By Joe Szabo, Scottsdale Real Estate Team  

Don’t give them a golf course

First of all, buyers today aren’t necessarily looking for homes with front yards that are covered in uniform grass, and that’s good news for you as a house flipper. The golf course look takes a lot of watering and maintenance to keep up. A front yard with less grass and more water-wise landscaping can save buyers money on their utility bills, and it can save them time on mowing, too. Not only that, but they won’t have to worry about their lawns dying if their area is under a water restriction.

Small changes can make a big difference

You don’t have to completely get rid of grass or go with some crazy landscaping design that looks totally out there. Even the smallest water-saving changes can make a huge difference. For example, plant a few water-conserving shrubs around the front of the house and in an island in the yard, then lay mulch around them so your buyers have less grass to mow. A stone garden can do the same — and it’ll save even more water since rocks don’t need any moisture.

Use water runoff for thirstier plants

Everyone loves to see greenery and blossoms in their yards, so I’m a huge fan of this particular tip. Take a look at the yard and find the places where you get the most water runoff. Do you have a low corner of the yard, or does the lawn slope down to the sidewalk? Plant your shrubs and flowers here, surrounded by a bed of mulch or gravel. And be sure to group thirstier plants together in the lowest spaces so that they can soak up the most moisture.

Don’t forget the architecture of the house

As you start to choose plants, mulch, gravel, and other details, don’t forget about the design of the house itself. Choose landscaping elements that match the architecture of the house and highlight its features. You want to have a front walk and entryway that flow and draw people in, so you may want to plant a couple of bushes at each end of the walk or along each side leading up to the house. Landscaping details should create borders and edges along the walk, yard, and house to draw attention and make the property look cohesive and attractive.

Create a park-like backyard

Of course, your front yard won’t be the only place you’re landscaping. You also have to think about the backyard, and how you can make it really inviting to your buyers. People love having a park-like backyard where their kids can play, and they can have friends and family over on weekends and special occasions. You don’t have to plant a bunch of water-thirsty trees and shrubs to get this effect, though. I’m a big fan of adding a patio and/or some hardscaping instead of traditional landscaping with plants. For example, you could place a fire pit in the middle of a circular area where you lay gravel, then edge that gravel with bricks or flat stones. The effect is cozy and attractive, and it doesn’t require any watering at all. Plus, it gives your buyers a place to gather and enjoy each others’ company.

Always think of families

Family is really important to me and Tarek, and not just because we have two great kids who we love to watch playing in the yard. We’ve created a space in our backyard that’s a huge hit with our extended family when we have them over on Sundays. When I worked with our landscapers to design our backyard, I considered shade and seating, space for the kids to play, and an overall aesthetic that’s warm and inviting. You can do the same with your flip-house backyards if you consider a few important factors: Where is the traffic in the yard? Wherever you have people walking through a yard, you’re going to have worn down, ugly grass unless you plan for that traffic. Look at the paths people will be using in the yard and create water-conserving landscaping solutions around them. This could mean having a paved or gravel walkway from the back patio or deck to the fire pit. It could also mean planting sturdier, heartier grass in your high-traffic areas, then planting drought-tolerant decorative grasses, like Japanese bloodgrass, along each side. Will the buyers have pets in the backyard? Next, consider how the yard will look if the buyers let their pets hang out in the yard on a regular basis. You can’t predict whether someone’s dog will dig holes all over the yard or not, but you can avoid choosing really delicate plants that will get ruined when the family cat decides to chew on them or take a nap on them. Other animals in the area Speaking of animals, your buyers’ pets aren’t the only ones to worry about. If the area where you’re flipping in has moles, rabbits, deer, or other wildlife, you should take a minute to get to know what they eat and what they’ll avoid. In a drought, these animals are going to come looking for food and water, which means you could be creating a haven for pests if you put in a water feature or a lot of thirsty plants. Instead, do some research on plants that repel animals and bugs. For example, did you know that mosquitoes hate lavender? It’s a beautiful plant with a sweet smell that most people like, but it’s a natural pest deterrent. Sounds like something you might want to consider planting around the patio, doesn’t it?

