Stages Of The Home Buying Process

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Central Scottsdale home photoBuying a home, whether it’s your first time or your fifth, is a complicated process with a lot of different stages to keep in mind. When you go shopping for a house, it’s not as easy as just looking at a few, picking the one you want and then purchasing it. There are things you need to do before you can ever look at a house in the first place, and there are stages that take place after you pick the house you want to buy, too. If you find yourself confused about these stages or wondering where you are on your own personal homebuying journey, check out the information below.

Qualifying for a Loan:  The first thing you have to do before you can buy your home is to qualify for a loan. And in order to do this, you need to speak with your bank or a lending company. The place where you go to get your loan depends entirely on your needs as well as which lenders will offer you a loan at a reasonable rate. While it’s okay to check around with a couple of different lenders for mortgage loan quotes, make sure you don’t do this too much, or it will reflect negatively on your credit report. (If you get a few quotes in a short amount of time and then apply for a loan, the lender will usually forgive the flag on your credit report because it is clear you’re shopping around.)

Finding a Realtor and a Home:  Once you know how much you’ll be able to spend on your home, you should find a realtor you can work with. It’s okay to try a few realtors before you find someone you get along well with and someone who is really focused on helping you find what you need. With your realtor, you’ll check out several homes before you find the one that’s right for you. Don’t be afraid to take your time with this process!

Making an Offer:  Next, you’ll make an offer on the home. The realtor you’re working with will help you negotiate with the seller and will make sure you include specifics in your offer, such as a home inspection. There may be a lot of back-and-forth during this time, and it’s important to remember that the first home you offer on may not be the home you end up purchasing.

Signing:  When the offer is accepted, you’ll meet with your realtor, the seller, their realtor, and any lenders who need to be present. Everyone will sign all the appropriate documents and the homebuying process will be complete. You will receive the keys after signing.

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5 Most Common Mistakes When Shopping for a House

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Scottsdale house photoWhen you’re looking for a new home, it’s easy to fall into some of the mistakes many other homebuyers just like you have made countless times before. If it’s your first time buying a home, the risk of making a mistake is a lot higher, but even old pros who have been through the routine a few times already may hit a pitfall without even realizing it. It’s important to know what you’re up against when you’re going shopping for a house, and it’s especially a good idea to familiarize yourself with the most common mistakes made by people in your position.

Unrealistic Budget:  This is probably the worst and most common mistake made by homebuyers. If you don’t know how much you can spend on your home, you’re going to be in a bad situation from the very beginning.  Start with getting pre-qualified with a lender and communicate with your realtor clearly that you cannot go over this price. In a best-case scenario, you’ll have to find another home when you try to qualify for a loan you can’t afford. And in a worst-case scenario, you’ll end up buying a home you can’t pay for and will have a lot of financial trouble down the line.

Forgetting Expenses:  Don’t forget that the cost of the home isn’t the only expense you’ll have at closing. Closing costs, taxes, and a host of other expenses will come your way. If this is your first home, you’ll also need to factor in home insurance; if you’ve already been owning a home, this may be an expense you’re used to.

Pickiness:  Being too picky may mean you’ll never find the right home. If you have a specific budget, you can’t be so choosy that you turn down every home that doesn’t meet every item on your checklist. Prioritize a few items that are most important to you (no major renovations needed, big backyard, located in town) and leave off the ones that you can live without (updated bathroom, fence around the yard, already landscaped).

Emotional Investment:  It’s hard not to get attached to a home you feel is perfect for you, but the truth is that you’re probably not going to get the first home you fall in love with. Try not to get emotionally attached to a home until you’ve signed the contract.

Ignoring Home Inspections:  Some buyers just ignore what the home inspection says and only have one done because it’s required, either by the law in their state or by the contract they have. It’s always a good idea to pay close attention to what the inspection tells you so you can decide whether or not to progress with the purchase.

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Is the First Offer Always the Best Offer?

