Scottsdale Archives - Page 21 of 56 - Scottsdale Real Estate Team / Arizona Luxury Homes

Building Credit 101: Tips for Recent Grads By Joe Szabo, Scottsdale Real Estate Team

June 4, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team If you’re a recent college grad, you’ve likely heard speeches about pursuing your passions and believing in yourself, but you probably haven’t heard much about establishing a good credit history. Here’s what you need to know.

It matters — a lot

Qualifying for mortgages, auto loans, apartments and even jobs has become dependent, to some degree, on your credit history.

Find out where you stand

The first step is knowing your current status. Access your credit report by visiting Annual Credit Report.com. Make sure all the information on the report is accurate, because errors can — and do — occur. Damaging discrepancies need to be corrected right away.

Build a credit history

Your credit history is one of the key factors making up your credit score, the all-important three-digit number that determines the rates you pay on everything from credit cards to mortgages to auto insurance. The best time to build a credit history is when you’re young, and the best way to start a credit history is to get a credit card. This may sound counterintuitive, but if you don’t have a credit card, the scoring system has no information to go on for assessing your creditworthiness, so you come across as a credit risk.

Research credit card options

While many of the major issuers offer cards geared toward new applicants with little or no credit history, you might stand a better chance of getting a card at a credit union. Size up your card options on a site such as LowCards.com. Gas cards and department store cards are also typically easy to get and can be a good place to start if your options are limited. Another possibility — especially if you don’t have any credit history or your credit is damaged — is to get a secured card. These cards work just like a regular credit card, except that you place a security deposit with the credit card issuer to obtain one. They typically require $200 or more for the deposit, and this amount becomes the credit line for the account.

Use credit responsibly

The way to keep your credit score high is to spend responsibly within your means. Don’t use more than 30 percent of your available credit, and pay off your balances in full and on time every month. Your payment history contributes to 35 percent of your credit score, so this point is important.

Chip away at student loans

Student loans are a form of debt, and are therefore taken into account as part of your credit score. And while you may be worried about a lender seeing all of this debt (likely tens of thousands of dollars), there’s no need to be concerned if you’re handling your finances properly. Just be sure you’re managing your debt obligations and repaying them on time, every time. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

3 Strategic Moves for Competitive Home Buyers By Joe Szabo, Scottsdale Real Estate Team

June 1, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team If you’re a prospective home buyer who has been making offers for many months without being accepted, it’s time to up your game. After all, while making lots of offers helps you learn about the market, the goal is to actually purchase a home, right? Once you’ve found “the one” and you’re ready to get serious, it’s time to put your game face on and beat out the competition. Take comfort in knowing that most winning buyers are uncomfortable, nervous and financially stressed out at this point. It’s par for the course, but if you’re in it for the long haul, know that it will all eventually work out. Here are three strategies for making an offer that sellers will pounce on.

Find out what’s important to the seller and give it to them

You want what the seller has, so you have to figure out exactly what they want — and then deliver. Find out through the listing agent what their story is. Why are they selling? Have they found a home already? Are they moving out of town? Try to put yourself in their situation and imagine what you would want if you were them. If you find out that they are in contract to purchase a home, for example, tempt them with a quick and clean sale to ease their stress. Have your inspection and appraisal done in a week, and remove all your contingencies quickly so the seller knows they have a sure thing with you. If they need to find a new place to live, but must sell their current home first, offer them a “rent back” after the closing. This allows them to stay in their home knowing the money is in the bank, their debt relieved, and they don’t have to move twice or feel under the gun.

Make your loan a non-event

By now you should be working with a good local mortgage professional. Hopefully, this is someone recommended by your real estate agent. The buyer’s loan is the biggest unknown for a seller. By the time you make this offer, your mortgage professional should have your entire file in place and updated. If you’ve done this, the only unknowns are the appraisal and the title report, which come later. Be certain that the seller knows you have gone to great lengths to get your loan lined up, and that you are a sure thing. With the input of your mortgage professional and real estate agent, make your offer non-contingent on financing. That way, you are as good as cash. To cover yourself, make sure to order and complete the appraisal early on.

