Kristin Graziano Group

Park Scottsdale Experts

Frequently Asked Questions When Considering Buying a Home

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Woman accountant or bank worker uses calculator in the office to calculate house loan credit bureaucracy.

There are many unique factors when you make a decision to purchase a new home. It all is unique to you and we are here to help guide you in the process. Never hesitate to call us and talk us through your plan we may be able to help and share resources and when you know it’s time, you will know it’s time. Check out some frequently asked questions from previous clients.

1. Should I buy instead of rent?

The benefits of buying a house rather than renting can be:

  • Tax breaks
  • Financial gains
  • Appreciation in value
  • Equity
  • Freedom
  • Security
  • A sense of pride

2. Am I ready to buy?

Ask yourself the following questions when considering whether you’re ready to buy:

  • Do I have a steady job?
  • Have I been steadily employed for the last two to three years?
  • Is my current income reliable for the foreseeable future?
  • Do I have a positive bill-paying history?
  • Do I have few outstanding long-term debts, like car payments?
  • Have I saved for a down payment?
  • Can I afford to pay a mortgage, taxes, utilities, and insurance?

3. Does my credit score impact my ability to buy?

A credit score numerically summarizes an individual’s credit history and gives a snapshot of their financial standing to a lender. Mortgage lenders use the score to decide who receives loans and at what interest rate. The higher the score means the better the chance of getting a loan with an attractive interest rate.

If your score is low, it is not impossible to get a loan but it will take longer. These three different companies keep credit histories: Equifax, TransUnion, and Experian. Before applying for a loan, get reports from all three companies. Fix any errors you might see in order to improve your score and put your best foot forward with lenders.

4. How much do I need for a down payment?

This all depends on the home you are buying, if you have a home to sell and a few other factors that are unique to your situation. Lenders expect between 5% to 20% for a down payment. It varies depending on the loan type, and length of the loan. Make a budget, set a goal, and stick with the plan. Saving and sacrificing is how most people come up with their first down payment.

5. What are the homeowner’s tax benefits?

  • Typical deductions are mortgage interest and real estate taxes.
  • In most cases, loan discount points and origination fees are deductible.
  • Read Publication 530 titled Tax Information for Homeowners found on the IRS website.
  • There are capital gains benefits, but don’t worry about that until you buy your first home.

6. What is the difference between pre-qualified and pre-approved?

Pre-qualification: Getting pre-qualified for a mortgage gives first-time homebuyers an indication of how much they “might” qualify to borrow. This mortgage amount is not guaranteed because no information has yet been verified. A letter from the lender may only state that you are “likely” to be approved for a mortgage.

Pre-approved: Better yet is getting pre-approved for a mortgage, which is based on a real credit score, and it also puts real estate agents and home sellers at ease. The buyer has more to offer when making a deal and in a competitive market this can be a definite plus.

7. How do I get the best mortgage?

It is time consuming to learn about the various rates and terms of mortgages. Once you find your dream home, there is not always adequate enough time to do your research. So do your homework prior to searching. We work have a network of lenders that have different options depending on your situation. 

Call us at (480) 229-6569 anytime to discuss your needs.

Why You Shouldn’t Let A Website Tell You Your Home’s Value

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Picture this…

There’s an inexperienced real estate agent in your town.

He hasn’t sold any homes yet.

He wants to drum up some business.

So, he climbs up onto your roof and paints what he estimates to be the value of your home.

He feels like this could be a win-win:

YOU get to know the value of your house, so he was helpful to you, without even having to meet with him…

… and HE gets to show you how that he knows his stuff. Hopefully you’ll turn to him for help once you want to sell your home.

But you’re kind of ticked off, aren’t you?

First off, this guy painted on your roof. That’s just vandalism.

Beyond that, he wasn’t even close to accurate! The value he painted up there is tens of thousands of dollars off.

He didn’t even see inside your home

You notice he did the same thing to all the other houses in the area.

He seems off on the value of all of them.

It’s still kind of intriguing, though, because you’re like, “Hmm, I always felt like Bill’s place was worth less than mine. Looks like I was right. But there’s no way Gary’s house is worth more than mine, that agent is craaaazy. Unless maybe Gary did some major remodeling inside…”

But how would the agent know? He never even went inside your neighbor’s house. Or your house. Or anyone else’s house.

He just eyeballed everyone’s house from outside, and took a quick peek at some data available to the public. Then slapped his estimate up on your roof for everyone to see.

His estimates are all over the place. Some high. Some low. Once in a while he seems to be somewhat in the ballpark.

