Increase The Value of your Home Archives - Page 7 of 15 - Scottsdale Real Estate Team / Arizona Luxury Homes

Everything You Need to Know About Cash Buyers By Joe Szabo, Scottsdale Real Estate Team

June 30, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Even as the share of all-cash sales falls in many areas, it’s pretty clear that cash is still king, especially at the lower end of the market. This makes it more difficult for traditional buyers to compete with cash offers, especially in a tight inventory environment. So who are these cash buyers, and where are they located? Here are answers to some of your questions.

Why is this happening now?

It’s happening now for a couple of reasons. Lending standards are still very restrictive, and buyer competition is intense, particularly in markets with lots of demand and not much supply. The thinking is: If I pay with cash, I’ll get to the front of the line and have a leg up on the competition.

Where is this trend most prevalent?

This trend is nationwide, and while the share of cash sales is higher than “normal” in many parts of the country (even in rural heartland states that never had a housing bust), it’s most prevalent in Florida and Midwest markets. In the first quarter of this year, Miami had the largest share of cash buyers in the country at nearly 65 percent of total sales, down from 71 percent in 2012. Tampa and Cleveland were close behind with 57.1 percent and 54.2 percent, respectively.

Who are these all-cash buyers, anyway?

They aren’t all institutional investors, necessarily. After all, they found their deals last year and have more or less exited the party as home prices have risen. Rather, they are baby boomers, empty nesters, wealthy families buying second homes/vacation properties and foreign buyers who are coming to the U.S. from all over the world and snatching up properties in places such as Miami, New York City and Las Vegas.

What does this mean to traditional buyers?

Traditional buyers are faced with greater hurdles when making offers because they are likely to have to compete with cash offers, especially in the tight inventory environment in the bottom tier of the market. Zillow examined the share of cash sales made in the bottom, middle and top one-third of home values and found that in 27 of the top 30 metros, more than one-third of all sales of the lowest-priced homes were made with cash. In three of the top 30 metros — Tampa, Detroit and Miami — more than 80 percent of all sales in the lowest price bracket were cash deals. The good news is the portion of home purchases made with all cash is down from last year, which will help even the playing field for first-time and low-income home buyers.

How can non-cash buyers possibly compete with all-cash buyers?

Your best defense is to be a well-qualified buyer. You’re gainfully employed, able to make a substantial down payment (20+ percent), have been pre-approved, and, of course, have good credit. You should also make a strong offer and ideally one without any contingencies. Finally, sweeten the offer any way you can. Find out what’s motivating the sellers and give them what they want. Remember, at the end of the day, money is money, and many sellers may not be in a great rush to close; they are simply looking for clean offers that are going to go through, hassle-free. 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.

Should You Text With Your Landlord? By Joe Szabo, Scottsdale Real Estate Team

June 26, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Real estate and text messaging. Is there really a connection between these two seemingly unrelated things? Interestingly, the answer is yes. As texting becomes more ubiquitous it is also entering the realm of real estate law, raising questions about whether texting information between landlord and tenant is legally binding. In many cases, it is! You may wonder why this is even an issue. Can’t you just pick up the phone, knock on the door or write a letter or email? More and more, people are giving up their landlines and using only their mobile phones. And some people — depending on their age mainly — are more comfortable communicating with their thumbs than with their mouths. As our forms of communicating change we need to change with them. Texting about real estate issues — specifically landlord-tenant issues — is no different. Of course, laws vary from state to state and city to city on this topic. But here are some examples from around the country to give a sense of which way the law is headed: Q: If a landlord notifies a tenant via text message about changes in the terms of a lease, is that proper legal notice? A: “A text or email can be a contract if there is an offer and an acceptance by both parties,” Centennial, CO, lawyer Christopher Leroi wrote in the Q&A forum on Avvo.com in response to the question. However, he added that he wouldn’t advise a landlord to serve notice of a rent increase via text. Instead, he would suggest that it is put in writing and mailed or handed to the tenant. Adds San Francisco attorney Shaye Larkin, “An increase in rent should be in writing, but mere discussions can be via text message.” Q: If a landlord offers a benefit — such as snow removal or cleaning — by text, is it legally binding? A: Probably not, says attorney Peter Kirner of Cleveland. “Generally a lease will be looked at between the four corners of the document, meaning what is specifically ON your lease. If snow removal — or any other service — is not in there, then it is not a duty.” Q: Does notifying tenants by text message that they must vacate qualify the same as notifying them via paper notice? A: In New York City the answer is no, says New York landlord/tenant attorney Steven Smollens. “The controlling New York statute does not allow for a text message. It requires a written notice as well as ‘service’ in the same manner as an actual landlord and tenant lawsuit. This statute is only for New York City and is directed at how a New York City landlord may terminate a month-to-month tenancy.” Smollens adds that a second law applies to all of New York state except for New York City. “That law allows the landlord as well as the tenant to give notice to the other terminating the month-to-month tenancy. It, however, is not explicit about requiring a written notice or manner of service. It requires a one-month advance notice, where the New York City law requires a 30-day notice.” Q: What if tenants notify a landlord via text that they plan to move out. Is that considered “written notice?” A: Yes, Saint Louis attorney Leonard Komen wrote on Avvo.com in response to the question. “Electronic communications in most commercial situations are now considered the equivalent of written communications. You will be hard-pressed to argue you did not get written notice.” Bottom line? If you prefer texting over calling or writing, tread carefully when it comes to tenant-landlord issues to make sure you are on strong legal ground. 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 Tips for Millennial Home Buyers By Joe Szabo, Scottsdale Real Estate Team