Overpay for the home

For someone who has not experienced and bought a home in a hot market, this probably sounds like the worst advice. But most buyers in competitive markets end up paying top dollar once they are in the drama of a bidding war. It’s these buyers who have been beaten out over and over that make competitive markets strong, and it’s the nature of the beast. While it’s never good advice to pay more than you should, it’s easy to understand the mentality of the buyer in this situation. Work closely with your agent, determine what price would take you over the edge, and know whether or not you could have an appraisal issue. Many buyers before you have gone through this process, and you got this far for a reason. Buyers in hot markets find themselves in competitive situations because they not only want what everyone else wants, but also what’s in limited supply. While we can never predict what’s going to happen, if you are in the game for the long haul and plan on financing with a 30-year fixed loan, chances are you’ll be glad you made the effort. 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 Things Buyers Do That Drive Real Estate Agents Nuts By Joe Szabo, Scottsdale Real Estate Team

May 28, 2015 Joe Szabo

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.

Home Buyers: 3 Signs It’s Time to Enlist a Real Estate Pro By Joe Szabo, Scottsdale Real Estate Team

May 25, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team The growth of online real estate listings means consumers are equipped with information very early in the home buying process. A generation ago, to get listing information and access to historical data, home buyers needed to connect with a real estate agent much sooner — sometimes even prematurely. But today’s home buyers can do a lot of the legwork themselves, conducting research online and using home search and research applications independently, in addition to attending open houses. But this access to information doesn’t mean home shoppers can entirely go it alone. Buying a home is a major transaction, and all the data in the world can’t replace a knowledgeable and experienced local real estate agent. Here are some signs that you are ready to engage with a buyer’s agent:

You think you’ve found the home of your dreams, and you don’t know what to do next.

If you’ve been looking at homes for some time, you likely have a good feel for what you get for the money. You’ve gone to some open houses and have a few homes or searches saved online. Home shopping has become a hobby. But once you find the home of your dreams, it becomes a part-time job. Independent shoppers get comfortable with the market until their dream home hits them like a ton of bricks. The house is the motivator to take things up a notch. Reaching out to an agent will take you out of the dreaming phase and move you in the direction of actually buying a home.

You’ve found a home that appears too good to be true, but you can’t figure out what the problem is.

Suppose you stumble upon a house that seems like a great deal. It’s priced accurately for the neighborhood, but has been sitting on the market for weeks, if not months. You may have reached out to the listing agent to see the home in person or asked some questions of the agent at the open house. But that agent represents the seller, so you are not sure what the story is. In this case, you don’t know what you don’t know. That uncertainty, coupled with your curiosity about the home, is the best reason to pair up with a good local agent. They may know the house, its market history or, via their network, have access to information about the home. The house may have some major structural issues. Or the agent might point out that it is on a less desirable road or in a tough school district. These are the types of things that new, uneducated buyer wouldn’t know on their own.

You’ve been hit by a major life or financial event and need hard information to make a decision.

Sometimes you get news that changes your life’s course. Your landlord is selling your building, and you have 60 days to vacate. You’ve received the job opportunity of a lifetime or a huge increase in pay. Or you’ve done some tax planning and realize you are paying so much in taxes that you need to take advantage of the benefit realized by homeownership. When you need information fast, rather than taking the time to study the market independently, it’s easier to go right to the source. In a 30-minute phone call or in-person meeting, a local agent can get you up to speed on the market, pricing, timing and what to expect. You can quickly marry this information with your personal financial situation and start to devise a plan. A generation ago, potential home buyers, curious about getting into the market, had access to little information about homes for sale. They might have checked the open house section of the Sunday paper to get started. Or they simply called a local agent and engaged them. They may not have been quite ready to pull the trigger at that point, but they needed an agent to get them in the game, many times well before they were ready to purchase. While that agent is still an integral part of the process, today’s buyers can hold off a bit longer — as long as they know when the time is right to enlist help. 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.

Deck Out Your Patio for Summer By Joe Szabo, Scottsdale Real Estate Team

May 20, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team You’ve got your sunscreen out, your watermelon sliced, and your grill smoking. No matter if you’re on a balcony, patio or urban roof deck, outdoor entertaining is the best. While you’re gathering supplies to enjoy a lemonade or ice cold brew with friends and neighbors, pick up a few decorative add-ons to enhance your outdoor space. Setting the mood for a party in the sun or under the stars is easy with these tips and treasures.

