiveté, but that’s missing the point. We need this generation to be confident and wanting to buy, regardless of the difficulties they face. And there are difficulties, including saving for down payments in the face of high rents and high student debt burdens, uncertain job prospects among younger workers and limited entry-level home inventory. But optimism is a necessary first step, and indicates a desire among a very creative generation to find creative solutions that will enable them to achieve homeownership,” Humphries said. In some ways, millennials’ views toward housing in general may also be more conventional than older generations. Almost two-thirds (65 percent) of millennials said they agreed with the statement that owning a home is necessary to living the “good life” and is central to the American dream, compared to 56 percent of Generation X and 55 percent of Baby Boomers. Roughly 46 percent of millennials said they agreed with the statement that owning a home is necessary to be a respected member of society, compared to 38 percent of Generation X and less than a third (30 percent) of Baby Boomers. For a full report on results from the latest Zillow Housing Confidence Index, please visit Zillow Research.

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.

Fall, Holidays Still Prime Season for Sellers By Joe Szabo, Scottsdale Real Estate Team

September 29, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Fall officially began Sept. 23, but that doesn’t mean you should scrap plans for selling your home this year. In fact, October, November and December can actually be good months to sell. Now is the time to plan for it if you’ve even considered putting your home on the market. For decades, the conventional thinki

ng was that if you missed the spring selling season, you missed the boat. Once summer rolls around and school starts shortly after that, families are more settled, the thinking went, and therefore less inclined to pick up and move (unless a job change or other circumstance forced them). Also, Thanksgiving, Christmas, New Year’s and the January cold snaps follow the start of school. In the past, no one wanted to take time to drive around looking at homes when all of this was happening. Things have changed. Today’s buyers aren’t necessarily timing a home purchase or sale around school schedules because people tend to settle down later in life and live longer. The result is urban expansion; more single, first-time and millennial buyers as well as baby boomers looking to buy (and sell). Also, a lot of home shopping, at least initially, happens online and via apps. Buyers don’t have to take time out of their busy schedules to drive around — they can just sit down with a tablet on the couch. As a result of the Internet, our hectic schedules and mobile lifestyles, the fall months are no longer a real estate dead zone. True, spring is still the busiest time overall. But there’s plenty of action happening after Labor Day through Christmas, enough to make it worth your while to put up the ‘For Sale’ sign. Here’s why.

Buyers are still out there

As mentioned, buyers never stop looking. A serious buyer is looking at new homes online 24/7, even through the holidays. If the right home appears, they’re ready to move. In fact, it could be that buyers in the early winter months are even more motivated than buyers in warmer months because there is less going on. They have fewer distractions and are laser focused on finding a home.

There’s less competition

A lot of people still buy into the old thinking that real estate slows to a crawl by October and virtually stops from Thanksgiving until, say, Valentine’s Day. As a consequence, many potential sellers figure there’s no reason to go on the market during these months. So they wait for spring. And that’s good news for you, because less inventory on the market = less competition for you.

Even January can be a good time to sell

By now you’re probably thinking about all the disruptions to your life that selling a home during the holidays might cause. For instance, you’re in the middle of wrapping Christmas gifts when your agent calls. She wants you to leave the house right away so she can bring a motivated buyer by for another look. If the potential for disruptions concerns you, put your home on the market in January. Inventory will still be very tight, and there will still be buyers out there looking. In fact, with the holidays over, there may even be more buyers out in January than in December. Also, January buyers may be more motivated. They’ve started doing their taxes and realize they need to buy. Or they’ve set a New Year’s resolution to buy a home within the next 12 months. Ultimately, as we enter the final quarter of 2014, there will no doubt be plenty of motivated buyers in the market, searching for just the right home at a time when there’s less inventory. Doesn’t that sound like a good 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.

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