By Joe Szabo, Scottsdale Real Estate Team From the Boston brownstone to the California bungalow, historic homes have incredible appeal in a world filled with cookie-cutter developments. But whether you’re buying, renovating, or selling, historic homes come with an extra set of challenges that can take significant time and money to resolve. Owning a piece of history might be worth it, but only if you know what you’re getting into.

What is historic?

A building can be old without being historical, and a neighborhood can have history without being a historical district. A home is officially designated by either a local historic board or the National Register of Historic Places as historic based on its involvement in historic events or its architectural significance. Historic districts are areas containing buildings deemed significant to a city’s cultural fabric, and are officially designated by the city or state. In a historic district, buildings and their settings are protected by public review. Historic properties and historic districts in the United States can date back to colonial times, or be as recent as the 1930s, depending on local history and values. If your property is designated as historic, special care is not a choice, it’s required. But even if an old home isn’t officially designated as such, there are many good reasons to treat it as if it were.

Buying

It’s easy to fall in love with the looks of an old house that’s for sale, or to imagine yourself living among the period details during the house tour, instead of checking for signs of water damage. But unless your dreams involve tripping on contractor’s tools and passing through curtains of plastic sheeting, you are likely to be disappointed. Real estate is always buyer beware, but if you’re considering an old house, the home inspection is more important than ever. Behind those nickel fixtures you might find original wiring, just waiting to ignite. Serious structural problems could render the home uninhabitable without a complete tear-down. A home inspection should uncover most major issues, but inspectors only check for a specific, finite list of potential problems, and an inspector’s liability for missed checklist items can be limited. Know going in that owning a historic home comes with additional costs — from high utility bills to specialized insurance. If the home is designated as historical, you may face severe restrictions on what you can do to fix problems discovered before or after you purchase the property.

Renovating

If you buy a designated historic home, you do not have the same property rights as everyone else. In 1978, the U.S. Supreme Court recognized that preserving historic resources is “an entirely permissible governmental goal,” and that historic preservation ordinances are an “appropriate means” to achieve preservation. Some state constitutions have also explicitly recognized historic preservation as a legitimate governmental function. In general, historic preservation ordinances empower preservation commissions to grant or deny permits for work on historical buildings. These can be called certificates of appropriateness, certificates of approval, or historic area work permits. Depending on the strength of your local preservation commission, reviewable actions (that is, renovations that must be reviewed and approved by the commission) can be limited to structural changes or may extend to such minor details as what you can (and cannot) hang on the outside of your house. Often, only work that affects the exterior appearance of the structure is regulated by the preservation commission. Be prepared for scheduling delays and increases in cost while your project undergoes review. The upside to living with these restrictions is that you may be eligible for federal rehabilitation tax credits. All 50 states implemented the National Historic Preservation Act, which means they nominate properties for inclusion in the National Register of Historic Places, maintain their own registers, and review applications for tax credits through the State Historic Preservation Office.

Selling

If high maintenance costs and design restrictions have got you down, and you’re ready to sell your historic home, you’ll be pleased that historical designation tends toincrease property values, as long as your home is not in an area where redevelopment drives prices as a result of high land values and low supply of available land. Because old houses tend to have more issues than new ones, your biggest responsibility as a seller is disclosure. Check with your state’s Department of Real Estate (and maybe check in with a local real estate attorney) to find out what information you need to share — historic status is usually on the list. As with everything else about old homes, selling your historic home can be a bit more complicated than selling a newer one. Potential buyers may be willing to pay more for a historic house, but those buyers are a niche group, and it may take specialized marketing and a little extra time to find them. Figuring out how much more buyers are willing to pay can take effort as well, because, by definition, a historic house has few comparables. But in the end, your buyer should be someone who cares about your home as much as you do, instead of a developer who will tear it down, and you will have the satisfaction of having preserved and passed on a piece of history. 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 Good economic news isn’t always good for mortgage rates. A stark reminder of this came Friday, August 5 when new data showed that the U.S. economy added 255,000 non-farm jobs in July, blowing out consensus forecasts of just 180,000, and immediately sending rates higher. Does this mean your 2016 refi window has closed? Let’s take a closer look.

