By Joe Szabo, Scottsdale Real Estate Team Good economic news isn’t always good for mortgage rates. A stark reminder of this came Friday, August 5 when new data showed that the U.S. economy added 255,000 non-farm jobs in July, blowing out consensus forecasts of just 180,000, and immediately sending rates higher. Does this mean your 2016 refi window has closed? Let’s take a closer look.

Rate Markets 101

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

Rate outlook for fall 2016

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

When do you lock a refi rate?

With these unpredictable rate market dynamics at play, you can count on rate dips coming and going quickly. So it’s a good idea to check rates regularly. And when rates do drop, lenders get extremely busy right away. A rate lock is for a set number of days, and the longer the rate is locked for, the higher the rate will be. So you want as short of a rate lock as possible, and your lender also needs ample time to complete your loan before the lock expires. This means you should discuss your loan profile and provide documentation to your lender now so they know your qualifications and know about your property in advance. If they know this, it’s easier for them to move quickly on a moment’s notice when rates do drop in a given day or week based on economic news of the day. If you start the loan process on a day where rates are down, your lender might not have enough time to close your loan within their quoted rate lock time. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [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 Subway tiles — the white 3-by-6-inch ceramic rectangles we’ve grown so fond of over the years — are now a staple in bathroom design. Classic and simple, subway tile is an affordable choice that continues its legacy of making well-loved spaces easy to clean and even easier on the eyes.  (They may even help boost your home’s market value.) The beauty of subway tile lies in its versatility. Not only does it honor the character of historical spaces, it also complements minimalist and modern decor. Traditional subway tiles are white, flat, glazed ceramic tiles typically applied horizontally with very thin grout lines. Today there are so many new takes on this classic material that the possibilities for making a striking statement seem endless. Here’s a look at some favorite subway tile looks for the bathroom.

Go dark: contrast with grout

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

Add wonder with wainscoting

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

Switch it up: color and material

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

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

Pretty patterns

Something as simple as switching up the tile pattern can add a lot of visual interest to your bathroom. The beauty is that you use the same affordable tile, but just change its pattern or direction — no need to invest in additional materials. This bathroom features an exciting decorative element by pairing a herringbone pattern with the traditional horizontal layout. Have a compact bathroom? Emphasize the height of a smaller space with vertical subway tiles — it adds an innovative twist without being too trendy. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [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 The era of “Mad Men” has come and gone, but the love of all things retro is here to stay. Not only are vintage pieces a fantastic way to recharge a space, but they can even save you a few pennies. Here are our favorite ways to add a retro touch without completely dedicating the look of your home to the style.

Saturated colors

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

Flea market finds

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

Beadboard and paneling

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

Funky furniture

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

Lighting

Lighting, like furniture, is remarkably good at capturing the essence of an era. Use vintage-style industrial pendants for a rustic kitchen feel, or circular mod chandeliers for an instant retro upgrade. Not ready to invest in permanent fixtures? Edison light bulbs are available in all shapes and sizes, some with LED technology, and can easily be paired with existing lamps, pendants, and sconces. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [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 it comes time to sell your home, you know you’ll need to spend some time cleaning the carpets, decluttering, and landscaping for maximum curb appeal. But there’s another key task to add to your to-do list: checking in with your local government to be sure it has accurate information about your home. No matter the type or size of your home or where it is, your local municipality has documentation on it. Both the building department and the town assessor will have a record about your home. But those records may not match your home’s reality — and any issues you don’t resolve could hold up your sale or even kill the deal altogether.

What is the building department?

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

Why should a seller care?

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

What are assessor’s records?

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

Get ahead of any issues

Before listing, a seller should go to the town hall and check their property records. Most of the time, remedying issues like open permits or misinformation on a property is a quick fix. It’s better to get ahead of it than to have to react to a buyer’s concerns and jeopardize your deal. If it’s a bigger issue, it’s better to hold off on listing your home for sale until you have resolved it. Getting your assessment down can impact your taxes, and that will be great news to your potential buyers. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [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 you’re retired, the world is your oyster. You have no job to tie you down. You are free to move wherever you choose. Retirement is the perfect time to move to your dream city. When you are putting together your list of new city must-haves, don’t forget to put ‘senior-friendly’ on the list.

What makes a city senior-friendly?