Consult a landscape architect, contractor or local garden center

You don’t have to figure all of this out on your own. If you plan on having the pros do your landscaping, talk to your landscape architect or contractor about droughts, thirsty plants, and other factors. If you’re doing the landscaping on your own, ask the people who work at your local garden center for advice. They have a lot of knowledge about this kind of project, and they can help you make the right choices for attractive front- and backyards that won’t guzzle a ton of water every week. Good luck and happy landscaping! 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 Ever bought something special and later realized you didn’t need it or like it after all? Usually, returning it is as simple as boxing it back up, locating the receipt, and taking it back to the store for a full refund. But unlike store merchandise or even a car, you can’t return a home with a receipt, which makes the decision to buy even more stressful. You also don’t get a chance to “try before you buy” the home. You need to do as much homework ahead of time as possible, because in real estate “All Sales are Final.” In a busier real estate market, with competitive bidding and limited inventory, you may feel compelled to go the extra mile to “win” a home. And then, it’s entirely possible that, within hours or days of getting the deal, you cool off and second guess yourself about any part of the home or the transaction. You decide you want to pull out of the contract.

Thinking it through

How do you avoid getting into this situation? To avoid buyer’s remorse, stay grounded by asking yourself the following questions throughout the home-buying process. Must I ‘own’ this house or must I ‘win’ this house? Often, in a competitive situation, a buyer just wants to win. If you’re competing and forced into a multiple-offer situation, step back and ask yourself: Is this the home I really want, or do I just want to beat out the other buyers? Also, has the potential purchase price exceeded the list price? Putting an offer on a home at $475,000 is one thing. But a few rounds of counter offers may bring the price up over $500,000. A price $25,000 higher can create an entirely different set of circumstances, and the home may no longer be right for you. Have I seen the home more than once? There are hundreds of buyers who saw a house only once. Some international customers even purchase sight unseen. But this is the exception, not the norm. No matter how much you think you love a home, if you’ve only seen it once, you could be heading for buyer’s remorse. Going back in the evening or a different time of day provides another perspective. Also, you may see things differently the second time around. Often, you miss something in your first pass that stands out the second time around. Have I seen the home from every angle and spent time in every room? A quick tour of the home provides a basic understanding of the floor plan, condition, and size. But to really know a home, dig deep. Walk to the end of the lot and look at the back of the home. Open every closet and go in the attic, basement, and garage (park your car in there, if you can). And look at the neighboring houses, too. Have I seen a floor plan? Reviewing an architectural floor plan provides an opportunity to see the home in a different context. It’s possible you’ll pick up on things you might have otherwise missed. Have I reviewed the photos after seeing the home? Going back to the listing photos helps jog your memory. Seeing the pictures, which are snapshots in time, will give you a different perspective. Was the shade closed in the picture, and if so, why? Did you ever look out that window? Does the photo remind you that the bedrooms are small because there are only twin or queen-sized beds without any nightstands? These types of questions are a great way to evaluate if a home will work for you. Have I toured the home privately? Visiting a home with other buyers isn’t the best way to see it. You may feel cramped or rushed. You might want to sit in one of the rooms in silence for a few minutes, but it’s often not possible to do so at an open house. You may just want the time and attention of the listing agent, or maybe you don’t want anyone there but your agent. If you’re serious about a home, go back for a private showing, because it reveals more when you have time alone there. Have I done due diligence? If you haven’t seen or heard about any disclosures before making an offer, it could be a red flag. In many markets, disclosure packages are available before making an offer. If not, a good listing agent will reveal the major disclosure items verbally. Make sure the town sees the home as it is being presented to you, that all the rooms and renovations are legal and permitted. If you’re too busy to review the disclosures, you shouldn’t make an offer. Also, find out if there have been previous contractor’s inspection, termite, or other reports you haven’t seen yet. Is this home what I set out to look for in the first place? Sometimes your path changes once you’re in the market. You realize that another area will give you more for your money. Or a home that’s in the school district you want needs a lot of renovation, which you hadn’t counted on doing. You may discover that with lower rates and being open to a new or emerging area, you can afford a better home. When buyers are in the throes of a competitive home market, it’s easy to settle for a home that “kind of” works, or to lapse into autopilot mode. You may just be ready to buy and be done with it. You don’t think about things like the commute from the new neighborhood to your job, that you aren’t the renovating type, or that you never signed up for the lawn mowing and maintenance issues associated with homeownership. A good agent will bring you back to your original plan before you sign a contract. You and your agent should review all the reasons why the home isn’t the right option. It’s better to flesh that out in advance than to ignore the warning signs and cancel. If your agent tries to talk you out of a house, that’s a sign of a good agent.

