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Displaying blog entries 11-20 of 125

Getting a Mortgage in Scottsdale, Arizona

by Karen Picarello

When you go to get a loan in Arizona, the process is dependent on your credit and how much you have available for a down payment. For first-time home buyers or those who don’t have enough for a down payment, there are programs available such as the Home Plus Mortgage Program, that offer down payment assistance to help you on the path to home ownership. Still, the process can seem a bit confusing. That is why we’ve created this general explanation of how to get a mortgage in Arizona.

Getting a Mortgage in Scottsdale, Arizona

According to Zillow, the median home value in Scottsdale is $480,400. This means there aren’t a lot of people using the Home Plus Program because it sets a price cap at $396,680. However, there are other assistance programs if you have a high enough income.

In order to get a mortgage, one must first go to a loan officer and fill out an application. In the application, you will disclose your assets and income along with any negative credit occurrences such as foreclosure or bankruptcy.

Once you’ve filled out an application, the loan officer will run a credit check. This will confirm the information on your application, let them see your monthly liabilities, and they will get your credit score. For most loan assistance programs, you must have a score above 640. Your score impacts whether or not you will be approved along with what interest rate will be available.

Assuming all goes well, the loan is submitted to an underwriter for pre-approval. Once approved, you will have to submit more paperwork such as tax returns, proof of income, bank statements, drivers licenses, letters of explanation, and proof of homeowner’s insurance.

An underwriter will give the final approval of your loan, and once this is done, the loan is sent to the title company. The title company coordinates and records all the information with the mortgage company and holds the title to the home, and once this is wrapped up, you are the proud owner of a new home!

It’s Not Always Easy

There can be many bumps in the road during the process of getting a home loan, and the paperwork can take time. You may think the process is almost finished only to have underwriters request more information. Sometimes by the time you get your home purchased, you can’t believe it’s real because it takes so long. The key is being patient and keeping an open mind when going through the process. It will happen.

Should You Replace Your Appliances?

by Karen Picarello

Most home upgrades don’t actually make you more money on your home sale, but they can decrease your selling price if the new homeowner will have to buy replacements. In fact, may home warranties include appliance coverage because a person moving into a move-in ready home does not expect to replace appliances for the first year or so.

When people walk into a home with new stainless steel appliances, it is a major selling point. The person can envision their own food in the fridge, and they fondly picture themselves doing household chores like cooking or loading the dishwasher. A dated, cream-colored set of appliances does not have the same effect.

You don’t have to replace all of your appliances in order to sell a home, but it may affect how well the sale goes. Here are some considerations.

Replace as Needed

Many people make do with appliances that have broken functions but work generally well. They may have to use pliers to get the dishwasher to turn on, but the dishes turn out as clean as if they had a new dishwasher. This is not appropriate. One of the saddest reasons to buy new appliances is for someone else to use them. When your appliance starts breaking down, replace it with something that will be pleasing to the next homeowner. This way, you will get to enjoy a new appliance, and it won’t be an issue when selling.

Lower the Price of Your Home

If your appliances work but are outdated, note that you are reducing the cost in order to cover the cost of these upgrades. This can be a selling point for home buyers because they can save money during the move, but they are still moving into a functioning home.

Don’t Buy Luxury

If you are going to be using the appliances and feel like you need luxury, then go ahead and do it. If you are doing it to attract home buyers, it is not worth the expense. Not only may you opt for something that the homeowner wants to replace anyway, but you spend a large amount of money on something that doesn’t increase the value of the home. Don’t buy the bottom of the barrel appliances, and stick to quality levels that coincide with the price level of the home.

It’s tempting to deck out your home in order to get it to sell fast, but you won’t benefit from this expenditure unless you do it responsibly.

Advertisement Tips for Selling Your Home on Facebook

by Karen Picarello

You may be tempted to help out your real estate agent when selling your home, especially if your home has been on the market for a while. This is not the time to go rogue and take everything into your own hands. Discuss your plans to advertise your home on Facebook, and avoid these blunders.

