Scottsdale Home Buying Tips

The costs of delaying or forgoing buying a Scottsdale home in today's market have become very high. This projection is according to the inaugural Opportunity Cost Report released by With interest rates and home prices expected to rise within the next year, consumers could end up costing themselves more by putting off buying a Scottsdale home.

The report used data on current median existing home prices, rents, local Scottsdale mortgage rates, and estimates of property tax, and insurance rates. It also factored in maintenance costs, costs of selling, forecasts for mortgage rates, home prices, and rents over a 30-year time period.

When buying a Scottsdale home there are many things you have to consider

Current market conditions give buyers the opportunity to build substantial wealth in the long-term, compared with renters and later buyers, in advance of the projected increase in mortgage rates and continuing price appreciation. The problem is, and has been for some time, inventory is low, which has many would-be home buyers – especially first timers – standing on the sidelines and missing out on potentially material financial gains.

Buying a Scottsdale Home: The Cost of Waiting

The estimated wealth an average home buyer would accrue over a 30-year period when buying a Scottsdale home totals $217,726. The report noted the penalty of waiting one year to buy is $18,672, while the penalty of waiting three years to buy is $54,879. Data shows that those buying a Scottsdale home see sizable financial benefits compared to lifetime renters.

This analysis looked solely at the financial reasons for buying a Scottsdale home, based on assumptions about rising mortgage rates and changes in home values. It's important to remember that the decision for buying a Scottsdale home is deeply personal. Potential buyers need to consider factors such as upcoming life events, job security, and potential relocation, in addition to financial benefits, because they too can have a significant impact on ownership.

Get more information as it pertains to buying a Scottsdale home in our section on Scottsdale Home Buying Tips to your right under Scottsdale Real Estate Categories.

Remember, we post tips daily to Twitter, and also on our Facebook Page. We'd love for you to check us out there too.

Nearly one-third of all Scottsdale homebuyers, and 68 percent of first-time buyers, were 34 or younger last year. Those numbers are expected to grow as millennials now represent the largest share of buyers. But many millennials are making some pretty costly mistakes according to a recent report from the National Association of Realtors. Here are three common and potentially costly mistakes to avoid no matter which age group you fit into.

First Mistake Scottsdale Homebuyers Make

Many Scottsdale homebuyers are making these same three mistakes

Overestimating what you can afford. First-time Scottsdale homebuyers often focus on the down payment and monthly mortgage amount when calculating how much they can afford and forget to factor in closing and other costs. They often times get to the closing and are shocked by the amount of money they have to pay.

Get pre-approved for a mortgage so you know how much a lender is willing to lend before you make an offer on a home. But keep in mind the amount you're pre-approved to borrow from a mortgage lender may be more than you can actually afford once you factor in taxes, insurance and other costs like condo or homeowners' association fees and maintenance.

Your total monthly payment (including mortgage principal, interest, real estate taxes and homeowners insurance) shouldn't exceed 28 percent of your gross, or pretax, income.

Scottsdale Homebuyers Need to Remove Emotions

Scottsdale homebuyers need to remember to buy with their head and not with their heart. Get too emotionally attached and it can set you up to spend more than you can afford. Make sure to prioritize what you want in your home. Make a list of the most important features, whether you want a certain school district, updated bathrooms, a backyard, etc. Then figure out what you aren't willing to do without. You won't find the perfect home that meets your entire list so narrowing it down to what matters most can help you through your search process.

Scottsdale Homebuyers Need to Plan

Once you've narrowed your search and you're ready to make on offer, check with your agent about the current demand for the home you're considering. Is the home getting multiple offers? Has it been on the market a long time? Will it require a lot of upgrades?

Make sure you get a thorough inspection. Scottsdale homebuyers often don't get an inspector with expertise to check the pipes, the plumbing, or air conditioning. You want someone who knows what they are doing.

Remember to think about resale opportunities. Just because you don't have children, the next family who comes along looking at your home for sale might, and where the home is located in relation to good schools may be the difference in whether they buy your house or not.

