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June 2015 Paradise Valley Arizona real estate market update

July 21, 2015 Joe Szabo

As things really start to heat up in Paradise Valley let’s take a look at how the real estate market faired in June 2015. New listings are down 10.7% from May with a total of 50 new listings vs. 56 in April. New contracts were down by 3.8% and closed sales are down 20.0% from May. The median sale went up from $1,150,000 in May to $1,485,000 in June. During these up and down activity months it is more important than ever to consult a real estate professional that knows the Paradise Valley market.

Considering a purchasing or selling a property in Paradise Valley? Call Joe and Linda Szabo – The Real Estate Experts! We hope that you enjoy reading and analyzing the Paradise Valley Luxury Home Report and should you have any questions or comments, please feel free to Contact Joe Szabo at 480.688.2020 or email him directly at Joe@ScottsdaleRealEstateTeam.com or Joe@AZLuxuryHomes.com. You can also visit https://www.AZLuxuryHomes.com or https://scottsdalerealestateteam.com to find out more about Paradise Valley Homes for Sale and Estates for Sale in Paradise Valley and to search the Paradise Valley MLS for Scottsdale Home Listings. Please note that this Paradise Valley Real Estate Blog is for informational purposes and not intended to take the place of a licensed Paradise Valley Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale and Paradise Valley 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 Paradise Valley, The Szabo group delivers experience, knowledge, dedication and proven results.

June 2015 Scottsdale Arizona real estate market update

July 21, 2015 Joe Szabo

As things really start to heat up in Scottsdale let’s take a look at how the real estate market faired in June 2015. New listings are down 10.9% from May with a total of 810 new listings vs. 909 in May. New contracts were down by 8.0% and closed sales were down by 0.4%. The median sale price is down from $380,000 in May to $377,000 in June. During these up and down activity months it is more important than ever to consult a real estate professional that knows the Scottsdale market.

Considering a purchasing or selling a property in Scottsdale? Call Joe and Linda Szabo – The Scottsdale Real Estate Experts! We hope that you enjoy reading and analyzing the Scottsdale Luxury Home Report and should you have any questions or comments, please feel free to Contact Joe Szabo at 480.688.2020 or email him directly at Joe@ScottsdaleRealEstateTeam.com. You can also visit https://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. 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.

Contingencies: A Home Buyer’s BFF By Joe Szabo, Scottsdale Real Estate Team

June 19, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Most home buyers organically begin and are comfortable with the real estate search process, but don’t know how to move forward once they’ve found a home they love. In order to put the search and discovery process into context, I sit down with every first-time buyer before we start searching together to go over the process, contract to close. If your agent hasn’t done this, ask them to. One important aspect of a real estate contract is contingencies. These provisions for an unforeseen event or circumstance are important in case something goes south. At contract signing, buyers will put money in escrow — as little as $1,000 or up to 10 percent of the purchase price. That’s a lot of money to hand over to the seller before arranging financing and doing more due diligence than opening closet doors at the open house. Contingencies can help protect buyers if a problem arises. Contingencies are always tied to a timeframe. If it’s a hard contingency, the buyer must sign off physically in writing. If it’s a soft contingency, it simply passes with time. Know the difference between the two, and mark your timeframes early. Here are the three big contingencies to know.

Inspections

The biggest and best of the contingencies, the inspection is the “get out of jail free card” for buyers. It allows you to walk away once you’ve had an inspection if you discover issues with the home. For example, it is common for buyers to uncover broken or defective items, older systems or health and safety issues. Some argue that it would be difficult to exit a contract from a brand new and flawless home, but the inspection contingency language in most contracts provides for an easy out. If you do find something unexpected, you don’t necessarily have to abandon the contract. Go back to the seller and see what they will fix. Unexpected inspection issues often result in a second round of negotiations. If the items are big enough to kill the deal, the seller may agree to fix them or issue a credit at closing. In competitive markets, the seller may leave the defects for you to deal with as the new owner.

Loan approval and home appraisal

Getting pre-approved prior to making an offer is only part of the lending process. Before it wires the funds for your mortgage, the bank wants to be sure that the property is worth what you offered the seller, by way of an appraisal (sometimes a standalone contingency). The appraiser is an independent third party who will walk through the home, take pictures and measurements, and comment on its condition, then follow up with a written report. Second, a title report will be issued so the lender can see if there are outstanding liens or clouds on title. For condominiums or planned unit developments, the bank wants to review the governing documents and financials to make sure all is in order. The loan approval, which can take up to 60 days, is the longest contingency. In competitive markets, it can be done in less than two weeks. Be in touch with your lender before you make an offer, and strategize on timeframes.

