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The Anatomy of a Real Estate Purchase By Joe Szabo, Scottsdale Real Estate Team

February 24, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team The steps, process and details of buying real estate can be intimidating and overwhelming to the first-time (and even the veteran) buyer. If you’ve never done this before, you likely have no idea how the process begins or what to expect. Every market does things a little differently, and you should ask your real estate agent how the process works in your community. For the most part, however, the transaction should follow these seven steps.

Make an offer and write up a contract

When you love a place and think it could be your future home, it’s time to take a serious and legally binding step toward purchasing it. This means writing up a purchase offer and signing a real estate contract. Yes, at this early stage of the game, you need to sign a legally binding contract. By signing on the bottom line, you’re committing to moving forward on the purchase with the seller. There are contingencies, or “outs,” to many real estate contracts, however. Most contracts will be contingent on inspections, disclosure review, loan approval, appraisal or other matters. These “contingencies” are ways to exit the contract should something not go as anticipated.

Disclosure review

By law, the seller must provide the buyer with disclosure documents, a preliminary title report, copies of city reports and any specific local documents. For example, in California, an earthquake hazards report or a geological survey is required. In areas of the South, near the Gulf or on a riverbed, flood maps and floor reports should be provided to the buyer. Aside from any mandated reports, the seller needs to disclose to the buyer any issues or flaws with the property that would affect the value or habitability. Generally, sellers are required to answer a series of yes or no questions about the property, the neighborhood and their experience there via a transfer disclosure statement. If there were leaky windows in the past, violations from the city, work done without permits or plans for a major nearby development, the seller is required to disclose them. This provides additional color about the property you’re considering purchasing. If there are major flaws, the seller’s agent would likely have brought them up before the contract signing. However, if something is disclosed here that is a negative factor for you, this is your out.

Appraisal

Most buyers will put a certain amount of money down toward the purchase price. The balance will come as a loan from the bank. But the bank isn’t going to hand over that money without doing its due diligence. The appraisal is the financial institution’s way of making sure the contract price is the right price. The bank sends out a third-party appraiser, which the buyer pays for, to confirm that the contract price is in line with the neighborhood’s comparable sales. If it’s not, the bank can deny the loan or change the terms.

Inspections

A home is a huge purchase — likely the biggest of your lifetime. And so, as part of the real estate contract, you have the right to a property inspection. The most common is a “general” property inspection. The inspector will check the home from the foundation to the roof and investigate all major systems and components. You, as the buyer, should follow alongside the inspector to learn more about the property. You’ll want to know about the components (such as the water heater) and have a plan in place for maintenance. As a result of the general property inspection, the inspector may suggest having a specialist come out. This could be a roofer, electrician, HVAC specialist or even an engineer. Listen to the inspector and have any follow-up inspections as necessary. This is your one chance to approve the property from top to bottom. If issues arise, you might go back to the seller and negotiate some sort of fix or credit. If something major arises and it’s just not what you signed up for, you can exit the contract via your inspection contingency.

Loan approval or commitment

In addition to making certain the property appraises at no less than the contract price, the bank will want to fully approve your credit, debt and income history. It’ll also want to approve the property’s preliminary title report to make sure there aren’t any liens recorded against the property that might affect its value. The bank can take up to a month to do its full review, which should result in a loan commitment or full loan approval. Once that’s completed to the bank’s satisfaction, you’re guaranteed a loan, and you’re one step closer to closing.

Final walk-through

A day or so before closing, you’ll want to walk back through the property to make sure it’s in the condition it was when you last saw it. You want to be certain that the seller didn’t remove any fixtures, make modifications or leave behind garbage or debris. You also want to make sure any fixes you negotiated with the seller were indeed completed.

