Archive for the ‘First Time Scottsdale Home Buyers’ Category

Federal Recession Aid-Get It While You Can

Friday, December 18th, 2009

 

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Time is running out to take advantage of some of the government programs set up to help consumers during the economic meltdown.

Among them are programs meant to shore up the credit markets, which allow for more available credit and lower interest rates on loans for homes and automobiles, as well as tax benefits to entice consumers to buy that new house or car

 

Real Estate

Mortgage-Backed Securities Purchase Program. This Federal Reserve program is slated to end in March. Since its implementation in January — and expansion in March — of this year, the Fed has been buying up mortgage-backed securities from Fannie Mae, Freddie Mac and Ginnie Mae in an effort to keep the mortgage-securities markets afloat. By the program’s scheduled end, a total of $1.25 trillion in mortgage-backed securities is expected to be acquired.

The upshot for consumers has been mortgage interest rates at or near historic lows, says Paul Ballew, senior vice president, customer insights and analytics for Nationwide, an insurance and financial-services firm.

Once the program ends, however, rates most likely will rise, says Keith Gumbinger, vice president at mortgage-education firm HSH Associates.

The question is, how much?

“By our reckoning, rates are about three quarters of a percentage point lower with the Fed’s program,” Mr. Gumbinger says. “Not that we expect interest rates to go screaming off into the night, but rates half or a full percentage point above where they are now isn’t unthinkable” once the program ends.

A one-percentage-point rise could add more than $150 to a monthly mortgage payment for a $250,000 30-year fixed-rate loan.

For homeowners thinking about refinancing, it’s probably best to act now. After the program ends, “there will be more uncertainties in the marketplace than there are now,” Mr. Gumbinger says. “Rates may be affected and the availability of credit might be affected.”

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Home Affordable Refinancing Program (HARP). HARP, part of the Making Home Affordable initiative, is slated to end in June. It assists homeowners with little or no equity in their homes, who otherwise wouldn’t qualify for refinancing, to refinance their mortgages backed by Fannie Mae and Freddie Mac. HARP is aimed at homeowners whose houses have lost value and who now have a mortgage that’s higher than the house’s value.

Homeowners who qualify for HARP should take advantage of the program before it ends because later on they might not be able to qualify for a refinance without it, says Greg McBride, a senior financial analyst for personal-finance site Bankrate.com.

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Home-Buyer Tax Credit. Consumers also have less than five months to take advantage of the home-buyer tax credit, which originally was part of about $288 billion in tax benefits in the $787 billion economic stimulus package. The credit has been extended — and expanded — through June 2010, though you must have a contract in place by April.

First-time homebuyers get a tax credit of up to $8,000, while existing homeowners may qualify for up to a $6,500 credit if they’ve lived in the same home for five consecutive years in the eight-year period ending on the date of the new home purchase. It must be a primary residence.

You’ll need to show proof of purchase and income limits apply. See the Internal Revenue Service Web site, www.irs.gov, for more information.

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Term Asset-Backed Securities Loan Facility (TALF). Slated to start winding down in March, TALF is a loan program meant to help thaw credit markets. Investors were reluctant or unable to buy loans from lenders, and lenders that didn’t want to keep those loans on their own books stopped making loans.

TALF was “designed to provide financing so that those transactions could take place,” says Mr. McBride. “Investors could buy those loans, lenders could sell those loans and then pump more money back into additional loans.”

Consumers have been seeing TALF’s effect on their ability to get auto loans and on interest rates, says Karen Dynan, vice president and co-director of the Economic Studies program at the Brookings Institution.

According to Federal Reserve data, the average rate for an auto loan from auto finance companies was 6.41% in October 2008. Over 2009, however, rates have come down significantly, with an average rate of 3.42% in October.

If the program ends in March, there’s a chance rates could go up, Ms. Dynan says.

Mr. McBride says if the markets are in working order when TALF ends, there shouldn’t be a spike in interest rates. But a hiccup in the credit markets could cause them to tighten up again, which could cause rates to rise again in the absence of TALF.

Sales-Tax Deduction for New Vehicle Purchases. There are only a few weeks left to take advantage of a tax deduction meant to entice would-be car buyers.

