Scottsdale Home Buying Tips

When you think about "shopping" in December, it's normally in retail stores, not the Scottsdale home buying market.  However, the month of December could be a great time to shop for a new home. This may be especially true for potential buyers who may have been outbid during the more active home buying months.

The month of December could be a great time to enter the Scottsdale home buying maze.

A Good Scottsdale Home Buying Month

While the majority of home sales occur during the spring and summer, there are definitely advantages to consider the so-called "off-season" of the real estate market.

A compelling reason to make any purchase is value. For sellers just listing their homes or for those whose homes have been for sale for awhile, fewer prospects mean lower offers. That represents a wonderful opportunity for bargain shoppers looking now rather than in peak months.

Real estate experts say a home's selling price may fluctuate during the course of the year by 5-7%. Many of the price variations are predictable. A home generally will be priced higher in the spring and summer than in the winter.

According to RealtyTrac, a publisher of real estate market data, the best bargains are usually found in October, with average sales prices around 2.6% below normal. Other experts say December is the best month to get more bang for your buck. Much of the rationale has to do with the seller's mood, likely to be happier and more generous during the holidays.

Let's examine five reasons to shop for a home in December.

The competition is limited. Most people are busy with the hustle and bustle of the holidays and aren't active in the market then. Fewer potential buyers means less competition and greater opportunity for a savvy buyer.

There are tax benefits. If you're in the market not only for a house, but also for some year end tax deductions, December could be a good month. Purchase and close your home prior to the end of the year and you can deduct the mortgage interest paid, any loan points paid and your pro-rata share of the property taxes from your 2015 income tax return.

Motivated –– even desperate –– sellers. As mentioned above, sellers often are willing to take the best offer they can if their home has languished on the market. They could be especially motivated if they have a contract on another home contingent on the sale of their existing house. In the case of job relocation, the sellers may have to move before the first of the calendar year and may be desperate to sell.

See homes in their "natural light." Shopping for a home in December gives buyers a chance to see homes in their natural state –– without "make-up," so to speak. When trees have lost their leaves, grass is dormant and flowers aren't in bloom buyers can get a better idea of the home's features and uniqueness. In addition, it's a good idea to check out things like drafty, cold areas in the home. They could be signs of faulty insulation or window or door seals needing replacement.

Interest rates are still very low. Despite recent rumblings that interest rates may edge upward slightly, today's mortgage rates are very affordable. And that's good news for anybody entering the Scottsdale home buying market during December.

Happy holidays… and happy home shopping!

While housing continues to make a steady recovery, the percentage of first-time Scottsdale homebuyers remains very low. At only 32% of all home purchases, first-time buyer totals have fallen to the lowest level in almost thirty years.

Why Scottsdale Homebuyers Aren’t Buying

The percentage of first-time Scottsdale homebuyers remains very low.

Despite market conditions seemingly being favorable for first-time buyers, they simply aren’t getting involved. Low mortgage rates, promising employment opportunities for college-educated prospects, and rising rents ordinarily would signal a ripe opportunity for those looking to buy their first home. However, according to a recent survey, those same increasing rents and higher home prices are hindrances to young couples trying to save money for a down payment. Factor in the scarcity of new and existing homes in an entry-level, affordable price range, and it’s easier to see why first-timers are hesitant to enter the market. Many still think it may be too difficult for them to qualify for a mortgage.

Survey respondents cited debt as the major factor for putting off buying a home. They said too much debt prevents them from saving sufficient money for a down payment. And over half of those surveyed specifically blame student-loan debt.

Ironically, younger buyers still have a strong desire to own their own home. Of first-time buyers that made a purchase, 64% say their primary reason for buying was their “desire to own” rather than rent. That percentage represents an 11% increase from just one year ago.

Repeat home buyers surveyed cited their desire for a larger home as the main reason that motivated them to purchase. Many feel even though home prices are high, the values are rising as well and with interest rates near all-time lows there’s no better time for them to upgrade.

A majority of those surveyed — 80%, in fact — viewed home ownership as a good long-term investment, with 43% saying that home ownership was a better investment than the stock market.

The report was released during which time the U.S. home ownership rate is at its lowest level in 50 years, 63.4%. That rate leveled off in the third quarter of this year, marking the first time since 2013.