His “value” affects your actual value

Beside the fact that this guy vandalized your roof, now you have people sizing up the value of your home based upon a number he came up with, without even seeing inside your home.

It was careless and thoughtless.

He lacked respect for your privacy, your equity, and ultimately your wealth. The value of your home can now be viewed by anyone, for whatever reason they feel.

It would be even worse if you were in the middle of trying to sell your home, and now you have buyers pulling up, seeing your painted roof, and considering his estimate when (and if) they make an offer.

Can you imagine if a real estate agent actually did this?!

You’d probably want to report him to the police, his real estate broker, the real estate commission… and all of your friends, family and neighbors.

You’d want everyone to know not to trust this guy, or give him any business.

Online valuation sites are basically doing this to you

You’ve probably seen or heard about websites where you can look up the value of your house (or anyone else’s house) for free.

It seems great because there’s no need to even talk to a real estate agent. Just pop in the address, and voila, you get to see the value of the home.

You might figure that it’s super accurate, since they use fancy algorithms and stuff.

However, these online real estate valuation sites are all basically painting a number on your roof, without ever having gone inside, and without ever having sold a house. And they’re definitely not experts in your local market.

Unfortunately, there isn’t much you can do about it.

They’re using public data to come up with their estimates. They didn’t steal anything. They didn’t actually paint on your roof (they just hover a value over it digitally).

They post disclaimers about their accuracy (or lack thereof), at least if you really, really look for them.

Plus, who would you even report them to anyway?!

Start valuing real estate agents’ values

The thing is, these sites exist because people tend to like them, and look at them. They wouldn’t exist if people didn’t continue to click on them. But people do.

They certainly are convenient, and entertaining, even if they are not accurate.

Many people just don’t want to deal with real estate agents, until and unless they have to. But that’s actually what you should be doing if you want an accurate value of your home.

Great real estate agents take a lot of time and pride in estimating the value of a home. This is not something you can do remotely by simply reviewing public data and algorithms.

In order to be accurate, even a local real estate agent needs to see inside of your home.

So, instead of encouraging these online valuation sites to exist, by visiting their sites and clicking around…

…click on a local real estate agent’s site, and invite him or her in to take a look at your house, and come up with an accurate value.

Don’t rely on an online valuation.

And, whenever possible, spread the word about the inaccuracy of these online valuations because they can affect the perceived value of your home… and beyond. And they will exist as long as people continue to pay them any attention.

Pay attention to real estate agents instead.

Nearly ¼ Of Homeowners Purchase Property With Less Than 5% Down

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Woman accountant or bank worker uses calculator in the office to calculate house loan credit bureaucracy.

A lot of potential home buyers think that in order to successfully buy property they need to save up a sizeable down payment of 20% of the purchase price—and that until they have that down payment in the bank they can’t transition to homeownership.

But the “20% down payment myth” just isn’t true. Thanks to a variety of lending options, there are plenty of buyers out there purchasing property with far less than 20% down.

According to recent research from Zillow, 24.2% of buyers put down 5% or less when purchasing their homes. That’s nearly one in four buyers on the market!

The Takeaway

According to this data, it’s not only possible to purchase a home with a down payment of 5% or less, it’s also extremely common. So if you’ve been putting off buying a home until you have a 20% down payment in the bank, it might be time to rethink your strategy—and finally make your dream of homeownership a reality in 2019.

5 Expert Tips For Protecting Your Home While Away on Summer Vacation

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Summer is one of the most popular times of the year for vacations (thanks to the kids extended time off from school). But unfortunately, that also means it’s a prime time of year for home invasions and burglaries.

A big part of the uptick in crime during the summer might have to do with the increase in empty homes thanks to summer vacations. But as long as you take the steps to protect your home, you can avoid coming home to an unfortunate situation.

Here are five ways to protect your home while you’re off enjoying your summer vacation:

1. Install An Alarm System

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Obviously, the best way to protect your home from potential burglars is by installing an alarm system. Just the threat of an alarm system (like a sign in your yard or a sticker on a window) can be enough to deter potential burglars.

When you install an alarm system, the company equips all potential entry ways with alarms. If someone tries to enter the home while the alarm is enabled, the alarm will ring until someone disables it with a code. If the alarm isn’t disabled, the alarm company will immediately notify both you and the authorities and send police to investigate the break-in. Some alarm companies also install cameras at the entrances which you can connect to your phone, giving you the ability to check in on your property while you’re away on vacation. Check in with local alarm companies and get estimates; companies will often offer incentives like discounted rates or free installation in order to get your business.

2. Pay Someone To Mow The Lawn

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If you’re going to be traveling for an extended period of time, make sure you hire someone to mow the lawn. An overgrown lawn is a visible indicator that no one’s in the home and can attract unwanted attention.