The contingency safety net

To help protect you from buyer’s remorse, always have an inspection contingency in your purchase agreement. Reserve the inspection contingency for something serious about the property you didn’t know before signing on the dotted line. Some agents call it the “cold feet” or “buyer’s remorse” contingency. It allows you to exit the agreement if something comes up. If you think you’ve found the home of your dreams but have the littlest doubt, or you can’t answer all of the above questions, think twice about accepting that final counter or even making the offer. Ultimately, never sign an agreement if you aren’t completely convinced this is the home for you. 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 Summer is our favorite time of the year to work with clients. Whether we’re curating an outdoor kitchen or styling a beautiful new deck, something about the warm weather makes us want to blur the lines between the indoors and outdoors with thoughtful design and fashion-forward functionality. Here are some of our favorite ways to create an inspirational outdoor space this season.

The rooftop deck

Those of us who aren’t blessed with the square footage to have a backyard, need to get clever to find other solutions. If you live in a townhouse or apartment in the big city, don’t hole yourself up in the living room. Head to the roof! Rooftop decks are making a comeback with stylish sunproof fabrics and durable appliances perfect for an outdoor soiree or afternoon sipping cocktails. With a smaller area to work with, every detail counts, right down to the trim on the cushions. Each piece should speak to your style, whether you’re going for a Hamptons retreat or Miami Beach-inspired entertainment area. Make sure you have plenty of seating with umbrellas available for an afternoon siesta. We love the way bright citrusy colors and patterns help brighten outdoor decks made of concrete or stone. Add a summery vibe with plenty of greenery potted in patterned vases, and flowers on every bistro table to greet your guests.

The California room

Here in California, we can’t imagine a home without a space that easily transitions into the great outdoors. Enter the California room: a space perfectly situated just outside a sliding glass door with transitional elements like interior furnishings and exterior fabrics. This space usually consists of a small outdoor kitchen and dining area for nights when the weather is too beautiful not to enjoy. The California room is often home to an entertainment center like a television for the big game, or speakers to enjoy relaxing music. The key to creating the perfect California room is to keep it fluid. Use gauzy curtains and outdoor fabrics to maintain a soft vibe while also adding elements usually found indoors like couches, chaise lounges, and coffee tables for an interior-inspired look.

The outdoor kitchen

Last but certainly not least, the outdoor kitchen is the epitome of an inspired space. Whether you’re enjoying a dinner for two or a summer-themed fete, an outdoor kitchen is key to keeping your guests happy all evening long. An outdoor kitchen usually consists of a few major components. First, you need a grill and complementary appliances. We love a great stainless steel grill with multiple features for when you’d rather serve fish than burgers, or vegetable skewers instead of tri-tip. Equally stylish and useful features could include a built-in wine fridge or drink cooler, a sink, and a food prep station. Next, pick materials that are both durable and fashion-forward like stone and quartz to help make after-meal cleanup that much easier. Finally, choose accessories that help create a dining area suitable for families and guests like placemats, centerpieces, and plenty of lighting. 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 Searching for a home and engaging with a real estate agent today is not the same as it was a generation ago. The space (both physical and virtual) between the buyer and the real estate agent was much larger, and coming together was slower and more methodical. If a buyer saw a For Sale sign or an ad in the paper, they might call the real estate agency’s office, get some information, and move on. Or they could walk into an open house solo. They could be rather anonymous. But today’s home buyers live online. They can click, text or email with agents, and seriously engage within hours. But does that mean they are active and serious buyers ready to transact? Not necessarily.