You can deduct state and local sales and excise taxes on your 2009 tax return for up to the first $49,500 of the price of a new car, light truck, motor home or motorcycle. The eligible vehicle must be purchased between Feb. 17 and Dec. 31, 2009, and there are income limits.

“If you’re on the fence about…buying a car, this is a good time to go ahead and do it” because you could save hundreds of dollars on your taxes, says Nick Rizzi, CEO of tax-preparation firm Smart Tax.

As you can see from the information posted above, the Federal Government is trying to stimulate the economy and keep us out of further banking problems…….we may not fully support some of these programs, but we have seen a significant increase in housing sales this year which should hopefully start us back to a road of recovery in the metro Scottsdale/Phoenix marketplace. 

So if you are a First Time Home Buyer, we would welcome the opportunity to assist you with your home purchase and help you receive a hefty tax credit in the process.  Give us a call anytime at 602-620-2164 and we can start the process immediately.

Until next time, hope you enjoy the post.

 

Stephen & Alice Proski

 

 

 

Posted in First Time Scottsdale Home Buyers, General, Home Buyers, Scottsdale Real Estate News | 3 Comments »

Good Time To Buy A Condo!

Monday, December 14th, 2009

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The Federal Housing Administration puts its long-awaited new financing rules for condominium units into operation last week — immediately affecting sales in hundreds of condo projects across the country.

 

Among the key make-or-break rules that condo marketers, buyers, lender and realty agents now need to know about are the following:

FHA won’t insure mortgages in buildings or complexes where less than 30 percent of the units haven’t already been sold.

At least 50 percent of the units in a project must be owner-occupied or sold to purchasers who intend to occupy them.

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No individual owner or investor can hold title to more than 10 percent of the units in the entire project.

No more than 25 percent of the square footage of a condo project can be non-residential — in other words, used for commercial purposes.

No more than 50 percent of the units can have FHA insured financing on them. FHA doesn’t want to “concentrate its risk” in any single project.

No more than 15 percent of the units in a project can be 30 days or more delinquent on their monthly payments to the condo association.

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Although some developers and in urban areas welcomed the new rules, industry critics say they will actually curtail the availability of low down payment FHA financing for many individual buyers. Others say some of the percentage thresholds are off the mark.

 

 

For example, we recently lost two of our sales in a condo development project because there were too many renters and not enough owner occupied units to meet the FHA requirements.   The developer needed cash flow so they decided to lease a large majority of their condo units rather than wait for sales and closing.

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Andrew Fortin, vice president for government affairs at the Community Associations Institute, which represents condominium, cooperative and planned unit developments across the country, told Realty Times that the 25 percent commercial-use cutoff is “problematic” because many projects have been designed for “mixed use” in urban areas.

Fortin’s group also is critical of the new 15 percent delinquency ratio on association dues. Not only is a 30-day delinquency measure “a very arbitrary standard,” he said, but it’s also not a good indicator of the association’s underlying financial health.

The bottom line is this, since the decline to the market and the overwhelming number of apartment complexes that tried to go condo- conversion, it has been hard to get FHA financing for a number of condo projects in the metro Scottsdale/Phoenix area. This new change that was just implemented last week, will significantly help with our future condo sales and hopefully make that segment of our market more desirable.

 

Until next post, have a good one,

 

Life is Good!

 

 

Stephen and Alice

 

p.s. Don’t forget to head over and take a look at our home away from home:  www.myhomeinscottsdale.com website for anything you need related to buying or selling your home!  Enjoy.

Posted in First Time Scottsdale Home Buyers, Home Buyers, Local Market Conditions, Scottsdale Real Estate News | 1 Comment »

Phoenix Real Estate Bust to Boom!

Monday, May 18th, 2009

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More homes are selling than at any time since 2006. Buyers find themselves in bidding wars over low-end properties. It’s what a national housing recovery could look like reports Nicolas Riccardi of the Los Angeles Times on May 18, 2009.

“After four years of renting because they were priced out of the real estate market, Jamia Jenkins and Scott Renshaw concluded the time had arrived for them to buy.