June 23, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team In previous generations, many people bought ‘starter’ homes while in their 20s or 30s. The world moved at a much slower pace then. People tended to stay put in the cities where they grew up. They wanted ‘roots’ and the status that homeownership afforded.

But times have definitely changed. In the next generation of real estate, we’re a much more mobile society. Millennials, Generations X and Y don’t necessarily want to be tied down by roots. They want the freedom to travel, or to take that new job, whether it’s in Chicago, Los Angeles, or Dubai. Homeownership doesn’t have the same status to them that it had to earlier generations. And, they’ve heard the horror stories of home ownership from those who bought during the market high only to see their home values plummet during the recession. But there are still many who want to be homeowners. And, the approach is different now, then it may have been a generation ago. If you’re in your 20s or 30s today and considering buying a home vs. renting, here are some things to consider.

Don’t assume you can’t afford to buy

So many young people come out of college with student debt and very little savings. Even after a few years out of college, they assume they either don’t have the 20 percent down payment or don’t have the income to afford a purchase. That doesn’t mean that if you’re in your 20s, you can’t afford to buy a home. Around the country, mortgage brokers, bankers and direct lenders are lending more than ever. Loan options such as those from the FHA (Federal Housing Authority) enable qualifying first-time buyers to purchase with as little as 5 percent down. Is it wise to put down less than 20 percent? Not always. But if you’re credit-worthy and responsible with money, you can take advantage of the record low interest rates and loan options that exist today. Keep in mind that in some markets, renting is as expensive as buying. If you do your homework, you may understand that a home purchase is within your reach.

Don’t go it alone

With today’s easy access to online listings, most people old and young believe you don’t need a real estate agent. People assume that the role of the agent, pre-Internet, was primarily providing access to the “keys.” In reality, agents have always played such a bigger role, one that many people don’t realize until they’ve gone through a transaction. A good local agent has years of intellectual capital inside his or her head. Agents know the market like no one else because they’ve been inside hundreds of homes, have relationships with many of the agents and have done many deals. They know exactly what to do when a red flag arises. Additionally, the home purchase is both personal and emotional. Through the years, buyers have acknowledged how they’ve let their emotions get the best of them to kill an opportunity. But having a solid resource beside them at all times — the agent — has helped keep them in check.

Ask your parents for advice

Your parents likely bought real estate in a different market, when interest rates were north of 12 percent and they were without access to the Web and online listings. But they have that home buying experience. They have been through the market before and can add value to your home search. They may be out of touch with social media and the technology available to help in the home buying process, but they likely have a solid financial opinion or helpful feedback. Plus, your parents simply have more grey hair and life experiences that have informed them about home buying and finances.

Take your time

Buying a home is not like buying a new smart phone, computer or flat-screen TV. It’s not only a lot more expensive, it’s much more personal and emotional and not something to take lightly. Even though the flow of information is quick today with texting, email and the Internet, a home purchase takes lots and lots of time, research and due diligence. It should never be rushed, ever. The home purchase evolves over time. Don’t feel compelled to rush into it or leap to a decision on a home. Don’t feel pressured by a “hot” market or competitive bidders. Slowly learn the market, do your research online and go to some open houses. Over time, you’ll get more comfortable with the market, and with luck, you’ll get pre-approved for a loan and hooked up with a good, local real estate agent. You may make an offer or two or three or four before you find the best home at the best price. Let the process work itself out over time. You’ll avoid buyer’s remorse.

