By Joe Szabo, Scottsdale Real Estate Team Navigating the rental market isn’t easy. Between bait-and-switch listings on sites like Craigslist, deceptive landlords, and confusing legal language in lease agreements, finding the right apartment can be a time-consuming, mentally taxing process. But before you even begin your search, you’ll need to determine whether you’re looking for a short- or long-term lease. Not sure where you stand? Consider these advantages and disadvantages to month-to-month leases — then decide what makes the most sense for your needs.

Pro: You get greater flexibility

If you’re thinking about buying a property in the near future, or moving to a new city, a short-term lease gives you more flexibility and can save you money in the long run. When you sign a 12-month (or longer) lease, you’re legally obligated to pay 12 months of rent even if you decide to move before the lease expires. (Read: breaking a long-term lease will cost you.) Granted, “some landlords will let you terminate a 12-month lease early if you find a new renter to take your place,” says Joe DeFilippo, a real estate agent and rental specialist with City Chic Real Estate in Washington, D.C. However, if you want to be able to move on short notice without paying a penalty, a month-to-month rental is your best option. Bear in mind you’ll still need to give the landlord at least 30 days’ notice (or more, depending on the lease agreement).

Con: You pay more in rent

Owners want rental property occupied at all times so they can continually collect rent. But when a tenant moves, finding a replacement can be a hassle — and there’s a chance the unit will be vacant for a while. Therefore, month-to-month renters pay a premium, says Rae Wayne, an agent with The Bizzy Blondes Real Estate Team in Los Angeles. How much more you’ll pay depends on the market. In Washington, D.C., month-to-month leases cost on average 50 percent more than 12-month leases, says DeFilippo. In Manhattan, landlords usually charge 15 percent to 20 percent more — and rent is high in New York, points out Marin King, an attorney and real estate agent at Keller Williams NYC.

Pro: You can (usually) switch to a long-term lease

In general, if you’re a good tenant, the landlord will be open to you converting to a 12-month lease, but there are some circumstances where that’s not the case. For example, if the owner is planning to make the property their primary residence in the near future, you’ll eventually need a new place to live. Find out what the landlord’s motivation is before signing a lease.

Con: Your rent isn’t fixed

Arguably the biggest benefit of signing a 12-month lease is that you get to lock in your rental rate, which makes it easier to manage your budget. Meanwhile, when you’re on a month-to-month lease, the landlord could decide to raise your rent on a whim and — depending on where you live — may only need to give you 30 days’ notice.

Pro: Many are fully furnished

Some apartments are specifically designed for short-term renters and come furnished. Residential buildings near universities, for instance, are ideal for summer interns, who are often willing to pay more since they don’t have their own furniture. The good news: many jurisdictions place a cap on how much landlords can increase rent within a 12-month cycle, so you’ll probably have some protection. But you’re still in a less favorable position than you would be in a long-term lease.

Con: Moving ain’t cheap!

A month-to-month lease might make sense in the short term, but if you start going from one short-term lease to the next, you’ll burn money that you could be saving for a down payment. Even if you don’t hire a professional mover, your lease may require fees to cover your application, utility transfer, and cleaning. Also, some buildings charge new tenants a move-in fee of up to $500. Moreover, there may be lag time in terms of your previous landlord releasing your security deposit. “There can be a lot of money in flux during a move,” says King. Not to mention that packing boxes and carrying heavy furniture isn’t exactly a pleasure cruise.