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

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

The best senior-friendly cities

With the entire country at your fingertips, let’s narrow down your list. One of these four cities might just be your new dream home. All have low crime rates compared to the national average, quality healthcare, and plenty of transportation options. Fremont, CA Fremont is centrally located, with the entire Bay Area within reach. With multiple train lines, you can easily travel to San Francisco for the day. In the city itself, residents enjoy access to more than 50 parks, plus a variety of senior centers and active senior living communities. Fremont was created from the merger of five smaller communities. That means each little town has a post office and library at your disposal, in addition to citywide resources. You will love Fremont’s bright, suburban feel and beautiful California weather. La Crosse, WI La Crosse is a vibrant city that is consistently ranked highly for livability. Offering stunning views of the Mississippi River, the city has a strong arts and music culture and is full of historical landmarks. La Crosse is a technology and medical hub with great healthcare opportunities. It’s famous for the quality and taste of its award-winning tap drinking water, pulled directly from a deep underground artesian aquifer. Scottsdale, AZ Scottsdale is known for its retirement communities. In fact, 43 percent of its population is over 50 years old. You will be surrounded by people your age. The city has plenty of support for older adults, but Scottsdale is also a lively tourist destination, so there’s no lack of entertainment, including casinos, restaurants, and a bustling nightlife. If you love the heat, Scottsdale is the place for you. Winters are mild, and summers are hot, with temperatures regularly over 100 degrees. The city has a great public transit system, which includes the Scottsdale Trolley, a free bus service that circulates through the city. For healthcare, you have access to one of the Mayo Clinic’s major national branches. Boston, MA Boston is a big city with a small-town feel. Residents have access to its great transportation system and international center of higher education and medicine. One of the oldest cities in the United States, Boston is full of history to explore. Boston has a strong literary and music culture. It’s home to the renowned Boston Symphony Orchestra and the Boston Ballet. It has a highly ranked park system and is so walkable that it has been nicknamed “The Walking City.” The city has very good air quality, and its drinking water is so pure that it satisfies federal water quality standards without filtration. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [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 Are there legal benefits to using a licensed real estate agent? The short answer is yes. Licensed real estate agents have legal obligations — formally called “fiduciary duties” — to their clients that are commonly referred to by the acronym OLDCAR. O = Obedience If you give an agent who is representing you an instruction with any financial implications (more about what constitutes “representation” below), they are obligated to follow it, even if they strongly disagree — as long as it’s legal and doesn’t contradict a contractual agreement. L = Loyalty Your agent is obliged to put your interests above those of anyone else involved in the deal — including themselves. D = Disclosure If your agent knows any fact that’s “material” to the sale, they are obligated to share that fact with you. And while they’re not obligated, they’re also motivated to find out as many of those material facts as possible. C = Confidentiality Your agent must protect your confidentiality. That means they can’t share any information about you or your situation (without your permission) with any other party to the deal. A = Accounting Your agent is responsible for keeping track of funds in play in the deal. R = Reasonable care This one is a bit sticky. An agent is obligated to use “reasonable” care and diligence while handling your affairs. Though exactly what reasonable care means in any specific transaction often ends up being decided by a judge in court.

Who is (and isn’t ) your agent

This is an important distinction. The fiduciary duties above only apply to a real estate agent who’s working for you. That means you either have a verbal or written agreement with them. Often, you’ll run into a situation where you end up interacting, perhaps a lot, with an agent who is part of the deal, but who isn’t formally representing you. They’ll most likely be nice, professional, and helpful. But if they’re the seller’s agent, they’re obligated to the seller, not you, and the legal obligations they have to the other party don’t apply to their interactions with you.

Whose side are you on?

The agent’s legal obligations also depend on whether you’re a buyer or a seller. You should know that these obligations are in direct competition. For instance, if you’re a buyer and you have an agent representing you, their duty to you is to keep quiet regarding any information about you that the seller might not like (confidentiality). The seller’s agent, on the other hand, has a duty to their client to find out everything about you they can (disclosure). For another example, if you’re dealing with an agent who isn’t officially representing you, they’re not bound by loyalty. In other words, they don’t have to do anything you tell them or ask them to do.

