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Wednesday, February 24, 2016

A Different Way to Inspect Your Home


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Today we are going to talk about your property inspection. Whether you are buying or selling, a property inspection is going to be a part of your transaction. Today we are specifically going to talk to buyers about home inspections, and offer them some tips and ideas relating to them.

In Arizona, you have 10 days to inspect a home as a buyer once you’ve gone under contract. A lot of things need to happen in this short time frame, but today we are going to focus on the property inspection. Over 16 years in my career, we have always had an inspector to recommend to our buyers. We have had the luxury of watching this person perform many inspections over a long period of time, and you just don’t get that kind of experience as a buyer. It’s true that an inspector is a professional, and they identify problems in the home, but we have realized that another strategy might make a little more sense.


Instead of hiring a home inspector to tell you what’s wrong with your home, so you can then find contractors to do the work, why not skip the middle man? What we are saying is, why not just call the roofer, the plumber, the electrician, the HVAC person, and have them come out and inspect the individual systems of your home? With this strategy, you make sure you have all of the major systems in your home checked by a professional in that field, and you might even save some money on the deal.

Our inspectors have been great over the years, but we usually find that we have to hire these specialized inspectors anyway. Testing out a strategy like this might not be a bad idea if you are looking to save some money on your home inspection. If you have any questions for us, give us a call or send us an email!

Thursday, February 4, 2016

Pitfalls of Lease Purchases in the Greater Phoenix Area


Selling your Greater Phoenix Home? Get a free home value report
Buying a Greater Phoenix Home? Search all homes for sale 

What does rent-to-buy actually mean when you’re dealing with a home? Today, we’ll discuss leases purchases, or rent-to-own homes.
A tenant will pay above market value for rent every single month. A portion of the rent will go towards the purchase, perhaps a year later. The time frame ranges, but you can expect one to three years. As a seller, you set the price when you initiate this transaction.
However, no one knows the market in advance. It’s impossible to know how to price your home when selling it so far in advance. We do know the buyer won’t be paying in cash down the line, so they will need a loan and likewise, an appraisal. What if it doesn’t appraise for the set price later? You might establish a price now, and then, later on, the buyer won’t be able to afford the home. This hurts both parties and makes it difficult to plan.
A seller doesn’t want to pay double mortgages. That’s why they want tenants to occupy their home now. Of course, then, the buyer can live in the home. It’s important to read the fine print. If a buyer can’t purchase the home, after all, they are out the extra money. They overpaid for a rental property, and they can’t get that money back. I’d even argue this happens 95% of the time: most buyers are unable to close after the time is up. Although the buyer has to list again, they profited off this tenant.


As a solution, ask to lease with an option to purchase. When negotiating with sellers, buyers should ask for the option to buy the home after the lease is up. Personally, I wouldn’t pursue lease purchases without this component!
If you’re thinking about leasing, renting, buying, or selling in Scottsdale, reach out to me today! I’d be happy to sit down and discuss your real estate needs with you.