Con: You may have to do some digging

Landlords tend to prefer a long-term lease, since it offers guaranteed income over a set period of time, and reduces the risk of the property sitting vacant in between tenants, says DeFilippo. Hence, you have fewer options if you’re looking for a short-term rental. 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, [email protected] 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 I talk about prime real estate, I’m not talking about a fabulous suburban location for your new home. As a professional organizing expert, I refer to prime real estate as the best storage locations in your home. These are the superior spaces that provide the easiest access. Topping the list is the cabinet under your kitchen or bathroom sink. Most of us struggle with these spaces because we want to store so much in them that they become overfilled and frustrating to use. The other sneaky drawback of these ever-so-available cabinets is that they are usually quite deep. On the one hand, it’s great that they’re deep because you can store so much under there. But it’s also annoying, because you can’t reach the back of the cabinet very easily. When these cabinets are a jungle of items piled or crammed in, we sometimes have to get down on our hands and knees, and practically crawl inside to locate and pull out our squeegee for the shower or our favorite vase. Not to worry, though — there are fabulous ways to bring order to your cave of cleansers. You can turn it into the serviceable, accessible and organized under-the-sink cabinet you have hoped it always would be.

Entry points

Before you get started on this mini do-it-yourself organizing project, hold off on deciding to install bins, racks or shelves. Instead, do these tasks first:

• Pull out all the items from under the sink.
• Wipe down the cabinet, which seems to collect more dirt than three kids playing in a sandbox.
• Take a moment to check for leaks, and tighten pipes so any stored items won’t get ruined.
• Be sure to group like items together, then check for duplicates. This is not the place to store three identical bottles of glass cleaner. It’s best to just have one sponge, one bottle of lotion, or one can of floor wax stored under your sink. If you have a lot of under-the-sink paraphernalia, relocate the duplicates to a nearby linen closet or shelf in the garage. If you don’t have that extra space, then keep your buying to a minimum.

Hold everything

Next, it’s time to think about your storage options. Use bins or shower caddies. Consider using small but solid storage bins to keep your bottles, cans, vases, bags and boxes upright. Shower caddies are perfect for this space because they have a handle at the top. If you opt for bins instead, don’t put lids on them — it will be easier and faster to grab what you want from inside. Make sure each caddie or bin is easy to take out of the cabinet and lift up to the counter. This allows you to bring your items up to eye level so you can easily see what you have, retrieve it and replace it. Get hooked on hanging storage. Try a small over-the-cabinet door towel rack for hanging dishwashing gloves, towels, and wash cloths. Hooks can accommodate these items, too. Repurpose storage tools from other parts of the house. Many families use a “Lazy Susan” to store salt, pepper and toothpicks on the dining room table or kitchen counter. Considering using this spinning storage unit under the sink, too. A Lazy Susan keeps all your items front and center. With just a spin of the wheel, you can see what’s in the back of the cabinet. No crawling into the cabinet to find what you need! And be sure to use all the space available to you. A spice rack attached to the inside of the cabinet door is a great solution for holding small items like sponges, tools, and plant food (in the kitchen), or hairbrushes, nail polishes, and vitamins (in the bathroom). Install a pull-out shelf under your sink. With just a bit of effort and a small hand drill, you can easily install metal pull-outs. This is a super solution for both the bathroom and kitchen. One important caveat: Be sure to account for the pipes. You don’t want to have taller items located in the back of the pull-out shelf, because they’ll hit the pipes when the shelf is being pulled toward you — and then everything falls like dominoes. Congratulations on investing in your prime real estate. It will definitely pay off. 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, [email protected] 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 April 1st isn’t just April Fools’ Day, it’s also the start of seller season in the real estate business. Take a tip from a house flipper: If you’re thinking of selling your house, now is the time to get it ready and get it listed. Homes show better in the spring — and you’re more likely to sell your house quickly and at a good market value. Now, you might be thinking that selling your house during such a competitive season isn’t the best idea. But I’m here to tell you that there’s really no time like the present. You can sell a house in any season; my husband and I have sold in all kinds of markets. However, even with a lot of competition, spring is just a great time to show off your house’s best assets and really get people to envision themselves living there. All you have to do is follow a few simple but effective tips so you can position your house correctly on the market, save yourself stress and disappointment, retain negotiating power, and not feel backed into a corner.

