By Joe Szabo, Scottsdale Real Estate Team The process of buying a home can be long and challenging. It can be stressful for both buyers and their real estate agents. Through it all, it’s helpful to understand that, though agents are there to support you, they can’t be all things to every buyer. From time to time, a buyer can unintentionally make the buying process more difficult, much to the agent’s frustration. Here are five ways buyers create stress and complications not only for their agents but for sellers and even themselves.

You request additional showings, bring an entourage, etc. — but never make an offer

It’s typical for a potential buyer to view a property during an open house, then ask for a private showing, even two or three times. That’s par for the course. However, it’s frustrating when a buyer arrives to a showing with a designer, architect, contractor or just some friends and spends an hour or two at the home and measuring each room. This is just counterproductive, particularly if you don’t make an offer. Some buyers have been known to bring their psychic, who, after making a big splash with tarot cards and numerology charts, declares that the property has “negative energy” and isn’t a good fit, mainly based on the numbers in the property address. Did the psychic really need to see the property in person? You should give yourself an opportunity to gauge your own reactions to a property before bringing in friends, family or hired consultants. Also, be aware that you’ll have multiple opportunities to thoroughly explore a property before you are fully committed. To go over a home inch-by-inch on the first or second visit is often a waste of everyone’s time — including yours.

You make unjustified lowball offers

The seller’s property is on the market for $400,000. And yet, a potential buyer offers $300,000. It’s not because the home is grossly overpriced or there’s something seriously wrong with it but simply because the buyer wants a bargain. Unjustified lowball offers are often a waste of time for everyone involved. The seller isn’t going to swallow $100,000 for no reason, even if the property has been on the market a while. In fact, a lowball offer will likely just help the listing agent get a small price reduction, thus opening the window of opportunity to another buyer. It’s certainly OK to offer less than asking, but be realistic and respectful.

You plan to negotiate the price down during escrow but don’t tell your agent

Final home inspections sometimes uncover problems. In such situations, it makes sense to request a credit from the seller during escrow. However, there are times when a buyer writes an offer, which the seller is open to accepting, but secretly plans to ask for a reduction during escrow just because he thinks he can. Doing so adds stress and ill will among all parties involved, during what could already be a difficult transaction. It’s better to be upfront about your intentions. If the deal is not meant to be, better to not go down the path.

You make big demands on the agent’s time but are a long way from being serious

Some people are just beginning to think about buying a home. That’s fine; buyers have to start somewhere. Unfortunately, sometimes buyers are a year or two away from becoming serious. And yet they make a lot of demands on the agent’s time. Asking an agent to research city building permits on a house just because you’re curious — and even though the property doesn’t fit your requirements — is not an appropriate request. Sure buyer’s agents are in the service business, but whom are they servicing? Agents can’t be as effective if they’re spending lots of time researching tax records or city permits for clients who are years away from being serious. Buyers can do a lot of legwork on their own. If you’re seriously considering a property, you should be proactively invested in researching tax records, police crime maps, neighborhood data, home values and even the property’s building permit history.

You keep changing your mind about what you want

It’s OK to shift course based on what you learn during the process. This is a common part of the buyer evolution process. Many buyers set out for X but end up with Y after learning the market and seeing where their dollar goes. By the time you are ready to start making offers and move in the direction of acquiring a home, you should be focused. If you find yourself moving around and not certain about the object of your search, it’s possible you just aren’t ready to buy. That’s OK. Take your time and learn the market. The home buying process is a journey, and a good local agent, brought in at the right time, can add so much value. Be mindful that agents work for free until a buyer or seller closes. Through the years agents have worked tirelessly with buyers who, after a year or more, ended up not buying for one reason or another. Agents should be leveraged as a huge resource, when the time comes. 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.