The real estate agent’s experience

Meanwhile, real estate agents, who are commission-only independent contractors, will sometimes drive around for hours showing homes. They may take these buyers around for days or weeks, thinking they have a live client they can help. They might make an offer or two on behalf of the customer, even be present at a two- to three-hour-long home inspection … all before the buyer decides to back out. They may buy a different house from the agent, or they may not. Well-intentioned, hardworking agents can end up feeling like their time isn’t valued — particularly when they never hear from that buyer again.

Who’s responsible?

Is it incumbent on the agent to be better at time management and qualifying their potential buyer clients? Or should the buyer be clear with the agent early on if they aren’t serious just yet? I think that the consumer comes first, and it’s up to the agent to better qualify — as best they can. But it’s also part of the business, and par for the course. Agents sign up for a sales job, and they can’t win every deal. They need to ask lots of questions of their new “client” before offering up their time and cashing a paycheck that doesn’t exist. Some consumers relish the attention they receive from this new “friend” who will drive them places, show them around, and teach them something new about the world of real estate. If the buyer isn’t paying for the agent’s time, the reasoning often goes, why not take a few rides and see some great houses? But soon-to-be homeowners should be mindful of their intentions, and considerate of the resources the agent is delivering.

So what’s a buyer to do?

Should everyone stop looking online or clicking the “Contact Agent” button? No way. Consumers should always feel free to click away, ask questions and gather information. But they should be mindful of how things work once they start seriously engaging. Most buyers don’t realize that there is a process to buying a home, and that it rarely happens overnight. From the time they first click on the photo of the killer master bathroom until they get the keys, it might be one year and three dozen (or more) house tours. And if things don’t feel right with the agent with whom you engage early on, move on. Keep researching independently, or get a referral for a good local agent. Or, better yet, just go with the flow and the right agent will come along organically.

And what about agents?

Real estate professionals need to understand that one text, click or email does not make an active buyer. A good agent has a handle on the sales process, and asks buyers lots of questions to get a read on them. A good agent fills their sales funnel with a mix of folks in all parts of the home buying process. Early on, an agent needs to be a guiding light, resourceful and ready to answer questions. As some of their buyers get more serious, smart real estate pros know where to direct their attention. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team There are no one-size-fits-all answers when it comes to houseplants, and a plant tag can only tell you so much. Each species is unique, hailing from climates ranging from dry deserts to Mediterranean landscapes to tropical rainforests, and even two plants of the same species can have totally different needs depending on a number of factors. Fertilizing depends on the type of plant and the label instructions, while pruning times and methods rely on a plant’s blooming time and growth pattern. Grow a lush and flourishing indoor garden filled with a variety of plants by following this three-step program. Start with a good reference, and inspect for problems every time you water. Finally, fill out a maintenance checklist for each plant in your collection to provide the most personalized and accurate care possible.

Find a reference

Since each plant has entirely different needs, it’s essential to find trustworthy references that will tell you everything you need to know about each specific plant. While you can find info on any plant with a quick Internet search, you’ll find that some sites have more information on certain plants than others. If you own a collection of houseplants, I highly recommend picking up a book such as “The House Plant Expert” by D. G. Hessayon.

Inspect while you water

Even with all the knowledge in the world at your fingertips, your senses are the best tools in your arsenal. Every time you water, inspect each plant for problems such as pests, yellowed leaves or slow, lanky growth. A plant needs to be watered more if:

• The top inch of potting mix is dry
• Leaves are wilting (unless soil is moist)
• Water runs over the soil and drains along the sides
• The plant feels lighter than usual

A plant needs to be watered less if:

• The soil feels more soggy than moist
• The roots are beginning to rot
• You see fungus gnats every time you water

A plant needs fertilizer if:

• It has been over a few months since purchasing the plant
• The time-release fertilizer pellets or fertilizer spikes are spent
• The palm fronds are yellowed
• The plant is growing at a glacial pace
• It’s been over a year since you fertilized
• You can’t remember the last time you fertilized

A plant needs to be repotted if:

• The existing potting mix drains too quickly or slowly
• The plant’s roots coil tightly together in the pot, forming a solid mass
• The potting mix is practically older than dirt

