By: AZ Big Media    Growth in New Construction While interest rates have had a big impact on the demand for new construction, we expect to see growth in our industry in the coming year, especially if rates go down by mid-2024 as predicted. In this scenario, we will see the many people who have remained on the sidelines jump back into the new construction market. This release of pent-up demand should drive a surge in growth among new home builders. In the meantime, while interest rates are high, builders are getting creative, trying to help to find ways to get buyers into new homes.  Diversification At Camelot, we have increased our investment and involvement in single family rentals as a part of a broader strategy of diversification. I would expect other builders to similarly look at diversification of operations to anticipate fluctuations in the real estate market. One way we’ve diversified is through a partnership with Arcadia Communities on a number of beautiful single family rental communities that fulfill the need of consumers who can’t afford substantial down payments or higher interest rate loans, but still desire a single-family home lifestyle. Our company’s diversification efforts also include the launch of our rebranded custom home division, and the addition of introductory luxury communities and high-end short-term rental properties. Strong Demand in Renovation and Custom Home Market We predict continued strong growth in the custom and renovation business, as many people are choosing to stay in their current location and keep their low interest rates. We are investing heavily in this business and expect to see more customers wanting to adapt their current homes with full model renovations or build their own custom, personalized homes. Multigenerational Living Spaces We expect to see an increase in families looking for homes built for multigenerational living. In some cases, this involves adult children living at home, and even more often, we’re seeing families welcoming aging parents into their homes. This could mean a separate wing of the home or a separate structure that gives enough proximity without shared walls.  Seamless Integration of Technology  Features that were once considered novel are now becoming mainstream. As our lives become more digitally integrated, we will see new homes become even smarter. From audio visual features to lighting, security systems, electric vehicle charging, and appliances, homebuyers will expect their home to anticipate their needs and make life easier and more enjoyable.

  By: AZ Big Media    Transforming your garage from a cluttered storage space into a functional and organized area of your home can be an exciting and rewarding project. However, before you dive into this home improvement journey, it’s important to have a clear understanding of the garage makeover cost involved. This is to effectively plan your budget for a garage makeover. Taking the time to carefully consider these details will help you create a space that is not only aesthetically pleasing but also practical and efficient for your everyday use. So, let’s explore these factors and create a comprehensive plan for your garage makeover that perfectly suits your lifestyle and budget. Assessment and Planning Before you swing a hammer or buy a single paint can take the time to properly assess your space and plan your makeover. Hiring a professional to help with the design may cost you upfront (approximately $300-$500), but it can save you from costly mistakes down the line. For example, check out this remodeling garage guide for additional insight on what goes on with a garage renovation. This can give you a good starting point for budgeting your project. Flooring Flooring can dramatically change the look and functionality of your garage. Epoxy coatings are popular due to their durability and range from $3 to $12 per square foot. Alternatively, if you’re looking for something more cost-effective, concrete stain might be an option at roughly $2 to $4 per square foot. Storage Solutions Proper storage solutions such as cabinets, shelving, and wall-mounted racks can range from a few hundred to a few thousand dollars, depending on the quality materials and systems you choose. Custom cabinetry will be on the higher end, while DIY solutions might run you less. Insulation and Climate Control If you plan on spending significant time in your garage, or if you want to keep the temperature regulated for storage purposes, insulation, and climate control should be considered. Insulation costs can average between $0.50 to $1.25 per square foot, while a more extensive setup for heating and cooling can surpass $1,000. Electrical Work Many garages are not set up for intensive electrical use, so updating the electrical system to support a workshop, gym, or entertainment area can be a chunk of the budget. This can cost anywhere from $75 to $100 per hour for an electrician’s services, depending on the complexity of the work. Decor and Finishing Touches The final touches like paint, lighting, and decor will set the ambiance of your new space and can vary widely in cost. A simple paint job might cost under $100 if you do it yourself, but hiring professionals will be more. Lighting fixtures can also vary, from $50 for basic options to $500 or more for high-end or smart lighting systems. Explore the Average Garage Makeover Cost Today In summation, a garage makeover cost can be quite broad, ranging from a few thousand dollars for basic improvements to tens of thousands for high-end renovations. It’s crucial to prioritize the elements that matter most to you and prepare a flexible budget to accommodate unexpected expenses. A garage makeover is a significant investment, but with careful planning and consideration of these six factors, you can create a functional and stylish space that enhances the value and livability of your home. So, don’t wait any longer – start planning your dream garage makeover today!

  By: AZ Big Media    The number of Generation Z members is estimated at 69.58 million, or about 21% of the U.S. population.  Born between 1997 and 2012, they’re already making their mark on American society. And these up-and-comers are looking for a place to call their own where they make a difference. But where? And which Arizona cities offer the greatest hope for Gen Z homeownership in the future?   Moving out and getting your own place has never been easy. However, this is painfully true for America’s youngest, who have already faced a pandemic, crippling inflation, historically high mortgage rates and an overall turbulent economy. The most recent Census data shows that the share of Gen Z householders (adults younger than 25) who own their home is less than 17%. Naturally, despite market hurdles, this percentage is only expected to continue to grow, just like the demographic itself. Yet, only a few young adults dare to dream of homeownership — and even fewer actually get the opportunity to do so. That’s because, on top of the high mortgage rates and equally high home prices that define the modern U.S. housing market, many young people aspiring to buy must also face entry-level incomes, unemployment, and scarce housing options to boot. Even so, not all hope is lost. To assess the feasibility of Gen Z homeownership in the country’s 100 major cities (including the five New York City boroughs), Point2 ranked them based on seven metrics: Home Price-to-Income Ratio – to see how many household incomes (where the householder is under 25) would be needed to reach the median home price in a market Median Sale Price Difference – to understand how home 2023 prices are more impactful compared to 2022 Inventory (per 10,000 residents) – to evaluate how many housing options are available Share of Homes Sold Above Listing Price – to assess bidding wars and competitivity in a market Days on Market – to determine how quickly homes fly off the market and measure competitivity Homeownership Rate – to assess the real probability of adults under 25 achieving homeownership Unemployment Rate – to see where young adults have lower chances of financing homeownership We then used weighted averages of these metrics to calculate where young adults under 25 have the best chances of becoming homeowners. As it turns out, major cities in the South and the Midwest might have what it takes to help Gen Z start putting down roots. Scottsdale secures the 10th spot among the 100 large cities analyzed where homeownership is more accessible for the younger generation. Gilbert also shows promise for young buyers with the lowest youth unemployment rate and the highest young homeownership rate in the state. America’s Youngest Homebuyers Stand a Better Chance in the South & Midwest Although still new in the housing market, Gen Z’s homebuying patterns already diverge from those of older generations due to their unique lived experiences. Growing up during a global crisis, they have a heightened focus on wellbeing and going with whatever feels right. And for many, what feels right is having stability earlier in their lives compared to, say, millennials when they were the same age. Student loans and the rising cost of living means that Gen Z inherited the affordability concern from millennials. So, when we factor in multiple metrics that might influence the attainability of homeownership for young people — such as household income among adults younger than 25 years old, Gen Z homeownership rate, and unemployment rate among this cohort — some cities emerge as homebuying pockets for America’s youngest.   First, Fort Wayne, IN, offers the highest chances of homeownership by ranking particularly high in terms of home price-to-income ratio and the unemployment rate among the younger segment of the population. Next up is Corpus Christi, TX, where homes cost about five times Gen Z’s median income, which propels it to the top of the list of cities that make homeownership a less-distant reality for youngsters. Similarly, Gen Z would have the third-best chance of becoming homeowners in Detroit. Despite ranking in the bottom half in terms of youth unemployment rate and homes sold above listing price, the city compensates by having a 6.10% drop in home prices, the best home price-to-income ratio among all of the cities analyzed, and one of the highest homeownership rates among Gen Zers at 16.7%. Gen Z Homeownership Close to Impossible in Big California Cities &… Lexington, KY There have been increasing reports on how Gen Z leans toward a more simple life and refrains from putting down roots in expensive hubs like LA, for example. of course, this is just as well because homeownership in such a powerhouse city is a pipe dream nowadays. There’s no love lost between America’s youngest potential homebuyers and Fremont, CA. Here, million-dollar home prices are almost 23 times the average young person’s household income, yet homes are flying off the market in just 10 days — often going above the listing price. To put it into perspective, the cost of living in this exclusive city is 77% higher than the national average. It’s no wonder that Fremont has the lowest percentage of Gen Z homeowners among all large cities analyzed. Likewise, San Diego does not make things easier for young people looking for their place in the sun. The housing shortage has been an ongoing issue here — not that a young professional under 25 would have the means to buy in the city even if there were more homes for sale as sale prices approach the $1 million mark.

  By: AZ Big Media    It’s not every day that a Central Phoenix historic home of this caliber and historical significance hits the market, but this month Scott Grigg of The Grigg’s Groups Powered by Altman Brothers has listed an awe-inspiring historical masterpiece that has been 104 years in the making. Named the E.A. McDonald Home, this 1920’s estate features 6-bedroom, 10-bath estate located at 341 E Monte Vista Rd in Phoenix and listed for $7,995,000. On the Arizona State Historic Property Records (Inventory #979) described as “a high-pitched gable roofed Spanish Mission style home, with a flattened Gothic arched porte cochere, constructed 1920-1922”, the current owner – a longtime residential and commercial designer, builder and developer – retrofitted and renovated the main house and additions in January 2020.  “The home seamlessly marries historic, contemporary, and trend-setting design while maintaining its historic preservation status and tax benefits,” said Scott Grigg, Owner of Grigg’s Group Powered By The Altman Brothers.  Conveniently located at 341 E. Monte Vista just off of Central Avenue in downtown Phoenix, the estate spans across 8,225-square-foot and is the epitome of sophistication, luxury and practicality, flawlessly blending old-world charm and contemporary trend-setting elegance. After being 100-percent retrofitted, this curated architectural marvel has established a new aspirational standard for urban living with its captivating fusion of historic significance and cutting-edge technology in its seamless blend of old-world charm with modern hip sophistication. The front drive offers an understated grandeur of the original brick façade offset by a crisp new stucco exterior, which is poised on a sea of lush green grass. Once inside, every detail speaks of meticulous craftmanship, including the restored original front door which leads into a crystal opal marble entryway, and a grand one-of-a-kind, circular glass staircase, which stands as its own work of art, greets guests.  A formal living room which features a historically sourced fireplace and exquisite chandeliers from a New York City mansion further complemented the raw steel beams and plaster cove ceilings. The dining room is also a hidden treasure with exposed brick and mirrored glass display shelves that double as a secret door to the Cigar or China room. A custom floating dining table, anchored with modern steel, invites guests into a unique entertaining area that is beautifully designed for large events and intimate gatherings.  The residence boasts not one, but three chef’s kitchens, each a testament to culinary excellence. The kitchen in the main house showcases sleek colorful cabinetry, a center island with eat-up bar seating, commercial-grade Hestan appliances, designer pendant lighting and a separate stainless-steel commercial dishwasher. The kitchen opens seamlessly to the Great Room which offers a custom 10-foot fireplace, with sitting area and adjacent TV room, with an innovative TV that elegantly pops up from a hidden floor vault.   A second custom glass staircase is illuminated by laser lights which leads to a glass bridge overlooking the living spaces below, including the secondary main entrance in the great room that is marked by an oversized glass pivot door and a bespoke leather clad bar with a wine station with a custom hydrogen feed for wine bottles that extends each bottle’s shelf life to more than four months.  The primary suite is a haven of indulgence complete with its own private bamboo accented elevator, a natural safe room, a built-in wine fridge, microwave, a custom seating/storage bench and a private balcony with a heated spa and patio bar. Offering another oasis of privacy, practicality, and tranquility, the primary bath is a contemporary wet room, boasting dual floating sinks, a designer tub with water bubbles and jets, and four open in-ceiling showers including rain heads, multiple sprayers, custom lighting and misting scent options, designer heated bidet, a primary mirrored walk-in closet with custom built-ins and a central island with bench seating. Additional bedrooms in the home offer ensuites with walk-in closets and designer baths. There is also an additional upstairs office and playroom, which adds functionality. Outside there is a separate guest casita with two bedrooms and two baths opening up to a stunning backyard oasis with custom heated pools, a beach entry with imported white California sand, firepit, outdoor heated spa, cold plunge, main pool with lap lane, secondary cocktail pool and an outdoor hot/cold shower, all enveloped by lush greenery.  Additional amenities include a home gym, a yoga studio with infrared heating and humidifier, and a spa house with lockers for storage, custom shower and giant wet steam room equipped with mood lighting, aromatherapy and multiple shower sprayers with every water feature imaginable.  Adding to the allure of this home is a caterer’s kitchen in the separate pool house with a wall of glass that seamlessly melds into the outdoor space. Adorned with a steel-beamed ceiling, the catering kitchen boasts dual dishwashers, fridges, vegetable drawers, freezers, French oven, a second wine station, beer taps and more. “This state-of-the-art smart home is a true marvel and it stands as a testament to luxury, uniqueness, restoration, and historical significance,” said Grigg.  “It beckons those with a need for security and an appreciation for the extraordinary, to a promising and unparalleled lifestyle that is defined by practical opulence and distinction. We invite the most discerning buyers to immerse themselves in this first-of-its-kind downtown estate; a living masterpiece where you’ll transcend time and tradition.”

