Increase The Value of your Home Archives - Page 9 of 15 - Scottsdale Real Estate Team / Arizona Luxury Homes

How to Get Multiple Offers on Your Home By Joe Szabo, Scottsdale Real Estate Team

April 17, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Homeowners hear that the real estate market has finally turned a corner and assume that means multiple offers and bidding wars are back. Even if your town is buzzing with real estate activity and sales are picking up, it doesn’t mean that you’re guaranteed multiple offers, or even one offer for that matter. For a seller to get lots of activity on their listing, there are three must-haves: location, price and presentation.

Must have a good location

One thing is common among all properties that receive multiple offers these days: the home is in a good location. Location is nearly always what drives homebuyers in their search. Before considering price, number of bedrooms or size of home, a buyer looks for location. If your home is on a busy street, not in the best school district or near a freeway on/off ramp, chances are you won’t receive the kind of activity that a well-located home would. In that case, work closely with your agent to price the home correctly.

Must be priced right

Buyers in any market look for perceived value. Homes priced 10 percent (or more) over their market value won’t get noticed. Pricing isn’t an exact science, and it’s nearly impossible to pin a precise number to a home until buyer and seller sign a contract and close. Then, the price officially becomes the home’s market value. Until that time, agents can provide sellers with a value range. Have a good location? Does your home show well? Are you in a strong sellers’ market? Price your home on the bottom of that price range and you’ll be sure to attract buyers — and possibly multiple offers.

Must show well

A generation ago, sellers simply did some deep cleaning and maybe some de-cluttering before their first open house. Presentation wasn’t as important then as it is today, given online listings. More buyers today develop an emotional connection to a home. They want to imagine themselves in your home and not feel like they’re a guest. What does that mean? Appeal to the masses. If you have a good location and you plan to price your home realistically, then you need to make sure you give buyers what they want. If you can afford it, make cosmetic upgrades; invest in some staging and work to turn your home into a “product.” Emotionally disconnect from your home and try to see it more objectively. Plan on having the home in perfect condition for the photo shoot. A buyer’s first impression of your home likely will be via the Internet or an email from their agent. Make them want to step inside. The more buyers you attract to your home, the more activity.

Know your market

Don’t assume that national trends apply to your region, city or neighborhood. If you’re not in a strong sellers’ market or you spend a fortune on last-minute upgrades, you could be in for a giant surprise. Just because you hear about bidding wars and multiple offers on the national news doesn’t mean that applies to your market. For example, while properties in San Francisco may receive multiple offers, a town like Port Chester, NY, still sees short sales and homes often spend many days on the market. Work with a good local agent. A local agent has likely toured all the nearby homes for sale as well as ones that have sold over the past six months to a year. Knowing those homes, having walked inside and personally knowing the agents who have sold them matters. This is market data that an outsider just doesn’t have access to. This knowledge empowers good local agents to educate their sellers. 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.

Best Times to Buy, Sell or List a Home By Joe Szabo, Scottsdale Real Estate Team

April 14, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team A common question from a buyer or seller is: what is the best time to buy or sell a home? In the clothing world, it makes sense to get the best “deal” on winter clothes at the end of winter and that you will likely will pay top dollar for a swimsuit in April. Does the same trend hold true for real estate purchases and sales? Not really. But there are some considerations a buyer or seller should make as they enter the market that could have an impact on the transaction.

Spring and fall are better times for buyers

Let’s be clear. You can’t ever time a home purchase. Buying a home isn’t like buying a car or an iPad. The home buying process is a journey, one that happens on your own time and only after you’ve done enough research, seen enough homes and have your financial house in order. At any one time there is a brand-new buyer entering the market and then another who has done enough research and becomes a very serious buyer. Nobody can control the evolution. But something for a buyer to consider is that real estate inventory tends to fluctuate by season. Each spring and fall we tend to see an increase in home inventory due to the seasons. More inventory means more options for buyers.