Tips for Selling Your Home on Facebook

1. Don’t Make Excuses for the Neighborhood

You can mention how nice your neighborhood is, and most people will be looking for a place that has qualities like safety, privacy, or friendliness. However, all neighborhoods are based on perspective, and your view of your neighborhood may be different from your neighbor’s view. If you have negative feelings about your neighborhood, don’t mention them or make excuses for them. Saying that it is nice except for the occasional dog barking may be objective, but it sounds like a major dog barking problem to potential buyers.

2. Don’t Date the Home

If you are posting pictures, don’t mention how dated the home is. If it looks like the 1970s was somehow transported into your kitchen or living room, you don’t need to mention that it is vintage. Instead, mention the quality of the cabinetry or the potential for the space. Buyers don’t need you to tell them when you home looks out-of-vogue.

3. Don’t Address the Complaints of Others

If you have posted and received complaints about the home, don’t address them. If people have complained when visiting the home, don’t mention it. Noting the complaints of others may highlight things that would never be a problem to other viewers. Don’t make issues when they may not be issues for another buyer.

4. Use Proper Grammar

Don’t post without proofreading. Facebook tends to be casual, and most people don’t edit like they would if they were in their professional lives. Selling a home should be a professional activity, so make your post professional by avoiding spelling and grammar errors.

5. Don’t Get to Personal

Lastly, don’t get too personal about your sentiments about the home. You are looking for people to picture themselves living there. You don’t want them to picture you living there. This is why family photos should be kept to a minimum when showing your home. It’s about creating a place for potential memories, not maintaining the ghosts of memories from the past. Keep your descriptions to the facts, and let your potential buyers create their own ideas.

If You Like Sports, Scottsdale Delivers Via Its Neighbors

by Karen Picarello

If you’ve already been looking at Scottsdale as a potential future home, then you already know it is an affluent area of town known for its lower crime rates and nicer neighborhoods. However, you may not have thought of the sporting benefit. At less than 20 miles away from Phoenix, Scottsdale get you very close to the action of multiple sporting events.

Sports Teams You Can Watch Near Scottsdale (Phoenix Area)

1. Phoenix Cardinals

Not only is the State Farm Stadium (formerly University of Phoenix Stadium) the home to the Phoenix Cardinals, but it is also the location of the annual NFL Fiesta Bowl. Located in Glendale 20 minutes northwest of Phoenix, this modern stadium has a retractable roof and was the home of the 2015 Super Bowl. The Cardinals have not won a Super Bowl yet, but they typically make it to the play-offs and are a force to be reckoned with.

2. Arizona State University’s Sun Devils

The only thing wilder about sports than professional fans is college fans, and the ASU Sun Devils has 9 men’s and 11 women’s PAC-12 Varsity teams.

3. Arizona Diamondbacks

The Arizona Diamondbacks are Arizona’s Major League Baseball team. Chase Field is located in downtown Phoenix and has everything MLB has to offer. Buy you some peanuts and cracker jacks because you won’t care if you never go back to watching any other sport.

4. Phoenix Suns

If pro basketball is more our style, you’ll have to make it to Talking Stick Resort Arena for a Suns game. They’ve had a little bit of a lackluster history, but almost any NBA game is worth seeing if you are a fan.

5. Arizona Coyotes

Glendale is also home to Arizona’s hockey team, the Arizona Coyotes. Gila River Arena is home to these ice warriors. If you want to see some good body checks and some amazing stick work, the Arizona Coyotes will deliver a game that is full of the intensity that only hockey can deliver.  

6. Phoenix Mercury

If you like the Suns, then you’re sure to love the Phoenix Mercury, Arizona’s WNBA team. Talking Stick Resort Arena is also home to this team, and they’ve won 3 WNBA Championships.

You may be thinking that if you want to be close to the sporting action of Arizona, you should move to Phoenix or Glendale. This may be true for some, but Scottsdale delivers that high-end lifestyle without taking away access to Arizona’s premium sporting events.