  By: Redfin Blog    Welcome to the ultimate guide to buying a mobile home – an increasingly popular housing option that offers affordability, flexibility, and a unique lifestyle. Maybe you’re a first-time buyer searching for an affordable entry into homeownership, or perhaps you’re looking to downsize and embrace a more minimalist way of living. Understanding the ins and outs of buying a mobile home is crucial.  This Redfin article will walk you through the key considerations, benefits, and potential challenges associated with mobile homeownership. So whether you’re looking for mobile homes in Tallahassee, FL, mobile homes in Austin, TX, or just want to know more about this home type, read on to get started. What is a mobile home?  A mobile home, also known as a manufactured home, is a type of prefabricated housing constructed in a factory and then transported to its intended location. Built to specific standards, these homes are typically placed on a foundation, either temporary or permanent, but once set, they’re not designed for frequent relocation. Their factory-built nature often makes them more affordable than traditionally constructed homes, and they can vary in size, with options ranging from single to multiple sections. Types of mobile homes Mobile homes come in various sizes and configurations to cater to different preferences and needs. Single-wide mobile homes are typically the most compact, with a narrower structure. They often have a single long hallway and are ideal for individuals or couples looking for an affordable, space-efficient option.  Double-wide mobile homes are twice the width of single-wide homes, offering more space and a more open floor plan. Triple-wide mobile homes are even larger and offer more room than single and double wide. With three separate sections, they provide generous living areas and multiple bedrooms and often include features like walk-in closets and spacious kitchens. How much do mobile homes cost The cost of a mobile home can vary widely based on factors such as size, location, features, and the overall quality of construction. You might find used or smaller mobile homes for around $20,000 to $40,000 on the lower end of the spectrum. These could be basic models with few amenities. Mid-range options with more square footage, modern features, and better finishes could range from $50,000 to $100,000. Larger, high-end mobile homes with premium features and customization might exceed $100,000. However, these are just general estimates, and prices can differ significantly based on regional housing markets and the specific offerings of manufacturers. Additionally, it’s essential to consider other costs such as land purchase or rental, foundation installation, utilities, and potential maintenance expenses. How to finance a mobile home Financing a mobile home is somewhat different from a traditional home loan. Interested buyers should explore personal loans, mobile home loans, or chattel loans, which are specifically designed for properties that don’t have a permanent foundation. Some banks, credit unions, and specialized lenders offer these loans.  Additionally, the U.S. Federal Housing Administration (FHA) provides insured loans for manufactured homes and lots. It’s essential to check the eligibility criteria, interest rates, and down payment requirements of each option. Securing financing may also depend on factors such as the age of the mobile home, whether it’s placed on owned or leased land, and if it’s categorized as real property or personal property in that region. Additional expenses when you buy a mobile home When buying a mobile home, several additional expenses exceed the initial purchase price. These can vary based on factors such as the type of mobile home, location, and your individual choices. A few of these factors include: Additional repairs and renovations. These costs should be factored in if you want to customize your mobile home with upgrades such as better appliances, flooring, or fixtures. Transportation. The cost could be significant if you’ve purchased a mobile home and need to move it. A single-wide mobile home can cost anywhere from $3,000-$9,000, depending on the miles moved, whereas a larger home can cost $15,000 or more. Site preparation. This includes preparing the land for the mobile home, including leveling, grading, and clearing. Land lease fees. If you place your mobile home in a park or community, there might be a monthly or annual fee. Taxes and insurance. Depending on local regulations, you must pay for property tax and insurance.  Pros of buying a mobile home 1. Affordability One of the primary advantages of purchasing a mobile home is its affordability compared to traditional houses. Mobile homes tend to have lower upfront costs, making homeownership more accessible for people with limited budgets. Additionally, mobile homes often have lower property taxes and utility bills, contributing to long-term cost savings. This affordability can be particularly attractive for first-time homebuyers or those looking to downsize. 2. Faster ownership Given their prefabricated nature, mobile homes can be produced, delivered, and set up much faster than a home built on-site. 3. Reduced maintenance  Typically, mobile homes have a smaller footprint than traditional homes, which can mean less maintenance and upkeep. 4. Flexibility  Some mobile homeowners appreciate the potential to relocate their home. While not a simple task, moving a mobile home is possible. 5. Community and amenities Many mobile homes are located within dedicated communities or parks explicitly designed for mobile home residents. These communities often offer recreational facilities, swimming pools, community centers, and social events. Cons of buying a mobile home 1. Depreciation Unlike traditional houses, which tend to appreciate over time, mobile homes often depreciate. As the home gets older, its resale value may decline, making it more challenging to build equity. Depreciation can impact your long-term financial outlook and the potential return on your investment. 2. Financing challenges Securing a loan for a mobile home can be more difficult than for a traditional home. Interest rates for mobile home loans might be higher, and the loan terms might not be as favorable. 3. Land ownership issues If you don’t own the land where the mobile home is placed, you might have to pay monthly lot rent. There’s also the risk that the land’s owner could sell the property, forcing you to relocate your home. 4. Resale challenges When it comes time to sell a mobile home, there can be challenges in finding buyers. The narrower pool of potential buyers and concerns about depreciation and perceived quality differences between mobile and traditional homes can lead to longer listing times and potentially lower resale prices. 5. Limited design opportunities When you buy a mobile home, you might have fewer chances to design it your way because the layouts and structure are already set. Buying a mobile home: the bottom line Buyers should carefully weigh the advantages and considerations of purchasing a mobile home based on their preferences and circumstances. With the potential for affordability, flexibility, and a sense of community, mobile homes provide an opportunity for homeownership that aligns with diverse needs. However, approaching the decision with thorough research, budgeting, and a clear understanding of drawbacks, including depreciation and resale challenges, is essential.

  By: Redfin Blog    Buying a house is one of the biggest financial decisions that many people make in their lives. It’s a process that involves many steps, and it can be overwhelming, especially if you’re a first-time homebuyer. Understanding the first steps in buying a house is crucial to ensure that you’re making informed decisions and moving towards your goals.  In this article, we’ll be discussing the first steps in buying a house, which are determining your budget, setting your financial goals, and getting pre-approved for a mortgage. By understanding and implementing these initial steps, you’ll be setting yourself up for success for the rest of your homebuying journey. Let’s dive in and explore each of these steps in more detail. 1. Determine your budget Before you start house hunting, it’s essential to determine your budget, so you know how much you should be spending on a house. Knowing your budget will help you narrow down your search and ensure that you’re looking at houses that you can afford. To calculate your budget, you need to consider several factors, such as your income, debt, expenses, and savings. You can use online calculators to help you determine how much house you can afford based on your financial situation. When determining your budget, it’s essential to consider other expenses that come with owning a home, such as property taxes, maintenance costs, insurance, and utilities. You probably don’t want to be “house-poor,” where most of your income goes towards paying for your mortgage and other housing-related expenses. Taking the time to calculate your budget before house hunting can save you from future financial stress and help you make a wise decision that aligns with your financial goals.  2. Set your financial goals Setting financial goals is an important step in the home buying process. Financial goals help you identify what you want to achieve with your money, and they give you a roadmap to follow to achieve those goals. Setting financial goals before buying a house can help you stay on track and avoid making impulsive decisions that can hurt your financial health in the long run. There are several types of financial goals that you can set when buying a house. For example, you may want to save for a down payment, pay off debt, or establish an emergency fund. Setting specific, measurable, achievable, relevant, and time-bound (SMART) goals can help you track your progress and stay motivated. It’s important to set achievable financial goals that align with your budget and your overall financial situation. For instance, if you’re planning to buy a house in the next two years, your financial goals should reflect that timeline. Setting realistic financial goals can help you make progress towards achieving them and give you a sense of accomplishment along the way. 3. Get pre-approved for a mortgage Getting pre-approved for a mortgage is an essential step in the home buying process. Mortgage pre-approval is a process where a lender evaluates your financial situation and creditworthiness to determine how much they’re willing to lend you. The pre-approval process gives you an idea of how much house you can afford, and it can help you narrow down your search to houses that fit your budget. When you get pre-approved for a mortgage, you’ll receive a pre-approval letter from the mortgage lender. This letter shows sellers that you’re a serious buyer and that you have the financial means to purchase a house. Having a pre-approval letter can give you an advantage in a competitive housing market where there are many buyers competing for the same house. To get pre-approved for a mortgage, you’ll need to provide the lender with documentation, such as income statements, bank statements, and tax returns. The lender will also run a credit check to assess your creditworthiness. If you have a good credit score and a stable income, you’re more likely to get pre-approved for a mortgage. However, if you’re buying a home with low or bad credit, there are programs and other home loans that may be available to you.  Remember, getting pre-approved for a mortgage is an important step in the home buying process that can give you a better understanding of your budget and increase your chances of getting your dream home. By following these first steps in buying a house, you’ll be well on your way to achieving your homeownership goals. First steps to buying a home: bottom line Determining your budget, setting your financial goals, and getting pre-approved for a mortgage are crucial steps that can help you make informed decisions and achieve your homeownership goals. Buying a house can be a daunting task, especially for first-time homebuyers. However, by understanding and implementing the first steps in the home buying process, you’ll be setting yourself up for success throughout your homebuying journey. 

