Scottsdale Real Estate

One challenging obstacle to people who own a house but are considering moving is the timing of their purchase. When looking to change homes, it is critical that your timing be correct. The two main factors in a sale are ensuring that you are not without a house for too long, and that you are able to get the funds from your old house in a timely manner. If you are unable to sell your old house, or end up struggling to buy a new one, you could end up in a sticky situation.

While it would be unpleasant to end up out of a home for a period of time, this is a better situation than having a home you are attempting to buy but being unable to sell your old one. Thankfully, there can be provisions in any contract which stipulate the contingency that your other plans go through. For this reason, it is recommended that you begin the process of finding a new home once you have listed the home that you own. Then, you can include clauses which stipulate that you must find a new home in x number of days in order for the sale to be completed.

This also gives you additional negotiating power when looking to purchase your new home. If you have the cash from the sale of your old home ready, you can use that fluidity to strengthen your offer. The reverse of this situation means that you will be desperate to close the sale on your old house, weakening your ability to negotiate for the highest price. So it is almost always best to list your old house before taking steps to purchase a new one. Once you are confident in the selling of your owned property, you can move forward easily and comfortably onto the purchase of a new property.

Additionally, it is important to have an idea of what the local housing market looks like. Understanding whether buyers or sellers have an advantage will help you to negotiate your contracts and plan your listings properly. In this situation, it is best to get professional advice from an experienced realtor. A strong understanding of the local housing market and current market conditions will put you in a much better position when negotiating. Therefore, before taking any steps, it is important to find an experienced realtor who will be able to guide you through the process.

 

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When looking to buy or sell a house, you will absolutely be dealing with home inspection. However, there are not only many misconceptions about home appraisal, but there is also confusion about how to properly utilize a home inspector’s services, when they can be employed, and what you should expect from a competent home inspector.

First, when dealing with a home inspection, you should know what they will be looking for. Depending on the structure and the records of the house, home inspectors will look at many of the various components of the property. Here are some of the things a home inspector will look at.

The Foundation. One of the most basic elements of a home inspection is ensuring that the structure is sound. A solid foundation, as well as proper framing atop it should all be features which will stand up to weather and time. No one wants a house that could collapse.
The Roof and Exterior. A home inspection should examine exterior features of the house such as trim, siding, and look for external damage. Also, home inspectors will look at the condition of the roof, in the hope that your home will not have unknown leaks. Ideally, a home inspector will be able to get information about the age and lifespan of the roof.
Plumbing and Electrical. Ensuring that all of the houses systems are operational is also critical. Faulty electrical systems cause headache when trying to live in a house but can also be a serious fire risk. Plumbing problems can cause water damage, which could cause structural issues necessitating expensive repairs over time.
General Condition of the house. Things like exterior and internal damage, heating systems, ducts, water damage, and the condition of various areas of the house are all important things to know before you purchase a home.
With this understanding of what the home inspector will be looking at, you should also be aware of a few other things. The first is ensuring that you, as a buyer, have located a reputable and licensed home inspector. Do not use an inspector affiliated with the seller or someone else involved in the sale. If you have reliable and recent service records, it can be ok to not pay for certain inspection services, but make sure you are following all local laws and regulations. Just remember, you are paying for peace of mind that the potentially largest investment you ever make will not turn into a loss.

 

If you are entering the housing market as a buyer, one thing that you should be aware of is that not all sellers have the same motive. A seller desperate to escape a financial situation they were unprepared for will make for a drastically different sell than an investor looking to prune off an unneeded property. Nowhere is this more evident than when you are buying a house that has been flipped. They might not always be upfront about the flip, so here are ways to find out if the house was flipped recently, as well as what you need to look out for when buying a potentially flipped house.

Flipping houses is a practice whereby an investor will purchase a house, renovate it, and look to put it back on the market quickly, often in 6 months to a year. Therefore, the easiest indicator that a property is being flipped is that the current owner has owned the house for less than a year. If they are selling so soon after buying, you always need to be asking why. In particular, if the asking price now is higher than the previous asking price, the home is likely being flipped.

A flipped home is not necessarily a bad thing though. It’s possible that the house has been renovated to be stylish and in good condition. If you are looking for a property that is in good shape, you may find that a flipped house will be in better condition than other houses in the area.

However, all of this depends on the ability and integrity of the person performing the flip. It is good to ask for a record of all work that has been done recently. Shy away from homes with purely cosmetic improvements. If the bathroom and kitchen are gleaming with new tile and fixtures but there have been no repairs to the electrical, plumbing, or other systems, it is likely that the flipper is trying to sell you based on the shiny appearance rather than good quality work. Also, find out if the work done has been done by a licensed contractor. Licensed contractors will have ensured that a good job was done, and that everything is up to code. If the seller did the repairs themselves, it will be up to you to find out if they knew what they were doing, or were just trying to save money and got in over their heads. Look for uncovered or shoddily put together electrical boxes, especially under cupboards or other areas where it might not be immediately visible.

(summarized from the NAR Daily Real Estate News, Friday, April 28, 2017)

Nationally, the average price gain for homeowners who sold in the first quarter was $44,000. This represents an average return of 24 percent on the purchase price — the highest average price gain for home sellers (in both percentage and dollars) since the third quarter of 2007, according to ATTOM Data Solutions’ First Quarter 2017 U.S. Home Sales Report.

According to Daren Blomquist, senior vice president with ATTOM Data Solutions, “The first quarter of 2017 was the most profitable time to be a home seller in nearly a decade, and yet homeowners are continuing to stay put in their homes longer before selling.” Blomquist noted that “This counterintuitive combination is in part the result of the low inventory of move-up homes available for current homeowners, while also perpetuating the scarcity of starter homes available for first-time home buyers.”

The report showed that homeowners who sold in the first quarter had owned their home for an average of 7.97 years. Between the first quarter of 2000 and third quarter of 2007, prior to the Great Recession, average homeownership tenure was 4.26 years.

Blomquist suggested that the situation may be changing somewhat: “There are some early signs this inventory logjam may be loosening up in some markets, with the average homeownership tenure down from a year ago in nine of the 66 markets we analyzed, including Memphis, Dallas, Boston, Portland [Ore.], and Tampa,” adding that “sky-high potential price gains may be finally prompting more homeowners to sell.”