A plant is getting too much sun if:

• The exposed leaves are getting scorched and bronzy
• It’s a shade-loving plant but is receiving direct rays of sunlight

A plant isn’t getting enough sun if:

• Its new growth is spindly and stretched out
• The plant actually appears to reach for more light
• The leaves are very dark green
• It’s in a room without a window, such as a bathroom

Create a care sheet for each plant

You can solve a lot of problems with a good reference and eye for detail, but it can be difficult to keep track of an entire collection of plants around the house. For example, two rubber trees (Ficus elastica) in the same house require different care depending on a number of factors: the brightness of the room, your home’s heating system, the type of potting soil, the overall health of the plants and even the type of fertilizer being used. Instead, create care sheets for each plant. (We have one you can download and use.) Print one sheet for every houseplant in your collection, or keep notes on your computer, tablet or phone if that’s more convenient for you. Fill in the basic needs and take notes whenever you feed, repot, move and prune plants, so that it will be easier to diagnose problems that arise. Place the worksheets in a folder and use them to pencil in dates on the calendar to remind you when it’s time to fertilize or prune. 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 In many real estate markets around the country, inventory is low and sellers are in the driver’s seat again. In some cases, homes are selling for more than asking price. After years of a sluggish buyers’ market, many real estate agents are trying to get would-be sellers to list their homes now. It seems like a great time to sell. But how can you know for sure if it’s a great time for you to sell? If you experience buyer’s remorse, you can usually get out of a contract through contingencies or other out clauses. If you start to feel seller’s remorse, you don’t have that luxury. So you must be certain you’re ready to sell before you sign the contract —or, better yet, before you list the property. To avoid seller’s remorse, and to make the sales process go as smoothly as possible, keep these strategies in mind.

Develop a solid pricing strategy

Agents often encourage their sellers to list their homes competitively, so that the market receives it well. Sometimes sellers see that as the agent pushing for a quick sale. But often, it’s truly the agent looking out for the seller’s best interests. Whatever the scenario, pricing is the most important discussion a seller can have with an agent. When there’s a disconnect on price, raise it as a red flag from the get-go. If you find yourself resisting your agent’s suggested price, talk through the options or get a second opinion. You might try starting out with a higher number. This might be against your agent’s better judgment, but it can be worth a shot. If there’s no activity in the first few weeks, you can always reduce the price. Alternatively, sellers who increase their asking price after the home has gone on the market are often seen as frenetic, lacking a strategy and having a clear disconnect with their agent. Bottom line: If you haven’t had a serious pricing discussion with your agent or you aren’t sold on your list price, don’t go on the market.

Have a clear post-sale plan

The sellers of an Essex, CT home heard the market there was hot and that they could get the price they had tried but failed to get just six months earlier. They’d already done the appropriate clearing out, painting, and fix-it work, and even had the property inspected. So, for them, going on the market was easy. However, they didn’t expect to receive three offers, all of them above the asking price, within hours of their first open house. The buyers they chose wanted to close in 30 days. The problem: The sellers had nowhere to go. They didn’t have a plan. Like many sellers today, they heard the market was healthy again. And after dreaming for years of finally getting what their home is worth, they jumped in while “the getting is good” without thinking it all the way through.

Be ready to negotiate with buyers

Feeling strong and in the driver’s seat, the Essex homeowners decided to wait and see if they could get terms that would suit them better. The sellers’ listing agent negotiated a quick close with a 30-day-free rent-back and another 30 days rent, in which the sellers would pay the new buyer’s PITI (Principal, Interest, Taxes and Insurance). It was a win-win for all. While this couple in Essex had the luxury of a competitive bidding situation, it may not always be the case. That’s why having a clear plan in place for all conceivable outcomes and a willingness to negotiate can help you get through the sale process successfully.