  By: By: Redfin Blog    Buying a home is a significant investment, and ensuring the house is in the best condition possible is a top concern for any buyer, regardless of whether it’s your first home or investment property. It’s easy to get caught up in the excitement of buying a home, but you’ll want to make sure you include a home inspection in your list of priorities to avoid any potential issues or unforeseen costs as you get further into the homebuying process.  A general home inspection is almost always recommended for anyone buying a home. However, savvy buyers will do their due diligence by scheduling specialty home inspections, especially if the house is older or has specific features. From the roof all the way down to the foundation, there are several specialized types of home inspections you may want to consider before sealing the deal on your dream home. Do I need a specialized home inspection? “When discussing the importance of any type of home inspection with a client, I find the analogy of people seeing a doctor helpful,” says Brian Wendorf of Integrated Home Inspections. “Getting a home inspection is like seeing a trusted general practitioner who will evaluate overall health and recommend seeing a specialist when there is a question or concern about something that may be a latent issue.  The things we can’t see can expose the greatest concerns to our underlying health.  Like our bodies, a house can be seen as a holistic set of systems and structures. It’s important to get a home inspection to help understand the condition, need, and overall viability of a home’s usefulness to provide a happy and healthy place to call home or a sound investment.” Depending on the home’s age, location, or condition, you might consider special types of home inspections to investigate potential issues common in homes in your area. General home inspections are great at giving you an idea of the overall state of the house at that point in time, but they do not typically test for things like asbestos or mold. “From crawl spaces to foundations, plumbing to HVAC systems, these inspections provide peace of mind, uncover hidden issues, and ensure you’re making a wise investment in a safe and comfortable living space,” says Luis Roses, owner of MIA Inspections. “Don’t settle for uncertainty; let comprehensive inspections protect your investment and bring you lasting peace of mind.” When it comes to buying a home, you want to make sure you know all there is to know about the property before signing on the dotted line. In fact, here are 19 different types of home inspections you should consider: 1. Roof inspection Most general home inspections will catch obvious roof problems, such as dark streaks or stains on your ceiling or loose shingles, with a visual inspection from the ground. However, a roof inspector will conduct a more thorough inspection that may reveal issues that aren’t visible to the untrained eye. This can include checking for leaks, unsecured shingles that could allow water to enter the home, and the condition of the gutters.  “Your roof is your home’s shield against the elements,” says Preston Smith of Mahogany Premium Home Inspections. “A roof inspection during a home inspection can help you spot problems early and save money on repairs. Peace of mind is priceless.” 2. Chimney inspection A chimney inspection can alert you of any potential problems in the firebox or flue, buildup, or blockages that you can bring to the homeowners to fix before closing on the home. Like all inspections, the inspector will perform a visual assessment for exterior cracks or damage in the mortar and clear the chimney of any buildup of creosote (a byproduct of burning wood) that can combust if left untreated. This type of home inspection aims to prevent chimney fires and smoke or odors from seeping inside the home when the fireplace is lit during the colder months.  3. Attic inspection The roof may look sound and secure from the outside, but there may be signs of structural damage in the attic that can be easily missed with a general inspection. If you’re planning to look for your dream home in Phoenix, AZ to enjoy sunny weather year-round, you can expect to have your air conditioning running day and night, which can easily add to your energy bill. An attic inspection will let you know if there’s sufficient or damaged insulation that needs to be remedied. Moreover, a trained specialist will have the equipment necessary to identify signs of mold or moisture that can compromise the foundation’s integrity. “Many people, including some roofing companies, don’t understand the importance of roof or attic ventilation or the proper way to install a venting system,” says Sean Brady of SpecQuest. “Getting a home inspection that includes the attic can help identify deficiencies in this area which can help prolong the life of a roofing materials and insure the structural integrity of the roof framing members.” 4. Electrical inspection Regardless if you’re looking at a new construction or an older home, making sure the wiring is up-to-date and complies with city codes will help you avoid any troubles later on. Safety, comfort, and improved energy-efficiency are a few of the benefits you will gain from having your electrical systems inspected by a professional. Wires can become frayed and damaged from regular wear-and-tear and pose a dangerous fire hazard to your home and family.  In addition to roof inspections, Peter Kirchgessner of Good Dog Inspections recommends that homeowners get their electrical systems looked at. “There is peace of mind in knowing the condition of the home but even more importantly is finding out what critical components are in need of repair for safety and financial reasons, he says.  “A faulty or aging roof can cause water damage that can lead to mold. A dated and dangerous electrical panel or bad wiring can lead to house fires. Both are expensive repairs initially but far less expensive or dangerous if dealt with timely and with confidence before purchase.” 5. HVAC inspection A strange sound or smell could indicate an underlying issue that could affect your HVAC system, leading to increased heating and cooling costs, or worse, needing to replace it with a whole new system. An HVAC inspection provides a clearer picture of the home’s heating and cooling system, and can even give you recommendations for repairs or energy-efficient upgrades. “The AC unit is one of the most used components in the home, says Kal Hoffman of Miami Divum. “HVAC and vent inspections are probably one of the least thought about, but most cost-effective actions that a homeowner can do once every three to five years. A well-functioning unit with proper ventilation will not only pay for itself, but will also continue to save the homeowner money throughout its lifespan.” 6. Mold inspection Just because you can’t see mold doesn’t mean there isn’t any lurking away in your dream home. In fact, a mold problem could indicate that the home is harboring larger issues such as water damage, leaks, or even flooding. “Mold inspections involve a comprehensive visual assessment of the property to identify visible mold and potential mold-conducive conditions,” says Randy Cottrell of Blue Crab Inspections. “Advanced tools like infrared imaging and moisture meters are employed to detect moisture intrusions or dampness not visible to the naked eye. Air and surface samples might be taken and sent to a lab for microbial analysis to determine the type and concentration of mold spores present.” Cottrell adds that mold in the home can be a health hazard, particularly to those with respiratory issues or allergies, and fixing the problem can be costly if it isn’t addressed in a timely manner. 7. Pest inspection Termites and other wood-loving pests can cause irreparable damage to the property that is costly to replace. A general home inspection may show areas of damage that might attract these unwanted guests, but only a trained specialist can definitively identify if there is continuing presence of pests, such as termites, carpenter ants, rodents, spiders, in your home’s exterior and interior, how large the infestation is, and how long the pest has been there. Not only will it save you a headache from dealing with a potential infestation, getting a pest inspection conducted early on will let you know you’re investing in a pest-free home. 8. Lead-based paint inspection Older homes built before 1978 – and even some after – could contain lead-based paint and are highly recommended to be tested by a trained professional. Even low levels of lead-based paint may cause health issues and can be hazardous if you’re buying a home with young children. A specialist will check for peeling or chipped paint around the house and collect samples to be tested in a lab for the presence of lead.   9. Plumbing inspection A plumbing emergency is never convenient. To prevent issues like a sewer backup or a failing water heater from becoming a homeowner’s nightmare, investing in a plumbing inspection before making the down payment can bring underlying issues to light. A professional will either conduct a visual inspection or use a diagnostic camera to verify that fixtures and appliances are installed properly and check for signs of water damage under or behind appliances.  10. Septic inspection Like plumbing emergencies, a malfunctioning septic system can spell costly repairs (and unpleasant odors) if not caught before you’re under contract. A trained professional will locate and assess the septic tank, sludge layer, and absorption area to ensure all components are in working order and that the tank is the right size for the home. You definitely wouldn’t want to buy a home with a failed septic system, so consider a septic inspection if you’re buying a home with a septic tank. 11. Radon inspection If you’re looking for your future home in regions where basements are common, requesting a radon test as part of the home’s overall inspection can help bring you peace of mind. Nearly 1 out of every 5 homes in the United States has elevated radon levels, and the EPA recommends that all houses be tested for radon levels during the point of sale. In most cases, you can request the seller’s previous radon test results as part of the home inspection and use that as a point of comparison.  “Radon testing is important because it is the second leading cause of lung cancer in the US,” says New South Property Inspections owner Wes Grant. “Home Inspections are important because a house is the largest personal investment anyone normally makes so it’s imperative that you perform as much due diligence as possible to determine the potential repairs needed to maintain the value and condition of your property investment.” 12. Asbestos inspection If you’re buying a home that was built before 1975, there’s a chance asbestos may be present in one or more of its construction materials. An asbestos inspection should be conducted by a certified asbestos removal company. Keep in mind that while asbestos tests take time, the entire home is inspected to ensure no asbestos-containing materials remain in the home you want to purchase. If the inspector recommends a removal, make sure this is addressed before signing off on the contract. 13. Pool or spa inspection A pool is a great outdoor amenity, but not inspecting the pool’s structure and equipment systems, such as its pumps, heaters, and filters, could cause many problems down the road. Beyond being leak-free and solid, the pool’s plumbing system needs to be inspected to ensure the water is draining properly, and that the safety covers and hardware are sufficient to secure the pool when not in use. 14. Soil stability inspection The state of the soil around the property can play an important role in determining if the home’s foundation adequately supports the soil that surrounds it. After all, you don’t want part of the hill your future home is sitting on to slide away during a rainstorm. A soil analysis by a trained professional can help prepare you for the potential issues of hillside living and will test for the probability of erosion, gillies, or mudflows due to the soil shifting.  15. Foundation inspection Whether you’re a seasoned or first-time homebuyer, a foundation inspection can easily be overlooked when going through the types of home inspections you should consider. Large cracks in the exterior and interior walls, uneven floors, gaps between walls and the ceiling, or even doors that won’t close properly are potential warning signs that there may be bigger foundational issues that have gone unnoticed. A structural engineer can identify these problems, and you may be able to bring these up to the seller to fix during negotiations – saving you time and money by preventing the conditions from worsening.  “A foundation inspection is crucial in telling the story of a house,” says Dave Tague of Tague Home & Property Inspections. “An issue with the foundation will affect the structure above it. There will likely be angled cracking above doors and windows, and even the brick veneer on the outside of certain homes. Doors may rub and not close correctly. Supporting structures in the attic may show signs of foundation movement. A complete home inspection is always a good investment, but it all starts with the foundation.” 16. Crawl space inspection Homes with crawl spaces in areas where there’s high humidity, like Seattle, WA, should be strong contenders for a crawl space inspection. As moisture condensates on surfaces in the crawl space, mold, wood rot, and even termite infestations can occur due to the space becoming increasingly humid. A professional will identify signs of a rotting crawl space and save you from making a costly mistake. “It’s imperative this space is inspected,” says Richard Gaines of San Diego’s Home Inspector. “Issues such as cracked foundation walls, plumbing leaks, old electrical wiring, mold…health and safety are my main concern and all these issues directly affect the health and safety of the home and its occupants.” 17. Phase inspection Phase inspections are a crucial aspect of the construction process for new houses. These inspections are conducted at various stages of construction, typically encompassing three key phases: pre-drywall, pre-closing, and final inspections. Phase inspections for new houses are vital to guarantee the quality and safety of the construction, providing homeowners with peace of mind and assurance that their new home meets all necessary requirements. “Phase inspections are like checkpoints in a construction video game,” says Didya Bianchi of Bianchi Home Inspections. “By getting inspections during each phase, such as foundation, framing, and final inspections, you’ll catch any glitches or construction snafus before they become full-blown disasters.”  18. Sewer inspection Sewer inspections play a crucial role in ensuring the functionality and integrity of the sewer system in new homes. These inspections involve a comprehensive assessment of the sewer lines and components to identify any potential issues or defects.  “Sewer line maintenance is often overlooked yet can be extremely expensive to repair or replace,” says Amanda Ables of Noble Property Inspections. “A sewer scope is a visual examination into the plumbing and sewer systems to identify any defects or damage. Common problems discovered during a sewer scope can include breakage, leaks, bellying, collapsing and clogs of the sewer lines.” “A whole house inspection is a limited visual inspection that can reveal issues that need further evaluation,” adds John Deller of Buy Right Home Inspections. “Therefore, in addition to a whole house inspection, a sewer camera inspection can be beneficial in determining if the lateral line has any minor or substantial defects or if the system is serviceable.” By conducting sewer inspections before the purchase or occupancy of a new home, potential buyers or homeowners can uncover any hidden sewer issues that may require immediate attention or future maintenance. Early detection of problems through sewer inspections helps prevent costly repairs and ensures a smooth and uninterrupted wastewater disposal system in the new home. 19. WDO inspection WDO inspections, short for “wood-destroying organism” inspections, are essential evaluations conducted by licensed professionals to assess the presence of pests that can damage wood structures in homes or buildings. These inspections primarily focus on identifying termites, carpenter ants, wood-boring beetles, and other wood-destroying insects that can compromise the structural integrity of a property. During the inspection, the licensed inspector thoroughly examines the interior and exterior of the building, including crawl spaces, basements, attics, and all accessible wooden elements. Tyler Quintard of Odyssey Home Inspection suggests that homeowners should have WDO inspections and general inspections done by different companies. “WDO inspection is a quantitative inspection, outlining all areas of concern regarding wood rot, activity, and deterioration typically paired with a bid for repairs,” he says. “These inspections should always be performed by two inspectors, and you should always do your due diligence when identifying the right professional for each that has your fiduciary interest in mind.” Are these different types of home inspections worth the investment? While they could add up in costs and time, specialized home inspections can give you peace of mind in the long run. “Just like a good lawyer can save you thousands down the road, a thorough home inspection can save you the heartache of unexpected repairs and replacements,” says Kyler Piedra of Kore Home Inspections. “A home inspection helps mitigate your risk and inform your purchase decision.” “Prior to purchasing a home, it’s vital for purchasers to understand the significance of a comprehensive home inspection that covers essential elements like electrical, roof, attic, chimney, soil stability, and pest control, addressing the pivotal facets of systems, structure, and safety, commonly known as the 3 S’s,” says Holly Newman from LunsPro Home Inspections. “An evaluation of the electrical systems ensures their functionality, and comprehensive assessments of both the roof and chimney guarantee the integrity of the property’s structural foundation. An examination of the attic confirms the adequacy of insulation and ventilation, while a meticulous analysis of soil stability proactively prevents potential foundation issues down the line.” “While waiving a home inspection may provide a competitive advantage in a competitive housing market, it can also expose you to significant risks,” adds Stephen Roberts of Boston Light Home Inspections. “Without a professional inspection, you might miss important information about the property, which could lead to unforeseen expenses or potential safety hazards down the line.” These types of home inspections help reveal problems in-depth that a general home inspection might only highlight as a possible issue. You can notify the current owners as soon as possible to get the repairs underway in case you want to continue with the home purchase. Addressing these issues early on in the home buying process is key to saving you money down the road. Additionally, inspections can give you an upper hand when negotiating a sale. “Buying a home is probably the most significant investment you will make,” says Jeff Longaker of Inspect Pro LLC. “Protecting it is critical. A home inspection is an essential step in the home buying process. The inspection can uncover vital information about the house’s condition, so you are making an informed decision.  Having a home inspection empowers the buyers to negotiate in certain market conditions.”