The closing

Depending on the market, the closing may happen at an attorney’s office or with an escrow officer at a title company. In some jurisdictions, the buyer and seller don’t ever meet. Each goes in to sign their closing papers separately, and the property closes in the background. In others, the buyers and sellers sign the closing documents together. Regardless of how a closing happens, if you’re a buyer and getting a loan, plan on signing dozens of documents at closing. You’ll have to show up to the closing with a photo ID, as your signature will be notarized. Prior to the closing, your real estate agent, attorney or escrow officer should send over a closing statement to review. This will spell out your final closing numbers and what money you need to bring to closing. The funds can be wired in or paid with a cashier’s check on closing day. Be sure to ask for the statement early, so there aren’t any last-minute surprises. 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 Do Buyers and Sellers Pay in Closing Costs? By Joe Szabo, Scottsdale Real Estate Team

February 20, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team If you’ve never been through a real estate closing before, you might imagine convening around a large table where, at the end of escrow, you’re presented with an itemized list of big expenses required to close the deal. But that’s not always the reality. While people still do meet around a table at the closing, today some closings happen virtually. The buyers and sellers can sign the necessary documents remotely and wire money for the closing. More importantly, it’s unlikely that a buyer or seller would show up to closing without any idea of what their costs will be. If you’re new to real estate, or haven’t bought or sold in a while, here’s what you need to know about closing costs.

Buyers have more costs, but usually pay less than sellers

In a closing, both buyers and sellers have costs. Usually, the buyer is faced with more line-item expenses than the seller. For starters, most buyers are getting loans to make the purchase; many of the charges stem from the loan. A buyer should receive a “Truth in Lending” statement early on in the sale process. This document spells out all the approximate costs the buyer will face when making the purchase, so there aren’t any surprises at closing. Some buyers use the “Truth in Lending” statement to shop for different lenders, interest rates and costs. Aside from the costs of getting a loan or buying a home, some expenses, such as property taxes or homeowners association dues, are pro-rated and paid at the time of closing. For example, if you’re buying a home and you close toward the end of the property tax period, you’ll likely need to pay the balance of taxes upfront. The same holds true for pre-paid loan interest. If you close toward the end of the month, the lender may ask for the first month’s payment upfront. Typically, buyers getting a loan will see some of the following costs:

Appraisal fee
Origination fee
Pre-paid interest
Pre-paid insurance
Flood certification fee
Tax servicing fee
Credit report fee
Bank processing fee
Recording fee
Notary fee
Title insurance

Be sure to go through these fees line by line with your mortgage professional to understand exactly what they are and how they apply to your loan.

Sellers pay the commission

For sellers, there are always fewer line items on an estimated closing statement. But the seller generally bears the biggest brunt of the fees: the real estate commission. The commission is based on a percentage of the total sale price, so it tends to be the biggest fee. In addition to the real estate commission, sellers may have to pay the balance of their property taxes, if they haven’t done so already.

There’s some room for negotiation

All fees and charges can be negotiated during the real estate transaction. For buyers, coming up with an extra 1 to 2 percent in closing costs can be a bigger deal than a $5,000 reduction in the purchase price. A credit for $5,000 to go toward closing costs will be a much bigger bang for your buck for the buyer. The price reduction won’t amount to much more than a few dollars per month over the length of the home loan. Saving $5,000 at the closing will be money right back in the buyer’s pocket. 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 Approach Real Estate in 2014 & Beyond By Joe Szabo, Scottsdale Real Estate Team

February 17, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team The current real estate recovery is like a marathon. Last year, buyers and sellers sprinted out of the gates at full speed, fueled by low interest rates and affordable home prices. The press and social media were full of stories about limited housing inventories, bidding wars and multiple offers. In 2013, real estate was sexy and headline-worthy. As we move into 2014, it’s clear we’ve only run the first few miles of this marathon. Last year’s excitement will surely wear off, and there will be a lot less flashy magazine covers, posts, tweets or evening news stories about real estate. Most experts predict a slower, steadier, more even “pace” this year in most of the country, even as interest rates and home values inch up. This doesn’t mean 2014 won’t be as good a time to buy real estate. It helps to look at the bigger picture and not get caught up in the micro stats or the latest headlines. Sure, we likely won’t see interest rates as low in 2014 as we did in 2013. But to put that into perspective, interest rates were as high as 18 percent in the 1980s, yet people still bought homes. As you approach buying a home this year, it helps to focus on the long term by keeping the following five best practices in mind. These were best practices for home buying a generation ago. And they’ll most likely still be practical when the next generation of home buyers sprints out of the gate.