They saw that home prices had dropped so fast here — faster than in any other big city in the nation — that mortgage payments would be less than the $900 they paid in rent. The city is littered with foreclosed houses, so the couple figured they could easily snatch up something in the low $100,000s.”

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Three months later, they’re still looking.

They have submitted 13 offers and been overbid each time.

“It’s just pathetic,” said Jenkins, 53. “Investors are going out there and outbidding everyone.”

Phoenix’s housing bust has turned into a quasi-boom, a sign that its market may have hit bottom and a sneak preview of what a national housing recovery could look like.

More homes are selling than at any time since 2006. Prices are slowly stabilizing. Buyers are once again finding themselves in frantic bidding wars — only this time over foreclosed houses selling at deep discounts rather than ranch homes listing for vast sums.

Home prices continue to plummet or tread water in much of the nation, but there have been tentative signs of life. Pending home sales rose 3.2% nationally in April, the second month of increases after a record low in January.

John Burns Real Estate Consulting in February identified Phoenix as “the most unique market in the nation,” where affordability was better than at any time since 1981 and buying a house was once again cheaper than renting.

Phoenix experienced one of the most dramatic real estate crashes in the nation. Median home prices for resold homes peaked at $268,000 in June 2006. Now the median price is $120,000. It is the biggest decline in the top 20 metropolitan areas tracked by the Standard & Poor’s/Case-Shiller home price index.

The collapse was devastating in a city that has long depended on housing to power its economy. In the last year, Phoenix lost 41,000 construction jobs and 136,000 overall, accounting for 7% of its workforce.

Until March. For the first time in two years, the decline in home prices slowed — from 37% in February, compared to the previous year, to a still-painful 36%.

Arizona State University business professor Karl Gunterman noted the incremental slowing in a report last month, saying it could be signs of the market bottoming out.

“Once this thing turns, it may turn slowly,” Gunterman said in an interview. “But at some point I think it’s going to pick up because prices are so low.”

Mike Orr, a Phoenix real estate analyst, thinks the market already has hit bottom. Among the signs: As recently as January, a year’s worth of homes sat on the market; in March, that dropped to seven months’ worth of inventory.

“It’s a dramatic change in just three months,” he said. “I never imagined it’d get this crazy this quickly.”

To read more about this article, please click on the link below.

http://www.latimes.com/news/nationworld/nation/la-na-phoenix18-2009may18,0,7979477.story

Over the past 4 months we have seen this same scenario play out time and time again with both buyers and sellers. We’ve not seen bidding wars like this since 2005.

With the state of the economy, and the constant bombardment of negative press with our local media, buyers still seem to be reluctant to make a move waiting for someone other than a real estate professional to tell them its okay to buy a home again. With low interest rates, and First Time Home Buyer incentives, if one waits too long to buy a home, they could be facing multiple offers, bidding wars and overpaying for their dream home.

If you just think about it, at 5% interest and a $100,000.00 purchase price, your mortgage would only be $500.00 per month not counting taxes and property insurance. You can not find a good apartment in the area at that price so why not get in before everyone figures this out and prices go up and your buying power goes down?

If your waiting for the bottom of the market to hit, you may not want to wait much longer. Having assisted hundreds of buyers and sellers reach their real estate goals, we would be happy to assist you with your home purchase. Give us a call at 866-620-2164 Toll Free Direct or send us an email at office@myhomeinscottsdale.com and we would welcome the opportunity to represent you!

Life is Good!

Stephen & Alice Proski

ps. p.s. Be sure to leave your comments and/or questions below. Just click the “Comment” link and a box will appear….because, for sure some else has the same question and then everyone can benefit from the answer that we will respond back to you! Thanks

Posted in First Time Scottsdale Home Buyers, Home Buyers, Investment, Local Market Conditions | No Comments »

First Time Home Buyer Tax In$entive!

Saturday, April 11th, 2009

Congress Enacts Bigger and Better

Home Buyer Tax Credit

A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid!

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So now is the perfect time to purchase your first home. Inventory is high, prices are down, rates are down……..you could not be in a more opportunist time than NOW.