Classic bistro lights seal the deal

Hang a strand or two of Edison bulb string lights above your table or in the entry way to your patio. These classic string lights blend with almost any style of furnishings and work year-round. Adding lights is a simple way to create ambiance — and since it isn’t permanent, it’s great for renters. They create a flattering light for your vainest of guests, and provide a gorgeous glow as the sun sets.

Snake eyes: decor and games are one and the same

These giant dice make for a cheeky center piece, and will inevitably add a lot of laughs — and possibly some competition — to your cookout. Or for a no-cost decor-and-party-game combo, fold tons of paper planes in vibrant colors to populate the table. They’ll take flight later in the night, and guests of all ages can take aim at the horizon — or each other.

Bring the beach with hanging lanterns

Hanging hurricane lanterns or these nautical lanterns modeled on vintage glass canning vessels creates a seaside vibe no matter where you’re celebrating. Candlelight is essential to your gathering, and hanging lanterns are perfect because they elevate the mood and won’t blow out.

Take a walk to easy seat

Temporary seating is a must when entertaining outdoors. These red-stripped canvas poufs are ideal if you’ve got a smaller outdoor area. A few of these placed in conversation clusters encourage a casual atmosphere while providing a comfy place to sip. Guests can scoot over easily to make room without having to handle clunky metal chairs or heavier seats. Poufs and large pillows are also easy to store away inside and bring out when you’ve got a party-crasher later on.

One-of-a-kind pillows, everywhere

When in doubt, just throw tons of pillows at your outdoor area. This abstract and summery design by a maker on Society6 is an affordable way to bedeck your deck with custom artworks. A stack of five or six pillows on a canvas drop cloth or outdoor mat make for a coveted horizontal hang in the rays. No need for your patio to feel matchy-matchy — grab tons of different colors and styles of pillows and throws so folks can create their own plush arrangement.

Waste not, paper cutlery

Make big waves with small details in your plates and cutlery. You can stay stylish and eco-friendly with this delightful compostable pack of forks and knives. No one wants to lug dishes and silverware outside and then back inside for the dishwasher. Have your guests toss these in the bin and recycle on your way downstairs tomorrow. An easier clean up and you can save the environment? Yes, please!

Chic and tiny table for two on the fire escape

From New York to Paris, this Euro-designed miniature wonder is exactly what we dreamed of. A table for two, perfect for sipping wine and people watching, or an opportunity to fly solo with coffee and a good book. This attachable shelf is an ideal solution for morning meditation or evening imbibing on your balcony or fire escape. No matter how tight the quarters, you can create a cozy moment to share with friends.

A vertical garden: easier than you think

This modular garden container attaches easily to an interior or exterior wall in your home. Wally One is one of the smaller and streamlined versions. Start with one pocket and grow a vibrant plant or herb garden. If your patio or deck is close to the kitchen, you can be the urban farmer you always envied, heading out to snag a pinch of basil or thyme. You can always order more pockets to expand your green thumb efforts all around your home. Want to try these and other hot outdoor trends in your own backyard or patio? Zillow Digs and hayneedle.com are teaming up to give one person a $5,000 shopping spree to hayneedle.com to create their own outdoor oasis. Enter now for your chance to win. 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.

Advice for Buyers and Sellers in a Buyers’ Market By Joe Szabo, Scottsdale Real Estate Team

May 18, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team When there is an abundance of homes for sale in a particular market, buyers and sellers both need to adapt their strategies. Here’s how to proceed from either side of the transaction in a buyers’ market.

How to sell in a buyers’ market

It’s not impossible to sell a home in a buyers’ market. For the right price and the right house in the right condition, there will always be a buyer. But the home’s true value may not be in line with the seller’s expectations. Most sellers refuse to believe the reality of a buyers’ market, and a struggle ensues. If you need to sell your home in a buyers’ market, you must put your best foot forward from the start. Only the most serious of sellers should list their homes for sale in a down market. Why? If you don’t need to move, but would just like to, then you aren’t a motivated seller. This means you probably won’t be pricing your home in line with recent comparable sales. It is likely to sit on the market for a long time, creating a big stain on your home and your listing. When it does come time to get serious, buyers will discount you.