Pay attention to first impressions

You might be tempted to just pull some weeds and put down new mulch in your yard, but take a look at it and ask yourself if you could do more for your curb appeal. That doesn’t mean that you have to do a ton of landscaping that’ll require a lot of upkeep and watering. Remember, your buyers are going to be looking at your property with an eye toward maintenance. Here in California, where Tarek and I live, we’ve been having ongoing issues with water restrictions. El Nino is doing its best to refill our reservoirs now, but adding landscaping that’ll require a lot of watering could still be a bad idea for sellers here. A better idea would be to go with low-water grass and drought-tolerant plants. Think of the climate in your area, and go with low-maintenance plants for your yard. Visit your local garden center and explore using native plants. Then work on sprucing up your front and back patio to show your potential buyers how they can spend their time outside relaxing and/or entertaining friends on a lovely spring afternoon or evening. If you’re planning on spending money to improve your home to get it ready to go on the market, make sure that you focus on projects like this that’ll really go the distance for you. Take the time to clean up and make your porch and entryway really attractive, because you know your buyers are going to stop there while the real estate agent gets into the lockbox to let them in. You may not need to replace the front door or buy all new furniture for the porch and patio, but pay attention to all the entry points to the house. Some homeowners are in the habit of entering the house through the garage, so it’s a good idea if the area where home buyers enter the house says “welcome home,” too.

Make it look like a model home

As real estate investors we buy houses that have “lost their pretty,” were badly neglected, or have been abandoned altogether. The houses are empty. So, typically we are not dealing with sellers. However, as real estate agents we have dealt with many sellers. Tarek and I know that the emotional connection to a house can be very strong. An appropriate mindset is important. It can be difficult, but at some point it’s a good idea to stop thinking of the house as your home, and focus on the business transaction. Getting the house to sell fast is, by definition, the objective of house-flipping. You can take the same tack and do everything you can to get the house ready. Make a real effort to de-personalize the space. It will be easier for a buyer to see themselves living in the house if it looks like a model home. Do more than just clear clutter. Remove family photos and children’s artwork. Edit your collections, books, closets, cabinets, pantry, and end tables. Try to make the house look as big as possible by making it look as though there is room to spare. You don’t have to spend a lot of time or money renovating your house if it’s in good shape to sell. When we flip houses, we always pay a lot of attention to the kitchen with an eye for space, functionality, and neutral design choices. Other places that you might want to spend some cash on might be the master bath and living room.

Marketing matters

Unless you get really lucky, your house isn’t going to sell itself. That’s why, whenever we sell a property, we use a simple three-part strategy: pricing, listing, showing. Check out the comparable properties in the area before you set your list price. Visit in person or look online. Make sure that you’re competitive so your house won’t sit on the market going stale before you’re forced to lower your price. To get more people at your open house, I recommend using an old real estate agent’s trick and listing your property on a Friday before hosting your open house on the following Sunday. That way you can get the longest exposure on the market before your showing. Then, after your open house, you can compare all your offers on Sunday night. If you’re in a good market, you’ll ideally have multiple competing offers; you might end up selling your house at or above the list price. If you’re selling in a really competitive market, though, you may need to be a little bit more aggressive than just listing on the MLS, Zillow, and other aggregator sites. When we have a property for sale that has a lot of competition, we’ll often send direct mailers to potential buyers to let them know about the property. A “brokers’ open,” where we invite brokers and real estate agents to come in and take a look before the advertised open house, can be a good strategy, too. When you do this, you can see what some real estate pros think of the property and some feedback that could help you sell faster.

What if your house isn’t perfect? No house is perfect

Finally, if you’re worried about issues like living on a busy street or having no sidewalks in your neighborhood, don’t be afraid to look on the bright side and highlight the positives. If your property is on a busy street, maybe it’s convenient to the freeway for a fast and easy commute to work. If there aren’t any sidewalks, you might want to highlight how close it is to a great health club or rec center. If it’s a smaller house, talk about how green and efficient it is. Do a little work on your property to make it more attractive. Make sure you’re doing everything you can to market it. And always write about the positives in your listings and marketing information. If you follow this advice, you’ll be ready to take full advantage of seller season. Good luck! 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, [email protected] 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 Searching for a home can be similar to searching for true love. You may meet many prospects before you find the one. And sometimes, you may long for a prospect more than he or she longs for you. The same holds true with homes. But homes don’t have feelings — their sellers do. And it’s these sellers you must grapple with before making the love connection. If you’ve fallen in love with a home, made the best offer and the seller won’t cooperate, you might find yourself trying to figure out what to do. There’s no policy or decree that says the seller must accept your offer, no matter how great it is relative to the market. Unlike a retail business that prices products based on inventory levels and market conditions, each seller is independent and has different selling motivations. Here are three ways to cope with a seller who’s keeping you from your dream home.