Rate Markets 101

Before we examine where rates may go from here, let’s recap how rate markets work. Individual mortgages are packaged into mortgage bonds (also known as mortgage backed securities or MBS), and these bonds impact rates on a daily basis. Bonds offer a rate of return to investors each year — kind of like a stock that pays a dividend — and that rate moves inverse to a bond price as bonds trade daily. So when bonds sell on positive economic news, bond prices drop and rates rise, and the opposite is also true: When bonds rally on negative economic news, bond prices rise and rates drop. This is why rates rose after the blowout jobs report on August 5.

Rate outlook for fall 2016

But this doesn’t mean that your refinance opportunities are over. Rate markets are volatile, and throughout 2016, we’ve seen refinance opportunities rise during periods of economic uncertainty. In January and February, U.S. mortgage rates dropped to their lowest level in three years because of persistent worries about economic instability outside the United States. Then after rising slightly until late June, rates dropped again when the U.K. voted to exit the European Union, confirming worries about non-U.S. economic instability. Rates stayed low until rising after the August 5 jobs report, and are now actually recovering slightly this week. In the coming months, a presidential election and three more Federal Reserve meetings will be factors in rate markets. The Fed’s remaining three rate policy-setting meetings are September 21, November 2, and December 14. There’s a high probability they could raise overnight bank-to-bank lending rates during this period, which in turn influences bond markets and mortgage rates. But it’s not a Fed rate move itself that can cause mortgage rates to rise, it’s the bond market anticipating a Fed rate move ahead of time. For example, rates rose ahead of a Fed meeting in December 2015 as investors sold bonds (remember, rates rise when bond prices drop on a selloff). When the Fed actually did raise overnight rates, bond markets reversed course because the Fed’s accompanying rate hike commentary didn’t signal a strong hiking bias going forward from there — a bond rally caused rates to drop again, which is why 2016 started with extremely low rates. The Fed is known for trying to remain politically neutral, so the bond market is split on guessing when the next Fed hike is most likely to occur. Some think it’s more likely on September 21 so as not to be too close to the election, and some think it’ll come December 14, when the election is behind us. This guessing will make the weeks leading up to September 21 the next major inflection point on rates.

When do you lock a refi rate?

With these unpredictable rate market dynamics at play, you can count on rate dips coming and going quickly. So it’s a good idea to check rates regularly. And when rates do drop, lenders get extremely busy right away. A rate lock is for a set number of days, and the longer the rate is locked for, the higher the rate will be. So you want as short of a rate lock as possible, and your lender also needs ample time to complete your loan before the lock expires. This means you should discuss your loan profile and provide documentation to your lender now so they know your qualifications and know about your property in advance. If they know this, it’s easier for them to move quickly on a moment’s notice when rates do drop in a given day or week based on economic news of the day. If you start the loan process on a day where rates are down, your lender might not have enough time to close your loan within their quoted rate lock 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.

By Joe Szabo, Scottsdale Real Estate Team Subway tiles — the white 3-by-6-inch ceramic rectangles we’ve grown so fond of over the years — are now a staple in bathroom design. Classic and simple, subway tile is an affordable choice that continues its legacy of making well-loved spaces easy to clean and even easier on the eyes.  (They may even help boost your home’s market value.) The beauty of subway tile lies in its versatility. Not only does it honor the character of historical spaces, it also complements minimalist and modern decor. Traditional subway tiles are white, flat, glazed ceramic tiles typically applied horizontally with very thin grout lines. Today there are so many new takes on this classic material that the possibilities for making a striking statement seem endless. Here’s a look at some favorite subway tile looks for the bathroom.

Go dark: contrast with grout

Subway tile is more popular than ever, but you can still create a unique look with it. A move as simple as using a dark grout color can make a statement. This traditional shower space is a perfect example of how dark grout adds visual variety and pattern while keeping a neutral palette. Pairing traditional white subway tile with a darker grout adds a pop of contrast and gives a bathroom space more dimension. Dark grout will also make your life easier because it doesn’t yellow and stain as much as lighter colors.

Add wonder with wainscoting

Like subway tile, wainscoting was introduced to interior design several decades ago. Combining form with function, it enhances the look of any bathroom, and protects the lower half of the walls from damage and dirt. What’s great about wainscoting is its ability to turn a plain wall into one with several decorative elements. In the bathroom pictured above, the contrast between the brightly colored aqua walls and subway tile wainscoting is eye-catching and elegant.