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Desert Ridge home photoHave you ever sold a house before? Are you going through the process of selling your house right now? Whether you’ve been through it before or this is your first time dealing with the ups and downs of home selling, you probably fully understand the temptation to take the first offer you get on your home. You may have even heard the myth that the first offer is always the best offer you’re going to get. But how true is this? Should you wait around for a better offer to come along?

If the offer comes right away…

Then it may not be the best offer. If you get an offer on your home within 24 hours of listing it for sale with your realtor, that offer may come from someone who is trying to see how low you’re willing to go on the property.

On the other hand, it might come from a potential buyer who has been shopping around for a long time. That buyer’s agent may have shown them your home knowing it’s perfect for what they’re looking for. And if this is the case, you may get a great offer.

If you get an offer at or very near your asking price right away, chance are you probably won’t get something higher later on.

If the offer comes delayed…

Then it probably is the best offer you’re going to get. If your home is priced above the usual asking price for properties in your neighborhood, most buyers are probably passing on making any offer at all, thinking you won’t accept what they may be willing to pay.

After a while, a serious buyer may come along and put in an offer after watching the market in your area for a few weeks. If this happens, you’re probably not going to get a better offer at your current asking price, so it’s probably a good idea to go ahead and take that offer.

So IS the first offer the best offer?

Most of the time, yes. Of course, it is your choice to wait and see if you get something better, especially if the offers you’re getting are coming in significantly under your asking price.  However, you may end regretting for not taking one of those initial offers, especially if your house stays on the market for weeks and even months to come. Don’t settle for a price you know is far below the value of your home, but don’t be afraid to take that first offer, either.   A seasoned real estate agent that knows your area well and has done homework, will advise you on how to get the most dollar for your home and develop an effective marketing strategy.

We have are local area experts in Scottsdale, Fountain Hills, North Phoenix and surrounding area.  Are you looking to sell you home?  Do you know the value of your home?  Click here to get started with a free, no obligation home value estimate.

How to Choose A Neighborhood For Your Needs and Lifestyle

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Rotary Club Park photoWhen you’re buying a home, you’re probably going to spend some time considering the part of town—or the part of the state—where you want to be located. It’s normal to want to consider the location of your new home, but what exactly should you be looking for? It may be challenging to figure out the factors you need to consider when looking for the perfect new place to live. Sure, you know you want to be close to work or near your family, but what else? What could help you find the neighborhood of your dreams? Check out our tips below to help you decide.

School Districts

If you have children or are planning to have children, make sure you pick a neighborhood with high rated school.  Some neighborhoods with an average school grading may suffice, but stay away from those that don’t generally perform well in your area.

Home Style

Do you want a specific architectural style in your home? Or do you not really care as long as it has the amenities you’re looking for? Think about whether or not the style factors in your decision and you may narrow down your neighborhood from there.

Up-and-Coming Communities

Communities that are still developing may be more affordable when you’re looking to buy a home. As long as you’re willing to have a little patience for a few years as the neighborhood grows, you may get a great deal on a home in an area that you like.

Walking Distance

Does walking distance matter to you? If so, an up-and-coming community probably isn’t right for you. On the other hand, if you prefer to be further away from noise and busy streets, you may do well in the suburbs or even further out and get more home for your money.

Quiet vs. night life

Once again, you’ll have to consider whether you want to live on a street that’s quiet at night or one that has lots of nearby night life to enjoy. Many times, college areas will be noisier at night as well, although they may also be generally safer than other night life areas.

Proximity to Hobbies

Do you love hiking? Boating? Going to the dog park? Hitting up the mall every weekend? No matter what your hobbies might be, make sure you choose a location that won’t leave you sitting in traffic for hours to get to them.

Neighborhood Safety

Drive around the neighborhood you’re considering in the afternoon or early evening. Do you see people outside working on their lawns or playing with their kids? If so, this is probably a safe neighborhood. If you don’t see anyone outside at all, you may want to figure out why that is.

Drive through the neighborhood at night. See if there are any streetlights in the area or if it’s just dark everywhere. Do you see people out walking their dog or taking a nighttime bike ride, or is everything closed up and quiet? This can be a good indicator of the type of neighborhood you’re looking at, too.