Holidays and winter are best times for sellers

It’s not conventional for a seller to list their home before the holidays or in the dead of winter for obvious reasons. But serious, eager buyers don’t care about the season or timing. At any one point of the year, there will be a very motivated, experienced buyer ready to make an offer, no matter the season. I’ve written contracts on Thanksgiving, closed escrow on New Year’s Eve and even had a serious buyer make an offer using DocuSign from a beach in Hawaii. Sellers believe that it’s more conventional to list for the spring “selling” season and then again after the summer. If you go the conventional route, you will see more competition. If you can sell “off season” you might fare better because there are still serious buyers, but less homes for sale.

Best time of day to list a home

The Sunday open house, particularly the first Sunday, is the holy grail of real estate. For decades, agents and sellers worked hard on a listing with a deadline being the first open house. The “for sale” sign, which made the listing official a generation ago, would go in front of the house the days leading up the first open house. In the digital age, the listing goes “live” online. Sellers and agents work hard to clean, paint or prep the home in time for the photo shoot. Agents and sellers tend to rush to the finish and you will see many listings hit the market late Thursday afternoon or Friday morning, with Sunday being the first showing. Instead, try listing on Monday or Tuesday and don’t do any showings until the open house on Sunday. You can build momentum and have a very strong first open house. As much as buyers and sellers try to strategize the timing of a real estate purchase or sale, its never that easy. Unlike Macy’s or Target, who control inventory and monitory competitive activity, there isn’t one seller in real estate. Sellers are unrelated and disconnected and the types of homes are different making it nearly impossible to “time” a purchase or sale. 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.

7 Things Every Lease Agreement Should Include By Joe Szabo, Scottsdale Real Estate Team

April 10, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Congratulations on buying your first investment property. Smart investors know the best way to safeguard their investment from potential tenant trouble is to craft a solid lease agreement that includes these key things: 1. The basic clauses. Every lease agreement must list the parties to the agreement, which would be you and the tenant, along with the property’s address. You also want to state the term of the lease, which could be month-to-month starting on the first with a particular end date or an automatically-continuing lease that remains in full force and effect. 2. Security deposit clause. Your lease should require the tenant to put up a security deposit that matches one month’s rent or more, depending on the value of furnishings and repair costs if something goes wrong. Some states require you to place the tenant’s security deposit in a separate interest-bearing account and, at the end of the lease, you must give the deposit plus interest to the tenant, less any damages. Make sure to check with your state and judicial regulations and, to save time and money over the long term, check with your real estate attorney to make sure your lease follows the law. Security deposits can be a problem if not handled correctly. 3. Maintaining the premises. The lease should tell the tenant that he is required to maintain the premises, abide by noise control rules and not change the locks without your written approval. You will want to itemize the appliances and furniture that are part of the lease, and note their condition and any other special considerations. Don’t expect a tenant to follow oral requests, such as not parking in the driveway. All requirements must be spelled out in the lease. Also note whether the tenant or landlord will be responsible for utilities. Take the time to clearly write out the details of your agreement. 4. Warning of concealed defect. In some jurisdictions you have a duty to warn of a concealed defect known to you, or a defect that it is reasonable for you to know about. If you know the deck is crumbling and you fail to warn your tenant, then you may find yourself explaining the situation to a judge. Better to disclose the known defect in the lease and, best of all, fix it before the tenant moves in. 5. Subleasing clause. At some point, most landlords have a tenant who wants to sublet the apartment to a friend or stranger. To avoid trouble make sure your lease includes a subletting clause that requires the tenant to obtain your written permission before turning the property over to someone else. When the tenant asks to sublet the property, you will be in a position to decline or accept their offer. But heed this caveat: If you want to agree to having the new tenant move in, then it’s best to end the original tenant’s lease and start the process from scratch with the new tenant. You should go through the entire background check with the new tenant, including a new security deposit and lease. Do not get stuck trying to enforce your original lease against a new tenant who was not a party to the original lease. That situation is a risk you cannot afford. 6. Termination. The best practice is to know your jurisdiction’s rules on terminating a lease and include those details in your lease so your tenant will not be surprised. Terminations occur at the end of a non-continuing lease and also when there is an eviction. Evictions are one of the most dangerous areas for the self-advised investor. You may think you know the rules, but if you improperly notify your tenant of a coming eviction and lock out, you may find yourself on the wrong end of a lawsuit. You can find free eviction paperwork online, but if you are planning to evict a tenant, you would be wise to consult with an attorney. 7. After the tenant leaves. Would you ever hold a tenant’s personal property for unpaid rent? In some states it’s against the law for a landlord to confiscate a tenant’s property and demand rent money in return. Other jurisdictions consider the property abandoned and allow the landlord to dispose of the items. Most states require a landlord to hold the tenant’s property for a short period of time and give notice to the tenant, and some allow the landlord to claim a storage fee for the hassle. The key is to check your local laws and spell out in the lease what you plan to do with personal property left behind by the tenant. Include these important clauses in your residential lease agreement and you will be well on your way toward building a successful real estate investment empire. 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.