Switch it up: color and material

Do you like the look of subway tile but want something different? Take a break from standard glossy white tiles and switch it up with a splash of color or a different material. The shower above highlights a traditional brick pattern and complements the classic marble, but adds depth with a field of slate blue.

This modern take on subway tile keeps the classic shape, but marble adds a fresh, contemporary vibe.

Pretty patterns

Something as simple as switching up the tile pattern can add a lot of visual interest to your bathroom. The beauty is that you use the same affordable tile, but just change its pattern or direction — no need to invest in additional materials. This bathroom features an exciting decorative element by pairing a herringbone pattern with the traditional horizontal layout. Have a compact bathroom? Emphasize the height of a smaller space with vertical subway tiles — it adds an innovative twist without being too trendy. 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 The era of “Mad Men” has come and gone, but the love of all things retro is here to stay. Not only are vintage pieces a fantastic way to recharge a space, but they can even save you a few pennies. Here are our favorite ways to add a retro touch without completely dedicating the look of your home to the style.

Saturated colors

From mid-century mint to tricycle red, punchy hues give a retro vibe without much effort. Whether it’s a buttercup-colored KitchenAid mixer or a burnt-orange accent pillow, using more saturated colors associated with eras past will add a distinctly retro character to any room.

Flea market finds

For that one-of-a-kind piece, hit the flea market or your favorite online auction site. Antique steamer trunks are a great modern take on the traditional coffee table (with bonus storage), and old ladders are versatile for hanging linens or stacking potted plants. If you want the retro look on a smaller scale, invest in quality vintage barware pieces, like a cocktail shaker or champagne coupes for a pop of nostalgia.

Beadboard and paneling

Dip into the Victorian era with the addition of beadboard or wood paneling. It’s fairly affordable, available at most neighborhood hardware stores, and a great way to add character and texture to any home. Small, overlooked spaces like hallways, laundry rooms, and entryways are perfect candidates for paneling. Paired with a calming color or fun wallpaper, it can add visual interest almost immediately.

Funky furniture

You don’t need to outfit your living room like The Jetsons to show your appreciation for fashions past. Simply adding one or two anchor pieces to a room, like a ’70s-inspired sofa or funky accent chair, is an instant nod to nostalgia. With the love of retro in full swing, many companies are re-creating styles from a range of periods. Distinctly contemporary, the room pictured above incorporates mid-century elements, like a 1942 Noguchi coffee table and mod circular mirror, for a well-rounded but notably retro space.

Lighting

Lighting, like furniture, is remarkably good at capturing the essence of an era. Use vintage-style industrial pendants for a rustic kitchen feel, or circular mod chandeliers for an instant retro upgrade. Not ready to invest in permanent fixtures? Edison light bulbs are available in all shapes and sizes, some with LED technology, and can easily be paired with existing lamps, pendants, and sconces. 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 When it comes time to sell your home, you know you’ll need to spend some time cleaning the carpets, decluttering, and landscaping for maximum curb appeal. But there’s another key task to add to your to-do list: checking in with your local government to be sure it has accurate information about your home. No matter the type or size of your home or where it is, your local municipality has documentation on it. Both the building department and the town assessor will have a record about your home. But those records may not match your home’s reality — and any issues you don’t resolve could hold up your sale or even kill the deal altogether.

What is the building department?

The town keeps records of every building constructed and every permit issued. It’s the job of the lead building inspector to be sure that any changes made to a home meet current codes, and that licensed contractors do the work. Home health and safety issues are the primary concerns of the building department. Whenever someone applies for a permit, an inspector must be physically called out to approve and sign off on the work of the contractor, plumber or electrician.

Why should a seller care?

Once you make a deal with a buyer, they will go to the building department to do their due diligence. If there’s an open permit (meaning the permit was applied for, but the contractor never had the inspector sign off on the work to close the permit) or, worse, if there’s no record of your finished basement or newly renovated kitchen, they may not move ahead with the purchase. Often, sellers find that somewhere along the line someone made a mistake — permits weren’t closed out properly when you assumed they were. These errors could have been the fault of a contractor, the previous owner, or even the building department directly. Additionally, a homeowner may assume that the bathroom renovated by their Uncle Bob 15 years ago was up to code, but it may turn out that it’s not. Both scenarios can pose a problem when selling. Once the home transfers, the new homeowner is on the hook for any illegal work, and no buyer wants to take on that liability.