Buy when you’re ready

Just because you didn’t buy last year when the market was super hot doesn’t mean you’ve missed out. Could you have gotten in when the rates were at their lowest and values near the bottom? Sure. But were you ready to buy then? Probably not. The main thing to remember is that you should buy a home when you can afford it, you have your financing and you’ve found a home that meets your needs. That will always be the best time to buy.

Home buying is a journey

Despite how quickly the world works today, you can’t force a home purchase. It’s not like buying a television or a laptop. A home is a much more expensive and complicated purchase. It’s where you can feel safe and calm from the outside world, a place you can customize to your needs, and where you will make lasting memories. Because of this, buying a home comes with emotional and practical implications on top of the financial ones. Remember that a home is your place to live first and an investment second. Take the time you need to find the right home.

Don’t be driven by data

If you watch the nightly news or read news online, you’ll hear real estate market predictions and numbers on a national level. And at any given time, you’ll likely get conflicting real estate forecasts. A lot of information and data will come at you from many different angles — including social media. Don’t take anything to be an absolute. Keep your own goals and needs top of mind at all times.

Real estate is local

The national real estate news headlines may be about multiple offers and bidding wars. But that situation may only be relevant to one part of the country or even to just a handful of cities. Meanwhile, the neighborhood where you want to buy a home still has distressed sales and is more of a buyers’ market. All that really matters in real estate is what’s happening in your own community. If you’re interested in getting into the market, follow the local economy and housing markets. Go to open houses and learn. Get connected to a real estate agent who has “feet on the street.”

Go with your gut

You know your financial situation better than anyone. You know your down payment amount, credit score, amount of savings and the upper limits of what you can afford to put toward homeownership every month. Apply what you know about your finances to your local real estate market. You know the neighborhoods, the commercial districts and the types of homes for sale. By merging these two, your gut will inform you on what’s a good buy, when it’s the right time to buy and how to approach a purchase. In 2014, stay focused on what you know, stay local, take your time and don’t let outside forces sway your decision to buy a home. People have bought and sold homes for years, at higher prices and with higher interest rates. If you’re in it for the long haul, consider yourself at mile 3 of a 26-mile marathon. 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 Find and Keep a Real Estate Agent You’ll Love By Joe Szabo, Scottsdale Real Estate Team

February 13, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team In some ways, the buyer-real estate agent relationship is similar to a romantic one. In either situation, the relationship’s success or failure depends a lot on picking the “right” partner from the beginning. Chemistry and communications also play an important role. Here’s how you can find the best real estate agent “match” and nurture that relationship to achieve your goal: buying your dream home.

Do your homework

Today, buyers start researching properties online well before they contact an agent. This early research period should also be the time to have your feelers out for a good agent. In fact, the best time to connect with an agent is when you’ve got some knowledge of your local market but need more input, a second opinion and a professional’s guidance. Asking friends, family and coworkers for referrals can be helpful for finding an agent. Posting what you’re looking for in an agent on social media might also help lead you to the best real estate “mate.”

Take it slowly

Would you introduce to your parents someone you’ve only had one or two dates with? Probably not. Before getting serious with a potential mate, you’d get to know them, learn about their history and understand your compatibility. It’s not too different in the real estate agent-buyer relationship. Buying a home is an extremely emotional time. Your real estate agent will be front and center with you through ups, downs and trying times. Through the buying process, your agent might learn a lot about your personal life as well as your finances. For these reasons, take the time to ensure you have the best person by your side. If you rush into a relationship with the wrong agent, you’ll regret it later.

Pay attention to chemistry

An agent could come highly recommended and be thoroughly experienced. But with any relationship, chemistry (or lack of it) comes into play. When you first talk to an agent, ask yourself: Is this someone you’d want to spend time with? Does the agent “get” you? Will you feel comfortable sharing your financial and other personal information with him? If you answer “no,” keep looking for someone you click with.

Avoid the blame game

In today’s often-competitive real estate markets, it’s extremely unlikely you’ll get the first or even the third home you try to buy. This may cause buyers to get stressed out or upset after losing in a bidding situation or when faced with a seller who’s just “not that into you.” Unfortunately, buyers sometimes take out their anger and frustration with the market on their real estate agent. But don’t assume that the fact your bid wasn’t accepted is your agent’s fault. The agent can’t control the seller or the seller’s agent any more than you can. Pick the best agent for your needs; trust your agent to do the job; treat the agent as you’d want to be treated; and chalk up a losing bid to experience.