1. Don’t waste time over-analyzing the seller

It’s easy to obsess over the possible reasons why the seller rejected your offer. You could spend hours looking up a home’s sales history and tax records, then combining that data with the information you received from the sellers’ agent about their situation or motivations. Don’t do it. Trying to figure out the seller won’t get you anywhere. Worse, the time spent attempting to get inside the head of someone you don’t know is precious time spent away from your home search. If the sellers “just aren’t that into you,” it may be time to move on. For all you know, like that elusive crush, they will come back once you pull away. Just don’t count on it.

2. Put your best offer on the table

Maybe you haven’t offered the maximum you can afford yet, wanting to keep some room for negotiation. If you find that the sellers aren’t responding positively to your offers so far, it could be a sign that they are not motivated to sell. Just because you’re a real and active buyer wanting to purchase their house doesn’t mean they have to accept your offer. If they’re not responding, or they come back with a not-so-great counteroffer, cut to the chase. Make your maximum offer immediately and put it in writing. Then, if they still don’t respond, start looking elsewhere.

3. Put the home behind you

Because purchasing a home can be both practical and emotional, it’s easy for a buyer (particularly a new one) to get hung up on one house and have trouble moving on. But this can only keep you from getting the house you want. To be a savvy buyer, consider each experience and the lessons learned. Chalk up unrealistic or unmotivated sellers to experience. Use that to your advantage the next time you make an offer. At the closing table weeks or months down the road, you’ll likely look back on that home you “had to have” and realize that the home you ended up with is much better in the long run. Never forget that, no matter how much you believe this one was meant for you, there will always be another great house. 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, [email protected] 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 For many homeowners, the patio borders on magical: a place to relax, entertain, cook out, and veg out. Its surrounding hues are more vibrant than anything from a paint can, and food that’s cooked up in an outdoor kitchen somehow always tastes better than anything that comes from its indoor counterpart. Creating that perfect outdoor space for you and your family all starts with the literal foundation of this alfresco living room: the patio materials. Your selection can have a huge effect on the appearance, durability, and functionality of your favorite home addition.

Getting started

Before you commit to a type of patio, first envision the finished space. You probably have a good idea of the location and approximate size, so go grab a chair, take it outside, and position it in the intended spot. Then sit, and picture each material in your mind’s eye. Your patio should not only complement your home and landscape, it should also enhance your lifestyle. If you have a large space to work with, consider incorporating a combination of paving materials; some of the best patio designs include two or more. Using multiple materials lets you integrate inlaid borders that can visually separate an area for lounging from the outdoor kitchen. When you’ve dreamed up your ideal design, consider which materials would best bring it to life, in terms of both aesthetics and practical issues, such as maintenance requirements and cost.

Concrete

Poured concrete is the patio material of choice for many homeowners because it’s structurally sound, inexpensive, and can even be stamped or dyed to mimic higher-end paving materials. It’s best suited for moderate to warm climates where frost heave is not a concern. Planning tip: A standard concrete patio is four inches thick, but if you intend to construct something very heavy, such as a built-in fireplace, ask the contractor to reinforce that particular area before you pour.

Bricks

Available in a variety of colors, bricks create a warm and attractive patio. This classic patio style typically costs more than one constructed from concrete, not just for the materials themselves, but also for labor — a significant consideration when every brick must be set by hand, leveled and grouted. Should you decide to invest, you can design the space with any number of patterns, from a traditional running bond to something with added textural appeal like a boxed basket-weave or herringbone. Planning tip: For patios, solid 1- or 2-inch-thick paving bricks are the best choice, either dry-laid or mortared in place. Be wary about extending your brick patio into deep shade, or else you’ll need to watch out for a slick surface after every rainfall.