  By: Redfin Blog    In this comprehensive guide, by Redfin, we will delve into ten common questions about mortgages, offering valuable insights and expert answers. Whether you’re a first-time homebuyer in Los Angeles or you’re considering refinancing your home in Tampa, this guide is tailored to equip you with the knowledge and understanding necessary to navigate the mortgage process effectively.   1. What is a mortgage? A mortgage is a loan specifically designed for purchasing a property, commonly a home. It acts as a financial agreement between the borrower and the lender, where the property serves as collateral. In the event that the borrower fails to repay the loan, the lender has the right to take possession of the property through a legal process known as foreclosure.  Essentially, a mortgage enables individuals to become homeowners by providing the necessary funds upfront, with the property serving as security for the loan. 2. How does a mortgage work? When you take out a mortgage, the lender provides you with a specific amount of money to buy a home. You then make monthly payments, including principal and interest, over an agreed-upon term (usually 15 to 30 years) until the loan is fully repaid. The interest rate and term length determine the amount of your monthly payments. 3. What are the different types of mortgages? When considering mortgage options, it’s important to understand the different types available. A fixed-rate mortgage provides stability and predictability, with a consistent interest rate throughout the loan term. On the other hand, an adjustable-rate mortgage (ARM) offers flexibility and potential initial payment advantages as the interest rate adjusts after an initial fixed period.  Government-backed loans, such as FHA or VA loans, provide more flexible qualification criteria and specific benefits. Additionally, prospective first-time homebuyers can benefit from exploring specific programs available to them, such as first-time homebuyer programs, which offer unique benefits and support. Consulting with a mortgage professional can help you choose the best mortgage type to suit your financial goals. 4. How is a mortgage rate determined? Mortgage rates are influenced by various factors, such as the borrower’s credit score, loan-to-value ratio, loan term, and prevailing market conditions. Lenders consider the borrower’s creditworthiness and the level of risk associated with the loan. Additionally, the loan-to-value ratio and loan term can impact the interest rate offered.  Lenders also take into account economic indicators, including inflation, employment rates, and the overall state of the economy, when setting mortgage rates. 5. What is a down payment, and how does it affect a mortgage? A down payment is an upfront payment made by the borrower when purchasing a home. It is typically a percentage of the home’s purchase price. The down payment reduces the loan amount and can impact the interest rate, monthly payments, and whether you need to pay for private mortgage insurance (PMI). 6. What is PMI, and when is it required? PMI, or private mortgage insurance, is a type of insurance that protects the lender if the borrower defaults on the loan. It is generally required when the down payment is less than 20% of the home’s value. Once the borrower’s equity reaches 20%, PMI can be canceled. 7. What documents are typically required for a mortgage application? Mortgage lenders typically require various documents to evaluate your financial situation and determine your eligibility. These may include proof of income, bank statements, employment verification, credit history, and debt information. These documents provide lenders with a comprehensive understanding of your financial profile for the mortgage application process. “Technological advancements have greatly simplified the document submission process for borrowers in the mortgage industry,” shares Ron Haddad Lending Team. “With improved digital systems and online platforms, it is now easier than ever for prospective buyers to organize and submit their necessary paperwork. This streamlining of document submission contributes to a smoother and more efficient mortgage application process, providing borrowers with convenience and reducing the paperwork burden.” 8. How does the mortgage pre-approval process work? Mortgage pre-approval is a crucial step in the homebuying process. By submitting a mortgage application, the lender assesses your financial information to determine the loan amount you qualify for. Pre-approval provides a clear understanding of your budget and helps you focus your search on affordable homes. It also strengthens your position as a serious buyer and expedites the loan process once you find your dream home. 9. What are closing costs? Closing costs are fees and expenses associated with finalizing a mortgage loan. They can include appraisal fees, title insurance, attorney fees, loan origination fees, and prepaid expenses such as property taxes and homeowners insurance. It’s essential to budget for these costs when planning to purchase a home. 10. How can borrowers improve their chances of getting a mortgage? To improve your chances of getting approved for a mortgage, there are a few key considerations. Maintaining a good credit score, saving for a down payment, keeping your debt-to-income ratio in check, and avoiding major financial changes during the loan process are crucial steps to take. These factors demonstrate financial responsibility and stability to lenders, increasing the likelihood of mortgage approval. Remember to consult with a mortgage professional for personalized guidance based on your specific situation. “Once you determine you want to buy a home, start learning the basics of your credit profile.” Mortgage loan consultant Luis Machain says, “have the ability to show the lender that you can pay the mortgage back by demonstrating steady employment. It’s important to meet with a mortgage professional who can advise you on the available loan programs and down payment options.”

  By: Redfin Blog    Whether you’re relocating to a new house in Tacoma, WA, or an apartment in Houston, TX, moving to a new city or state can be an exciting adventure, but the process of long-distance relocation can also be overwhelming. Proper planning and organization are crucial to ensuring a smooth and successful move. In this comprehensive guide, Redfin provides you with ten valuable tips to make your long-distance move stress-free and efficient. 1. Start planning early Long-distance moves require careful planning, so start as early as possible. Ideally, begin the process at least 8 to 12 weeks before your intended move date. Create a detailed moving checklist and timeline to keep track of important tasks. This includes researching moving companies, sorting and decluttering belongings, and scheduling necessary services such as transferring utilities. Also take into account how many moving boxes you’ll need. 2. Hire a reputable moving company Choosing the right moving company is essential for a successful long-distance move. Research several companies and read online reviews to assess their reputation and customer satisfaction. Obtain written estimates from multiple movers and compare their services and prices. Look for companies with proper licensing, insurance, and a good track record of handling long-distance moves. Also take into account whether the company specializes in long-distance moves. “Long-distance moving can be a challenging process for both residents and those assisting with the move,” says Dylan Figlo of Rentacrate. “Therefore, it’s essential to be cautious of companies that limit their services to small, regional areas, as this can be a red flag. When embarking on a long-distance move, it’s crucial to collaborate with partners experienced in handling city-to-city and state-to-state moves as their primary expertise, and investing in secure and organizable equipment like sturdy, stackable, rollable moving crates can make the journey to your new home smoother and more efficient for you and your movers.” 3. Purge unnecessary items Long-distance moves can be costly based on the volume of your belongings. Take this opportunity to declutter your home thoroughly. Donate, sell, or discard items you no longer need or use. Consider hosting a garage sale or selling items online to earn some extra cash for your moving expenses. Reducing the number of items to move will not only save you money but also make the packing and unpacking process much more manageable. “Sell or donate unwanted items,” says Eshon Howard of The Hard Body Haulers. “This will free up space in your home and reduce the amount of stuff you have to move. You can even host a garage sale or sell your items online to make some extra money.” Latoya Wilson of Takeaway Movers notes that getitng rid of things you don’t need can save you some money. Transporting over significant distances can incur substantial expenses, particularly when moving an entire household or apartment, as charges are usually determined by the weight of your belongings. 4. Organize important documents During a move, important documents can easily get lost or misplaced. Gather and organize essential documents such as passports, IDs, birth certificates, medical records, financial paperwork, and any contracts related to your new home. Keep them in a safe and easily accessible place, and consider carrying these documents with you personally rather than packing them in boxes. 5. Pack methodically Packing your belongings room by room is a practical and efficient approach. Start with the items you use less frequently and work your way to daily essentials. Use high-quality packing materials to protect your belongings during transit. Invest in sturdy moving boxes, bubble wrap, packing paper, and quality tape. Fragile items should be wrapped individually to prevent damage. Label each box with its contents and the room it belongs to. This will make unpacking a breeze and help movers place boxes in the correct rooms in your new home. Additionally, keep an inventory list of your packed items. Number the boxes and write down the contents in a notebook, or use a moving inventory app. Having a detailed list will help you ensure that nothing gets lost during transportation and will serve as a reference when filing insurance claims, if necessary. Marcin Cwaliński of Ampol Moving, Inc suggests doing the packing yourself to stay organized and save money. “In order to keep costs down, we advise anyone who is moving to be as organized as possible,”he says. “Try to pack your own boxes, versus having a moving company to do it for you. If at all possible, bring as many items as possible to the garage or a main level of your house. This will speed things up, thus saving you money.“ 6. Take inventory “With a move of any size, it is prudent to have an accurate assessment of your property,” says Thomas Engelhart of 513 Movers. Create a detailed inventory of all your belongings before the move. It’s particularly crucial for long-distance moves, where your belongings may be transported with other items. Having an inventory will help you keep track of your possessions and ensure that everything arrives safely at your new home. It will also be beneficial for insurance purposes in case of any unforeseen accidents or damage during the move. 7. Plan your travel and accommodation If you’re driving to your new location, plan the route in advance and make reservations for accommodations along the way if needed. Calculate the distance, travel time, and any potential stops you might want to make. Consider the best time to travel to avoid heavy traffic or inclement weather conditions. If your move involves air travel, book your flights well ahead of time to secure the best prices. Arrange for transportation from the airport to your new home in advance. If you have pets, Move Central suggests that you ensure they have proper travel arrangements as well. 8. Notify important parties One of the critical steps in a long-distance move is notifying relevant parties of your upcoming relocation. Inform your current and new utility providers about your move-out and move-in dates to ensure a seamless transfer of services. Also, notify your banks, insurance companies, credit card providers, and any other institutions you have accounts with about your change of address. Don’t forget to update your address with relevant government agencies such as the postal service, the Department of Motor Vehicles, and the Internal Revenue Service (IRS). Additionally, inform subscriptions, friends, family, and other contacts of your new address to continue receiving mail and packages without interruptions. 9. Pack an essentials box Packing an essentials box is a simple yet incredibly useful step that can save you time and stress during and after your move. Pack a box with items you’ll need immediately upon arrival at your new home. This may include toiletries, a change of clothes, important documents, basic kitchen supplies, essential tools, and any items that will help you settle in comfortably during the first few days. Keep this essentials box with you during the move, rather than having it transported with the rest of your belongings. That way, you can easily access these important items without rummaging through packed boxes when you first arrive at your new residence. 10. Stay positive and stay flexible Lastly, remember that moving, especially long-distance, can be challenging and unpredictable. Unexpected issues may arise, but maintaining a positive attitude and staying flexible can make the process more manageable. Embrace the adventure and the new opportunities that await you in your new location.