Don’t be overwhelmed by data

When your parents bought a home, there was probably little to no data available to them. They worked with a real estate agent who showed them homes, but they didn’t have access to so much historic data or access to the technology and information we have today. Even so, access to all this information isn’t always a positive force. Sometimes, it can stall a buyer or make them question whether or not they want to be a buyer. If you have a down payment saved up, can afford the monthly payment and plan to commit to the home for at least 5-7 years, then go for it. Chances are, if any of the above doesn’t add up, you may not quite ready to buy — which means you might be better off renting for the time being. 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.

Top 10 Real Estate Investor Mistakes By Joe Szabo, Scottsdale Real Estate Team

June 19, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Many people have learned that Investing in real estate is not as easy as it seems. At least that is true for investors trying to get a fair deal. For those of us who have been investing for years, and learned many hard and expensive lessons, here are issues you should think through, understand, and consider before jumping into the real estate investing arena. These are in no particular order, since an individual would be smart to read and think through each and every “lesson learned” in the list.

1. Not penciling out your real estate deal

This describes about 80 percent or more of real estate investors. They don’t take the time to put pencil to paper and make sure that the rental revenue from the property will be more than all the property expenses – and leave some monies left over to return to one’s bank account. A negative cash flow property will virtually guarantee a measly – at best – investment return on your money.

2. Not penciling out your deal with conservative numbers

For those few fortunate ones who do know how to pencil out a deal, many use unrealistic numbers. They overestimate rental income, underestimate the vacancy, then underestimate the expenses associated with operating a property. That turns into low or negative investment returns for the property owner.

3. Getting renovation costs wrong

Most buyers have little idea how much it costs to renovate a property. They listen to the home inspector, their real estate agent, and just throw out a number like $25,000 for everything. Then they start getting bids for the work and quickly see it will actually cost $80,000 for everything. Word to the wise: Always do a lot of homework and be very conservative in your renovation budget estimates.

4. Underestimating renovation time

Additionally, inexperienced investors believe a good renovation can be done in 30 days, or 60 days. Many times it takes much longer to finish these projects than originally estimated. As a real estate buyer, you should talk to others who are experienced to get a realistic expectation of the time involved in a property rehabilitation.

5. Thinking something can only cost ‘that much’

It never does, it always costs more; many times much much more. So whatever the expense, renovation, service, contract, capital item, etc; chances are it will cost more than you think.

6. Thinking that stocks, bonds and real estate are all comparable investments

People often say they want to buy real estate to get better returns than their stock, bond or bank account can provide. Real estate is a unique asset that comes with clogged toilets, challenging tenants, nebbish neighbors, etc. It’s not an asset where you can invest and just look at an account statement every few months like you could with a stock, mutual fund or bond. Owning rental properties is a business, it can be time consuming and stressful. Make sure that makes sense for you before you buy.

7. Thinking it’s a “turn-key” real estate deal

Earning money with almost no work on the investor’s part? Never! Not going to happen!

8. Believing that flipping properties is investing

Flipping is “speculating” for most real estate buyers. Unfortunately, most lose money. Sure, it looks easy on TV and those shows are fascinating! I personally enjoy watching them; but they are not realistic. Not everything you see on TV or the Internet is true you know…..

9. Thinking that real estate is low risk

There are all kinds of risk issues that come along with owning real estate. Many an investor can mitigate and/or remove some of those with prudent behavior and the proper due diligence. Most investors do not do any of that, leaving them exposed to a myriad of items and issues that can and sometimes do become financially painful.

10. Believing what others say about their “profitable” real estate investing acumen

There is also no way to verify what someone else is telling you about how they did on their real estate investments – unless they show you their tax returns and credit report. But since people love to boast, we often only hear about the winners, not the losers. Many times the statements from those supposed “winners” are embellished with questionable claims. Be careful, do your own homework, but verify your own conclusions. Those are many mistakes that investors can make. Some are very challenging to mitigate. Experience will teach you a multitude of lessons over your real estate investing career. Just try to avoid the big expensive ones that could clobber you; and end your investing career before it even gets off the ground. 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.