Be a seller, not a lister

The better option is to stay in the home as long as you can, and wait to list it until you are really ready and motivated to sell it. At that point, it’s imperative that you price the home correctly from the start. Also, make the necessary cosmetic improvements: clean, clear and declutter to get the home in its best possible condition. Following this path will ensure your home sells in a timely manner. And you will ultimately net more, having held out, than if you listed the home and had a series of price reductions over a one-year period. Of course, many sellers want to list and see what happens. But living in your home while it’s on the market gets tiring. It will never show well after those first few weeks, and many sellers give up trying to present their home well. The better option is to wait it out until the market turns around.

How to buy a home in a buyers’ market

Being a buyer in a buyers’ market is a rare treat. You have the pick of the litter, lots of options and time on your side. But it does come with risks. There are few buyers and lots of inventory for a reason. Perhaps the economy is down, credit is hard to get, or your local market is slow (and it could get worse). It’s hard to time the market, but often maverick buyers do fine in the long run. When you first get into the market, do your research. Understand pricing across the different towns, neighborhoods, and school districts. Buying in a buyers’ market just might afford you the opportunity to get into the best area. Once you’re in, you’re in. It may not be possible to get into the best area six months or a year later. Once you’ve identified the location or locations you prefer, hit the ground running. Check out the existing inventory. In a buyers’ market, there tend to be many homes for sale, and they may sit on the market for six months to a year. Know upfront that not all sellers are created equal. Some simply list their homes for sale but are not serious, motivated sellers. Don’t waste your time on them. If you find a seller who’s just not that into your offer, make your best and final offer, and move on.

Identify the motivated sellers

If you are a true bargain hunter and value is more important than the home’s floor plan, location or lot size, identify the most motivated seller. Often this is the person whose listing has been sitting around forever. Work with your real estate agent, find out why the seller is selling and what their motivation is. The seller’s agent can be a great source of information. When you find a motivated seller, make a low offer but make it clean. Complete your inspections quickly, get fully approved for a loan, and make the timeframes fast. A foolproof offer, even if low, will motivate a seller to bite the bullet and move on.

Look for the value add

Markets will turn around eventually. Buying in a slow market all but ensures you some equity once things take a turn. And that is a great feeling. But take it one step further. Identify a home in a down market that needs some work, and you have an additional layer of value add or equity. While you don’t need to find a total fixer-upper, be open to a kitchen or bathroom renovation. These renovations will add value, and you can make the home yours, instead of buying someone else’s choices. 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.

Winning Tips for Buyers and Sellers in Sellers’ Markets By Joe Szabo, Scottsdale Real Estate Team

May 14, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team In a market with limited inventory and lots of willing and able buyers, we find a hot sellers’ market. Phrases such as “bidding wars” and “non-contingent offers” are music to sellers’ ears — and enough to scare a buyer into renting for another year. Here are some tips to make the most of a sale or purchase in a sellers’ market.

Sellers still need to make the effort

Just because it’s a sellers’ market doesn’t mean that the traditional real estate rules get thrown out the door. Sellers still must put their best foot forward in order to get top dollar and complete a timely sale. The well-priced homes that show in their best condition will sell instantly in a sellers’ market. If you price your home higher than the comparable sales or you don’t put in the right effort to make the house show well, you may not get the most money for it. What makes a sellers’ market so strong is attracting multiple buyers at once. Buyers will always flock to the well-priced homes that show well — period.

Dealing with multiple offers

If you have the luxury of multiple buyers making offers, choose the best buyer right out of the gate. How can you tell who that is? The best buyer is the one who is most experienced in the market, is working with a local agent, has their loan lined up, and makes the most aggressive offer, soon after you list. Often they are the first buyer in the door. Also get a backup offer (or two) lined up and in writing when you accept the first offer. The last thing you want is to have to go back on the market. It signals that there could be something wrong with your home. And once you’ve lost that initial momentum, it’s hard to recoup it when you go back on the market.