Other interesting survey findings were as follows:

Cash purchases still comprise a large percentage of home transactions. While most buyers needed mortgage loans to buy their homes, that percentage dipped slightly. Not surprisingly, roughly 50% of first-time buying prospects cited the mortgage approval process as being more extensive and more cumbersome than they anticipated.

Today’s Scottsdale homebuyers have the highest average FICO credit scores in history. And more borrowers are qualifying for mortgage loans — notably so among middle-income black and Hispanic borrowers — even though they comprise a smaller percentage of the total housing market.

As expected in this technology-driven world, today’s home buyers are utilizing mobile apps and real estate websites more and more to search properties and mortgage rates. They are also making quicker decisions and taking action faster than ever. Statistics show buyers purchase their homes on average in 10 weeks compared to 12 weeks during the period between 2009 and 2013.

What does this all mean for first-time Scottsdale homebuyers? First-timers hesitant to become purchasers need to be more aware of low down payment mortgage programs. In addition, if their credit is relatively good, financing should be available at low interest rates. And, even though home sales prices are high, so are rents. So, they should take a look at purchasing while the time may be right for them.

Get more up to date news and tips for Scottsdale homebuyers by checking out our other articles under the Scottsdale Real Estate News section just below Scottsdale Real Estate Categories to your right.

During the recession of 2009, the number of Scottsdale home buyers depending on down payment assistance from family members or friends tripled. It’s estimated that roughly 21% of homes were purchased by homeowners using a gift or a loan as their down payment. Let's look at why that need may still exist.

Scottsdale Home Buyers – "Who Can Save Today?"

Scottsdale home buyers still need help from family these days to buy their first home

According to a recent analysis of Zillow of federally-provided real estate sales data, the percentage of Scottsdale home buyers needing down payment help from their families is still higher than it was before the 2009 housing crisis. The 21% number mentioned above dropped to just over 13% in 2014. However, compared to 2007 when only 8% of purchasers required assistance from friends or family, the percentage is substantial.

The Zillow report spotlights one glaring reason the need exists for many prospective Scottsdale home buyers — the absence of savings. In order to keep monthly mortgage payments close to or less than what they are paying in rent, first time homebuyers usually need cash for a down payment. That can be a challenge, and it’s the main reason
during the recession — and even now — prospective purchasers seek help from their family.

In what the Zillow data characterizes as “middle-income households” 25% of Scottsdale home buyers turned to friends or family members for help with their down payments in 2014. During that same year, only 15% of low-income and 16% of high-income households received assistance for their down payments.

Real estate experts say skyrocketing rents, a high percentage of student loan debt and slow income growth are among the factors preventing many first-time Scottsdale home buyers from being able to save money for a down payment. More troubling to some insiders is what is seen as a potentially widening gap in inequality. Assistance networks and programs available to low-income households may not be able to sustain that assistance, while higher-income home buyers may not need the help.

First-time Scottsdale home buyers are especially reliant on friends and family for help with the down payment. Not only are their rents high, but mortgage credit is tight, making their entry into the homeownership arena “iffy” at best. In addition, home values and sales prices have increased. And as prices increase, so do the down payment requirements. Naturally, as first time home buyers, they have no cash from the sale of a previous home to fall back on.

Find more tips and articles for Scottsdale home buyers to your right in the Scottsdale Home Buying Tips section just below Scottsdale Real Estate Categories. And Follow us on Facebook and Twitter for daily news and tips we post there.

Scottsdale home buying markets are always changing — just like the seasons of the year. Many people associate spring with a renewed, popular time to home shop. Fall is usually associated with a slower-paced real estate market for a variety of reasons. However, fall could very well be a great time for Scottsdale home buying. Let’s take a look at a few reasons why.

Fall Brings Scottsdale Home Buying Advantages

Scottsdale home buying markets regularly change — just like the seasons.

Inventory from this past spring could mean great buys.
Many homes are listed on the market in the spring at prices that may be unrealistically high. As a result, price reductions naturally follow during the rest of the year. If a seller hasn’t successfully captured the attention of — or received an offer from — the Scottsdale home buying market by early September, a substantial price cut may occur.

There are less buyers competing for homes.
By early September, of course, due to the start of the new school year many home shoppers have tabled their search. That equates to less competition, more motivated sellers and greater potential opportunities for those in the Scottsdale home buying arena. This “thinning of the herd” gives prospective buyers a little more time to shop around for the best deal on the home they’re looking for.