Love Your Lawn? Follow These Guidelines By Joe Szabo, Scottsdale Real Estate Team

June 16, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Americans are not bashful when it comes to expressing their love of lawns — it has been estimated that there are more than 40 million acres of lawn in the United States. But if you really want to show your lawn some love, you’ll have to do more than mow it. If you’re starting from scratch, you’ll need to learn about your soil and climate, and then decide between sod, seed and a lawn alternative. If you are working with an existing lawn, you’ll want to familiarize yourself with the proper way to water, fertilize and eliminate (or better yet, prevent) unwanted weeds. If you count yourself among the lucky homeowners with land to spare for a verdant landscape, these guidelines should help you cultivate a beautiful lawn that will reward you year after year.

Seed

Before you decide on a Kentucky bluegrass, Bermuda or rye, find out which grass is best for your climate by consulting the U.S. Department of Agriculture (USDA) plant hardiness zone map. Perform a soil test to see if you need to make any amendments before planting seed, and then follow these guidelines:

Till the soil and remove weeds, rocks and plants. Consider adding fresh topsoil mixed with an organic material to improve water retention, and a fertilizer to stimulate germination.
For small areas you can sow the seed by hand; for larger areas use a seed spreader. Cover the seeded soil with straw to protect the seeds and help them retain moisture. Section off the area to avoid foot traffic.
Water daily and do not mow the grass until it is at least 3-inches high. Water less frequently as the grass matures.

Sod

Laying sod is a great way to have a lawn without the wait, but it’s a big job. It’s best to lay sod during cooler weather so the grass can take root and avoid the risk of burnout. (Fall or spring are typically the best times of year in the North; spring is ideal in the South.) Familiarize yourself with how to lay sod before deciding if it’s right for your lawn.

Lawn alternatives

Lawn alternatives provide as much greenery and coverage as a regular turf but can be lower maintenance, hardier and even scent-filled. There are many varieties to consider — from micro clover to Corsican mint — so be sure to check to see which is best for your lawn, climate and upkeep.

Watering

Most lawns require about 1 inch of water per week. It’s better to give your grass a good soak every three days than to water a little bit every day. Your lawn will tell you when it needs watering, provided you know the signs. As you walk over the grass, your footsteps should readily disappear; if they don’t, you need to water. A bluish-green color and curling glass blades are also indicators of dehydration.

Watering less frequently encourages roots to grow downward (in search of water), which makes your lawn more stable.
In most climates, a deep, thorough watering twice a week should be enough to keep your lawn happy.
Water your lawn in the early morning, so there will be less evaporation. Grass will also have a chance to dry out before the sun starts beating down.

Fertilizing

Grass requires small amounts of many nutrients (calcium, magnesium and sulfur, to name a few). Macronutrients like nitrogen, phosphorus and potassium are needed in larger quantities. A soil test performed by your local extension office will reveal what your lawn needs to succeed. The results of the test will include a range of information, such as your soil’s pH.

Cool-season grasses (including Kentucky bluegrass and tall fescue) benefit most from fertilizer in the fall, at which time the added nutrients go a long way toward bolstering root growth.
For warm-season grasses (including zoysia and Bermuda), springtime fertilization is appropriate once the lawn is actively growing, about six weeks after the last frost date.
Using slow-release fertilizer prevents nutrient overload and lowers the risk that your application will contribute to shoot, not root, growth.

Mowing

When choosing a lawn mower, take into consideration the size of your lawn, the presence of inclines and obstructions, comfort (if you decide to go with a riding mower), safety and maintenance. You want a mower that will suit your unique landscape and be user-friendly. When you mow,

Never cut more than one-third of the blade; any more will shock the plant.
Cut your lawn higher than the recommended rate during hot summer months.
Switch mowing directions to prevent turf wear and soil compaction.

Weed control

Familiarize yourself with common lawn-care problems, from dandelions and ants to brown patches. Learn to mitigate — or better yet, prevent — these pesky predicaments to keep your lawn healthy and lush all year long. 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.

3 Easy Ways to Maximize Storage in Your Garage By Joe Szabo, Scottsdale Real Estate Team

June 12, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Commonly used as the family dumping ground, the garage is undergoing a revival as a functional workplace. Installing a garage storage system that frees up some of this space can have the same effect as adding a room, and it’s a good way to increase your home’s value. Here are three tips to make the most of your garage:

Organize items for storage

First, group the bins and bulky items you need to store by their use. Measure them so you know how much space you need for each group.