Disclosures

Disclosures are meant to provide the buyer with as much information as possible to make an informed decision, as well protect their soon-to-be interest. Sellers in most markets must disclose, via boilerplate local or state forms, their knowledge about the property and their experience living there. For example, if there was a leaky roof or if they know about a neighboring development that could affect the home’s value, they must disclose it. Typically, sellers deliver the disclosures to buyers after their offer is accepted. Additionally, buyers will review local building department documents alongside local, state or federal disclosures about anything from earthquake hazard zones to flood zones to disclosures about proximity to airports. Don’t sign a contract without reviewing your contingency options with your agent. Understand that contingencies are terms, and can sometimes be used for negotiation. If you can’t offer the highest price, the seller may appreciate moving fast once you sign a contract. 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 Budget for Home Renovations By Joe Szabo, Scottsdale Real Estate Team

June 12, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Ready for a new kitchen? Anxious to redo the bathroom? The easy part is knowing what you want to remodel and why — whether you’re trying to keep up with your growing family, add office space, or increase your home’s value. But figuring out how to renovate without breaking the bank can be tricky. Here are five key steps in planning your home renovation project.

Estimate costs

As a general rule of thumb, you should spend no more on each room than the value of that room as a percentage of your overall house value. (Get an approximate value of your home to start with.) For example, a kitchen generally accounts for 10 to 15 percent of the property value, so spend no more than this on a renovation. If your home is worth $200,000, for example, you’ll want to spend $30,000 or less. Something else to keep in mind: contrary to popular belief, kitchen renovations offer among the lowest return on investment, according to analysis from Zillow Talk: The New Rules of Real Estate. Every dollar you spend on a new kitchen only increases the value of your home by 50 cents. The highest return on investment? A mid-range bathroom remodel.

Consider loan options

If you’re borrowing money for the project, assess how much the bank will lend you (be sure to shop around!), and determine what type of loan would work best for you. If you have a one-time project, then a home equity loan might make sense. If, however, you need access to money over a period of time to fund ongoing home improvement expenses, then a home equity line of credit is preferable.

Get quotes from contractors

Some contractors will give you an estimate based on what they think you want done, and work completed under these circumstances is almost guaranteed to cost more. You have to be very specific about what you want done, and spell it out in the contract — right down to the materials you’d like used. Get quotes from several contractors, tossing out the bid from the one who gives you the lowest estimate. Going with this choice could be asking for problems, as low-priced contractors are known to cut corners — at your expense.

Stick to the plan

As the renovation moves along, you might be tempted to add on another “small” project or incorporate the newest design trend at the last minute. But know that every time you change your mind, there’s a change order, and even minor changes can be costly. Strive to stick to the original agreement, if possible.

Account for hidden costs

Your home may look perfect on the outside, but there could be issues lurking beneath the surface. In fact, hidden imperfections are one of the reasons renovation projects end up costing more than you anticipated. Rather than scramble to come up with extra money after the fact, give yourself a cushion upfront. Factor in 10 to 20 percent (or more) of your contracted budget for unforeseen expenses, as they can — and do — occur. In fact, it’s rare that any project goes completely smoothly. 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.

May 2015 Scottsdale Arizona real estate market update

June 11, 2015 Joe Szabo

Can you believe it is already June! As things really start to heat up in Scottsdale let’s take a look at how the real estate market faired in May 2015. New listings are down 11.8% from April with a total of 909 new listings vs. 1,031 in April. New contracts were down by 5.1% but closed sales were up slightly by 0.7%. The median sale price is down from $390,000 in April to $380,000 in April. During these up and down activity months it is more important than ever to consult a real estate professional that knows the Scottsdale market.

May 2015 Paradise Valley Arizona real estate market update

June 11, 2015 Joe Szabo

Can you believe it is already June! As things really start to heat up in Paradise Valley let’s take a look at how the real estate market faired in May 2015. New listings are down 34.9% from April with a total of 56 new listings vs. 86 in April. New contracts were down by 35.8% while closed sales jumped 36.4% from April. The median sale dropped from $1,295,000 in April to $1,150,000 in May. During these up and down activity months it is more important than ever to consult a real estate professional that knows the Paradise Valley market.

The 5-Step Plan for Buying a Vacation Home By Joe Szabo, Scottsdale Real Estate Team

June 9, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Do you dream of owning a vacation home, but find the idea of buying one too intimidating? It’s actually easier than you may think. Here’s a guide to help you analyze your options.

1. Match housing choices to your lifestyle

Many people assume they must own a primary residence before owning a vacation home, but this isn’t a rule you must follow. What’s really important is matching your housing choices to your lifestyle. You may live in a city and want lots of space that you can’t afford there. You could rent a modest condo in the city, and buy a large vacation home outside the metro area. Or you may live in a large country house and want to enjoy city life as much as you can. In that case, you could own your country home and also buy a vacation condo in the city. Either way, the financing and tax implications are almost the same.

2. Determine how you’ll use your vacation home

From a financing and tax standpoint, you need to consider how you intend to own and use your property. You have three options:

Primary residence. You can buy for as little as 3 percent down (if your loan doesn’t exceed $417,000), mortgage rates are the lowest they can be, and you get significant homeowner tax benefits.
Second home. You can use your second home any time you want, but lenders won’t let you rent the home. Buy for as little as 20 percent down, and qualify for the loan using your full primary residence cost plus your full second home cost. Mortgage rates and tax benefits are the same as primary residences.
Investment property. You can rent the home, plus use it when it’s not rented. Rates are .25 percent to .375 percent higher than second home rates, and your down payment usually starts at 30 percent. You qualify for the loan using your full primary residence cost plus your full investment home cost, but you can use rental income to help qualify. Tax treatment is less beneficial, but the extra income can help with affordability.