Common Questions for First Time Home Buyers:

1. Why should I buy, instead of renting?

Answer: A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you’ll enjoy having something that’s all yours – a home where your own personal style will tell the world who you are.

2. What are “HUD homes,” and are they a good deal?

Answer: HUD homes can be a very good deal. When someone with a HUD insured mortgage can’t meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then the home is sold at market value as quickly as possible. Read all about buying a HUD home at www.hud.gov

3. Can I become a homebuyer even if I have I’ve had bad credit, and don’t have much for a down-payment?

Answer: You may be a good candidate for one of the federal mortgage programs. Start by contacting one of the HUD-funded housing counseling agencies that can help you sort through your options. Also, we would be happy to refer you to one of our FHA approved lenders.

4. Are there any special homeownership grants or programs for singles?

Answer: There is help available. Start by becoming familiar with the home buying process and we would recommend you work with a real estate professional like us who can guide every step of the way.

Although as a single parent, you won’t have the benefit of two incomes on which to qualify for a loan, consider getting pre-qualified, so that when you find a house you like in your price range you won’t have the delay of trying to get qualified.

5. Should I use a real estate broker? How do I find one?

Answer: Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier.

As full time real estate professionals who have served our clients for more than 15 years, we promise not to let you down and help you every step of the way to make your home buying experience fun and enjoyable.

By the way, if you want to buy a HUD home, you will be required to use a real estate broker to submit your bid. We are certified via HUD to represent you.

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6. How much money will I have to come up with to buy a home?

Answer: Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money – the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.

When you make an offer on a home, the earnest money will be placed into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 – $2,000.

The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That’s why many first-time homebuyers turn to HUD’s FHA for help. FHA loans require only 3% down – and sometimes less.

Closing costs – which you will pay at settlement – average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won’t be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs.

7. How do I know if I can get a loan?

Answer: Use our simple mortgage calculators to see how much mortgage you could pay – that’s a good start. If the amount you can afford is significantly less than the cost of homes that interest you, then you might want to wait awhile longer. But before you give up, let us refer to one of our mortgage professionals. They will help you evaluate your loan potential. Another good idea is to get pre-qualified for a loan.

That means you go to a lender and apply for a mortgage before you actually start looking for a home. Then you’ll know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams.

8. In addition to the mortgage payment, what other costs do I need to consider?

Answer: Well, of course you’ll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. We can help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You’ll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, we will help with obtain this necessary information.

9. So what will my mortgage cover?

Answer: Most loans have 4 parts: principal: the repayment of the amount you actually borrowed; interest: payment to the lender for the money you’ve borrowed; homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year. Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you’ll pay far more in interest than you will in principal – sometimes two or three times more! Because of the way loans are structured, in the first years you’ll be paying mostly interest in your monthly payments. In the final years, you’ll be paying mostly principal.

10. What do I need to take with me when I apply for a mortgage?

Answer: Good question! If you have everything with you when you visit your lender, you’ll save a good deal of time. You should have: 1) social security numbers for both your and your spouse, if both of you are applying for the loan; 2) copies of your checking and savings account statements for the past 6 months; 3) evidence of any other assets like bonds or stocks; 4) a recent paycheck stub detailing your earnings; 5) a list of all credit card accounts and the approximate monthly amounts owed on each; 6) a list of account numbers and balances due on outstanding loans, such as car loans; 7) copies of your last 2 years’ income tax statements; and the name and address of someone who can verify your employment.

Depending on your lender, you may be asked for other information.

11. I know there are lots of types of mortgages – how do I know which one is best for me?

Answer: You’re right – there are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it. Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index.

The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower. There are several government mortgage programs,including the Veteran’s Administration’s programs and the Department of Agriculture’s programs.

Most people have heard of FHA mortgages. FHA doesn’t actually make loans. Instead, it insures loans so that if buyers default for some reason, the lenders will get their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan..

12. When I find the home I want, how much should I offer?

Answer: As Accredited Buyer Representatives, we will help you here determine a fair offer. But there are several things you should consider: 1) is the asking price in line with prices of similar homes in the area? 2) Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it? You probably want to get a professional home inspection before you make your offer and we will help you arrange one. 3) How long has the home been on the market? If it’s been for sale for awhile, the seller may be more eager to accept a lower offer. 4) How much mortgage will be required? Make sure you really can afford whatever offer you make. 5) How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house.