We have more tips for Scottsdale homebuyers under our Scottsdale Home Buying Tips section just below our Scottsdale Real Estate Categories in the column to your right.

Remember, we also post daily on our Facebook Page, and over at Twitter. We'd love you to check us out there too.

With Scottsdale real estate bidding wars starting to heat up with the coming of the spring buying season, it's more important than ever to get your ducks in a row before you start submitting offers on any Scottsdale real estate. Diana Olick covers six ways to win a home bidding war in this red hot housing market…


Scottsdale Real Estate Prices Continue to Rise

Because interest rates are still hovering near all time record lows, it's a good time to get into the market before those rates start to rise as everyone is forecasting them to do. But as Scottsdale real estate prices keep rising, and then when rates start to rise, home buyers will have to settle for a lot less house for the same monthly payment later versus what they can get now, IF they have good enough credit to qualify.
The Scottsdale real estate buying process doesn't have to be ugly or adversarial. You and the seller are both trying to come to an agreement that will make the transaction a success for both of you. If the Scottsdale home you're making an offer on is the one you feel is 100 percent right for you, make it clear you want to get the deal done. Follow the pointers Diana listed in the video in order for the deal to happen. The savings from a successful real estate negotiation are well worth the time and effort you’ll commit.
Don't forget, we post tips daily on Twitter and Facebook, sometimes pertaining directly to Scottsdale real estate and home buying tips, including other ways to negotiate prices. Find us there as well.

When you start thinking about buying a Scottsdale home, there are all kinds of financial tips about what to do and when. Things like where to buy, how to get the best mortgage rate, how to save on this and that. Heck, there's even a ton of information advising you why it's best not to even think about buying a Scottsdale home.

There's no arguing the fact that buying a Scottsdale home is the biggest purchase you'll probably ever make, which is why it's especially important to take a number of post-sale steps to make sure you protect your largest financial investment ever.

Steps to Take AFTER Buying a Scottsdale Home

After buying a Scottsdale home here are things you need to consider doing.

The first thing you should do after buying a Scottsdale home is re-key or change all the locks on the doors and windows of your new home. You may also want to consider installing deadbolts where there are none. This may not seem like a financial issue, it will quickly become one if you have to replace a whole house worth of stolen or damaged items resulting from a burglary because someone still had a key to your new home.

Next, you should review your insurance coverage to make sure it stays up to date with your needs.

Whether you are first-time home buyer, or moving up and buying a Scottsdale home that is bigger than your previous home, it's important to adjust your life insurance coverage to cover any new mortgage debt. As a general rule of thumb, life insurance should cover 10 years of income plus any large debts or upcoming expenses. In the case of buying a Scottsdale home, that would include the mortgage, but also could include residual debts or a child's college costs.

If you put less than 20 percent down when buying your new home, you're likely having to pay private mortgage insurance. PMI rates are usually 1 percent of your loan balance, which can translate into thousands of dollars a year, depending on the size of your mortgage. This is money you never recoup, and even worse, represents real risk if the value of your home decreases.

You might want to think about pausing any 401(k) or retirement contributions and defer them towards paying down your loan. The faster you can get below that 20 percent loan-to-value ratio, the sooner you can drop the PMI.

After buying a Scottsdale home and taking possession, you also take the financial responsibility for anything that goes wrong. Home inspection or not, things do break down, and there will be general maintenance to keep your home's value from going down. Sure up your emergency savings to cover these repairs and maintenance so you don't have to use credit cards when something breaks down.

Buying a Scottsdale home is a time of excitement and hope for the future, but there are some issues you need to consider, like, what happens if you were to unexpectedly pass away? Now is a good time to review your will or trust to make sure your new home is a part of those documents and that your beneficiaries are updated and complete.

A good habit to get into after buying a home is doing a yearly review on the fiscal impact your house is having on your life and take any measures needed to make sure it's as positive and cost effective as possible.