Pavers

Often manufactured from cement, cinder or stone, pavers top the DIY patio wish list for their low price and super simple installation — they’ll have you out there grilling in record time. If you’re planning to lay your own patio, you’ll need a suitable substrate consisting of at least three inches of sand, and a permanent border, such as a poured concrete curb, to keep the pavers from shifting. Planning tip: Pavers may be dry-laid by butting them tightly, or installed with uniform mortar joints. If the patio lies over utility lines, know that dry-laid pavers will be simpler to remove and replace if (or when) you need to access the utilities below.

Stone

The highly desirable look of stone comes with a steeper price tag — particularly if your pick isn’t locally sourced — but you can’t beat it for natural appeal. Flat, irregularly shaped stones offer a calm and meandering effect, while uniform-cut slabs of granite, travertine, slate, or bluestone can produce a formal patio that’s fitting for any backyard. Planning tip: Natural stone is extremely durable for any patio, but if you happen to be planning one poolside, opt for a nonslip variety, such as coral stone.

Tile

Available in ceramic, glass, porcelain, terra cotta and natural stone, tile creates beautiful mosaic patio designs that are refreshingly cool underfoot in hot climates. Because tile is thin, it requires the installation of a concrete slab. Planning tip: Even if you plan to lay the tile yourself, it’s a good idea to have a professional pour an even slab. Also note that not all tile is suitable for patio construction. To withstand weather, all your materials — tile, thinset, grout and sealer — must be labeled for exterior use.

Crushed stone, pea gravel and sand

If you’re not a fan of rock-solid patios, crushed stone, pea gravel or sand could be more your style. Both crushed stone and gravel offer a variety of colors and textures at low prices, and even sandy Zen gardens can double as patio areas. You will, however, need to install a solid perimeter to keep the loose material from spreading outside its intended border. 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, [email protected] 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 First-time home buyers aren’t typically versed in the intricacies of agency disclosure, nor do they understand the concepts of a buyer’s agent and seller’s agent. They only know that the person they meet at an open house or email about a listing is an “agent.” When they start getting more serious and want to inquire about a property, its price, condition or history, they typically direct their questions to the seller’s agent — which presents an immediate conflict of interest. So what’s a buyer to do? It helps to understand the concept of agency before this happens. A real estate agent’s loyalties and responsibilities change depending on the transaction. Here’s a quick rundown of the different roles an agent can play in any one transaction.

The listing agent

The listing agent or seller’s agent works for the seller and represents their interests in the sale. The seller hires their agent, typically in writing, to market and sell their home. The listing agent’s responsibility is to get the seller the highest amount of money in the shortest period. Their fiduciary goals and loyalty should be with the seller at all times.

The buyer’s agent

Purchasing a home can be emotionally draining, not to mention financially stressful. Many consumers seek independent counsel from a buyer’s agent. A buyer’s agent works with them for as long as it takes to make a purchase. They teach the buyers the market, show them lots of homes, and eventually advise when it comes time to make an offer and negotiate with the seller. An invaluable resource, a buyer’s agent stands by the buyer’s side for the duration of their home search.

The dual agent

Sometimes a buyer forgoes independent representation and chooses to work directly with the listing agent. This situation isn’t allowed in some states because of the conflict of interest. Where it is allowed, a dual agent represents both sides of the transaction at the same time. In the case of a dual agent, it’s impossible for the agent to be completely loyal to either party. Both parties must agree to dual agency in writing, in advance.

Who pays for the agent?

The seller pays the real estate agent’s commission when the deal closes. The two agents then split the commission. In the case of the dual agent, the agent takes home the entire commission.

Should you use the listing agent as a dual agent?