When in doubt, stay out

Home selling is happening quickly in many parts of the country. While this is great news for the housing market and most homeowners, sellers need to plan for the sale months in advance. Hooking up with a good local agent early on in the process and staying engaged is the best way to approach this new market. If you have any doubts about your physical or financial situation, hold off on listing. Watch from the sidelines, and only jump in when you’re truly ready. The biggest mistake a seller can make is to go on the market and fail to sell — at a time when everything else is selling. 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 If you’re in the market for a brand-new home, you’ve got a ton of options. Sales of new homes surged to an eight-year high in 2015, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, and single-family production is estimated to reach 840,000 units in 2016, an 18 percent increase over 2015, according to the National Association of Home Builders (NAHB). Unfortunately for home buyers, new residential construction is coming at a steeper price: Last year the average price of a new home jumped to $351,000, up $100,000 from 2009, reports the NAHB. Nonetheless, there are still ways you can save when buying a new home. It’s like shopping for a new car: You need the right strategy to nab the best deal. Ask prospective builders these six questions in order to find the right home at the right price. “What financial incentives do you offer for using your preferred lender and title company?” The bad news: Production builders are often reluctant to set a precedent for negotiating sales prices. (Custom builders tend to be more flexible.) “If a new home is listed for $370,000 and it sells for $360,000, the next buyer in the development is going to want to pay that lower amount,” says Craig Reger, a real estate broker at Keller Williams Realty in Portland, OR. However, many offer handsome incentives to buyers who use their preferred lender and title company. Some may even knock off up to $10,000 in closing costs, says Peggy Yee, a supervising broker at Frankly Real Estate in Vienna, VA. Others will sweeten the deal by negotiating prices on finishes, such as upgrading carpet to hardwood floors. You should still shop around and get quotes from at least two other lenders before making your decision. But don’t just pay attention to the interest rates. “You need to compare each loan estimate’s terms to make sure you’re getting an apples-to-apples comparison,” says Chris Dossman, a real estate agent with Century 21 Scheetz in Indianapolis. “Which are the standard finishes?” When you tour a development’s model home, keep in mind that you’re previewing a high-end version of the standard home. “The model has all the bells and whistles,” says Dossman. Therefore, you need to find out from the builder which options are standard, which options are upgrades, and what each upgrade costs. One way to cut costs: Move into the home without an upgrade, then hire a contractor to do the work. “Builders charge a huge markup on certain finishes and products,” says Reger. “The builder might charge $4,000 to $6,000 for a high-performance air conditioner, but you may be able to get another company to install that same unit for as low as $2,500.” Granted, opting for the latter means you’ll probably need to pay the contractor in cash. “For some people, the benefit of paying the builder to do upgrades is that they can roll the costs into their loan amount,” Reger points out. “What are your long-term plans for the community?” Depending on the size of the land, the builder might be planning several subdivisions. This could impact your decision to buy. For example, let’s assume that only a few homes have been built and sold. If the developer plans to construct an additional 50 homes and you’re one of the first people to move into the neighborhood, you may have to deal with loud construction crews for several months. There’s also the risk that the builder loses funding and another company takes over the development. Dossman advises proceeding with caution: “If the builder changes and a lower-quality builder takes over, that could affect the value of your home.” “What are the homeowners association rules and regulations?” Each homeowners association (HOA) has its own Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and bylaws. Get these from the builder and review them carefully. “I’ve seen HOAs that don’t allow storage sheds in the backyard, solar panels, or private fences,” says Reger. In most cases, the HOA can assess a homeowner penalties for infractions, and some associations are more restrictive than others. Also, look into when you’re required to start paying HOA dues. Many builders cover the costs until at least 50 percent of the homes in the development are sold, says Yee. “What warranties do you provide?” Most builders offer a one-year workmanship warranty and a 10-year structural warranty, says Reger. Make sure the warranties you receive explicitly state what is and isn’t covered, and what the limitations are for damages. You should also receive manufacturer’s warranties on the washer and dryer, hot water heater, air conditioner, kitchen appliances, and roof. “Can you connect me with some of your past clients?” Always check references when vetting home builders, says Dossman. Ask past clients questions such as, “How responsive was the developer when you expressed concerns?” and “Would you use the builder again?” Caveat: Most builders will only provide glowing references, so you should still scout out some past customers on your own. You can find these people through reviews on Angie’s List, or knock on doors of homes in the neighborhood that have already been built. 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.