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Know the Hidden Costs of New Construction

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Buying new construction can seem like a good way to avoid a lot of the headaches that come with older homes. With things built to your specifications and brand new everything, you’ll pay a lot less in decor and maintenance costs. But new builds do have some hidden costs that could end up putting a big dent in your wallet.

Here’s what you need to know:

1. Understand that the model home is like the top trim package on a car–it has all of the upgrades. And those upgrades probably cost thousands of dollars. When you tour the model home, pay attention to the things that will definitely be in your house like the layout.

2. Know what’s included in the base model. Some base models come with appliances and all of your home necessities included while others come with just the bones of the house. It depends on the builder, but you need to know exactly what you’re walking into.

3. Read the warranty. Not all builder warranties are the same, and they will cover different things. Make sure you understand what will and won’t be covered so you aren’t surprised down the line.

4. Use your own agent. The agents working at the new construction are the builder’s agents–not yours. That means they work to get the builder the best deal possible, even at your expense. Protect yourself and get a fair deal by hiring your own buyer’s agent.

If you’re looking for an agent to make sure you get the best deal while buying new construction, just send give us a call! Chris 480-754-9077 & Cheryl 480-754-9477

new construction

3 Expert Tips on Making the Most of a Favorable Market

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Good news: whether you’re thinking about buying or selling, there is still plenty of time to take advantage of the low-interest rates and high buyer demand. While sellers are positioned slightly better than buyers with the demand for homes higher than the supply, there are still some complexities involved in getting to the closing table. Here are a few things that we want you to keep in mind to help you make the most of the real estate market, whether you’re entering it as a buyer or seller:

1-Start the process as early as you can to allow for the unpredictable. For buyers, that means having a pre-approval letter in hand before you start house hunting. For sellers, be sure to meet with a real estate agent a few months before you want to sell so that you can develop a game plan.

2-Speaking of game plans, it’s important to have one if you’re buying or selling. If you’re buying a new home, decide what you are willing to compromise on. If a backyard, garage, and fireplace are non-negotiable, will you settle for a smaller kitchen and no extra bedroom? If you want to sell your home and buy a new one, remember that the market is competitive for buyers. I’ve seen home sellers list their homes, only to be unable to find a new one. Do you have a contingency plan in mind, whether it’s a short-term rental or staying with family?

3-Finally, think about what you will do if you find yourself in a multiple offer situation. As a buyer, are you comfortable offering over asking? Including an escalation clause? How much earnest money are you prepared to offer? As a seller, think about whether you’re going to take the highest offer or if you’ll consider other benefits like a fast closing or lease-back until you find a new home?

These are all questions we can help you answer during our initial consultation. If you’d like to start planning your real estate goals, give us a call! Chris 480-754-9077 & Cheryl 480-754-9477

Why are Assessed Value and Market Value Different?

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It’s important to understand what your home is worth when you are considering selling. Knowing the value of your home gives you an idea of how much you could list your home for. It also plays a part in determining how much property tax you’ll be required to pay. There are different valuations of a home’s worth and you should understand the difference between market value and assessed value.

Assessed value puts market value in the context of property taxes and is based on the laws of the state or county in which you live. The assessed value is calculated as a percentage of the market value of the property. The assessed value is determined by an assessor’s office. Some offices have databases open to the public for you to see the history of your property, as well as what information what factored into its assessment.

Market value is used to determine how much a buyer would be willing to pay for your home. An appraiser determines the market value and is usually hired by your lender. Market value is a vital tool in helping to decide what price to list a property for. Often sellers want to list based on what they feel a buyer should want to pay. However, it is better to list a property based on current market conditions. Market value is based on recent sales of similar homes in the area, along with other factors.

Have more questions about your home’s value? Feel free to send us your questions!  We are always willing to answer any of your questions so that you can feel comfortable with the home buying or selling process! Contact Us

Click here to get your FREE home value estimate!

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5 Benefits of Homeownership

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Owning a home is often referred to as the “American Dream.”  While there are many obvious benefits of owning a home, there are also some that are not so obvious.

1-Stable Monthly Payments

If you choose a fixed rate mortgage, then your monthly payments will remain mostly the same, which is one of the best benefits of owning a home. When renting a property, there is always the unknown if the monthly payments will increase each year when you renew your lease. Consistent monthly payments that come with owning a home can provide some peace of mind when it comes to creating a monthly budget. Of course, monthly payments can change when owning a home if property taxes or homeowners insurance change, but the amount of change in property taxes is typically a very small amount.

2-Opportunity to Build Equity

The longer that you own a home, the more you pay towards the principle balance of your mortagae.  As the balance of the mortgage lowers, and hopefully the value of the property increases, the larger the equity!