Offer Accepted: What Happens During Escrow? By Joe Szabo, Scottsdale Real Estate Team

April 6, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team So the past few months you’ve shopped properties, submitted offers on many and gotten your hopes up, only to be let down. But you haven’t given up, and finally you get the call from your real estate agent: Your latest offer has been accepted! You might think it’s the end of the road to property ownership. But really, it’s just the beginning of the hard work. Once you go into escrow, many items still need to be reviewed, discussed and inspected as you move forward in the process. Here are several that you’ll encounter for the next 40-50 days until you finally close escrow.

Home inspection & renegotiations

First you’ll need to schedule a home inspection and have an independent, licensed and insured inspector go through the property to look for problems. Make sure to join the inspector at the inspection and ask a lot of questions, write down everything that needs to be addressed and get with a contractor to determine how much it will cost to make all those repairs. Then have your real estate professional negotiate with the seller for, hopefully, some additional fixes and/or cash credits at closing.

Mortgage financing

Hopefully you’ve kept your lender apprised of where you are in the process. Now it’s time to get into full-speed motion. Get your appraisal ordered and start resubmitting pay stubs, mutual fund statements and other document the lender requests. And lock in your interest rate, points and loan terms — and get those terms in writing.

Title insurance, plat/survey, schedule of exclusions

You’ll also get a thick packet of documents that you’ll need to review. Most people do not review them, and that’s a really bad idea. You need to look through the estimated HUD-1 costs, the title abstract, the title insurance policy schedule of exclusions and all other documents. Also review the plat or have a survey done and then walk the property to see if there are any encumbrances (get the title company to plot the easements). This is the time, before you close escrow, to figure out if there are title or physical property issues that pose a problem.

HOA documents review

If the property is in a common interest development, you’ll need to review all the relevant homeowners association documents — board of directors meeting minutes and notes, financial statements, state disclosures, reserve study, bank condominium certification, HOA unit demand statement, etc. This is a really time consuming, confusing and tricky process. Many people fail to do even the most basic HOA analysis, and if you don’t adequately review the documents, you might feel some pain down the road when issues occur — and they will occur.

Property and liability insurance

You also need to get with an insurance agent and make sure to discuss and procure the proper type and amount of insurance that you’ll need. This is especially true if you’re paying cash, as you don’t have the bank personnel to double-check that you are properly insuring yourself. Your best bet is to go meet with your insurance agent and get the appropriate coverage.

Sign documents, fund down payment, verify GFE

As items move forward, you will eventually be ready to sign documents, fund the down payment and verify the lender costs match the good faith estimate you were given. Make sure to read and review all these documents before you sign off that they are acceptable to you.

Close escrow

Finally, you will fund your down payment, the bank will fund the mortgage loan, escrow and title will prepare all documents, properly account for all the funds, then go record your purchase documents at the county courthouse. And you are now the proud owner of a nice piece of dirt! 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 Smart Moves a First-Time Buyer Should Consider By Joe Szabo, Scottsdale Real Estate Team

April 3, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team As a first-time real estate buyer, you probably have no idea how the overall purchasing process works or how to make sure you’re making a smart decision to purchase. And you’ll probably be very surprised to learn how much work it really is just to buy a home. To get you started in the right direction, and this is just a start, here are a few tips that you should consider.