13. What if my offer is rejected?

Answer: They often are! But don’t let that stop you. Now you begin negotiating and we will represent your interests. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that wouldn’t normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Just remember – don’t get so caught up in negotiations that you lose sight of what you really want and can afford!

14. So what will happen at closing?

Answer: Basically, you’ll sit at the closing table with your escrow closing agent, maybe your lender and us. The closing agent will have a stack of papers for you to sign. While he or she will give you a basic explanation of each paper, you may want to take the time to read each one and/or consult with us or your lender to make sure you know exactly what you’re signing. After all, this is a large amount of money you’re committing to pay for a lot of years! Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a “good faith estimate” of how much cash you’ll have to supply at closing, and a list of documents you’ll need at closing. If you don’t get those items, be sure to call your lender BEFORE you go to closing. Be sure to read our booklet on settlement costs. It will help you understand your rights in the process. Don’t hesitate to ask questions.

These are just some of the basic questions you may want to ask or be aware of when purchasing your first home. We have many years of experience representing first time home buyers like yourself and again, we will make the process as easy as possible not to mention stress free.

So when you decide to buy your first home, please consider using Stephen and Alice Proski. Please give us a call at 602-620-2168. We are here to help you!

It’s a Good Life!

Stephen and Alice Proski

p.s. Be sure to leave your comments and/or questions below. Just click the “Comment” link and a box will appear….because, for sure some else has the same question and then everyone can benefit from the answer that we will respond back to you! Thanks!

Posted in First Time Scottsdale Home Buyers | 2 Comments »

Short Sale Myths -Who’s Zooming Who?

Friday, April 3rd, 2009

Given the current state of the real estate market in all areas in and around Phoenix/Scottsdale are many short sale listings. We have had our share of short sale listings and have represented both buyers and sellers through this process. We find ourselves educating buyers and sellers a lot these days about the process.

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Many people seem to think they know what short sales are…we find that about 2/3’s of people we speak with really have no clue what a short sale is.

For those of you who are not familiar with this terminology, a short sale is the sale of a house for less than the amount that is owed to the bank/mortgage company. Occasionally, homeowners find themselves in positions in which they must to sell their home, but the reality is that their property is worth less than what they owe the bank…perhaps they did a “cash-out” refinance?…perhaps they bought at the peak of the market with 100% Financing?

Many banks will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a costly foreclosure, and the owner is able to pay off the loan for less than what he owes.

We hear all kinds of crazy misperceptions about short sales and have put together a list of myths about short sales, boy was that a mouthful!

1) “The seller must stop making payments on their loan.” Not necessarily.

We have negotiated short sales where the seller has not missed any payments, and were not in default.


2) “The seller is in foreclosure.” Not necessarily.

It is possible to have missed payments and not be in full-blown foreclosure.

3) “Buyers will not want to make offers on short sale property.”

Not true.

Occasionally buyer’s agents are reluctant to represent offers on short sale properties. Often times, listing agents will take on short sale listing when in reality they have no knowledge base or skill set to successfully negotiate the lower payoff.

A shrewd buyer’s agent will call the listing agent and make sure they are competent to complete the process, and then submit an offer.

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4) “Financial hardship is the only reason a lender will accept a lower payoff.” Not true.

There are many potential reasons a lender will allow a lower payoff. One such example is that the seller lost their job and have no means of making their mortgage payments..

5)”A short sale where there is a first mortgage and second mortgage will not be approved.” Not true.

While this scenario requires diligent negotiation, many 2nd mortgage holders will accept as little as $1,000.00 in lieu of a full payoff.


6) “A short sale means that the escrow period will be short.” Generally no.

Depending on how much negotiation can be completed in advance, a typical timeline for lender approval can be 30 to 90 days. Once the lender approves the lower payoff, escrow is opened and the transaction timelines proceed from that date.


7) “Short sales are a bargain!” Banks do not give property away.