  By: Redfin Blog    Once you’ve decided to buy a house, the next step is to decide how much you can realistically afford. To help you get started and make the process easier, here are five tips to follow when deciding how much you should spend on a house.   1. Understand what percentage of your income should go toward your mortgage To calculate how much you can afford to pay for a mortgage each month, start by adding up your gross annual income from all sources, including salary, wages, tips, and commissions. If you have a spouse or partner whose income will also contribute to the mortgage, make sure to include that as well. Divide the total by 12 to get your monthly income, and use that figure as the basis for your mortgage calculations. Once you’ve determined your monthly income, it’s time to follow the 28/36 rule. According to this rule, you should not allocate more than 28% of your monthly income to housing and no more than 36% to all outstanding debts, including your mortgage. By staying within these parameters, you will have sufficient funds for groceries, fuel, holidays, and saving for your future. Example: Let’s say you and your spouse are looking to buy a house in Anaheim and have a combined monthly income of $6,000. Applying the 28/36 rule, you wouldn’t want to spend more than $1,680 on house related expenses ($6,000 x .28) and $2,160 on total debt ($6,000 x .36). 2. Use an affordability calculator to calculate how much house you can afford By inputting information such as your location, annual income, down payment savings, and current monthly expenses, our home affordability calculator can provide you with an overview of what kind of house you can afford to purchase. Adding advanced filters such as monthly homeowners’ insurance, mortgage interest rate, private mortgage insurance (when applicable), loan type, and the property tax rate can further refine your calculations. The more data you enter, the closer you will be to finding out the ideal amount of house you can afford. 3. Consider current mortgage rates The mortgage interest rate is the amount charged by a lender in exchange for loaning money to a buyer. It is expressed as a yearly percentage of the total loan amount but is calculated into the monthly mortgage payment. The mortgage rate offered is a major factor in determining if you can afford to buy a home. It is important to note that even a small difference in the rate, such as one basis point (one-hundredth of a percentage point), could mean the difference between a home being affordable or unaffordable. Be sure to shop around and speak to numerous lenders to find the best rate. 4. Factor in additional costs of homebuying It’s not all about your home’s purchase price. Below are the common costs associated with buying a house. The largest initial expense is the down payment. When purchasing a home, a down payment is the cash you put towards the purchase price. Among the various loans available, you can find down payment requirements ranging from 3-20% of the home’s purchase price. If your down payment is less than 20%, you will likely need to pay private mortgage insurance (PMI). This insurance is to protect the lender in the event of you defaulting on your mortgage payments. The cost of PMI is between 0.5% and 1% of your annual mortgage, and this amount is added to your monthly payment. Remember to include closing costs. Closing costs typically consist of lender and escrow fees, insurance, and taxes—all of which are necessary to finalize the sale of the home and make it legally yours. Expect to pay between 3-6% of the home’s total purchase price for closing costs. If you are purchasing a $500,000 home in Austin, for example, you can expect to pay somewhere in the range of $15,000–$30,000 in closing costs.  These costs are due with your down payment when you close on the home. 5. Remember, being a homeowner comes with recurring expenses When closing day is over, your responsibilities are not finished. Make sure to allocate enough funds in your budget to cover your monthly home expenses. Additionally, it is wise to save some money to make repairs and updates to your house in the future. Utilities. If you have been renting in the past, you may not be familiar with the cost of utilities when owning a home. It can be difficult to estimate these expenses since some landlords cover sewer, water, and garbage in the rent. As the new homeowner, you should plan to pay for these utilities on top of your mortgage, as well as for internet, cable TV, natural gas, and electricity.  Property taxes and insurance. When purchasing a home, at closing, you will be expected to pay an initial part of the property taxes and homeowners insurance. However, you will need to keep up with them as long as you own the house. Property taxes and homeowners insurance can vary depending on the worth of your home, its locality, and any changes that may arise annually. Home maintenance and emergency repairs. As a homeowner, it is your responsibility to take action when something breaks down or is damaged. This could be due to a malfunctioning major appliance, a plumbing leak, a broken air conditioning system, or a storm causing damage like ripped off roof shingles or uprooted trees. Additionally, it is important to set aside money for tasks that need to be done periodically, like cleaning out gutters, carpets, and pressure-washing the deck. For a comprehensive list of home maintenance tasks, consult a home maintenance checklist. How much should you spend on a house: the bottom line Many factors influence how much you should spend on a house, and the answer is personal. However, becoming aware of the basic costs can help you determine if this is an opportune time to buy and even save you money when purchasing your new home.

  By: Redfin Blog    When you’re about to make an offer on a home, your real estate agent will ask how much “earnest money” you’d like to put down. Earnest money is a type of security deposit, also known as a “good faith” deposit, made to the seller of a home. It represents your intent to buy the property by showing the seller you’re serious about purchasing the property. In most cases, earnest money can also act as a deposit on the property you’re looking to buy.   This Redfin article gives an overview of what earnest money is, why you need it, and how much you may need, and how to protect the money once you deposit it.  What is earnest money in real estate transactions? Earnest money is the money you pay after a home seller has accepted your offer on a house and before closing on the home. Earnest money assures the seller that you as the buyer are acting in good faith, and it provides them with some compensation in case you back out of the deal without a valid, contractual reason.  Once the seller’s agent is able to confirm that your earnest money has been deposited into an escrow account, the buyer and seller will enter into a purchase agreement and the seller’s agent will mark the listing as a pending sale — in effect taking the property off the market. At this stage, various inspections, appraisals, and possibly other contingencies you had in the offer contract move forward to finalize the sale.  Who keeps earnest money if the deal falls through? If the buyer backs out, the earnest money is paid to the seller. If the deal falls through due to something coming up on the home inspection that would be prohibitively expensive (like a cracked foundation) or any other contingency listed in the contract, the buyer gets their earnest money back.  How much earnest money do you need to offer? The buyer and seller can negotiate the earnest money deposit amount, but it typically ranges from 1% to 3% of the sale price, depending on the market. However, if you’re buying a home in a seller’s market (when there are more buyers than homes for sale), or bidding on a highly competitive home, the earnest money deposit might range between 5% and 10% of a property’s sale price. Be sure to talk to your real estate agent about how much earnest money you should offer in the housing market you’re competing in.  Do you need to pay earnest money?  In the strictest technical terms, the answer is no – earnest money is not a requirement when you make an offer on a house. However, your offer likely won’t receive the seller’s serious consideration without putting a good faith deposit down of some kind. Earnest money can act as added insurance for both parties in the transaction. How is earnest money paid and where does it go?   In most cases, your earnest money deposit is paid to the escrow or title company, which holds it in an escrow account until the transaction closes. If you work with a real estate attorney, the deposit may be put into escrow there. You can pay this deposit with a personal check, a cashier’s check from the bank, a money order, or wired funds, depending on the terms of your contract.  What does the good faith deposit count toward?  Once the sale of the home has been completed, the earnest money you paid can be applied toward your closing costs or down payment. Alternatively, you can receive your earnest money back after closing. Because the sale went through the home sellers do not get to keep the earnest money deposit. When does a seller keep the earnest money deposit? If you fail to meet your offer’s contractual obligations, your earnest money could now belong to the seller.  Examples include: After the due diligence period is over (usually a couple of weeks), you learn that the home sits in a flight path or near a refinery and you decide to walk. You back out for any reason not listed as a contingency in the contract. You cannot close on time, without a relevant contingency, and the contract has a “time is of the essence” term. If you face any of these issues but still want to purchase the house, don’t give up. Have your agent get with the seller’s real estate agent. If you are upfront about the situation, the seller may extend the timeframe.  Is earnest money refundable?  As a buyer, you can reclaim your earnest money for a couple of reasons: If the seller doesn’t fulfill their side of the purchase contract. For example, if the home inspection found faulty windows and the seller agreed to replace them – but did not follow through by the contract deadline. That breach of contract allows a buyer to back out of the purchase and receive a refund of their earnest money.  If you have a contingency in place, and you have a reason related to that contingency to cancel the contract. There are a number of contingencies you can put into the contract and, if not met, you can walk away from the deal with your good faith deposit in hand. Other examples of when your earnest money would commonly be refunded: The title company finds a lien against the property.  Your lender denies you the loan, but you have a financing contingency in your offer. If your offer is contingent on selling your current home, but you are unable to do so after a given period of time. If you have an appraisal contingency, and the home appraises at a lower rate but the seller won’t reduce the price of the home. Having a contingency may also allow you to negotiate the terms of your contract. For example, you may be able to ask the seller to perform repairs or give a credit at escrow to cover the agreed-upon repair costs. Typically, a buyer and seller can negotiate a resolution so the sale can be completed. What if a buyer can’t afford a good faith deposit? Most sellers will not consider an offer without earnest money. Keep in mind, however, that it may be possible to negotiate a work-around. If you can’t afford an upfront earnest money deposit, let the real estate agent and seller know right away. If your purchase method and financing look solid otherwise, maybe the seller will agree to move forward with the sale. If you are serious about the purchase, you may be able to ask a family member or friend to assist with a gift or loan of funds for the good faith deposit.  A word of caution: Before taking a gift, institutional loan, or getting a cash advance on a credit card for your earnest money, be sure to consult with your mortgage lender. Any new gift, bank loan or cash advance that leads to high credit card balances during your transaction timeline could be detrimental to your mortgage loan approval. This deposit is meant to secure the property, not put it at risk of losing it. Earnest money in action: Common scenarios Let’s look at an example scenario of how earnest money may play out. Evan and Mia have listed their homes for sale in Washington, DC. Amelia is in the market for a new home and is interested in both properties and can’t make up her mind. In the event that both sellers require an earnest money deposit, three potential scenarios can unfold. Scenario 1: The forfeited deposit Because Amelia can’t decide which house to buy, she puts a good faith deposit down on both properties, prompting Evan and Mia to take their homes off the market.  Later, Amelia decides to buy Mia’s house. Now, Evan needs to relist their home for sale all over again. Luckily, Amelia’s earnest money is Evan’s to keep because Amelia backed out, which offers some compensation for time and money lost while the home was off market. Scenario 2: The early closing payment After giving it some thought, Amelia decides to make a single deposit on Mia’s home and everything runs smoothly. On closing day, Amelia gets the keys and the deposit is put towards their downpayment. Scenario 3: The failed contingency Amelia makes a single deposit to Mia. However, during the home inspection, Amelia discovers the electrical wiring is not up to code and will be very expensive to update. Luckily, Amelia has a home inspection contingency in the purchase agreement and decides not to buy and gets the deposit back from Mia. How to protect your earnest money deposit Take the following steps to protect your earnest money against fraud or unjustifiable forfeiture: Document Everything. A home is one of the largest purchases many of us will make. Make sure the contract clearly defines what amounts to cancel the sale and who ends up with the earnest money. Include any amendments to details like buyer responsibilities and timelines. Use an escrow account. Instead of working directly with the real estate seller or broker, use a reputable third-party, such as an escrow company, legal firm, or title company. Ensure the funds are securely held within an escrow account and obtain a receipt. Understand the contingencies. Familiarize yourself with the contingencies included in the contract, and double-check the contingencies that protect your interests are included. Do not sign a home purchase agreement that doesn’t have the clauses that protect you. Fulfill obligations. Real estate purchase agreements typically establish deadlines to safeguard sellers. Honor these deadlines and be sure to promptly address inquiries, submit necessary documents, and meet inspection, appraisal, and closing timelines. Earnest money is an integral part of most real estate transactions. Before signing a Purchase and Sale Agreement to buy a home, carefully review all contingencies, understand how much money you’ll need to pay, and know-how to successfully recover your earnest money if you need to back out of the sale.