By Joe Szabo, Scottsdale Real Estate Team There’s a reason multi-million-dollar homes for sale don’t often host open houses: Most folks can’t afford them. That doesn’t stop some people from trying to have a look anyway. Take this Malibu home listed by Katie Bentzen and Sarah Kosasky, both founding partners of Partners Trust Malibu. With an $18.95 million price tag, a view of the pier shot by famed surfer Laird Hamilton, and an address just down the street from Matthew Perry’s old digs, the property is ripe for snooping. Bentzen has shown the home to a couple of people who might not be real buyers, she says. She tries to vet them by dealing mostly with agents and checking online for people who are visiting town and don’t have an agent — but some get past her. Looky-loos are an occupational hazard in the real estate business, and luxury listings attract a special breed. Bentzen tells a doozy about the son of a famous Italian designer who showed interest in a house on the beach. On his second visit, he brought his girlfriend, and they discussed how to decorate the place — then went for an hour-long walk on the beach. She couldn’t lock up, because his car was parked on the gated driveway. “It got dark and everything,” Bentzen remembers. “I had a baby at the time who was home with a babysitter, and I was so mad.” Then there was the guy who brought along his “girlfriend” on his second and third visits — but they were two different women. “What can you say?” Bentzen says. “You’re always walking a tightrope, and you don’t want to make him mad — what if he really does buy it?” In that case, he didn’t. It’s frustrating when people who seemed interested don’t follow up to at least let her know what happened, Bentzen says. “It takes an hour and a half, at least, for a showing in a house this size.” But she also understands. “Malibu is intriguing for people,” she says. “When they hear that address, they think glamorous, rich movie stars. I think that’s why we get more of the nutty ones.” 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.

By Joe Szabo, Scottsdale Real Estate Team What would you do with a spare room? In the past half-century, the answer to this question has dramatically changed the role of home in our lives. “In 1970, the word ‘telecommuting’ had not been invented, workout rooms consisted of a tricked-out piece of elastic tied to your doorknob, and it was unheard of to have anything in your house akin to a movie theater,” write Zillow CEO Spencer Rascoff and Chief Economist Stan Humphries in “Zillow Talk: The New Rules of Real Estate.” Fast forward to today and not only have we brought a host of commercial activities into our homes — there seems to be no limit.

Sky’s the limit

Le Palais Royal, the most expensive home for sale in Florida, is the first private residence to have an IMAX® movie theater. “[The owner] wanted the best of the best,” said listing agent William P.D. Pierce of Coldwell Banker Miami Beach. “IMAX said they don’t do private home theaters, but two years later they signed an agreement.” The screen alone is 27 feet wide and 18 feet tall. It uses two projectors that weigh 6 tons, creating a first-class 3-D viewing experience for up to 18 guests. Best part: The theater shows movies as they’re playing in public theaters. “What is live today is live in the palace,” Pierce said. “I certainly see this as a new trend. People crave technology and demand more luxury inside their personal residence.” A $14.3 million home for sale in Tarpon Springs is also breaking new ground with a 3,000-square-foot indoor “village,” housing a movie theater, bookstore, cigar room, music room and ice-cream shop — all under one roof.

“The owner wanted one room as his pet project,” said listing agent Robyn Gunn of Sotheby’s International Realty. “He has children and wanted to have the ultimate family home where there would be no need to go anywhere else.”

 

Reality check

According to Paul Emrath, vice president of Survey and Housing Policy Research for the National Association of Home Builders, the desire for “specialty rooms” has increased among U.S. home buyers surveyed in the past decade. Buyers wanting media rooms, for example, has jumped from 30 percent in 2004 to 40 percent in 2012. “If 40 percent of your buyers want something, that’s an awful lot of buyers out there,” he said. “Even if just 10 percent of people want something, it will be a niche.” Emrath notes, however, that it’s unclear when this niche will become mainstream. While 40 percent want a media room, less than 10 percent say it’s essential in their next home. Gordon Stephenson, real estate broker and owner of Seattle brokerage Real Property Associates, isn’t surprised by this. “When you start your home search, you say sure it would be nice to have all these things,” he explained. “But as reality sets in, you realize each of those amenities is going to add to X amount to the cost. You realize it’s not worth that extra money or that you’d rather spend it on a better location perhaps.” Even for those who can afford extra amenities, Stephenson isn’t sure the long-term payoff is worth it. He’s seen scores of homes built in the ’70s with saunas, for example, that are rarely used.