Solar Panels and Storage Batteries

by Karen Picarello

Solar panels are becoming very popular as their efficiency and ability to store power grows. As Arizona is one of the states with the most sunshine available, this is creating a significant change in the way people get power.

Furthermore, home storage batteries are making solar power more sustainable. No longer are people relying on the grid (at least not so much) on cloudy days because they are able to store power from sunny days in large home batteries such as Tesla’s Powerwall.  

California adopted a rule last year (2018) that new homes would be built with solar panels beginning in 2020. Arizona could be on track to do the same as climate change makes the world focus on more efficient and sustainable energy sources.

In order to include solar panels in the valuation of your home, you must own the solar panels. Leased solar panels would not be included in the price of the home because they would belong to another entity that the future homeowners would have to contract with in order to continue using them. In order to sell a home with leased solar panels, a homeowner would either have to buy the remaining amount on the lease or get the homeowner to agree to take over payments. This could actually deter homeowners who don’t want to get into the co-mingling of contractual agreements.

There was a study done in California about how much solar panels increased the value of homes on the market, and it was found that every Kilowatt of power that came from solar panels increased the resale value of a home by over $5,000. However, for each year that the panels had been installed, this value dropped by 9 percent. Additionally, the increase in valuation never exceeded the cost of installation.

Essentially, if you are going to sell your home, then let your lease on your solar panels run to completion. Don’t purchase them if you plan to sell your home soon because it won’t pay off in the end. However, if Arizona passes a law making solar panels mandatory on new construction, your home may end up looking very outdated without solar capabilities. It is a bit of a speculation whether or not your home sale will benefit from solar panels. It won’t pay off to buy a new solar system with a home storage battery or batteries, but it will make your home more attractive to potential buyers. A lot of it will depend on your particular situation.

How Pets Can Ruin Your Home Showing

by Karen Picarello

We love our adorable furry critters (or non-furry critters), but they can really damage the attractiveness of your home when it comes to selling it. Here are the reasons why and what you can do about it.

1. Fur:

If you have wood or laminate floors, hair may not be as much of a turnoff. However, if you have fur in carpeted floors, good luck appealing to the masses. People may see pet hair as a sign of uncleanliness, or they may see your home as an allergen haven. Nobody has ever said, “I love the home with all of the pet hair!” If you have fur-filled floors, get them professionally cleaned or rip them out before trying to sell. If you have a friend who can watch your pets for a month or so while you sell your home, it is strongly advised. Visible pets in the home can raise the hackles of potential buyers.

2. Poop:

If you cannot get rid of your pet during the sale, make sure there aren’t any land mines out in the yard. You don’t want any negative scents tainting the impression your potential buyers get. If your backyard is rough, do the best you can. It is better to look like you tried than that the home has spent years with a yard covered in feces.

3. Smells:

There are many different types of pets, and it seems like they all come with their own set of specific odors. Guinea pigs, terrariums, fish tanks, and litter boxes don’t smell good immediately after being removed from the home. Remove them prior to guests visiting, and run an air filter with a HEPA filter to get some of the scents out.

4. Pet doors:

It seems like all pet doors have mud on them from muddy dogs traipsing in and out. Many people have pets, so don’t feel like you have to replace the door, but make sure the dog door is cleaned.

5. Pet beds:

Pet beds should be on the newer side. Don’t display your home complete with a bed that has been gnawed on over the past couple years. A clean pet bed can send a message that a home was maintained appropriately despite the canine presence.

6. Clean windows:

Depending on where your windows are located and whether or not you have a cat or a dog, you may have licks and nose prints dirtying up your windows. Clean them up prior to your potential visitors viewing your home.

Pet ownership is not a bad thing, but showing off the gross side of pet ownership can be a real turn off for those looking to move in. Taking care of your pets’ messes will go a long way toward selling your home.