  By: AZ Big Media    Sellers became more eager this January as new data indicated they’re getting ready to sell, if not already there. The number of homes actively for sale was notably higher compared to last year, growing by 7.9%, according to the Realtor.com January Housing Report released today. With the rise in inventory, median listing prices remained relatively stable, experiencing a growth of 1.4% compared to the same time last year, while time spent on market dropped to more than two weeks shorter than pre-pandemic levels. In the Metro Phoenix housing industry, time on market dropped 14 days compared with 2023, good for the second-biggest drop in the nation. “We are seeing increases in inventory and, importantly, gains in newly listed homes for sale indicating sellers are more ready to make moves. Time on market fell, signaling that buyers are ready to make offers on these new options,” said Danielle Hale, Chief Economist of Realtor.com®. “While the drop in mortgage rates since last fall has helped boost buyer purchasing power, rates may not fall as quickly in the months ahead, and the anticipated improvement in affordability may be more uneven.” New Listings Increase In January, more than half of the 50 metros included in the analysis saw new listings increase over the previous year, with some of the largest growth happening in Denver (+21.3%), Seattle (+20.6%) and Miami (+20.2%). On the flip side, there were places that also saw declines in new listings including Chicago (-16.4%), New Orleans (-14.7%), and Philadelphia (-12.9%). Grab ’em While They’re Hot Compared to January 2023, the typical home spent four less days on the market. In some spots, the time spent on the market decreased even more with Las Vegas (-19 days), Phoenix (-14 days) and San Francisco (-13 days) seeing the most decline. Other areas saw an increase in time on market including Indianapolis (+6 days), New Orleans (+4 days), and Birmingham, Ala. (+3 days). Only a handful of markets saw an increase over the typical 2017-2019 pre-pandemic time on market. These include the major west coast tech hub of San Francisco (+9 days), as well as Seattle (+9 days), Denver (+7 days), Portland, Ore. (+4 days), Austin, Texas (+3 days), San Antonio (+3 days), Los Angeles (+3 days) and San Jose, Calif. (+1 day). Listing Price Inches Higher Buyers are looking at slight price increases and higher mortgage rates compared to last January. The cost of financing the typical home, assuming a 20% down payment, increased by roughly $108 (5.4%) per month compared to a year ago. With this increase, the required household income to purchase the median-priced home went up by $4,300 to $84,000, before accounting for the cost of tax and insurance. However, as interest rates are falling and listing prices growth has remained muted, the increase in the monthly cost to purchase a home has slowed, down from 6.1% year-over-year last month to January’s increase of 5.4%. Additional details and full analysis of the market inventory levels, price fluctuations and stabilization, as well as days on market tallies can be found in the Realtor.com® January Monthly Housing Report.

  By: AZ Big Media    First impressions matter a great deal in life – job interviews, first dates, and even when selling your home. A buyer’s first impression of a property can form in seconds while clicking through the online listing photos, and quickly change when attending an in-person showing to personally scope it out. To ensure that a home generates the best possible first impression, home sellers must take on the task of decluttering before their home ever hits the market. The task of organizing and packing up an entire house can seem daunting, but with the following four tips, sellers can conquer this critical step. Take it one room at a time. Decluttering is much more palatable when tasks are broken up by room. For starters, give yourself adequate time to pack away personal belongings prior to listing photos being taken, as listing photos make or break a buyer’s interest in pursuing a home. Packing up is eventual and a given when you finally move out, so starting the arduous task prior to hiring a photographer and booking showings is advantageous to you, no matter where you are in the selling process. To begin, I always recommend sellers remove all unnecessary small furniture pieces, personal belongings and decorations that cramp a room’s space, including small rugs. Rugs obscure a home’s flooring, and buyers will want to see every square inch of their future purchase. Stow away small trash cans, artificial plants (or as I call them, dust collectors) and wall décor such as personal photos. After decluttering, a room should only contain large furniture and bare basics for living. For bedrooms, it is OK to keep a bed, small nightstand and dresser in the room, but sellers should remove accessory items like desks, chairs and bookshelves. Rooms should appear spacious and without a seller’s personal items to help a prospective buyer envision how their belongings might be arranged. Rent a storage unit or borrow space from someone else. The decluttering process does not have to entail immediately sorting through belongings to purge. If making decisions about what items to get rid of is slowing the packing process, save it for later and instead prioritize the act of moving everything out of the house. Rent a climate-controlled storage space for the duration of time it takes for you to successfully sell and relocate to a new home.Alternatively, sellers with minimal possessions or furniture pieces may want to ask a neighbor, friend or family member to store items at their residence until the transaction is complete. This approach is more cost-effective and works well for furniture that is easily disassembled or small enough to fit in another person’s garage, closet, attic or spare bedroom. Clean out closets and storage. Storage spaces like closets, cabinets and garages can be major selling points for buyers, as they will want to see a house’s capacity to hold items like out-of-season holiday decorations, shoes, clothing, sporting equipment, tools and keepsakes. Your home’s listing photos should capture every room and amenity of the home, so sellers should not rely on utilizing its storage to hide clutter. Clear shelves, clothing racks, cabinets and drawers before photos are taken, and keep these areas bare during home showings. Your master bedroom’s walk-in closet loses its luster when an interested buyer can only shuffle a few feet inside. It’s hard for people to see past junk, so get organized and let your home’s ‘skeleton’ speak for itself. Keep it neat until it sells. Don’t exhale and slack on upkeep after a showing or two – until it officially sells, your home should look just as good, if not better, than the day its listing photos were taken. Much like a dating app misadventure, it’s disappointing for a buyer to feel ‘catfished’ after initially viewing a home’s organized, clean listing photos online, only for their expectations to be subverted during the in-person home showing. I tell clients who stay in the home until it sells to ‘live light’, and clean appliances and surfaces after use to avoid being caught off-guard by a last-minute showing opportunity.Lastly, prior to buyers visiting, track down the sources of any unpleasant smells, such as cigarette smoke, pet odors and strong artificial fragrances. Scent solutions might entail replacing old carpeting and washing walls, or simply ventilating rooms and scooping litterboxes more frequently.

  By: AZ Big Media    A large amount of multifamily housing supply coming online is expected to suppress national average asking rent growth this year, according to a new special report from Yardi Matrix. The report also showed that Phoenix is among the cities that saw the largest rent decline in 2023. While national average asking rents grew by 1.6 percent in 2023, the new supply will serve to depress rent appreciation this year “in many of the markets that saw explosive growth during the pandemic.” Some markets could end the year with slight negative growth. Stronger growth is anticipated in the working-class Renter-by-Necessity segment, as most of the new supply comprises upscale Lifestyle units, the report adds. Pandemic rent growth boomtowns including Las Vegas; Boise, Idaho; Phoenix; and Austin, Texas, saw the largest rent declines in 2023. Medium-size cities with large universities such as Madison, Wis., Knoxville, Tenn., and Syracuse, N.Y., were among the top performers. Cities with the biggest rent decline in 2023 • Las Vegas at -2.5% • Boise at -2.4% • Phoenix at -2.2% • Austin at -1.6% • Reno at -1.2% Another key story in 2024 is the continued compression in the spread between in-place rents and asking rents. Most markets still have a large gap between the two, but it will “continue to shrink as asking rent increases remain muted in the near term,” according to the report, which also predicts that the national economy will “slow significantly for two or three quarters.” The large volume of supply slated to come online in 2024 will take time to be completely absorbed. Afterwards, rent growth will return to the typical 3 to 4 percent annual increase in asking rents. Read Matrix’s analysis in the new Multifamily Rent Forecast Update. Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, vacant land, industrial, office, retail and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.

  By: AZ Big Media    For the first time in months, year-over-year Metro Phoenix housing data for January 2024 showed more positive trends than negative movement, according to Phoenix REALTORS®.  “Coming into January, we believed that 2024 was going to be better than 2023,” said Sheryl Bowden, president of Phoenix REALTORS Board of Directors. “The January numbers highlight a promising start to the year.”  Listings, closed sales, sales prices and the percent of list price received were all positive compared to a year ago. Declining interest rates and an increasing Valley population all combined to start the new year on an affirmative note. Additionally, days on the market dropped by more than a week, down almost 12% from 77 days in January 2023 to 68 days this year.  Listings climbed nearly 6% to 6,600, and closed sales were up over 2% for January. The median sales price for single-family homes rose 5.5% to $464,000 from $440,000 last year. The average sales price climbed 8.4% over last year to almost $615,000 compared to $567,000. Average prices are affected by the number of high-end or entry-level homes sold during the month, where the median is the midpoint of all sales.  The percent of list price received jiggled slightly over 2023, but this figure has been within a few points over or under asking price every month over the past 12.   “Overall, the signs look good heading into the new year,” said Bowden. “The downward cycle appears to have hit bottom, and we’re moving up again. If mortgage rates hold or decrease more, we should see a great year ahead for residential real estate.”  While much of the January Metro Phoenix housing trends point in a positive direction, Bowden notes there are two cautionary figures to monitor: The number of pending sales is down 33.1% from 2023, and the housing affordability index dropped 8.5% to 65 from 71.   The lower the affordability number, the fewer the families who can afford to buy the median home. Though down from last year, the housing affordability index is part of an upward trend over the latter part of 2023 and into 2024, a sign that more families may afford a broader number of homes.  “Now that there are more listings on the market making for a robust inventory, we should see increasing sales activity,” Bowden said. “The inventory still tops a three-month supply, but houses are moving more quickly when they are listed.”  Pending sales dropped to 3,608, the second-lowest pending number in the last 12 months. On the other hand, new listings rose to 6,593, the highest increase over the same period.   Learn more about Phoenix REALTORS.  