Maximize space and function

Tall cabinets with double doors are great, but be sure they come with enough adjustable shelves to optimize the space inside. Include at least one lockable cabinet to keep dangerous chemicals out of reach of children and pets. Add some low cabinets on casters, creating a work surface on top. With some pegboard or a vinyl slat wall system for tools, you’ve got the beginning of a home workshop. For easier cleaning and less clutter, keep things off the floor: store sports gear and yard tools on heavy-duty, wall-mounted hooks and racks. If you’ve got a lot of ceiling height in your garage, use it. Try an overhead storage rack for seasonal items or as a bike lift.

Choose practical storage options

There are lots of garage storage options, but organization hinges on consistency: choose cabinets and racks of the same color and type. Look for systems made of metal, plastic or wood specifically treated for garage use. And remember that bigger is not always better. You need a garage storage system that will allow you to find your stuff and still leave room for the car. 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.

Whole-House Storage Solutions: Easy Ideas for Every Room By Joe Szabo, Scottsdale Real Estate Team

June 9, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Clean Out the Closet

The first frontier in the crusade against clutter is the closet. If you can tidy up these crowded catchalls of the house, you can tackle anything. For starters, make use of often-overlooked space up high, and use transparent or decorative bins to store items neatly and provide easy access. In short, look for ways to end closet “stuffication.”

Livable Laundry Rooms

Given the fact that laundry rooms are often small, look for ways to maximize their potential with inventive storage solutions—including some tried-and-true DIY hacks. In addition to improving the look of the room, getting a handle on storage will enhance your ability to sort, wash, dry, and fold in the space you have.

Garage Storage

Ah yes, the garage! There is a floor underneath all those magazines and boxes, tools, sports equipment, and gardening and lawn paraphernalia. After you clear out what you no longer need, look for shelves, cabinets, and containers that can control the clutter. And don’t overlook storage opportunities overhead and on the walls.

Tips for a Great Basement

Basement storage accessories should be tailored to provide easy access, ventilation, and moisture resistance. Because basements can be damp, metal shelving and cabinetry protect possessions better than wooden alternatives; similarly, plastic bins protect better than cardboard boxes. If moisture is an issue, take steps to waterproof your basement.

Make the Most of the Attic

The attic can be your storage salvation provided it is properly ventilated and insulated. Ventilation and insulation work hand in hand to reduce humidity and prevent drastic temperature swings in summer and winter. Consider building shelves into the beams to maximize the space and keep the floor clear so items can be easily retrieved. Read more 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.

Millennials vs. Baby Boomers: What Do They Want? By Joe Szabo, Scottsdale Real Estate Team

June 5, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team What are millennials looking for when it comes to housing? And what do baby boomers want? Here’s a breakdown.

Location

Millennials aren’t the only ones flocking to popular cities such as New York, Boston, Miami and San Francisco. Some boomers are, too. After all, they want the theater, arts, culture and fine dining! The difference is that millennials, if they’re not still living with mom and dad, are moving into expensive rental units. An analysis that Zillow recently conducted for The New York Times showed that in 90 cities, the median rent is more than 30 percent of the median gross income. Meanwhile, some well-heeled boomers — eager for a lifestyle change — are buying smaller, yet more expensive homes than the ones where they raised their families in the suburbs. How’s that for downsizing?

Style

A nice, yet casual-looking social hub is what millennials look for. Practicality is what it’s all about. Boomers, on the other hand, really want more of a private retreat — think vacation-like. After all, they’ve worked hard for it so why not enjoy the fruits of their labor? Boomers want their next, and final, home to be the best ever — the picture of success.

Amenities

Millennials and boomers alike both want clean, shiny and new move-in ready homes. And they both seem to value amenities over square footage. Accessibility and walkability are also important. But while millennials put speedy, reliable Internet performance (built-in docking stations and charging panels are a given) at the top of their must-have lists, boomers are more keen on luxury and flaunting niceties — from state-of-the-art kitchens to fancy bathrooms, large walk-in closets and more. 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.