Practice patience

As with romantic relationships, there may be times when your agent tries your patience. Maybe you’ve been looking for a month now and still haven’t found your dream place. Whatever the situation, keep in mind that buying the right home shouldn’t be rushed. Give the process, and your agent, time. On the other hand, if your agent seems to be neglecting you, speak up.

Communicate clearly

This is probably the most important step to any successful relationship: maintaining open, honest communications. With your real estate agent, be upfront from the start about how you like to work and what you might expect from them. Express concerns you have along the way. Above all, give the agent constructive feedback that will help him succeed. In most cases, you’ll be spending a lot of time with your agent during the home buying process. So choose wisely. Picking the wrong agent can add to the stress, frustration and uncertainty of buying a home. On the other hand, choosing the right agent can make the process significantly easier and more successful. 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.

Three Favorite Central Scottsdale Golf Courses By Joe Szabo, Scottsdale Real Estate Team

February 6, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Central and downtown Scottsdale are near three beautiful golf courses that are the favorites of both tourists and locals alike. They are affordable, challenging and have great views of the McDowell Mountains to the north and Camelback Mountain to the east.

Starfire Golf Club

Located at the corner of Hayden and Shea in McCormick Ranch, this public course was designed by Arnold Palmer, and has three nine hole layouts. The King, the Hawk and the Squire are the names of the three courses, and all have their special challenges. Sporting great mountain views in all directions, this lush executive course has plenty of trees and water hazards to challenge the serious golfer. Formerly the Scottsdale Country Club, the course includes putting and chipping areas, rental clubs and golf carts, pro shop and the Starfire Grille, a great eatery with both food and drink and plenty of televisions for sports fans. The beautiful site has manicured lawns, large patio areas, banquet facilities and it a great spot for a special event. The atmosphere is friendly and casual and the convenient central Scottsdale location outstanding!

McCormick Ranch Golf Club

There are two championship golf courses at this location on East McCormick Parkway, and pre-qualification for the Waste Management Open takes place on these courses. The Palm course features ten water holes and is dotted throughout with Palm trees and great views of both the McDowell Mountains to the North and the iconic Camelback Mountain to the West. The Pine course has many mature pine trees, with narrow fairways, which makes it more challenging. Both courses were designed by renowned golf course designer Desmond Muirhead in 1972. Since then many improvements to greens, tee boxes, sand trips and bridges have taken place. McCormick Ranch Golf Club is located in the heart of Scottsdale and is one of the area’s most challenging golf experiences.

Scottsdale Silverado Golf Club

Nestled in the middle of the Indian Bend Wash, with spectacular Camelback Mountain views to the West, this relative golfing newcomer was built in 2000 by the Gilmore-Graves Architectural Design Company. Silverado Golf Club is now central Scottsdale’s most popular 18 hole golf course with reasonably priced green fees and a welcoming Grille for 19th hole fun at the end of the round. Both ladies and men’s leagues play here each Monday and is a favorite of the locals. For a great and affordable golfing experience in central Scottsdale book online at www.golfnow.com or go directly to the course website at www.scottsdalesilverado.com for a tee 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.

30-Year Fixed Mortgage Rate Drops to 4.09 Percent — Lowest Rate in 10 Weeks By Joe Szabo, Scottsdale Real Estate Team

February 4, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Mortgage rates for a 30-year fixed mortgage fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.09 percent, down from 4.18 percent at this same time last week. The 30-year fixed mortgage rate steadily declined last week, dropping to as low as 4.07 percent on Monday before rising to the current rate this morning. “Recent weakness in emerging markets helped push rates down last week to 10-week lows as investors turned toward more reliable assets like mortgage-backed securities,” said Erin Lantz, director of mortgages at Zillow. “If Friday’s jobs report is strong enough, it has the potential to pause a downward slide in rates and offset emerging market concerns.” Additionally, the 15-year fixed mortgage rate this morning was 3.10 percent and for 5/1 ARMs, the rate was 2.72 percent. What are the interest rates right now? Check Zillow Mortgage Marketplace for mortgage rate trends and up-to-the-minute mortgage rates for your state.