Holding agents to their legal obligations

Of course, in the real world, there are sometimes issues with how these legal obligations play out. Every agent has a real interest in maintaining good relationships with other agents. Sometimes, unfortunately, agents can get too friendly. If things get too cozy, they might casually or carelessly disclose information to one another that they shouldn’t. Extreme cases of over-sharing might even involve collusion. That’s when two agents get together on the side and work to structure the deal so it benefits both of them (or someone on the outside with a hidden future interest in the property) — above the interests of either of their clients. If you think something’s off with the information and service you’re getting from your agent, or if you feel things are too cozy between your own agent and the other party’s agent, you can complain to the company where either of them works, or go up the ladder and make your complaint to the local affiliate of their professional organization. Your first and best option is to get a different agent. You can usually do this by informing your agent in writing that you no longer wish to be represented by them (and if you feel their behavior has been unethical, you can copy their employer or their professional association). Be aware, though, that if you’ve signed an agreement of representation with the agent, you may still have liabilities, including a liability to pay them a commission, if the original agreement had a procuring clause. So while it’s important to know where you stand and your agent’s legal obligations, there are genuine legal benefits to working with a licensed real estate agent. Furthermore, in a transaction where one party has an agent and the other doesn’t, the party with the agent has a bit of an edge — part of which is that many people don’t understand the agent is only working for one of the parties, not for the benefit of both. 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 Getting your home appraised can often be a nerve-wracking experience. Your home and your handy work will be on display to be judged and valued so that you can move forward with selling your home. But it doesn’t have to be a stressful experience. With the right tools, tricks and savvy, the appraisal process can not only go smoothly, it can also help you make a giant financial leap toward a future in a new home.

Do your homework

“Just like anything else — for example, if you’re going to select a doctor, dentist, or lawyer — you do your homework to find out the appraiser’s market knowledge of the area,” says Rick Singh, a property appraiser in Orange County, FL. Ideally, your appraiser will be a local who knows the area well and who has been around long enough to see changes in the market. It’s also crucial to hire an appraiser who is state certified.

Check your maintenance

Whether it’s a loose shingle, chipped paint or dirty carpet, be sure to take care of it before the appraiser comes. Anything obvious that needs work could potentially eat away at your home’s value. Also, keep a list of maintenance work that has been done on the home. Have a running list of what you have fixed and upgraded in your home as well as the amount of money you have spent.

Maximize curb appeal

When you’re getting your home appraised, remember that your house should look like the nicest one on the block. “Landscaping plays so much into making a good first impression,” Singh says. “And remember that a first impression is a lasting impression. Make sure [your yard] is tidy and up-to-date. Trim or replace dead plants, and make sure it’s nice and green.”

Ensure appliances work

Do you have a dishwasher that only works when you give it a little kick, or a refrigerator that doesn’t keep your food as cool as it used to? These malfunctioning big-ticket items in a home could be a huge disadvantage to your home’s appraisal value.

Show pride in ownership

Although your home isn’t necessarily valued on the interior decor, it doesn’t hurt to show that it’s well cared for. This doesn’t necessarily mean you have to trade in your T.J.Maxx finds for a pricey interior makeover, but make sure your home is neat, tidy, and exhibits that you generally have an interest in keeping your home looking its best.

Know your neighborhood

Before you get your home appraised, be sure you know what comparable nearby homes are going for, because that can be a huge predictor of your home’s value. Also, inform your appraiser of any extraordinary circumstances, like if someone in your neighborhood had to sell their home quickly. Sellers may have to lower the price of their home to get out in a timely fashion in the event of death or job relocation in another state. It’s extremely important that both you and your appraiser are knowledgeable about your neighborhood to get as accurate a value as possible.

Understand that cost does not equal value

When you make improvements to your home, you hope that everything you’re upgrading will increase your property value — but this isn’t always the case. “Sellers may think, ‘I spent $60,000 on my home and $20,000 on the pool, so the home should be worth $80,000 more.’ However, the market may say it’s only worth $5,000 more. Find out what the economic investment is, because the rate of return is so important,” Singh says.

If you’re not satisfied, reach out

If you’re dissatisfied with the appraisal value, Singh advises contacting the appraiser about your concerns. Make sure you have data to back up your claims when you call to voice your opinion. “You can always get a second appraisal,” Singh notes. “If you really think something was done incorrectly, voice your concern to the appraisal board as a last resort. All appraisers are licensed, and they don’t want to jeopardize their license. However, I often recommend going back to the appraiser and showing [him or her] the facts.” 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.