Unless you are an experienced real estate investor, it’s best to stick with a buyer’s agent. There’s no cost, and a good buyer’s agent will provide an invaluable amount of advice and support in what can end up being a very stressful period. The home search can involve many twists and turns, so having a loyal adviser along the way will help you make an informed decision on what is likely the largest purchase of your life. 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, [email protected] 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 My wife and I bought our first home in July of 1999. We were newlyweds at the time, and in lieu of taking a honeymoon we decided to purchase a house and gut it. Our date nights involved going to Home Depot, and talking to plumbers and tradesmen for advice. During the five years we owned the house, we never refinanced because the interest rates weren’t attractive enough, but it’s a different story with our second home. We purchased our second house — where we’re still living — in 2004 with a 30-year fixed mortgage at a 5.5-percent interest rate. The first time we refinanced was in 2008 using a 30-year fixed note at a 4.25-percent rate. That reduced our monthly payment by about $300. We decided to pay the points upfront instead of doing a no-cost closing because it got us a much lower rate and a nice tax break. I never thought interest rates would drop lower than 4.25 percent, but they did in 2012. Before we could decide to refinance, we had to assess our timeline. We knew we’d be in our home for at least another five years, so I ran the numbers and found it would only take two years to reach a break-even point; everything after that would be gravy in our bucket. That’s why we decided to refinance in 2012 to a 30-year fixed rate mortgage at 3.25 percent. It saved us $120 a month, and brought our mortgage down to just under $1,000 a month. Once again, we decided to pay $2,500 in points upfront because it would save us money in the long run when we factored in amortization.

Rate race

Since I’m both a real estate broker and a real estate attorney, I was in a unique position in that I didn’t have to pay a closing company either time we refinanced; that saved us a significant amount of money. I also had connections in the lending field and knew how to shop around to get the best deal. After we got pre-approved, we’d sit back and watch interest rates daily because we knew we needed to pounce on the best rate. So we’d wait until the rates dropped significantly, then jump on it. The second time we refinanced there was a midday adjustment and the interest rate dropped a full quarter point in the same day. It was unbelievable.

Lessons learned

There’s an emotional satisfaction you get from refinancing. Any time you save a significant amount of money, you feel good about what you’ve achieved. You’ve not only eased your financial burden, but also gained a sense of security. I will say that the paperwork when you refinance is exhausting. You need tax returns, bank statements, and history of large deposits and large purchases, among other documentation. Sometimes you need to get errors fixed on your credit report. There was a questionable charge on one of our accounts, and it put a black mark on our credit. We eventually got the error removed, but it took time to dispute it. Over time, we learned an important lesson. We used to make larger monthly payments on our mortgage than what was required because we wanted to free up some of the equity in the home. And, from a psychological standpoint, it felt good to pay down our mortgage and come closer to being free of owing money to a lender. However, we eventually realized that by investing the money elsewhere, we could get a much higher return than using it to pay down our mortgage. So now we don’t accelerate our loan payments. Instead, we invest in private mortgages, where the return can be up to nine percent. We’ve also put some of the money we’ve saved into making home improvements. We updated a bathroom, a bedroom, and flooring. These days I don’t pay as much attention to daily fluctuations in interest rates because I don’t have a desire to refinance again. I definitely talk about refinancing in conversations with my real estate clients and with my friends and family — people are always asking me about where the market is heading — but I have no personal interest in refinancing. Granted, I still have my eyes open. If the perfect house came on the market and we wanted to buy it, we wouldn’t hesitate — especially with interest rates being so low.

Advice for first-time refinancers

There are a lot of ultra-low interest rates advertised by lenders online and plastered on billboards, but rates aren’t fixes. They’re teaser rates, and when you read the fine print, you realize you may not meet all of the qualifications. Unfortunately, there are a lot of bait-and-switch lenders. You should compare quotes from at least three lenders, and make sure they offer the same terms so you can get an apples-to-apples comparison. Let the lenders know you’re shopping around, and pit them against each other. Nine times out of 10, there’s room to negotiate, so don’t be afraid to ask for a better deal. Read more 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, [email protected] 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.