3-Cheaper Than Renting Overtime

Undoubtedly, there are many associated when buying a home, such as the down payment, appraisal fee, and homeowners insurance.  The upfront cost to buy a home is substantially more than just paying monthly rent to a landlord. Yet, over time, owning a home is cheaper than renting which is a great benefit. In Arizona, if you compare a rental property and the monthly mortgage of a comparable home, the cost of ownership is typically much less.

4-Owning a Home Provides Tax Advantages

Paying taxes is a necessary evil, but a great benefit of owning a home are the tax advantages that it provides.  Arguably the biggest tax advantage of owning a home is the option to deduct paid monthly interest from your tax returns. If you’re unsure how owning a home will impact your taxes, it’s recommended that you discuss it with your accountant so you fully understand how owning real estate will impact you come tax season.

5-Build Your Credit

There are many factors that impact a persons credit score, one of the most important being the length of credit history.  Since the length of a mortgage is typically 15 or 30 years, having a mortgage on your credit history is a great way to lengthen the average of your credit accounts.  In addition to improving the average length of credit accounts, each and every month that a mortgage is paid on-time it shows that you’re a responsible borrower which not only can improve a credit score but also improves the chance of approval for future credit accounts.

Owning a home is much more than just having a place to live. Give us a call when you’re ready to become a homeowner! Chris 480-754-9077 & Cheryl 480-754-9477

Homebuying During Covid-19

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With mortgage rates at all-time lows and an uncertain future due to the current Covid-19 pandemic, is now a good time to buy a home? It may feel contradictory to purchase a home at this time, however, for people who feel confident about their job security and finances, this might be the perfect time to buy.

Why Making the Move Now May Be Right for You

House hunting during the coronavirus can have its benefits. There may be less competition for the houses in the areas where you might be planning to move, and sellers may be more motivated to sell or more flexible on price. Once the crisis passes, there may be more house hunters back on the market and prices may escalate due to a more competitive market that benefits sellers rather than buyers, so taking a few steps forward now will put you ahead of the game.

Get Preapproved for a Mortgage

When you do find the home of your dreams, being preapproved for a mortgage proves to the seller you are serious. It’s possible to get preapproved online through some banks. Mortgage preapproval is a letter from a lender that indicates how much you are qualified to borrow from the lender, at a specific interest rate.

Use This Time to Research the Market

Despite the decrease in the number of newly-listed homes, there are still excellent options in property listings. This is a time to research the market and find your preferred property in a community you like. Take this time to expand your search to other surrounding neighborhoods that might have homes with excellent value for money, amenities, and facilities.

As you spend more time at home, it’s an opportunity to assess your current home and determine the level of functionality and comfort it offers you. That helps in knowing your priorities when searching and, consequently buying a home.

Virtual Home Viewing

Many real estate agents post virtual tours of properties for sale on their websites. When you take a virtual tour or attend a virtual open house, you can get a realistic view of the property. Then, with a click of the mouse, you can see all the details that are important to you. In addition, by touring homes virtually, you can see many more than would be possible in a single day with your real estate agent.

Prepare Your Home For Sale

While entertainment, sports, and other social events are canceled, take advantage of this while to prep your current home for the market. Preparation may include anything from mowing the lawn, exterior repairs, tidying the gutters, and decluttering the interior.

Start with a DIY approach to reduce expenses before calling the professionals. Do an online home improvement search to note the additional décor that can enhance the visual appeal of the home.

Do you have questions if now is the right time for you to buy? Call us today, we’d love to help answer all your questions and find your new home when the time is right for you! Chris 480-754-9077 & Cheryl 480-754-9477

Showing Homes During the Coronavirus

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hand sanitizerThe Coronavirus is having a mixed impact on the housing market. It may be decreasing buyer traffic, yet it’s also not deterring some home buyers and sellers from taking advantage of the lowest mortgage rates in history.

To help keep our buyers and sellers healthy during this unprecedented pandemic, we have adjusted and added some procedures when showing homes:

-All of our open houses have been suspended. For now we will only doing private showings of homes to one person (or couple).
-While we am only doing private showings, we will ask buyers to meet us at each home instead of driving with them.
-We will do our best to arrive before each showing to open doors and windows to minimize door knob touching and allow fresh air inside. we will also sanitize door knobs, counters and other high traffic touch areas before and after each showing.
-Additionally, we will have hand sanitizer and gloves, or ask clients to place their hands in their pockets as they tour the home.
-We will also be using video chats for virtual tours and walkthroughs so our clients can social distance themselves by while still allowing them to see new homes.