Find more articles pertaining to buying a Scottsdale home under our Scottsdale Home Buying Tips to your right under Scottsdale Real Estate Categories. Remember, we post tips daily to Twitter, and also on our Facebook Page. We'd love you to check us out there too.

Buying Scottsdale real estate in any market can be challenging enough, not to mention trying to get through the maze in a seller's market.

The biggest challenge facing homebuyers looking for Scottsdale real estate may be finding a home to buy. The inventory of available homes for sale remains low in most areas, especially in certain price ranges. This lends to making it a strong seller's market right now.

Tips for Buying Scottsdale Real Estate Right Now

Buying Scottsdale real estate should begin by researching homes online

A seller's market means that buyers have to be smart and prepared if they want to get the right house at the right price. Prospective buyers should start by looking online at homes, narrowing down neighborhood choices and deciding between must-have and preferred features.

At the same time, buyers should visit a mortgage professional and get their financing in order. It's best to start that process before you start looking at homes, in case your credit needs repair or you need to pay off debts to qualify for a mortgage. In a competitive market like we're in now, having a mortgage pre-approval could mean the difference in your offer being accepted or rejected in lieu of another that may come in at the same time.

Expect to provide lots of documentation to get a mortgage. Since the recession, mortgage lenders have become much stricter about documentation, income verification and other paperwork. Well-qualified buyers can still get a mortgage, with rates for 30-year loans hovering around 3.65 to 3.75 percent. Borrowing has become a much more difficult and cumbersome process.

Check out neighborhoods you're thinking about at different times of day. A quiet neighborhood during the middle of the workday may be noisy and crowded at night and on weekends. Get out and walk the streets, talking to people who live in the neighborhood, visiting shops and restaurants and "trying out" your desired location. Drive to and from work during commuting hours to get an idea of what a typical day might be like.

Make a needs and wants list. In a competitive market, most buyers find they have to compromise on location, amenities or condition of a home. It's easier to make a choice when you know going in which features you must have and which you'd like to have but can live without when buying Scottsdale real estate. Be flexible and prepared to compromise.

Be ready to move fast. Buying Scottsdale real estate in good condition and priced right will be a challenge, as most of these types of homes sell very quickly, sometimes the first day they go on the market. You need to be ready to make a decision when you find a home you like.

Don't expect to get a red hot deal. The days of getting buying Scottsdale real estate at a discount are long gone. That doesn't mean you can't ever get a substantial discount on a house that needs work, is in a less popular location or otherwise is in less demand. But in a seller's market, there is usually very little negotiating room on price.

Understand that no house is perfect. Making your offer contingent on a home inspection is a good move, but all homes have small defects. Many sellers won't fix anything, and there is no reason for them to if there is a backup offer waiting if you walk away.

Find a way to sweeten your offer. Most people buying Scottsdale real estate can't pay all cash, but there are ways beyond price to make your offer more attractive to a seller. Have your agent ask the seller's agent if he would like a faster or slower closing. Consider whether you can waive mortgage or inspection contingencies (which does not mean forgoing an inspection), go without a seller-provided warranty or otherwise improve the deal from the seller's perspective.

Don't buy more than you can afford. Lenders will often approve a buyer for a higher payment than he or she can make comfortably. When you're calculating what you can afford to pay, remember that a mortgage payment is only part of the cost of homeownership. Make sure you're taking into account all the secondary costs involved with buying Scottsdale real estate, including insurance, taxes, lawn maintenance, condo or homeowners association fees, repairs and even furniture.

Don't buy a house you don't love. While most buyers may have to compromise on some of the features they want, they shouldn't settle for a home they don’t like. If you don’t find the right home this year, maybe you should rent and try again later rather than make a purchase you'll end up regretting. Make sure you have a really strong emotional attachment to what you want to buy, but don't let it influence your decision on offering price beyond the ridiculous.

Get more information as it pertains to buying Scottsdale real estate in our section on Scottsdale Home Buying Tips to your right under Scottsdale Real Estate Categories.

Remember, we also post tips on Facebook and Twitter. Follow us there for more Scottsdale real estate and home buying tips as well.