We are local area expert in Scottsdale, North Valley, Fountain Hills and surrounding areas.  We can help you find a home that is right for you.  Click here to learn about neighborhoods and view homes for sale or call us at 480.754.9477 / 480.754.9077

 

Choosing a Good Moving Service

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Unlocking a front door photoWhen you’re moving to a new home, you may be inclined to take care of the move yourself. After all, you don’t have that much to move, right? Unfortunately, you may find yourself in over your head sooner or later! Even if you could reasonably take care of your move on your own, you may still want to go with a moving company simply because it’s much easier and more convenient. If you choose to use a moving service, there are a few things you need to know to ensure that it goes as smoothly as possible. Check out the tips below to help make your moving service experience a good one.

Ask About Discounts: The company you’re considering may offer some discounts depending on your status or memberships. For example, if you’re a member of AAA or AARP, you probably qualify for some discounts from moving services in your area. If you’re a student or a member of the military you may qualify as well. If your company doesn’t offer any discounts, don’t be afraid to shop around and find one that does.

Check for Reviews: Look online or ask around in your area to find reviews and word-of-mouth recommendations that may help you choose the right moving company. A company with a lot of great reviews is always going to be a better choice than one that doesn’t have anyone talking about it.

Ask About Insurance: Most moving companies will offer their own insurance plans or contracts that specify what will happen if some of your belongings are damaged or go missing during the move. If yours doesn’t, ask about this right away. And if they don’t offer any information about potential insurance, then you should choose a different company. It’s up to you whether or not you want to pay for additional insurance for your belongings during a move, but you should always have that option. You may also want to call your own insurance company to ask about this possibility too.

Understand The Details of the Contract: Last but not least, always ask for the details of any moving company contract. Be sure you understand who will be at fault if anything goes wrong, and make sure you understand the fees completely before you sign. Always get the fees in writing, too, so that they cannot be changed after the move has taken place. Find out, too, how you’ll receive payment or compensation if you use the company’s insurance and something from your belongings is damaged or goes missing.

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Challenges To Overcome When Buying a Home

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Scottsdale Home photoPurchasing a home can be a stressful experience, whether you’ve been through the process before or not. However, you may not realize the many different legal issues you might want to keep in mind when you get ready to purchase a home. There are a lot of potential scenarios and problems you may encounter during the process of buying your home, so it pays to know a little bit about the possibilities before you ever make your first offer.

Required Home Inspections

Understand that you are required by law to have a home inspection performed before you can purchase a home. Your seller should understand this as well, but always pay close attention to ensure that this crucial and legal step in the buying process is getting taken care of. Depending on the type of contract and mortgage you’re working with, you may be able to add a clause that states you can withdraw your offer if the home inspection turns up anything too significant, such as foundation or roof damage.

Backing Out on a Rent to Own

Unfortunately, buying a rent to own home is challenging from a legal perspective. The contract must be drawn up in a specific way to ensure that your seller cannot back out from this agreement. Otherwise, you may find yourself renting for years only to find that the seller decides to sell to someone else in the end.

Paying Property Taxes

Property taxes are a part of buying a home that many first-time homebuyers don’t know about or forget about altogether. You should always be prepared to pay your property tax bill when it’s due. If you don’t, you’ll run the risk of having your home repossessed, so make sure you have plenty of extra funds set aside to take care of this crucial payment before you ever purchase your home in the first place.

Problems After Moving In

Moving into your new home and finding that it’s not everything you thought it was can be disheartening. If the problems that arise specifically have something to do with the contract, you may be able to pursue legal action to get the previous owner to help pay for the repairs, as this could fall into the category of false advertising of the home. However, in most situations, you’ll be responsible for paying for these repairs. If the included refrigerator that came with your home goes out the next day, for example, this is the responsibility of the buyer and not the seller. It is always recommended that yo obtain a home warranty policy, at least for the first year of residence.

Key to a successful transaction and positive home buying experience is choosing an experienced, diligent realtor who will look out for your best interest.  We are local area experts, contact us if you are considering purchasing a home.