Please don’t hesitate to reach out to us with any questions you have about how the Coronavirus/Covid-19 may be affecting the Arizona real estate market. Chris 480-754-9077 & Cheryl 480-754-9477

Getting Ready to Show Your Home

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kitchenYour home has been prepped and is ready for listing in the MLS. Now what? There are some steps that will make it easy to get ready for all of those showings that will be coming your way.

First, maximize all of the light in your home by turning on all of the lights in your home and open all of the curtains and blinds on your windows. Buyers love to see bright, well-lit homes, and these quick steps will show off your beautiful home.

Second, highlight your curb appeal in your back and front yard. Do a quick sweep of your front entryway, and turn on any water features you may have to show off your pool and/or spa. This will help the buyer visualize how they can enjoy these spaces.

Third, do a clean sweep throughout your home to remove clutter from floors and countertops. Buyers want to be able to envision themselves in the spaces in your home, so removing distractions of your personal items is the best way to facilitate this. Keep a basket handy before showings to corral any clutter quickly and to stash in a closet.

Lastly, do a quick wipe of your bathroom counters, toilets and mirrors to make these areas sparkle. Again, the goal is to have buyers imagine living in your home, so keeping these personal areas sparkling clean will go a long way toward this goal.

Want more tips to maximize showings? Contact us to find how much your home is worth and for more tips to help sell your house fast for top dollar! Chris 480-754-9077 & Cheryl 480-754-9477

Get An Offer On Your Home

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Would you like an offer on your home and skip the headaches and hassles of selling traditionally.

Companies are ready to make a very competitive offer on your home. They buy it, turn it around, and sell 30-90 days to the public for a tiny profit.

You get convenience and speed in return.

This means:

  • Close quickly, get equity from your home in as little as 7 days
  • Multiple competitive offers – fast
  • You pick your closing date
  • No showings or open houses
  • No negotiating with buyers
  • Skip the cost, time and (in some cases) embarrassment of getting your home market ready
  • Freedom to move on your timeline
  • No strangers and REALTORS® walking through your home
  • No risk of two mortgage payments

We know companies who will buy your home directly at a fair price. We will negotiate all offers for you so you get the best price and terms. Your offer is competitive. These are not “sharks” who buy your home for 50% of it’s value. You get solid offers and a real listing valuation within 24 hours of us viewing your home. We’ll help you break down your options in a side by side comparison and see which works best for your unique situation.

Contact us and we’ll be in touch to price your home, get photos taken, and submit it to the companies who will buy it from you hassle-free!

Phoenix/Scottsdale Real Estate Market June Update – May 2019 Stats

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Here is the Phoenix/Scottsdale area Monthly Real Estate Market Report for June 2019, which shows 10,485 homes sold in the month of May compared to 10,0097 homes in May 2018. This is a 3.8% increase in the number homes sold year over year, and an increase of 7.8% from last month! It is the most homes sold in a the last 5+ years, and the market remains strong with the average sale price is up 4.7% year over year. And the amount of listed homes is up by 2.4% to 16,628 from 16,245 in May 2018, but down from 17,724 in April.

Demand is still gaining strength into Summer and the market is expected to remain strong. Sales activity may still be constrained by the lower supply of listed homes but the number of listed homes has come down a bit again. The average days on market is down 4.7% from last month to just 60 days.

Click here to see the full April 2019 Market Report & Statistics

Give us a call or text us at 480-754-9477 or 480-754-9077 and let us know if you’re thinking about buying or selling a home this Spring/Summer, as the strong market continues to be good for both buyers and sellers, or if you have questions about this information. And don’t forget to explore our website AzDreamHomesScottsdale.com to see Scottsdale area homes and more helpful articles. – Chris & Cheryl Park

Scottsdale is #1 Profitable City for Airbnb

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Realtor.com has ranked Scottsdale as the #1 profitable city to own an Airbnb! This is no surprise to us since the City of Scottsdale has long been a popular destination for families and American corporate elites looking for a vacation getaway filled with golf, hiking and outdoor adventures.

With the growing popularity of short term rentals across the country, many cities have created tighter rules or banned Airbnb rentals altogether. Yet, Arizona has gone in the opposite direction. In 2016, Arizona signed a law that prevents cities from banning short-term rentals. Arizona’s legal protection combined with vacation rental demand, makes Scottsdale the perfect place for real estate rental investors.

Scottsdale Residential Real Estate-
Median list price: $685,100
Average daily rate: $301
Occupancy rate: 81%
Active rentals: 5,178

With our years of experience in Scottsdale real estate, we are prepared to find your next profitable investment property! Chris 480-754-9077 & Cheryl 480-754-9477

www.Realtor.com