  By: AZ Big Media    In the cutthroat arena of real estate, standing out is key to winning clients. We’ve gathered insights from industry experts, including CEOs and broker associates, to share their most effective strategies. From demystifying the mortgage process to establishing a strong online presence, discover the twelve distinct tactics that have propelled their success. Here’s how to stand out in a competitive real estate market: Demystify the Mortgage Process Specialize in a Niche Market Expand Reach Through Networking Become a Local Market Expert Implement a Robust Online Portal Offer In-House Tax Expertise Leverage Innovative Technology and Ad Techniques Personalize Client Service Utilize Targeted Social Media Marketing Provide Interactive Virtual Tours Convert Prospects with Strategic Renovations Establish a Strong Online Presence   Demystify the Mortgage Process I believe in demystifying the mortgage process for clients and helping them understand their options clearly. That’s why the focus quickly became creating educational content that we could share on our online webinars and newsletters.  For instance, we started multiple email campaigns on topics like “Navigating Your First Mortgage” or “Smart Refinancing Strategies.” Moreover, rather than simply offering our audience insights, we sent out multiple surveys and polls to understand what the pressing questions were that they needed assistance with. The success story was when one of our subscribers forwarded our email to someone who was looking to buy their first home.  Soon after, they got in touch, and I tailored a mortgage solution that aligned with their goals. In the end, they chose to work with me over other brokers because of the educational approach and personalized service. Mike Roberts, Co-Founder, City Creek Mortgage   Specialize in a Niche Market In the fiercely competitive real estate market, differentiation is key. I stand out by specializing in a niche market, such as luxury waterfront properties.  By becoming an expert in this specific area, I am able to offer unparalleled knowledge, connections, and insights to my clients. This focused approach has proven successful, as I recently helped a client secure a highly sought-after waterfront estate that had multiple interested buyers. My expertise and dedication to this niche market played a pivotal role in winning the client and closing the deal. Josh Steppling, Broker Associate, Treasure Coast Real Estate   Expand Reach Through Networking Networking is a strategy that has greatly helped me stand out and win clients in the competitive world of real estate. By building personal relationships with other agents, industry professionals, and potential clients, I have been able to expand my reach and showcase my expertise.  One particular example of its success was when I attended a local real estate conference and made connections with several agents who were looking for a partner to help them with their clients’ needs. As a result, I was able to secure multiple new clients and expand my business network through these valuable connections. Keith Sant, CMO, Eazy House Sale   Become a Local Market Expert One key strategy I advise is to become a local market expert. This involves more than just understanding current listings and prices; it requires in-depth knowledge of the community, including future development plans, school district details, and local amenities.  I encourage beginners and advanced investors to regularly attend city council meetings and engage with community leaders. Building a blog or a social media presence where they share insights about the local market and community events can also establish their credibility. This approach not only distinguishes them as knowledgeable professionals but also helps in building a network of potential clients who trust their expertise. Implement a Robust Online Portal As a letting agent in a fiercely competitive real estate rental market, I know that implementing a robust online portal can be a game-changer in standing out and winning clients. The convenience and accessibility of an online platform not only streamline the rental process but also provide clients with real-time updates and information. For instance, introducing a user-friendly portal for property listings, virtual tours, and document submissions has not only enhanced client satisfaction but has also proven instrumental in securing leases swiftly. This technological edge not only demonstrates a commitment to efficiency but also aligns with the modern expectations of clients, solidifying our position in the real estate market as a cutting-edge and client-centric letting agency. Jaskaran Deu, Director, DEU Estates   Offer In-House Tax Expertise For our real estate brokerage, the niche has been having an in-house tax expert. We’ve been able to tap into more and more investors by having an expert handy who can help explain things like cost segregation while evaluating what price range and property type will provide the best tax incentives. Christopher Olson, General Partner, Azalea City Tax & Accounting   Leverage Innovative Technology and Ad Techniques In the highly competitive real-estate market, my standout strategy has been leveraging technology to create immersive virtual tours of properties. Recognizing that many potential buyers start their search online, I invested in high-quality, 360-degree virtual tour software. This allows clients to explore properties in detail from the comfort of their own homes.  To complement this, I also use targeted social media advertising to reach a broader audience. This approach not only showcases the properties uniquely and engagingly but also demonstrates my commitment to innovative marketing techniques. It’s been a game-changer in attracting tech-savvy buyers and setting my listings apart. Tony Mariotti, CEO, RubyHome   Personalize Client Service In my experience, a personalized approach has been the most effective strategy for standing out in the real estate market and winning clients. Instead of simply sending out generic flyers or emails, I take the time to understand the specific needs and preferences of each potential client. This allows me to tailor my services and marketing efforts accordingly, showing that I truly care about their individual needs and goals.  For example, I had a client who was looking for a home with a large backyard for their growing family. Instead of just sending them listings that fit their budget, I took the extra step to find properties that also had spacious outdoor areas, which greatly impressed them and ultimately led to me winning their business. By showing genuine interest in each client’s unique situation, I have been able to stand out in a crowded market and successfully secure clients. It’s always important to remember that personalization goes a long way when it comes to real estate. Zach Shelley, Founder and CEO, A-List Properties   Utilize Targeted Social Media Marketing Social media marketing has been a game-changer for me in the real estate industry. By creating a strong online presence and using targeted ads, I have been able to reach a wider audience and showcase my expertise to potential clients.  For example, I recently posted about a new listing on Instagram, and within hours, I had multiple inquiries and ultimately closed the deal with a buyer who saw the post. This tactic has not only helped me stand out from other realtors, but it has also proven to be successful in generating leads and closing sales. Mark Buskuhl, Founder and CEO, Ninebird Properties   Provide Interactive Virtual Tours One strategy that has helped me in a competitive market is leveraging immersive and interactive virtual tours. Traditional property listings often rely on static images and descriptions, but offering potential buyers a virtual tour provides a more engaging and comprehensive experience. We start by embedding virtual tours directly into online listings on the business website, real estate platforms, and social media channels. Then, we incorporate interactive elements within the virtual tours, such as clickable hotspots, detailed property information, and the ability to measure distances within the space. We also host live virtual open houses or schedule virtual tours using video conferencing tools to guide potential buyers through the property and answer questions in real time. Perry Zheng, Founder and CEO, Pallas   Convert Prospects with Strategic Renovations When it comes to any kind of competitive market, especially in real estate, it’s important to assess things from the perspective of clients and to understand how to create great value. One way to do this and convert more prospects into clients is through being an exceptional closer.  Being an exceptional closer means that one is able to communicate to prospects about their skills and abilities to help the prospect, as well as exchange emotional energy that creates confidence and enthusiasm. The way that we’ve specifically been able to stand out and win clients on the real estate agent side has been by providing additional value through strategic renovation services. This has been incredibly helpful, especially for homes where there is financial distress but also equity.  In these scenarios, we’ve been able to do a quick renovation for the homeowner in 7 to 14 days, then put the house on the market, and then we’ve been reimbursed for the renovation costs when the property sells and closes. Homeowners have enjoyed this because they’ve not had to go out of pocket for renovation costs and manage contractors, and they’ve been able to see that we have ‘skin in the game’ by investing money into the property.  In our “We Buy Houses” business, we’ve also been able to create exceptional value and win over clients by providing multiple services beyond a traditional cash offer. While we do pride ourselves on having great cash offers, we’re also able to help sellers by connecting them with real estate agents, renovating their houses, and doing a joint venture partnership to split the profits, along with a number of other options. When people feel that a solution is truly being provided for their unique situation, that is when we find they convert the best. Sebastian Jania, CEO, Ontario Property Buyers   Establish a Strong Online Presence In today’s digital age, having a strong online presence is essential for any real estate agent looking to stand out and win clients. By utilizing social media platforms, creating a professional website, and actively engaging with potential clients through email newsletters and blog posts, I have been able to showcase my expertise and attract new clients.  For example, I recently had a client who found me through my website and was impressed by the content I had posted on my blog about the local real estate market. This led to them reaching out to me for assistance in finding their dream home, which ultimately resulted in a successful sale.  By maintaining a strong online presence, I have been able to reach a wider audience and establish myself as a knowledgeable and trustworthy agent in the competitive real estate market. Shaun Martin, Founder and CEO, Sell My House Fast  

  By: The Mesa Tribube    The average square-foot price of single-family homes in the Valley rose the most over the last two years in cities with the most luxury homes, according to a leading analyst of the Phoenix Metro market. That increase was the highest in Paradise Valley, where the per-square-foot price soared 42.3% between 2021-2023, the Cromford Report said last week. “This is the first time since 2000 that we have seen Paradise Valley accelerate well ahead of the pack,” it stated. “It probably has something to do with the number of homes that are torn down and replaced with new builds that have extremely high costs per square foot.  “This process extends the gap between Paradise Valley and Scottsdale home pricing.” Scottsdale saw the second highest increase at 23%, a shade ahead of Wickenberg’s 22.9%. Fountain Hills, Cave Creek and Carefree also saw per-square-foot price increases above 20%. Per-square-foot prices in the last two years rose 17.2% while in the Southeast Valley, they rose at least 10%. That includes Apache Junction (15.1%), Chandler (13.7%), Mesa (13.2%), Gilbert (12.6%), Tempe (12.2%), Sun Lakes (11.6%) and Queen Creek (11.2%). The Cromford Report also noted that Valley-wide between 2022 and 2023, the year-over-year per-square-foot price increases were the highest among homes selling for at least $3 million. In that time period, homes that sold for $11 million or more saw the sharpest increase in per-square-foot prices at 12.8%.  Homes with a sale price of $7.5 million and $10 million saw a 9.5% increase while homes in the $5 million-$7 million range recorded an 8.7% increase. Homes that sold for $2 million or less, on the other hand, saw average per-square-foot prices drop between December 2022 and last month, according to the Cromford Report. That decline was the greatest among homes that sold for $350,000-$400,000, where the per-square-foot price dropped an average 7.7%. Declines in other price ranges were between 2.1% for homes selling between $700,000 and $800,000 to 5.9% for those selling between $300,000 and $350,000. “The cheaper you go, the more 12-month average prices tend to have fallen,” the Cromford Report said. “We rarely see such a clear pattern, so I conclude that something is bolstering the luxury market,” it continued. “It is not lack of supply, which is plentiful, although active listing counts are not excessive compared to the normal levels at these altitudes.  “It seems that luxury buyers have been less affected by the high interest rates which appear to have had a much more serious effect on first-time home buyers.” The Cromford Report’s analysis comes at a time of mixed assessments of the housing market in Arizona, the Valley and nationwide. Arizona REALTORS President Shelley Ostrowski predicted that recent declines in mortgage interest rates will see more buyers jump into the market, benefitting sellers. “I see more buyers coming back into the market as interest rates begin to settle,” said Ostrowski. “The housing market will remain strong in 2024, emphasizing the importance of clear communication and why buyers and sellers are best trusted to use a Realtor.” This 1,032-square-foot patio home on the perimeter of the 55+ Fountain of the Sun golf course recently sold for $275,000. The two-bedroom, two-bath house has an open, split-bedroom floor plan and underwent numerous improvements, including a $12,000 shower upgrade.  (Special to the Tribune) Sindy Ready, Arizona REALTORS president-elect and associate broker for RE/MAX Excalibur in Scottsdale, also predicted more activity in the market.  “While inventory might be lower than usual at this time, interest rates are speculated to decrease by the end of the second quarter to a historically normal rate of 6% to 6.5%, which will bring more buyers into the market,” Ready said. Ready also doubted the Valley will see a “silver tsunami” created by a flood of baby boomers unloading their houses. “Many baby boomers in today’s housing market are rightsizing as opposed to downsizing, meaning they are searching for a different floor plan or a level property that accommodates their lifestyle,” said Ready.  “This means simplifying backyard maintenance and introducing trendy new features to the home such as an outdoor kitchen, fire pit, and seating area.” Shane Cook, 2024 treasurer of the Arizona REALTORS from eXp Realty in Gilbert, added: “I expect interest rates to retreat some, which will create more buyer demand “With inventory now in short supply, this could mean a potential impact on the market that continues to be more favored to the seller.” The Cromford Report provided data that gave reason for at least sellers to be optimistic, noting that all 17 Valley submarkets showed a “trend in favor of sellers is starting to accelerate.” But other experts held out little optimism about a big downward shift in home prices. “I don’t think we’re going to see a big break in prices, since the broader trend facing the housing market continues to be not enough supply relative to demand,” said Realtor.com Chief Economist Danielle Hale. A survey by Fannie Mae said its monthly survey in December showed that more buyers are expecting more mortgage rate reductions. But Fannie Mae also said the survey showed that homebuyers were “overwhelmingly pessimistic” in their assessment of the market, with only 17% saying this is a good time to go home-shopping. “Homeowners have told us repeatedly of late that high mortgage rates are the top reason why it’s both a bad time to buy and sell a home, and so a more positive mortgage rate outlook may incent some to list their homes for sale, helping increase the supply of existing homes in the new year,” said Mark Palim, vice president and deputy chief economist at Fannie Mae. “Of course, that’s likely dependent on the extent to which mortgage rate expectations are met with actual mortgage rate declines,” he added.