They base approval on recent sales comparables, and actually retain the services of a local agent to perform a BPO (aka, Broker Price Opinion). However we do believe it is possible to get a lender approval for a property below the current market value, purchasing at “wholesale” is just not reality.

8)”The seller of the property can make money from the short sale.” Not true.

The lender will REQUIRE that the seller nets $0 from the sale.

These are just some of the common questions we get from both buyers and sellers regarding short sales. In reality, most people (buyers, sellers, and even some real estate industry professionals) do not have a clear understanding of what they are and how they work. We have successfully negotiated short sales for seller clients. If you are facing the reality that you have to sell your home, and you owe more than its current market value, We may be able to assist you. We welcome your call at 602-620-2168 so we can discuss your options.

It’s a Good Life!

Stephen & Alice Proski

p.s. Be sure to leave your comments and/or questions below. Just click the “Comment” link and a box will appear….because, for sure some else has the same question and then everyone can benefit from the answer that we will respond back to you! Thanks!

Posted in First Time Scottsdale Home Buyers, Home Buyers, Home Sellers | 1 Comment »

Home Inspection – Who Needs It.

Friday, March 27th, 2009

Protect your real estate investment and enjoy peace of mind with professional inspections by competent, licensed inspectors. Don’t be fooled by imitators.

Real estate professionals like ourselves know that professional home inspections are a very important part of buying and selling houses.

What is a professional home inspection?


Every home, including new houses, should be inspected by a professional home inspector. A professional home inspection is an objective examination of all the systems in a home. A home inspection report will give you information on all the major systems in your home: the structural, heating/cooling, plumbing, electrical, insulation, etc. If needed, an Arizona ASHI home inspector will refer you to the appropriate professional for improvements or further consultation. We recommend that all our clients use ASHI home inspectors.

Why do I need a professional home inspection?
For the Buyer


For the buyer, the purchase of a home is usually your largest investment. A home inspection is a ‘snapshot’ of the home on the day of the inspection. The inspection report will provide you with a wealth of information on the systems in the home. The inspection report will also alert you to important safety improvements or upgrades that may be needed, or expensive repairs that may be needed now or in the near future. The inspection and report will allow you to make an informed buying decision.

For the Seller


For the seller the home inspection will alert you to any improvements needed so you can sell a home in good condition. Many sellers hire a professional home inspector before their home goes on the market to prevent unexpected surprises during the sale.

What does a home inspection cost?


Residential home inspections vary in cost from area to area and from house to house. Most inspectors have fees based on the size of the home. Some inspectors charge an additional fee for older homes or for items outside the scope of a regular home inspection, such as pools or spas. You should expect to pay $300 to $400 for an average sized home. As with many products or services, the cost should not be the deciding factor in your decision. Home inspectors try to be competitively priced, but a home inspectors qualifications and professional affiliations should be of greater importance to you.

Can’t I do it myself?


It is very difficult for a purchaser to remain objective about a home they have decided to buy. And if Uncle Joe offers to inspect the home, he may find he’s in over his head and discourage you from buying the home because he’s afraid there may be something wrong with the home. Very rarely will a home owner, or even a construction tradesman, have the knowledge and expertise of an experienced home inspector that has inspected hundreds of homes. A home inspector has to have some knowledge of all the building trades, and of all the components and systems in a home. More importantly, the inspector must know how all these systems interact with each other to make a safe and healthy home.

Can a house fail inspection?


There is no pass or fail in a home inspection. The inspection is an examination of all the major systems and components in a home. The inspection and report is not an appraisal of market value, although it can certainly influence your opinion of the home value.

If the home is in good condition, did I really need the inspection?


If you didn’t have a car accident last year, did you really need car insurance? The answer is yes, of course. Even if a home inspection and report does not reveal any major defects, it will give you lots of information on your new home. Most buyers keep their inspection report as a guide for future maintenance and repairs.

How do I find a professional home inspector?


You should always ask your inspector if he has affiliations with professional organizations, such as the American Society of Home Inspectors (ASHI). You can search the ASHI web site at ashi.com for an authorized ASHI inspection company near you.


When do I call in the home inspector?