“Invariably, the sauna is covered in dust and Christmas decorations,” he said. “It hasn’t been used since the Nixon administration.”

When dreams meet reality

Regardless of whether people end up using their spare rooms, the fact that they’re dreaming about them is significant. “Homes are now much more than the places we lay our heads at night,” write Rascoff and Humphries in their new book. “And they aren’t just ‘where the heart is’ anymore, either. Homes are the object our heart’s desire.” People fantasize about super-sizing their houses, watch dozens of home-related TV shows and snoop on Zillow to see how much their neighbor’s home is worth. All of these things, Rascoff and Humphries note, didn’t exist 50 years ago. “There’s no question that our culture is real estate-obsessed,” they write. 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.

By Joe Szabo, Scottsdale Real Estate Team Pet lovers no longer simply stick to sharing their homes with cats and dogs. More now opt for exotic or unusual pets such as snakes, monkeys, tigers, deer, bears and rare birds. Accurate numbers are tough to come by, because some states don’t require residents to report ownership of exotic or specialty animals. But the American Veterinary Medical Association, through its 2012 U.S. Pet Ownership and Demographics Sourcebook, estimates that 10.6 percent of households own one or more exotic or specialty animals. And according to National Geographic, more exotic animals live in peoples’ homes than in zoos. For example, by some estimates, as many as 7,000 tigers live in the U.S. as pets. Though exotic pets can make each day an adventure, people often forget to factor in the insurance complications associated with owning them. Your home insurance almost certainly excludes unusual pets. However, there are steps you can take to stay protected.

Why you need coverage

You may be wondering why it matters if your home insurance doesn’t cover your exotic pet — after all, you can control any damage the animal does to the home and just pay for repairs yourself. No problem, right? Wrong — there’s a very big potential problem. Standard home insurance, in addition to protecting the structure of your home (and your possessions) from specified perils such as fire, wind and theft, also provides liability coverage in case you’re responsible for an injury or property damage. If your exotic animal is excluded, you won’t have this coverage should your pet bite or maul a visitor. Not only could you be on the hook for the victim’s medical expenses, but they could file a lawsuit seeking lost income and payments for pain and suffering, among other claims. Even if you win the lawsuit, you’ll have to pay for your legal defense. The money flowing out of your bank account could add up quickly. The average dog bite claim in the U.S. results in a payout averaging $27,862, according to the Insurance Information Institute. Someone attacked by an exotic pet could suffer even more serious injuries. And exotic animals can present more of a risk than other pets because their behavior can change with the seasons or with life cycles in ways that humans don’t fully understand, according to the American Society for the Prevention of Cruelty to Animals (ASPCA). Even a docile exotic pet can pose a threat. The ASPCA reports that as many as 90 percent of snakes carry salmonella, and 25 percent of macaques (a type of monkey) have or have had the herpes B virus, which could be deadly to humans. Unusual pets can transmit a plethora of diseases including chlamydia, hepatitis A, rabies, monkey pox, tuberculosis and measles, to name a few. And if a visitor gets sick after coming into contact with your pet, you could face a serious lawsuit.

What’s an exotic pet owner to do?

You can see how dangerous it would be to go without the liability coverage normally provided by home insurance. Luckily, some companies sell exotic pet insurance that protects you if your animal causes injury or illness. How much it will cost depends on your pet and the potential risk involved in ownership of it. Some policies will be pricey. Your best option: Get quotes from a number of exotic pet insurance providers — the cost can vary greatly. Be sure you’re considering similar coverages and limits in each quote. One tip to lower premiums: Ask whether you can increase your deductible — the amount you pay out of pocket for a claim. Only do this, however, if you can come up with the deductible on demand. Although it can be expensive, exotic pet insurance is a crucial part of owning an unusual pet. A specialty pet in itself can be a large investment, of course. But you have to protect your finances from the threat of lawsuits arising from your animal. 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.