What are assessor’s records?

The town assessor keeps tabs on the local real estate market to be certain that the town’s assessed value of your home (which affects property taxes) is in line with the market. When the market slows down, she won’t proactively lower your assessed value, and most assessors regularly scrape the building department permits. Why? Because if you’ve recently made a major improvement to your home, she will want to raise your assessed value, which means higher taxes. It’s also very possible that your home is over- or under-assessed. If it’s the former, you want to attempt to grieve your assessment by providing the assessor some recent sale statistics and making sure that their records are accurate. Every municipality has a grieving process for homeowners.

Get ahead of any issues

Before listing, a seller should go to the town hall and check their property records. Most of the time, remedying issues like open permits or misinformation on a property is a quick fix. It’s better to get ahead of it than to have to react to a buyer’s concerns and jeopardize your deal. If it’s a bigger issue, it’s better to hold off on listing your home for sale until you have resolved it. Getting your assessment down can impact your taxes, and that will be great news to your potential buyers. 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 When you’re retired, the world is your oyster. You have no job to tie you down. You are free to move wherever you choose. Retirement is the perfect time to move to your dream city. When you are putting together your list of new city must-haves, don’t forget to put ‘senior-friendly’ on the list.

What makes a city senior-friendly?

Even if you don’t feel like a senior yet, your retirement home should be able to support you as you age. Living in a community that is accessible and senior-friendly will only enhance your retirement. Make sure to consider the following questions before you move:

• Are the neighborhoods walkable? Look for wide, well-maintained sidewalks and walking trails.
• Is there an extensive public transportation system? At some point, you may have to stop driving. Good public transit will let you stay independent and get everywhere you need to go.
• Is your target neighborhood safe? Look up the crime rate and ask about a community watch program. When you visit, make sure you feel safe walking around town.
• Is there a community of like-minded seniors? Visit the city and get a feel for the local community and senior centers. Find out if they have programs you’re interested in and people you would like to get to know.
• What on-demand services are offered to seniors? Look for shuttles, food delivery, and home maintenance services that can bring necessities straight to your door.
• Is there quality healthcare? A senior-friendly city has good doctors, hospitals, and pharmacies nearby.

The best senior-friendly cities

With the entire country at your fingertips, let’s narrow down your list. One of these four cities might just be your new dream home. All have low crime rates compared to the national average, quality healthcare, and plenty of transportation options. Fremont, CA Fremont is centrally located, with the entire Bay Area within reach. With multiple train lines, you can easily travel to San Francisco for the day. In the city itself, residents enjoy access to more than 50 parks, plus a variety of senior centers and active senior living communities. Fremont was created from the merger of five smaller communities. That means each little town has a post office and library at your disposal, in addition to citywide resources. You will love Fremont’s bright, suburban feel and beautiful California weather. La Crosse, WI La Crosse is a vibrant city that is consistently ranked highly for livability. Offering stunning views of the Mississippi River, the city has a strong arts and music culture and is full of historical landmarks. La Crosse is a technology and medical hub with great healthcare opportunities. It’s famous for the quality and taste of its award-winning tap drinking water, pulled directly from a deep underground artesian aquifer. Scottsdale, AZ Scottsdale is known for its retirement communities. In fact, 43 percent of its population is over 50 years old. You will be surrounded by people your age. The city has plenty of support for older adults, but Scottsdale is also a lively tourist destination, so there’s no lack of entertainment, including casinos, restaurants, and a bustling nightlife. If you love the heat, Scottsdale is the place for you. Winters are mild, and summers are hot, with temperatures regularly over 100 degrees. The city has a great public transit system, which includes the Scottsdale Trolley, a free bus service that circulates through the city. For healthcare, you have access to one of the Mayo Clinic’s major national branches. Boston, MA Boston is a big city with a small-town feel. Residents have access to its great transportation system and international center of higher education and medicine. One of the oldest cities in the United States, Boston is full of history to explore. Boston has a strong literary and music culture. It’s home to the renowned Boston Symphony Orchestra and the Boston Ballet. It has a highly ranked park system and is so walkable that it has been nicknamed “The Walking City.” The city has very good air quality, and its drinking water is so pure that it satisfies federal water quality standards without filtration. 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.