Infographic: Why Is 20% Ideal for a Down Payment? By Joe Szabo, Scottsdale Real Estate Team

June 2, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Buying a home? If you are, one of the very first questions you’ll need to answer is, “how much of a down payment should I make?” The answer: ideally, 20 percent. Granted, it’s not easy to save 20 percent of the home’s sale price for a down payment. In fact, saving for a down payment remains the No. 1 obstacle to homeownership for many Americans. To qualify for a conventional mortgage, you need to have a down payment of at least 5 percent of the purchase price. However, putting less than 20 percent down can have significant financial implications. Not only could a 20 percent down payment save you hundreds of dollars on your monthly payment, but you’ll build equity in the house more quickly and save a considerable amount of money on interest. Learn more about the benefits of a 20 percent down payment below.

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Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, 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.

Protecting Your Home Away From Home By Joe Szabo, Scottsdale Real Estate Team

May 30, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team A vacation home should be a paradise — a safe haven from the bustle and stress of everyday life. For those who rent out their properties for parts of the year, vacation homes also can be an additional source of income. But protecting those assets from natural and manmade disasters takes work and money. The smart vacation homeowner makes sure the second home doesn’t generate more stress than it relieves. The right insurance coverage can go a long way toward putting an owner’s mind at ease.

Standard homeowners policies won’t do it all

You may think the homeowners insurance policy on your primary residence fully protects you and your possessions. Many standard policies do include some coverage for personal property at an additional residence, but protection for a second home typically doesn’t go any further than that unless you’ve purchased a second policy. If you took out a mortgage on your vacation home, your lender likely required you to buy a separate home insurance policy. However, vacation homes come with unique risks, so standard coverage may not include all the protection you really need. Some insurance carriers offer coverage options specifically designed for vacation homes. For others, you’ll have to navigate the fine print yourself. Here are a few of the biggest risks and potential coverage gaps for vacation home owners, as well as suggestions on how to overcome them.

Location, location location

Unfortunately, the qualities that make a location perfect for your dream home are often the same qualities that make it an insurance nightmare. Consider an oceanfront property, for example. In addition to being susceptible to hurricanes — wind and hail damage account for nearly half of all homeowners insurance claims per year, according to the Insurance Information Institute (III) — they also frequently experience flooding, which is not covered under most standard policies. Mountain homes have a problem, too; standard policies typically exclude all forms of earth movement, including landslides.

Vacancies leave you vulnerable

If your vacation home is not your primary residence, it’s probably safe to assume it will sit unoccupied for several weeks or months every year. In terms of risk, consider the possibility of a small electrical fire or a leaky pipe in an empty house. Both could escape notice until they become serious threats. Additionally, burglars and trespassers are more likely to target homes that appear unoccupied. Considering the average costs per claim for these three hazards combined (fire, water damage and theft) totaled more than $44,929 in 2013 (according to the III), it’s certainly worth it to take a few easy precautions to ensure you won’t face these costs on your own. First, make sure your policy’s coverage limits line up with your home’s current replacement cost. Then see that your electrical and plumbing systems are up to date and in good shape. It’s not a bad idea to hire a professional for a thorough inspection.

Leasing liabilities

One way to circumvent the risks of leaving your vacation home vacant is to rent it to tenants while you’re away. But don’t assume you’ll just pocket easy money when you do. Neglecting to take proper precautions as a landlord also could end up costing you in the long run. Consider this: If one careless tenant leaves the stove on, damages your belongings or is injured while on your property, you could face the entire cost of cleanup, hospital bills and even lawsuit expenses — a tab that could easily top $30,000[1] — on your own. Homeowners insurance might cover you if you only occasionally rent out your home for short periods of time. However, it’s still a good idea to cover all your bases with background checks and lease agreements. You also should consider investing in an umbrella policy to help protect yourself against the extra liabilities of having tenants. If your vacation property is occupied by tenants for more than 4 weeks out of the year, it’s safe to assume standard coverage isn’t going to cut it. In order to protect yourself, you’ll need landlord’s insurance. Policies range from simple coverage for things such as fire and vandalism to open peril policies, which cover all circumstances except those specifically excluded in your policy.

It’s not all bad news

If your dreams of enjoying a vacation home haven’t been crushed yet, there is some good news. Vacation homes typically qualify for the same safety discounts as your primary home, so responsible investments such as deadbolt locks, home security systems and other upgrades are typically met with relatively lower premiums. And don’t worry. Once you’ve taken care of all the paperwork, the hardest part of owning a vacation home is having to leave at the end of the season. 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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