*The weekly mortgage rate chart illustrates the average 30-year fixed interest in six-hour intervals. 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.

Scottsdale, Paradise Valley popular spots for celebrities By Joe Szabo, Scottsdale Real Estate Team

January 30, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team From Bing Crosby to Beyoncé, Scottsdale and Paradise Valley have been popular stomping grounds for Hollywood headliners since the 1940s. Its proximity to Los Angeles – and reputation as a desert South Beach – have drawn hundreds of stars through the years to hideaways such as Hotel Valley Ho, Fairmont Scottsdale Princess, Sanctuary on Camelback Mountain and the Hermosa Inn. According to the Scottsdale Convention and Visitor’s Bureau, stars are attracted to Scottsdale “for rest and relaxation, far from the prying lenses of the paparazzi and congested streets of Los Angeles and New York City.” See who lives where here 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.

Key Factors in Securing a Mortgage by Joe Szabo, Scottsdale Real Estate Team

January 27, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team For most Americans, buying a home is the most expensive purchase of their lifetime, and obtaining a mortgage can be particularly stressful. Research and preparation won’t take all the

worry out of applying for a home loan, but it will go a long way toward reducing your anxiety. Here are key factors lenders may consider when reviewing your mortgage application.

Credit report & score

Your credit report documents your track record of borrowing from and repaying banks, credit card companies and other lenders. It’s crucial that you check your credit report well in advance of a home purchase in order to give yourself enough time to spot any issues that might raise concerns. Your credit score is a numeric evaluation of your credit risk level. Lenders will review your credit report and score, among many other factors, to make a decision about whether they will approve your home mortgage application.

Credit cards & other debts

Your debt-to-income ratio, or the amount of credit card and other debt you have compared to your income, is also calculated before securing approval from a lender. If you’re carrying a balance owed on your credit cards and other debts, it may impact your credit score. Experts suggest that consumers should be especially aware of their credit card charges during the months leading up to a mortgage application. Think twice before canceling a credit card, especially an account that establishes a long-term credit history. You’ll also want to avoid applying for new credit during the three to six months prior to applying for a mortgage.

Employment status

The length and terms of your employment will also be verified by lenders to ensure you bring in enough income to afford a mortgage payment. Whether you’ve been in your position of a long period of time, have multiple sources of income or are self-employed, it’s especially important to have the right paperwork to share with lenders. Be prepared to provide pay stubs, bank statements and tax returns in order to verify your work history.

Down payment

The expected down payment can be up to 20 percent or more of the home’s purchase price. If your credit history is less than stellar, you may need a larger down payment in order to secure a loan. Down payment requirements vary by lender and loan type, so be sure to verify the required down payment with your preferred lender. Your lender will also want to know that you have enough cash to cover your closing costs; if you don’t, you might have trouble getting your application approved.

Know what’s off-limits

When deciding whether to extend you a loan, lenders might ask countless questions about your income and expenses. They can ask whether you’re involved in any lawsuits, have filed bankruptcy in the past seven years or been involved in a foreclosure. The Fair Housing Act and other federal laws, however, put some questions off-limits. Borrowers, for instance, are not required to disclose payments from a spouse or former spouse unless that income is being used to qualify for the mortgage. Lenders cannot ask how much you receive in child support or alimony, but they can ask if you want to disclose this amount because you’d like to use the income to qualify for the mortgage. If you pay child support or alimony, your lender typically will require this information because it affects your ability to repay the loan. Lenders can’t ask if you’re pregnant or planning a family, but they can ask about your dependents and their ages. Also, thanks to protections provided by the Fair Housing Act and Americans with Disabilities Act, you cannot be asked if you are ill or disabled. The mortgage loan application process can be daunting, as lenders need to gather a considerable amount of information to determine whether you’re a good investment. Knowing what lenders look for should help put you at ease and ensure that you’re well-prepared for securing the financing you’ll need to buy your home.