 

Imperative Home Inspection Repairs

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estate gate photoMost home inspection will reveal a list of things that need repairs and/or replacements and this is where the second round of negotiations begin.  If you are not buying a brand new home, the home will most likely need some cosmetic touches but this is not where your focus should be. Sellers are usually willing to at least make some changes or improvements to the condition of a home before they sell it, and as long as you feel like you’ve got some bargaining power in terms of your offer, it’s a good idea to see if the seller will take care of at least a few of the problems that your home inspection has shown. Below, you’ll find a list of some of the most common issues you should ask about.

Infestations: Whether you’re talking about termites, rats, bats, squirrels, or any number of other creatures or insects that could be infesting a home, if your home inspection returns results of any type of infestation or pest problem, you can request that the seller take care of this before the home is sold. Although some sellers will be unwilling to do so, most will realize that they probably won’t be able to sell the home until this problem is resolved anyway.

Mold or water damage:  Mold and water damage are both major issues that your seller should be willing to fix before the home is sold. Some types of mold are much more dangerous than others, and if possible, it may be a good idea to find out if the mold in the home is of a dangerous variety or not. Either way, it’s best if you can talk the seller into repairing any water leaks or cleaning up any mold before you sign.

Structural issues:  If the roof or foundation of the home are seriously damaged, you can request that the seller fix these problems before you buy. In some cases, if a home inspection turns up these kinds of problems, the seller may choose to re-list the home on an as-is basis instead, rather than having to fix the structural problems going on. Some sellers, however, will be happy to fix the problems before they sell.

Lead paint and radon levels:  If a home inspection shows high levels of radon or lead paint present in any part of your home, your seller should be notified and you should absolutely request that this be resolved. Although sellers are not required by law to fix either of these problems, they are required to disclose lead paint if they know about it beforehand. Many sellers don’t realize their home has lead paint, and most are willing to take care of it when a home inspection shows that is is present. Radon mitigation is almost always something the seller will need to cover before a home can be sold.

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Requests To Avoid From Your Home Inspection

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pool photoWhen it’s time for you to buy a home, you probably already know you’ve got a home inspection coming up in the near future. It’s very important to get a home inspection done before you finalize anything in the home buying process, but just because the inspection turns up some problems, that doesn’t mean you have to rely on the seller to solve all of them. Check out the list below to help you figure out which home inspection issues you can take care of yourself instead of risking losing the home of your dreams by asking the seller to do it for you.

Cosmetic issues in the home or yard:  No home is going to look perfect when you buy it, especially if it’s been lived in previously. It’s unrealistic to expect the seller to take care of cosmetic problems, especially if those problems are subjective. Even if it’s something everyone agrees on, such as paint that’s chipping badly on the exterior of the home, plan to take care of this yourself.

Removal of external buildings:  If you buy a home that has sheds other small external buildings on the property, you usually shouldn’t talk to the seller about removing them before you buy. In some cases, the seller will be fine with it, but in a seller’s market it’s usually best to assume you’ll need to take care of this on your own.

Outlets that don’t work:  There are usually outlets in older homes that don’t work, but this is something you can take care of yourself after you purchase the home. This isn’t something to get hung up on when you’re trying to make a deal with the seller, especially since it’s a low-cost fix.

Concrete floor cracks:  Cracks in concrete floors or sidewalks are to be expected, especially if you’re looking at an older property. As long as there are no cracks in the walls, you should have no issues going on if you see concrete floor cracks. Always have a home inspection to determine if there are any structural issues you need to know about.

Repairs under $100:  Even a home that’s only a few months old probably has something going on that could stand to be fixed or upgraded, but if you’re trying to get your seller to take care of little things under $100 per repair, try taking a step back. Think of it from the seller’s perspective. Would you want to deal with a buyer who is making a lot of unnecessary requests before signing?