Get lender-qualified and find a good real estate agent

To start off, you should get qualified by a lender to see what price range you can realistically afford and interview some real estate agents to find the right person to represent you in your transaction. Once you’re qualified and have your price range estimate in hand, you’ll be able to spend your time shopping in neighborhoods that you can afford. But remember: Just because the bank says you can qualify for a certain amount, that doesn’t mean you should spend that amount. Make sure you can actually afford the monthly payment, along with all your other bills. For real estate sales professionals, you should get referrals for a full-time agent or broker who sells at least five or more properties per year and is well-educated on the process and location where you plan to live. You should call references, check that the agent’s state sales license is up to date and interview them to make sure you’ll be comfortable working with them.

Make sure you plan to be a long-term owner

Once you know your price range and have looked at some properties, it’s time to make sure that you believe you can find a property that you will own for a minimum of five years. If your price range doesn’t match where you want to live, you’d be better off staying a renter and saving some additional money until you can afford where you want to live. This is because an owner really doesn’t earn any equity, on average, in a property for at least five years. That’s the general breakeven point, and you really need to shoot for longer than that as an ownership strategy. The truth is, long-term real estate ownership can be a great way to earn wealth, but short-term ownership usually will diminish your wealth.

Educate yourself

Buying property is probably the most complex, riskiest and expensive thing you will ever do. Do your homework: Talk to real estate owners, go to first-time buyer seminars, check out online material and read some books to learn what to avoid in the buying process. The more you educate yourself, the better the chances that when things go wrong — and they will go wrong — they will only be minor issues, not major headaches.

Find a nice affordable property

The real gems in real estate are the nice, decent shape, moderately priced, boring houses, town homes and condominiums that are within your budget. Most buyers stretch to purchase the most expensive property they can afford. What if you lose your job? How about saving some of your money for retirement? You want your home to be an asset you can afford, not a liability that leaves you with no additional funds over the cost of homeownership. Also, skip the fixers, prize properties or anything that sounds too good to be true: Those always end up having issues, and owners realize, after the fact, that the deal they thought they were getting really was just too good to be true!

Take your time

Realistically it should take you six months or longer to buy a nice quality property that will add to your long-term wealth. Make sure you have a full understanding of what the marketplace has to offer in your price range and that you know what you’re doing. Those are a few tips to get you started in the right direction. Real estate is buyer beware, so try to make sure you’re one of the buyers who is “aware” of how to make quality wealth-building real estate decisions. Down the road you’ll pat yourself on the back when things work out well. 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 Much Paperwork to Buy a House? By Joe Szabo, Scottsdale Real Estate Team

March 31, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team The more things change, the more things stay the same. This popular adage is definitely not true when it comes to the amount of paperwork involved in buying a home! To understand how things have changed, we need to compare the past to the present. Luckily my father is very organized and has his entire file of documents from when he bought the family house almost 45 years ago in Virginia. More recently, when he made what he calls his “final” property purchase, he couldn’t believe the stack of paperwork involved in the purchase. Here’s a comparison of the amount of paperwork involved with a home purchase “then” and “now,” along with brief descriptions of the voluminous stack of documents you’ll encounter the next time you buy real estate.

Purchase contract

Then (1 page): In 1969 the purchase contract was a full page long and covered all the material issues related to buying the property, with no other disclosures, reports or documents related to the transaction. Now (200 pages): The 2012 purchase contract was 10 pages, plus approximately 200 more pages of contract addendums, disclosure reports from the seller and agent(s), third-party disclosure information, plus federal, state and local disclosures, disclaimers, questionnaires, certifications, escrow instructions, inspections, advisories, verifications, counteroffers, receipts for reports and notices.

Mortgage loan

Then (4 pages): Three-page deed of trust/mortgage note and one-page settlement sheet. Now (100-125 pages): 13-page deed of trust, five-page promissory note, 50-70 pages of lender disclosures, 3-10 pages of federally required HUD-1 statement and good faith estimate, and other paperwork required as documentation for the loan.

Title insurance

Then (5 pages): Chicago Title cover page plus five total pages of the title abstract, survey, schedule of exclusions and general exclusions pages. Now (15-20 pages): The title abstract, title insurance policy, exclusions, plat/survey and general information.