Some home sellers may want to sell before the end of the year.
Often it’s important for sellers to close by the end of the calendar year to take advantage of any tax gain or loss. As such, Scottsdale home buying candidates may encounter more motivated sellers willing to negotiate if they can close the sale prior to December 31.

Holiday home listings often mean motivated sellers.
For most people, the holidays are a busy time. Homes that are on the market past, say, November 1 may be ripe for the picking. The seller may be motivated to sell as soon as possible to avoid interruptions during the holidays.

Curb appeal diminishes with changes in landscaping.
Much of a home’s appeal depends on how it shows to the Scottsdale home buying public. And that appeal begins to fade a little as the grass goes dormant, the leaves fall off the trees and the flowers stop blooming. However, seeing the home without some of its landscape amenities gives a home buyer the opportunity to view the exterior objectively and perhaps more realistically.

See more articles pertaining to Scottsdale home buying in the Scottsdale Home Buying Tips section of our site below Scottsdale Real Estate Categories in the column to your right.

Remember, we also post tips daily on Twitter and Facebook. Check us out there too.

Whether it's the fear of the unknown or the fear of discovering a problem, some Scottsdale home buying prospects are hesitant to enter the market. Sometimes the fears are justified, and when they are there are steps you can take to alleviate them.

Facing Scottsdale Home Buying Fears Head On

Scottsdale home buying fears include learning you have a cracked foundation in the home you are buying

Fear of a cracked foundation, leaky roof or dry rot problem. Unless you're an avid "do-it-yourselfer" most buyers don’t relish fixing problems. Although most every home needs routine maintenance or minor repairs, much of the Scottsdale home buying public fears home inspection results. It's important to remember, however, a home inspector merely raises awareness on issues with the house. Not everything on the inspector’s checklist is of immediate concern. If you need reassurance, ask the inspector to rank the importance of the issues and estimate the timetable for replacement or repair. If there are repairs that need to be made immediately then — and only then — should it become a “deal-breaker." Even then it could be something you can negotiate with the seller to repair or give you credit for in the sales price.

Fear of losing the earnest money deposit. Most every real estate contract requires a certain amount of earnest money to be deposited when the agreement is signed. By law, the deposit is required to be held in escrow until the sale is consummated. Scottsdale home buying professionals say it’s highly unlikely a buyer would lose his deposit. Make sure your contract with the home seller includes certain requirements like a home inspection, disclosure review and a financing contingency. You may also make your purchase contingent upon the home appraising for at least the sales price, and if your situation warrants, contingent on the sale of your current home.

Fear of losing the house you want. In a seller’s market, it’s important that you act quickly but efficiently. Once you see a listing for a home you’re interested in, contact your real estate agent immediately to view the home. Ask your agent to determine from the seller or their agent how they will entertain forthcoming offers. While motivated sellers often may accept the first good offer, they are more likely to set a date to assess multiple offers to determine which one best meets their needs — including not only the sales price but how quickly the buyers want to close the deal. Either way, it’s important to stay in contact with your agent on at least a daily basis to ensure your interests are being communicated and acted upon.

Fear that your agent isn’t doing everything you expect. Scottsdale home buying clients sometimes forget that their agents are in the business to do one thing — sell real estate. While it may appear from time to time the search for the "perfect home" has lost momentum or stalled, a good agent is constantly working behind the scenes to find the listings which fit their client’s price range, desired location and home style. To ensure you and your prospective agent start off on the right foot, meet with them and discuss your housing needs and desires. In the process, if you feel you and your agent aren’t on the “same page” or don’t “click” keep looking.

Fear of finding a home in a certain time frame. It’s human nature to want to find a home and move in prior to some self-imposed deadline like the start of a school year, Christmas, or spring. Experts caution, however, that your Scottsdale home buying decision shouldn’t be hurried. If a deadline is fast approaching, consider a contingency plan. If you’re renting and your lease is up soon, for example, look into a short-term alternative if you haven’t found a house by then. This will relieve the pressure you face in potentially making a decision you may later regret because you were rushed.

In summary, most fears can be alleviated with good planning. It could mean the difference between a satisfied Scottsdale home buying experience and one you'd just as soon forget.