Big Investors: Friend or Foe to the Housing Industry?

by Karen Picarello

            A June 19th article in the Wall Street Journal depicts an interesting change in the Arizona housing market that may disrupt the entire housing industry. For better or worse, this change is giving the upper hand to large investors with access to high computing power. But it may benefit the individual home buyer and home seller too. It’s still in its early stages, but big companies like Opendoor and Zillow Group, Inc. are buying Phoenix real estate and flipping homes for a quick resale. These sales may be with individuals, but they are often sold to big landlords who control a large amount of rentals in the area.

            How do they do it? Using complex computer algorithms that notify the big investors immediately when a house comes on the market that looks like a good investment. Using these algorithms, the company knows how much to offer based on how much they can profit by its resale and how long it is expected to be on the market. It’s reliable to a certain extent, but it isn’t without risk. The large investment companies focus on high volumes of sales because they aren’t making huge gains on each transaction. However, they are able to create a very large volume, so it is lucrative. According to the Wall Street article, these house flipper companies have bought thousands of homes in the area, and more than 22,000 rentals are now owned by big investors.

            It seems a little too corporate, but there are advantages to this non-hostile takeover of the housing market by corporate America. A person selling their residence may get a higher offer from these investment companies if the computer dictates that it is worth the higher price tag in order to warrant the sale. Also, these algorithms are bringing technology to the real estate process. In some cases, using an app can get you electronic access to viewing homes instead of relying on the schedules of homeowners and real estate agents.

            It is too early to tell how big investment companies are going to impact the housing industry, and if home prices fall, it would put a quick end to this money-making trend. However, right now these companies are modernizing the housing market, and there are some real benefits for both parties involved in a home purchase. However, the large investment companies owning so many rentals and controlling so much of the housing market is a bit ominous. It renders many people who have to get mortgages to buy a home powerless in the face of these large companies with cash buying power.

The Cart Ahead of the Horse: Find Your Lender First

by Karen Picarello

            The hunt for a house is often the most fun part about purchasing a new home. You look online at sites such as Zillow, and you get an idea of what you want to look at. Then, you find a real estate agent and start looking at homes, but do you really know what you can afford? When you start off with a real estate agent, you get the cart ahead of the horse…as the old saying goes. You should really start by finding a lender and discovering what it is that you can afford.

            If you are casually considering moving, a soft search on the internet is totally appropriate. Dreaming about your future and finding out what’s available never hurts. However, a real estate agent only knows what you tell them about your financing, and you might be wrong when it comes to the amount you qualify for in a loan.

Pre-qualification vs. Pre-approval

            Pre-qualification only tells you what you may be able to afford according to how much money you make. It does not tell you if anyone will actually give you a loan. Pre-approval ensures that you will qualify for a loan following a credit check. If you don’t go to a lender first, you may be looking at homes when you don’t actually qualify for any loans. Especially if you don’t check your credit regularly, there may be some surprises on there that you didn’t expect. Surprises can take a lot of time to correct on your credit.

            You may think that going to a real estate agent without seeing a lender first is a waste of the real estate agent’s time. What is more important is that it is a waste of your time AND emotion. Not only do you need to know how much you can qualify for in a loan, but you need to mentally wrap your mind around those limitations. If you have your heart set on a 600,000-dollar home but can only be approved for $350,000, it can be emotionally draining. Instead, set your sights on those homes that fall within your budget. Speaking of which, your lender can help you budget for a home you can afford. Being approved for a $500,000 home doesn’t mean that you will be comfortable with the house payment. Speaking with a lender before looking for a home allows you to set realistic expectations.

Keep Your Home Safe During Fourth of July

by Karen Picarello

            If you are buying or selling a home, your life is in a bit of chaos because you are moving. Not only that, but you may be in a state of flux that requires you to care for two homes while only occupying one. The Fourth of July is coming, and although this time of year is great fun, it is also a time of high crime and home fires. Protect your home and your unoccupied home by following these steps.