Buyers need to plan and strategize to win in a sellers’ market

There is nothing more frustrating than being a buyer in a sellers’ market. A buyer who wants to purchase, has their financing lined up, and has done their research may be unable to do so. This is frustrating, and there is little they can do but wait for inventory and have their ducks in a row.

Don’t wait around

The early bird approach works in real estate. Once a good listing hits the market, the interested buyer should see it instantly. If it comes on the market on a Wednesday, don’t wait for the open house. A more aggressive buyer will see it Thursday morning and make an offer within hours. Come Sunday you will be disappointed.

Invest the time

Buying a home requires lots of time and energy. You need a good agent on your side and a serious investment in time to watch the market and see homes quickly. If you like a home, move fast with an offer, and make it a strong one — not just in price, but also in terms. Knowing that you may face other buyers, find out what is important to the seller. Maybe they want a quick close, or they need time to find a home. Structure your offer to meet their needs.

Make a good first impression and a strong offer

The first buyer is nearly always the best buyer. By moving quickly, these buyers show sellers they mean business. If you want to submit an offer, make your contingencies and timeframes swift, and take as much risk as possible off the table for the seller. If you need to inspect the property and have an appraisal, get those done within days of getting into contract, not weeks. If you are aggressive, have the home inspected prior to submitting the offer. Inspections pose the biggest risk or uncertainty in the eyes of the seller. If you inspect before you make the offer, you can make your offer not contingent on inspections. Loans take longer today than they did 10 years ago. When obtaining financing, work closely with your mortgage professional well in advance. Submit a full file and understand what is needed. The more complete your file, the quicker the loan will close. If you need to ask the seller for a month for a financing contingency, you won’t be able to compete with someone who can do it in half the time, simply because they planned better.

Know before you go

Part of what makes a buyer successful in a sellers’ market is being aware from the outset what they are in for, and then planning accordingly. If you find yourself being beat out by other buyers or too late to the game, you simply may not be ready to buy. Think long and hard about your personal and financial situation, and take a step back if you aren’t prepared to compete. 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.

April 2015 Scottsdale Arizona real estate market update

May 13, 2015 Joe Szabo

Can you believe it is already May! As things really start to heat up in Scottsdale let’s take a look at how the real estate market faired in April 2015. New listings are down 5.8% from March with a total of 1,031 new listings vs. 1,095 in March. New contracts were down in April by 3.3% but closed sales were up slightly by 1.3%. The median sale price is also up from $372,500 in March to $390,000 in April. March closed with some motivating numbers for both buyers and sellers! During these up and down activity months it is more important than ever to consult a real estate professional that knows the Scottsdale market.

April 2015 Scottsdale Detailed Market Report

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.

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.

Where Can Millennials Afford to Buy Homes? By Joe Szabo, Scottsdale Real Estate Team

May 5, 2015 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Now that we’re well into the year of the millennial migration — when young adults are expected to overtake Generation X as the largest group of home buyers — it’s time to consider where millennials can afford to buy. The answer is discouraging for those wanting to settle along a coast. In New York, Boston and Miami, fewer than 60 percent of the homes for sale on Zillow in the fourth quarter 2014 were affordable for typical 23- to 34-year-olds. Zillow determined this by taking the median income of young adults in each metro, and assuming they put 5 percent down and spend 30 percent of their monthly income on mortgage payments. The situation out west was even worse, with just a quarter of homes in Los Angeles and Honolulu affordable. Prices have increased so much even in smaller California metros like Sacramento, Fresno and Modesto that more than 60 percent of what’s on the market is out of reach for millennials. Nationally, 70 percent of homes on the market were affordable to young adults, with many coastal cities falling short of that, including Portland (51 percent), Seattle (63 percent), Washington, D.C. (64 percent) and Houston (68 percent). Metro areas in the middle of the country offer more choices. Here are some of the most affordable:

Metro	% Homes for Sale That Are Affordable for Millennials
Akron, OH	90
Buffalo, NY	86
St. Louis, MO	85
Des Moines, IA	85
Pittsburgh, PA	82
Louisville, KY	80
Kansas City, MO	80
Indianapolis, IN	79
Omaha, NE	77
Minneapolis, MN	75

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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