Combined Value of US Homes to Top $25 Trillion in 2013 By Joe Szabo, Scottsdale Real Estate Team

January 23, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team If you wanted to buy every single home in the country, all at once, you’d need to be prepared to spend more than $25 trillion, according to Zillow. The overall cumulative value of all homes in the U.S. at the end of 2013 is expected to be approximately $25.7 trillion, up almost $1.9 trillion, or 7.9 percent, from the end of 2012. Gains were calculated by measuring the difference between cumulative home values as of the end of 2012 and anticipated cumulative home values at the end of 2013. The gain in cumulative home values is the second annual gain in a row, after home values fell every year from 2007 through 2011. Between 2007 and 2011, the total value of the U.S. housing stock fell by $6.3 trillion. Over the past two years, U.S. homes have gained back $2.8 trillion, or about 44 percent of the total value lost during the recession. “In 2013, the housing market continued to build on the positive momentum that began in 2012, after the housing market bottomed. Low mortgage rates and an improving economy helped bring buyers into the market, boosting demand and driving prices up,” said Zillow Chief Economist Stan Humphries. “We expect these gains to continue into next year, though at a slower pace. The housing market is transitioning away from the robust bounce off the bottom we’ve been seeing, toward a more sustainable, healthier market. This will result in annual appreciation closer to historic norms of between 3 percent and 5 percent.” Real estate in the United States is hugely valuable. The $25.7 trillion total value of the country’s entire housing stock is more than the combined gross domestic products (GDP) of China and the U.S. in 2012. Homes in the New York and Los Angeles markets alone account for more than $4 trillion in combined value. 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 Design Resolutions for 2014 By Joe Szabo, Scottsdale Real Estate Team

January 20, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team

Resolution No. 1: Plan it out

No matter which design project you want to tackle, designers say having a plan is the key for success. “Start with a wishlist of projects to complete over the year,” suggested designer Alissa Pulcrano of bright design lab in Portland, OR. “Plan, plan, plan first! Then take your concepts to your favorite designer (or two if you don’t have one yet) and ask them to give you a proposal for your wishlist. Take the time to plan it right.” Designer Melissa Klebanoff, principal of Melissa Klebanoff Interior Design in Seattle, offer similar advice to clients tackling design projects. “Assign the following steps a timeframe to keep you on track, and before you begin, determine if the project requires a designer,” she said. “Write down everything you want to accomplish with your project, define it, gather photos and do a space plan if needed.”

Resolution No. 2: Find your style and get inspired

Sometimes the most overwhelming part of a project can be determining which direction to go in. Which color? What about textiles and finishes? The goal here is to not necessarily find the most trendy design but the look that will work for you and your household over time. Before you begin gathering inspiration, determine the purpose of the room. Does it need to be highly functional and kid-friendly? Or is it a stylish retreat? Once you have narrowed your purpose, gather photos and spend time visiting websites and saving images. Zillow Digs is one such place to collect inspiring designs all in one space. It also helps to see materials in person, advises Klebanoff. “Go to home improvement stores and design centers. Collect the finishes you’ll need and love — like carpet samples, stone samples, fabrics, furniture cuts, lighting ideas, appliance specs, paint colors and so on,” she said. Resolution No. 3: Focus on one room at a time Whether you’ve been meaning to clean out and organize the clutter accumulating in the hall closet or finally frame family photos for the living room, it’s best to tackle one space at a time. “If you have a weekend, develop a plan and focus on one room: paint the living room, and buy a few key pieces, knowing that you can add to it over the year,” Pulcrano said. “Start with an overall design and then ‘chip away.’” Resolution No. 4: Give the kitchen a refresh

Kitchens have become the center of many American homes — the place that sees the most foot traffic and activity. According to the latest Zillow Digs designer survey, kitchens top the list for planned 2014 renovations.

Kitchens in 2014 are trending toward open, “homey” spaces, says designer Vanessa DeLeon. “More and more people are wanting an ‘open concept’ space and the feeling of comfort,” she explained. “They want to be able to eat, entertain, relax and enjoy the space with the rest of the house.” Considering a kitchen remodel? Start researching contractors or designers. “Ask people you trust for referrals for general contractors they’ve successfully worked with,” Klebanoff said. “Set up interviews with them and present your now very clearly defined project to them for bids. Check their references!” 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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