Your purchase agreement should be contingent upon a home inspection. Typically you have 10 to 15 days after a seller accepts your offer to have a home inspection; check with your Realtor or the “Inspection Period” clause in you Purchase Agreement. You may wish to interview inspectors before you make an offer to determine how busy they are right now. As soon as the Seller accepts your offer in writing you should call the home inspector.

Do I have to be there?


It is not required or necessary for you to attend the inspection. Attendance is encouraged- you will learn a lot about your new home from your inspector, and may understand the report better. Many home inspectors prefer to have the buyer present for the entire inspection. Some home inspectors prefer to have the buyer meet them at the end of the inspection, when they have a full understanding of the home and all its systems.

Should the seller attend the home inspection?


The seller is welcome to attend the inspection. The seller should understand that the inspector is usually working for the buyer, and is prohibited from discussing the inspection with any other party. The inspector is required to inform the seller or occupants if he finds any major safety concerns. If a buyer is present, comments about flaws or defects in the home can be upsetting to some sellers. Often the inspector and buyer will request some privacy for their discussions.

How long does a home inspection take?


This depends on the home and inspector. It usually takes about three hours to inspect an average size home. Some inspectors use a ‘checklist’ report format that is delivered on site. Other inspectors create a ‘narrative’ report on a computer. A narrative report takes longer to complete and often includes digital pictures, so it is often delivered the day after the inspection. Emailing narrative reports is very common.

What if the report reveals problems?


There is no perfect house. Virtually all homes will have some minor problems, and an inspection report on an older home usually includes some safety upgrade recommendations. If the inspection and report reveal major or expensive problems, you now have this information to make an informed buying decision. A buyer may ask a seller to correct major problems.

What if I find problems after I move into my new home?


There are no guarantees that a home will not develop problems after you move in. Remember a home inspection is not a guarantee, but a report that reflects the current condition of the home. However if you believe that a problem was already visible at the time of the inspection and should have been mentioned in the report, your first step should be to call and meet with the inspector to clarify the situation. Misunderstandings are often resolved in this manner.

Again if you considering buying or selling a home in the near future, we would highly recommend that you obtain a home inspection from a company that is ASHI certified. It may cost you thousands of dollars if you try and do it yourself.

It’s a Good Life!

Stephen & Alice Proski

p.s. Be sure to leave your comments and/or questions below. Just click the “Comment” link and a box will appear….because, for sure some else has the same question and then everyone can benefit from the answer that we will respond back to you! Thanks!

Posted in First Time Scottsdale Home Buyers, Home Buyers, Home Maintenance, Home Sellers | 7 Comments »

Why Work With A Buyers Agent.

Tuesday, November 25th, 2008

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The Buyers Agent is a role that has become critical in the world of real estate. Primarily because home buyers have come to realize that it is a good idea to have someone who specializes in dealing with their needs as a buyer during the home purchase process.

For many years the entire home transaction was typically handled by one agent, or one type of agent.

That is an agent who deals with both buyers and sellers. Much of the time the whole deal was seen to by the listing agent. While this is fine for the seller, buyers found that their unique needs were not being seen to completely. This is understandable as the agent’s primary responsibility was to their original client, the seller of the home.

So, the role of the buyer’s agent evolved. The buyer’s agent is primarily concerned with the location of suitable homes for their clients. Sometimes there is quite a list of requirements and the time that is necessary to dedicate to such requests can be demanding. Once a suitable property is found, the buyer’s agent commences the contracts and offers on the property. They see to all aspects of this process including the inspections of the home, and all other aspects of the sale. This role is pivotal as there are usually numerous steps to closing a home and they can be quite complex if one is not knowledgeable on the topic of real estate contracts. Usually the agent will also ensure that all of the buyer’s subjects are met or dealt with in

As Accredited Buyers Representatives, (ABR) we will represent you exclusively and not the Seller. We will work extremely hard to get you the lowest possible purchase price when its time to buy your home. Check out our website www.myhomeinscottsdale.com for more helpful hints.

Life is Good!

Stephen & Alice

p.s. Be sure to leave your comments and/or questions below. Just click the “Comment” link and a box will appear….because, for sure some else has the same question and then everyone can benefit from the answer that we will respond back to you! Thanks!