3. Understand the total cost of owning a vacation home

You can determine what you can afford in seconds. Then you’ll find a lender to formally analyze the cash available for down payment, closing costs, and reserves. You’ll also calculate the total monthly cost on your existing home (whether you rent or own), plus the total monthly cost on the vacation home. You also need to plan for personal budget items that lenders don’t use in their qualifying calculations:

Gas, electric, cable TV, and internet
Furniture and housewares
Travel costs to your vacation home
Total cost of property maintenance items like cleaning, landscaping, and pool/spa upkeep

4. Review monthly and transactional cost line items

Suppose you live in San Francisco and want to purchase a home in the wine country of Sonoma County, CA for $600,000. Here’s how much it would cost as a primary residence, second home and investment property.

	Primary Residence or Second Home	Investment Property
Estimated monthly costs
Mortgage payment	$2,223 (30-year fixed mortgage at 3.75%)	$2,035 (30-year fixed mortgage at 4.125%)
Insurance	$100	$100
Property tax	$600	$600
TOTAL ESTIMATED MONTHLY COSTS	$2,923	$2,735

Estimated cash to close
Down payment	$120,000 (20%)	$180,000 (30%)
Lender fees	$2,500	$2,500
Title/escrow/inspection fees	$3,500	$3,500
TOTAL ESTIMATED CASH TO CLOSE	$126,000	$186,000

5. Make an offer using a local realtor and lender

Many vacation properties are in specialized local markets, so it’s best to find local real estate agents and lenders. Your real estate agent will clarify local transaction fees, taxes and commissions, as well as advise on local zoning and property rental rules. For example, the town of Sonoma doesn’t allow short-term rentals for vacation homes, but other towns in Sonoma County do allow this. In destination areas, real estate agent commissions can be higher and can also be seller- or buyer-paid, depending on the area. Only a local expert can advise properly. And, of course, they will structure your offer for you, and negotiate on all facets of the deal that are a priority to you. Likewise, local lenders will be comfortable with appraisals and lending in rural areas. Appraisals are more difficult in less populated areas because comparable sales can be old and hard to find. If you follow these steps, your closing will be a snap, and you’ll be relaxing in your vacation home before you know it. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

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

May 8, 2015 Joe Szabo

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

How a low appraisal changes your loan options

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

1. Increase your down payment to avoid paying mortgage insurance

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

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

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

Disputing low appraisals

All of this assumes you can’t get the appraised value above $300,000. However, when an appraisal comes in short, you can work with your lender and real estate agent to evaluate whether the appraiser included all relevant comparable sales on the report to derive their value. An appraiser’s selection of comparable sales is based on many factors like location, size, age, and condition of the sold homes being compared to the property you’re buying. How recently the other homes sold is also a factor. Your lender — usually after consulting with your real estate agent — will advise if they think a value dispute is warranted. If so, they will write up a case for a dispute and present it to their bank’s appraisal department. Federal appraisal regulations make the dispute process complicated and often slow, so make sure that your contract allows you enough time for a dispute. If the value is revised to your contract price, you can use your originally intended deal structure. If the low value is validated during the dispute process, you can ask the seller for a price reduction. If they refuse and you still want to buy the property, you can revert to the options laid out above. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

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

April 20, 2015 Joe Szabo

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

Affordability

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

Neighborhood type

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

School district

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

What’s next door — or could be

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

Holdability

One more important item to consider regarding location is your chances of owning the property a long time. If you are not sure you’ll be happy staying a while, you’re better off passing on buying for the time being. Considering all these issues — as opposed to making a quick purchase decision based on what your heart is telling you — should help you buy a home that is a good fit, will serve you well, and will be a good investment for your future. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

5 Reasons to Keep Your Lender in the Loop When You Make an Offer By Joe Szabo, Scottsdale Real Estate Team

April 16, 2015 Joe Szabo

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

1. The purchase offer must match loan documents

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

2. The lender must approve home inspections you request

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

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

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

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

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

5. The lender must approve credits you ask for

Often real estate agents will advise buyers to seek a credit from the seller at closing in lieu of reducing a purchase price. A seller credit enables buyers to negotiate better terms for themselves while also conserving cash because the credit will be used to offset closing costs. You can ask for credits in the beginning, but often they’re requested after an inspection reveals a minor property issue such as scuffed walls or damaged window screens. In these cases, your lender will require a contract addendum (signed by the buyer and seller) to show the credits, which the lender must approve before having the appraiser amend the appraisal report to reflect the credit. These tasks can take two to six days for a lender to process, so you must keep the lender in the loop on all credits from the seller, real estate agents, or any other third parties. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

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