            July and August are the times when most burglaries occur because people go on summer vacation. With that thought in mind, it is easy to see why so many burglaries occur during the Fourth of July. People are away from their homes watching firework shows. Even if they’re home, they are likely outside and won’t hear a burglar over fireworks. It’s dark. It’s noisy. It’s a perfect opportunity for the opportunistic burglar.

            You don’t have to be using illegal fireworks to create a safety issue. In 2014, 28% of emergency room fireworks injuries were caused by sparklers! In 2013, fireworks caused 15,600 fires 1,400 of which were structures and 200 of which were in vehicles. Many fires can be put out by a hose if they are noticed immediately, but the unoccupied yard is more difficult to protect.

How to Protect your Home (occupied or not)

  • Security Cameras and Lights – this will deter burglars as well as document their presence should they opt to go in anyway
  • Security System – notifying a security company of a break-in will alert police to check your home whether you know about the break in or not
  • Secure Doors and Windows - Make sure doors and windows have good locks, and make sure doors are securely attached to the home, so they cannot be kicked in.
  • Lights - Leave some lights on. There’s nothing better to confirm you are not home than a dark house.
  • Hose – If you are home, get the hose ready even if you aren’t lighting your own fireworks. This gives you the chance to put out a fire before it is dangerous. Caution: Don’t try to be a firefighter. Keep away from big flames that could cause injury. If the fire is inside your home, get out if flames are higher than your knees or getting near any exits.
  • Water Yard – A green yard is difficult to catch on fire.
  • Remove Dry Brush – Dry brush, especially near your home, is a huge fire hazard. Make sure your yard is clear of debris that will act as kindling should it be exposed to any spark.

 

 

Flooring: A Highlight or a Nightmare for a Home Buyer

by Karen Picarello

            When homeowners are thinking about staging their homes to sell, there are often some home improvements made in an attempt to make the home more salable. Windows might be upgraded, or a new coat of paint put on the home, maybe inside too. Fixtures may be updated, or carpet will be replaced. Some of these improvements will increase the selling price, but many of these options are simply an attempt to make the home more attractive in a buyer’s market. When it comes to the preferences of the home buyer, it may be the flooring that is the biggest highlight or a nightmare when considering a home purchase.

            Flooring options range from pretty darn cheap to a significant investment, and the quality of your flooring material will have an impact on the salability of your home. The basic options most people consider are solid hardwood, tile, manufactured hardwood, laminate, or luxury vinyl.

            Hardwood is typically the top choice by home buyers. It is high-quality, durable, and it may last as long as the home is standing. That is because hardwood is made from thicker planks of wood. Although it may need to be refinished from time to time depending on the hardness of the wood, there is a lot of wood to work with, so it has longevity. Home buyers consider hardwood a beautiful addition to the home, and they can relax about upkeep knowing the floor is meant to last.

            However, other alternative wood options are equally beautiful and don’t cost as much as solid hardwood. Manufacture wood is layers of wood covered in a top layer of fine, luxury hardwood. It is equally beautiful and durable, but it cannot be refinished as many times because the top layer is all you have to work with. Luxury vinyl and laminate options can be created with nearly any look because it is printed underneath the clear protective layers of the material. This makes it very versatile, but quality varies with the type you purchase, and it will have to be replaced more often than solid wood options. Lastly, tile is very durable and water resistant, and it is an attractive option for home buyers who want low maintenance options.

            Ultimately, solid hardwood flooring is one of the most preferred options for home buyers, but it is only going to increase the value of your home by about 3 percent. It is a huge investment, and other flooring options will provide a beautiful look for less of a cost. The big thing to remember is that homeowners are looking for something they aren’t going to have to immediately replace, so having flooring that is in good condition is possibly as important as anything.

Displaying blog entries 11-20 of 125

Contact Information

Photo of Team Picarello Real Estate
Team Picarello
RE/MAX Fine Properties North Scottsdale
21000 N. Pima Road, Suite 100
Scottsdale AZ 85255
Office: (480)860-8733
888-548-8713
Fax: (480)860-8755