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What to Consider when Buying a Home for Children

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community park photoBuying a home for adults is a little bit different than buying a home with kids in mind, and when it comes to choosing the perfect home for the younger members of your family, there are a few things you need to keep in mind. While there are plenty of aspects to consider when purchasing your home, whether it’s your first time or you’ve been through the process before, the following hints should help you narrow down your choices a little more easily based on the needs of your kids.

School District:  It probably goes without saying, but one of the most important factors in choosing a good home for children is the school district in which the home is located. You will want to do a lot of research about the schools your child or children will be attending if you purchase a specific home. You’ll probably want to spend some time looking into this before you ever even put in an offer, but know that you’ll need to work quickly to avoid the home you’re interested in being purchased before you have a chance to research the area.

Safe Location:  Is the home in a safe location with walkable streets? Are their clear, well-kept sidewalks in the area, or would your children potentially have to walk in the road if they go outside in your area? Are there parks within walking distance? Is the home on a busy road, or is it in a pretty quiet neighborhood? Are there businesses in the area, and if so, are they safe and family-friendly businesses? There’s a lot to think about when it comes to the location of your potential new home, so take your time and check out the area.

Backyard:  Kids and adults both are sure to be interested in homes that have larger backyards, and if you’re a parent hoping to ensure the safety of your children, a fenced backyard is always the way to go. Even in a safe neighborhood, it’s safer to let your children play in a fenced backyard than in a front yard, so you’ll want to choose a home that is either already fenced or can easily be fenced shortly after you move in.

Stairs or No Stairs?  The decision to buy a home with or without stairs largely depends on the age of your children and whether or not you plan to have any more. Of course plans can always change, but if your children are old enough to walk up and down stairs without risking a fall and you aren’t planning on having anymore, then a home with stairs should be fine. However, if you have toddlers and babies in your family, you may want to choose a home without stairs for safety purposes.

We are local area real estate experts in the east valley .  Click here to learn about neighborhoods and view homes for sale listings. 

Five Things to Consider when Buying a Foreclosure

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Scottsdale home photoBuying a foreclosure isn’t the same as buying any other type of home, and it comes with its own challenges and hurdles you might encounter during the process. With that said, however, it doesn’t have to be as complicated as it might sound, and with the right information to back you up, you should be able to work through the process successfully. Check out the list of tips below to give you a few things to consider when you’re thinking about buying a foreclosure, whether this the first time you’ll be going this route or you’ve done it before.

  1. You will not be able to negotiate:  Most of the time, the bank is the one selling a foreclosed home. Because the home is owned by the bank and they want to make back what they can as quickly as possible on it, they aren’t going to be interested in negotiating with you on the price. Every now and then, you may be able to get a slight reduction in the price, especially if the home has been on the market for a long time. However, for the most part, you should expect to pay the asking price for a foreclosed home.
  2. You’ll be buying your home as-is: For many of the same reasons why the bank is going to be uninterested in haggling with you on the price of the home, they’re also not going to want to make any repairs to it before you purchase it. They simply want to sell it as-is, which means you’ll need to be okay with the condition of the home before you ever purchase it. That’s not to say you should skip having a home inspection done before you finalize everything, but keep in mind that this inspection is mostly going to be for your own benefit and you won’t be able to request any changes based on its findings.
  3. You’ll need a pre approval letter from your lender before you can buy:  Whether you’re borrowing from your bank or from another lender, the bank selling the foreclosure is going to want to see proof that you’ve been approved for a loan before you can finalize the buying process. Basically, they don’t want to end up selling the home to someone who can’t afford it, and they also don’t want to waste time trying to sell it only to find out, in the end, that you can’t buy it for one reason or another.
  4. You probably want to work with an agent who understands foreclosures:  Unless you’ve already been through the process of buying a foreclosure in the past and feel pretty confident about it, you need to work with a real estate agent who knows what they’re doing. An agent with experience in foreclosures will know all about the ins and outs of the process and will be able to help you streamline it as effectively as possible. You’ll be much more likely to be successful with your purchase when you go through an experienced agent.

The housing market is hot this year and there may not be many foreclosed homes on the market.  We are local area experts in Scottsdale and Paradise Valley are.  We can find a home that meets your need and budget.

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