Have someone mow the lawn on a weekly or bi-weekly basis. And as an added bonus, since someone is taking care of maintenance, you don’t have to worry about coming home to a nightmare of lawn to deal with after your vacation! If you hire someone you know and trust, you might also ask the person taking care of your lawn to do a quick walk-through of the home and make sure everything is in working order. If you have a maintenance issue inside the home while you’re gone, the person can bring it to your attention before it gets out of hand.

3. Don’t Forget About The Mail

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Before you leave for your vacation, put a hold on your mail with the USPS. An overflowing mailbox isn’t ideal for a number of reasons; first off, it’s a sure sign that your family is away. And on top of that, an overflowing mailbox increases the chance that something might fall out and get lost in the shuffle.

Protect your home (and your mail!) and put a hold on delivery until you return from your vacation.

4. Set Timers

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Nothing says “empty house” like a home that stays dark for 12 days straight. Setting timers on your electronics, including lights and televisions, can give the illusion that people are occupying the home even when you’re miles away enjoying your vacation.

You can pick up timers at any hardware store (or on Amazon), plug them into your electronics, and program them to turn on and off at specified times.

5. Be Cautious on Social Media

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When you’re on vacation, you want to share all your fun photos and status updates of the fun time you and your family are enjoying. But it’s important to be cautious on social media.

Publicly posting you’re on vacation on social media can let the wrong person know that you’re not currently occupying your home.

Make sure that your social media accounts are set to “private” before sharing any of your vacation updates; that way, the only people who see your updates are people you know and trust and you avoid broadcasting to the world your home is unoccupied.

You deserve a vacation. Just make sure you follow these tips to protect your home while you’re off enjoying your time off.

Getting the Mortgage Monkey Off Your Back

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pay off mortgage soonOnly 34% of Americans own their homes free and clear. All other homeowners have a mortgage they’re chipping away at. If you have a mortgage you may want to consider paying it off early.

Before you begin, you should know…

Some states allow lenders to implement prepayment penalties, which means it could actually cost you more to pay off your mortgage early. Regulations vary per situation, so before you proceed, find out from your lender if you’d face a prepayment penalty on your mortgage.

If there is a penalty…

Decide if it’s worth it to you. Fines are typically a percentage of the mortgage itself. Carefully evaluate risk versus reward before committing.

If there is no penalty…

Start chipping away at your principal as soon as you can. The first five years is the best time to make additional payments toward your principal.

11 House Fails That Could Ruin A Sale

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When you’re looking for a home, you probably have a couple of lists in your head: the must-haves, the nice-to-haves, and the absolute deal-breakers. Unfortunately, most of the places on this list fall into that third category, unless, of course, you’re handy or have a big budget for repairs. Check out these strange but hilarious home fails that would definitely have you looking elsewhere.

 

See a few more here and then comment and share some of your encounters with home hunting fails below!

What Our Clients Say

Highly Likely To Recommend   

Kristin was phenomenal to work with to sell my home. She was communicative, knowledgeable, and understood the market. We were able to sell my house above what I initially thought it would go for, in a shorter time frame than I expected, and the process was about as painless as possible. I will absolutely be recommending her to anyone I know moving to Phoenix/Scottsdale area.

Remarkably Responsive   

Kristin and her team sold my home in Park Scottsdale in the very short time and helped us find a new home. Kristin and her team was remarkably responsive, attentive, and supportive. She is so knowledgeable and experienced in providing realistic information which helped us to plan and prepare to sell our home. Aaron was very professional and looking in our interests as a customer. He always responded to our texts and phone calls promptly and answered to our questions and concerns. My husband and I highly recommend Kristen and her amazing team. Thank you Kristen and Aaron!

Fabulous Team That Knows Park Scottsdale   

Kristin and her fabulous team sold my home in Park Scottsdale in the exact time frame I had hoped for. From start to finish, Kristin was remarkably responsive, attentive, and supportive. She is so knowledgeable and experienced!! She provided realistic information which helped me to plan and prepare to sell my home. I am extremely happy to have chosen KGG and couldn't be more pleased and satisfied with the results.

AMAZING!   

Kristin and her team are amazing! They did a great marketing and negotiating the sale of our home. I highly recommend using Kristin when you sell your home, I would recommend her to anyone.

Kerri Was What We Needed   

Kerri is an excellent agent who is responsive, experienced & kind. She made the home buying process very easy. She is an expert in the Scottsdale area & works with a team therefore she or team member was quickly available to help us with whatever we needed.