Posted in First Time Scottsdale Home Buyers, Home Buyers, Local Market Conditions, Scottsdale Real Estate News | No Comments »

Before You Buy: Things You Should Do.

Wednesday, November 19th, 2008

One of the most important things about purchasing a home is to find out about the home’s history and the history of the neighborhood. Usually the seller’s info pack will include a few things, but you should always make sure that you get a property disclosure statement.

This statement is a list of everything that the seller knows about the home, positive or negative. It should include things like mold damage, fires, and any other kind of concern with the actual home itself. If a seller knows about a problem, it MUST be disclosed on the statement. If it is not disclosed then the seller had placed themselves in an awkward position where they can be held financially responsible for repairs or damage.

When considering the purchase of a home, take some time to speak with the neighbors. Ask them about their experience living in the area. Are there any concerns that you should know about, or maybe problem people? This is also a good time to ask neighbors about the home that you are thinking of buying. Perhaps they know of some damage that occurred to the home that is not mentioned on the disclosure statement.

It’s also kind of nice to have some familiarity with the neighbors and area prior to moving in. Feeling like you are already a part of the community before you arrive can significantly reduce the stress of moving into a new area.

It is also a good idea to spend time investigating any neighborhood before you move into it. This research should include everything from educational facilities and recreation areas to crime statistics and property tax rates. Also, consider the area’s political past and future.

This can have a big effect on the developmental future of any community. Wouldn’t you like to know if they are planning on putting a huge shopping center in your backyard? Or a new highway? The economic future of an area is a big deal that will have a big impact on you and your family for years to come.

These are things that you should definitely know before you commit to a new home.

In Arizona, we use the Sellers Property Disclosure Statement otherwise known as the SPDS along with the Buyers Advisory. You can view the Buyer Advisory at the following link:

http://www.aaronline.com/documents/buy_advis.pdf

Life is Good!

Stephen & Alice

p.s. Be sure to leave your comments and/or questions below. Just click the “Comment” link and a box will appear….because, for sure some else has the same question and then everyone can benefit from the answer that we will respond back to you! Thanks!

Posted in First Time Scottsdale Home Buyers, Home Buyers | No Comments »

Relocating To Scottsdale

Wednesday, November 12th, 2008

Many years ago, the Scottsdale area what thought to be inhospitable and inhabitable. The land was mostly desert with little water or apparently, hope. How things have changed. Scottsdale has developed into a desert oasis that is one of the most popular resort destinations in the country with more than 8 million visitors every year. One of the first things that strikes visitors about this area is the verdant greenness of this city surrounded by barren desert. The evolution of this city has definitely created a lush oasis where there once was only sand and sagebrush.

Forming the economic backbone of scottsdale is the famous tourism industry. This area has become a global destination that features some of the best golf in the world. The active lifestyle is featured here year-round, with the golf, tennis, baseball and a number of other sporting activities. If you are an active individual then you will never be at a loss for great and interesting things to do in the Scottsdale area. This city is designed with this lifestyle in mind as parks feature prominently in the city’s makeup

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Home in Scottsdale have been steadily appreciating for many years now and shows no sign or indication of slowing anytime soon. Not only is this a fantastic place to live, but its a wise place to invest in as well. With such rampant popularity, there is a huge call for vacation rental homes and condos. The tourism industry is a demanding industry and many tourists are demanding options other than hotels and resorts for their vacations. One nice aspect of a vacation rental in Scottsdale is the fact that it will pay for itself many times over in a short period of time while gaining equity quickly.

This is an ideal market to get into if you are looking to enhance your real estate portfolio while enjoying one of the most notoriously beautiful climates in the nation. Check out our website at www.myhomeinscottsdale.com for some additional Relocation needs. Until next post, have a good one,

Life is Good!

Stephen & Alice

p.s. Be sure to leave your comments and/or questions below. Just click the “Comment” link and a box will appear….because, for sure some else has the same question and then everyone can benefit from the answer that we will respond back to you! Thanks!

Posted in First Time Scottsdale Home Buyers, History of the Scottsdale Area, Home Buyers, Living in Arizona, Local Market Conditions, Scottsdale Real Estate News | 6 Comments »