  By: The Glendale Star    Greenlight Communities recently broke ground on two of its newest affordable living communities — Cabana Aldea and Streamliner Aldea — in the heart of Glendale.  They are within 2 miles of Westgate, State Farm Stadium, VAI Resort and Mattel Amusement Park.  “I’m very happy to see what we are doing in our community on behalf of all those who will benefit from (these) initiatives,” Phoenix Councilwoman Betty Guardado said. “I wanted to extend my sincerest gratitude. (Greenlight’s) vision and tireless efforts are making a real difference in people’s lives.  “Together we can create a more inclusive and thriving city for everyone.” Both Streamliner Aldea and Cabana Aldea represent the first affordable housing projects in the area. They are the second and third projects in the Aldea Master Plan of Glendale.  In total, there will be just under 600 new combination units, offering studio, single and double bedrooms, coming with the project — 282 at Streamliner and 257 at Cabana. The starting prices for the units are $1,099 and $1,299 for Streamliner and Cabana, respectively.  “After 20 years of apartment or condominium development, Phoenix, my partners and I shifted our focus to attainable workforce apartments in 2017,” said Dan Richards, partner at Greenlight Communities. “To fill the void of housing for the missing middle, Greenlight Communities was born. We leaned on our industry experts, subcontractors, engineers and property managers to design attainable apartments from a blank sheet of paper. We started from scratch.  “That was to ensure that we could deliver the most efficient, cost-effective and enjoyable housing option for Arizona’s working families.” With the property value in the area seeming to skyrocket due to the existing and pending revenue drivers, it was a question as to how these communities could maintain competitive pricing for the units. Richards highlighted that Greenlight has an abundance of resources to offer some of the lowest prices in the area. “It takes a lot of discipline,” he said. “We had to find an underutilized piece of land that makes sense from a financial standpoint, then starting with the repeatable designs. We have a great team of consultants, architects, engineers, where we’re using the same design as well and construction technique. We also have general contracting in-house.  “The final piece of that is getting a property management that understands what we’re delivering, taking out a lot of those hidden fees. When you put that stack together, it allows us to rent units $300 to $500 less than the other luxury apartments around here.” From that blank piece of paper, Greenlight outfitted the complexes with a variety of amenities for renters. A pool, fitness center, community gathering space and laundry rooms are just some of many offerings at Streamliner. Cabana has a few more amenities than Streamliner, and boasts a backyard barbeque and games space, Zen park lounge and a combination of themes to tie it all together.  Both of these projects have been years in the making, conceptualized in 2021, but the unveiling of the finished project is scheduled for the fall of 2024, and Richards is looking forward to providing a valuable resource to the Glendale community.  “We’re thrilled, and we’ve been very blessed,” he said. “We’ve had some repeat partners. We have some new lenders as well. They understand the vision we have. We’ve also been successful in the past projects. I think it’s just building that momentum. And we’re very lucky in today’s environment to be able to start new projects and deliver homes for Arizona families.”

  By: Redfin Blog    During the homebuying process, one crucial decision that buyers often grapple with is whether to buy down their mortgage interest rate. Since interest rates play a pivotal role in determining the overall cost of a mortgage – what you end up paying each month as a mortgage payment – the prospect of reducing these rates and what you’ll ultimately pay each month can be enticing. However, the decision isn’t straightforward and involves numerous variables such as your financial situation, your personal circumstances, and the current state of the housing market. In this Redfin article, we ask mortgage experts common questions about buying down a mortgage and other details you should know so you can make an informed decision if this strategy is right for you.  What is a buy down? A buy down, often referred to as “paying points,” is a financial strategy employed in mortgage and loan transactions to decrease the interest rate on a loan. Essentially, it involves paying an upfront fee at the inception of the loan to lower the overall interest rate over its duration. This upfront payment, known as points, is typically calculated as a percentage of the loan amount. The decision to pursue a buy down depends on individual financial circumstances and the length of time one plans to retain the loan.  How does buying down an interest rate work? “Buying down an interest rate, often referred to as “paying points,” is a financial strategy used in mortgage and loan transactions to reduce the interest rate you pay on your loan,” says Al Gray, Loan Advisor from NEXA Mortgage. “This is when you pay extra money at the beginning of a loan to make your borrowing cheaper over time. The decision to buy down your interest rate by purchasing points at the beginning depends on your individual financial situation and how long you plan to keep the loan. For example, if you’re taking out a $200,000 mortgage and the lender offers a 30-year fixed rate at 6.5%, you might have the option to buy points at a cost of 1% of the loan amount each. You could buy two points for $4,000 (1% x 2 x $200,000), which would reduce your interest rate, often by 0.25% per point. In this example, with two points, your interest rate would be reduced from 6.5% to 6.0%.   Calculate your monthly savings on the lower interest rate and compare it to the upfront cost of the points. The break-even point is the time it takes for your monthly savings to recoup the upfront cost. If you plan to stay in the home long enough to break even and then benefit from the lower rate, buying points can be a financially sound decision. If not, it might be better to go with the regular interest rate.” In what circumstances is it a good idea to buy down your mortgage interest rate? Long-term homeownership plans: Buying down your interest rate is more beneficial if you plan to stay in your home for an extended period. The upfront costs can be justified by the long-term savings on monthly payments. Unfavorable market conditions: Consider buying down when interest rates are relatively high compared to historical trends. This strategy becomes more cost-effective when securing a lower rate in a high-interest environment. Available cash at closing: If you have sufficient funds at the time of closing, purchasing points may be a viable option. The upfront cost can be covered, and the long-term savings can outweigh the initial investment. Excellent credit score: A higher credit score may provide the opportunity to negotiate more favorable terms when buying down the interest rate. Lenders may offer better rates to borrowers with excellent credit. Financial stability: Opt for buying down when your financial situation is stable, and you can comfortably manage the upfront costs without compromising your overall financial well-being. Planning for lower monthly payments: If your primary goal is to achieve lower monthly mortgage payments, buying down the interest rate can be an effective means of achieving this objective, especially when balancing it with the break-even point. Potential income increase: Consider a temporary buy down (more on this below) if you anticipate an increase in income in the near future.  Refinancing is not imminent: If you do not foresee refinancing in the near future, buying down the interest rate can be a prudent choice. This ensures that you fully realize the long-term benefits of the reduced rate over the life of the loan. Is it good to buy down an interest rate? “Buying down an interest rate can be a prudent financial choice under specific circumstances,” advises Vice President and Consumer Mortgage Specialist, Ahmed Hachim, from Burke & Herbert Bank. “This method involves paying extra upfront fees to secure a lower mortgage interest rate. It can lead to reduced monthly payments and long-term savings, but it’s essential to consider the initial costs versus the future benefits. If you plan to stay in your home for an extended period, buying down the rate could be advantageous, allowing you more time to recover the upfront expenses through lower monthly payments.  On the other hand, if you anticipate selling or refinancing in the near future, the initial cost might not be worthwhile. Calculating the break-even point, where your savings surpass the upfront expense, is crucial. Consulting a mortgage expert or financial advisor can provide tailored insights based on your unique financial goals.” Temporary buy down vs. permanent buy down: Understanding the difference A temporary buy down and a permanent buy down are distinct financial strategies, each serving different purposes and durations. Temporary buy down: A temporary buy down involves a short-term reduction in the initial interest rate of a mortgage loan, typically for a predetermined period, often the first few years of the loan term. Borrowers make additional upfront payments or accept a higher interest rate in the future to facilitate lower initial monthly payments. This strategy is often chosen by individuals who expect an increase in income or anticipate refinancing within a few years. Temporary buy downs provide immediate benefits by making homeownership more accessible in the early years of the loan. Permanent buy down: On the other hand, a permanent buy down entails a lasting reduction in the interest rate over the entire life of the loan. Borrowers pay additional upfront costs to secure a lower interest rate for the entire duration of the mortgage. Unlike a temporary buy down, the advantages of a permanent buy down persist throughout the loan term, leading to consistent long-term savings on monthly payments. Homebuyers opting for a permanent buy down usually prioritize the stability and predictability of lower payments over the life of the loan. Understanding the nuances between temporary and permanent buy downs is crucial for borrowers to align their financing strategy with their unique financial goals and homeownership plans. A deeper dive into what mortgage points are Mortgage points are special payments made at the closing of a mortgage transaction in exchange for a reduced interest rate and lower monthly payments on the loan. Referred to as “buying down the rate,” as mentioned above, this financial strategy involves a homebuyer paying additional fees upfront to secure a more favorable long-term financial outcome. However, there are two main types of mortgage points that exist: Discount points: Discount points are payments made to decrease the interest rate on the mortgage. The more discount points purchased, the greater the reduction in the interest rate. The specific impact on the rate depends on the lender’s terms, the loan type, and prevailing housing market conditions. Generally, buyers can anticipate lowering their interest rate by one-eighth to one-quarter of a percent for each point bought.  Importantly, these points are tax-deductible for the first $750,000 of the mortgage loan. When deciding on discount points, homeowners should consider the duration of their stay in the house and the available cash at closing. The longer one plans to remain in the property, the more cost-effective buying discount points becomes. Origination points: Origination points cover the expenses incurred by the lender in processing the loan. Unlike discount points, origination points do not directly reduce the interest rate but are part of the overall closing costs. The ability to negotiate the terms of origination points varies, and some lenders may incorporate them based on the borrower’s credit or overall borrowing profile. Unlike discount points, origination points are not tax-deductible. However, many lenders now offer flat-fee or no-fee mortgage options, especially for borrowers with strong credit profiles, eliminating the need for origination points in some cases.  

  By: Redfin Blog    When it comes to buying a home, most people often think of the bustling spring and summer months. Afterall, it is the season of open houses, elevated curb appeal, and the frantic pace of the real estate market. However, buying a home during the fall and winter months can offer numerous advantages, especially in our current market. If you’re putting homebuying on hold until spring, here are some reasons why purchasing a home in the off-season might be your ticket to a winning deal.   1. Less competition The off-season typically sees fewer buyers in the market. With many potential buyers waiting for the warmer months or the new year, you’ll likely face less competition. This means fewer offers being made leading to less bidding wars and a higher chance of your offer getting accepted. 2. Motivated sellers A house listed in the off-season often belongs to sellers who have more of an urgency to sell. This could be due to several reasons, such as relocating for a job, financial needs, or other life changes that makes selling their home in the off season the best or only solution. As a result, these sellers are typically more open to negotiation on terms and price. For instance, in today’s economic climate, a smart way for buyers to capitalize on this market and today’s rates is by exploring innovative solutions like Bay Equity’s 2/1 Rate Buydown Program. With this program, motivated sellers can entice buyers by offering to cover an upfront deposit that results in lower mortgage payments for the first two years — reducing the first year’s interest rate by 2% and the second year’s by 1%. Such an arrangement not only makes the deal more attractive for buyers but also helps sellers sell more quickly, making this a win-win scenario for some. 3. Get a better deal Historically, home prices can be lower during the off-season, though you should check out the trends in your local housing market. With fewer buyers and motivated sellers, you might just snag a property at a lower price than you would in the peak season. 4. Faster transactions With fewer real estate transactions taking place, lenders, inspectors, and appraisers are less busy. This can result in a smoother and faster home-buying process, allowing you to settle into your new home sooner. The current market dynamics: Why buying now may make sense Despite high-interest rates, there are still compelling reasons to consider buying a home in the off-season: Inventory & selection: High-interest rates have deterred potential buyers from entering the market, resulting in less competition for homes available, and giving you the opportunity to find the right fit without excessive competition. Seller flexibility: High-interest rates might also make sellers more amenable to concessions you ask for during the negotiation phase of buying a home. Given the decrease in buyer demand, you might find sellers more willing to adjust the home price or offer to buy down your mortgage rate.  Predictability: As interest rates hover between 7-8%, it’s important to approach financing a home with a long-term perspective, especially considering the uncertainty of refinancing in the near future. If you’re opting for a buydown or an adjustable-rate mortgage (ARM), it’s wise to plan for at least 3-5 years with the initial rate. It’s important to make sure you can comfortably manage the payments for the next few years, as interest rates may remain elevated.