Property insurance

Then (unsure): Unfortunately his insurance policy document was not in the file, but his annual policy coverage premium — $25.06 — was noted on the settlement sheet. But this payment might have covered more or fewer perils than a policy covers today, so that annual amount probably is not comparable to a modern-day policy. Now (30-40 pages): A standard homeowners policy covers the dwelling, liability and medical, and has pages and pages of items that are excluded from coverage.

HOA documentation

Then: His property was not in a homeowners association, so no documentation in his file. This item is included as a reference point for current buyers whose properties are in common interest developments (HOAs). Now (200-300 pages): Covenants, conditions and restrictions (CC&Rs), bylaws, board of directors meeting notes, financial statements, budgets, disclosures, reserve studies and more. As you can see, the current-day acquisition of a property really entails 300 to 600 pages of documentation that goes along with a purchase. This number of pages can vary widely depending on the state, the type of property and the complexity of the issues related to a particular dwelling. Unfortunately, most people review little, if any, of the paperwork related to their purchase — they just sign whatever is presented to them. All buyers would be much better off and would significantly reduce the risk of something going wrong by educating themselves and doing a detailed review of every page of every document that pertains to their purchase. Yes, this takes extensive time, energy and effort, but real estate has a lot of risks and issues, and you should work hard to protect yourself on every property you buy. 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 Is ‘Risk’ in Real Estate? By Joe Szabo, Scottsdale Real Estate Team

March 27, 2014 Joe Szabo

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

Buying a used car

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

There is a better way

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

The real estate connection

Most real estate buyers, probably 95 percent, are doppelgangers who follow Risky Robert’s behavior when purchasing property. Many times this occurs because people simply do not buy real estate often, so they “don’t know what they don’t know.” They look for houses, have a home inspection done, maybe breeze through the contract, accept the only loan financing offer they’ve received and don’t even look at the title policy, escrow or homeowners’ association documents before closing on their purchase. That’s risk — being the Risky Robert in the room and not taking every single prudent precaution that you can to mitigate the chances of something going wrong. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

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

March 24, 2014 Joe Szabo

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

Create some counter space

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

Maximize storage options

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

Upgrade your old appliances

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

Add a sink

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

Paint the walls a soothing color

There is nothing like a fresh coat of paint to enliven a room. Think about painting the laundry room in a color that sets the right mood for you — perhaps a soothing blue or green, or a more energy-infused color like Tangerine Tango. Hang some art, install a new chandelier, add decorative window treatments — anything to make it seem less like an afterthought and more like any other room of the house. The simple decorative touches will create a more inviting space, one you could even grow to “love.” To see some examples of stellar laundry rooms, and to get some inspiration for your own, take a look at some laundry rooms we love. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

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

March 20, 2014 Joe Szabo

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

You need equity

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

Income, credit score important

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

Know what you want

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

Shop around

While big banks used to dominate the home equity lending market (and you should certainly discuss your objectives with banks with which you currently have relationships), credit unions, regional banks, and others have emerged as formidable competitors. These players avoided much of the fallout from the housing bubble, and have been leading the way in granting new home equity loans and lines of credit to creditworthy borrowers. Plus, they tend to charge lower rates. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

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

March 18, 2014 Joe Szabo

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

Fixed or adjustable?

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

Clear up your finances and credit rating

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

Shop for several quotes

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

Get ratings and reviews

After you’ve narrowed down the list of lenders or brokers you’re interested in working with, you should check into their backgrounds. How long have they been in business? If found online, are they accessible? Can they provide third-party reviews and ratings? This unbiased feedback from people who have worked directly with the lenders can prove invaluable when separating the great from the not-so-good. Once you settle on a lender, you’ll want to get pre-approved. Through this process, the lender will determine how much you can afford to spend on your new home. You can get a pre-approval letter in minutes through Zillow. Fill out this form, pick your pre-approval lender, and if you meet the lender’s guidelines, you’ll get your pre-approval letter that you can print and email. In a competitive market, pre-approval letters are almost essential. If you make an offer on a house without a pre-approval, your offer will not be taken as seriously as an offer from another person with a pre-approval and you could lose your dream home. Most bank-owned properties require a pre-approval letter from a lender before an offer can be accepted. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

« Previous Page