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How Much Equity Does Your Home Have?
The dream of homeownership is about more than just a stable place to live, exempt from landlords’ whims and decisions. For many, homeownership is a piece of the wealth-building picture, essential to a future retirement or financial independence. The idea is pretty basic: You purchase a home and pay it down while hoping the home’s value increases over time. Generally speaking, this is what happens over time. As you go, you build what’s called “equity.”
What is Equity
Definition of Equity is “the market value of a homeowner’s unencumbered interest in their real property—that is, the sum of the home’s fair market value and the outstanding balance of all liens on the property.” If you were to sell your home and pay off the mortgage’s balance (and any other debts, such as home equity credit lines or liens), the cash you would have leftover is your equity. Your “equity position” changes over time due to a variety of factors.
As you’ve probably noted, your home equity position’s most significant variable is the home’s actual market value. A variety of factors can influence your home’s value, including the market demand for homes in your area, local amenities, schools, your home’s particular features, upgrades you’ve made, condition issues, plus quite a bit more. So how can you tell your equity position?
First, you need to know what you owe on your home. Finding the amount owed is as simple as checking your mortgage statement to see your principal balance. This number can differ slightly from your actual payoff amount due to closing dates, interest, and other issues determined during the sale. For this calculation, your principal balance is the number you need to know. If you have any other debt on the home, you need to add the value of this debt to the principal balance (this might include credit lines, liens, or second mortgages.)
Home Value
Next, you need to know the value of your home. Zillow and Trulia sites use “automated valuation models” to give you an approximate home value. These models are generally not very accurate when it comes to your home’s value as they exclude many crucial factors. Often, they come in quite a bit higher. They can, however, give you an idea of general changing trends in your market over time.
Hiring an appraiser is one way to determine your home’s value from a more bank-like perspective. While an actual sale may be above the appraisal, this thorough, conservative option is an excellent way to go. The downside? You may have to pay up to $500 for the assessment.
Knowing the correct value of your home is crucial when it comes to selling your home. Having a home priced correctly is one of the number one reasons homes sell fast. On the flip side, a home priced too high can cause the house to sit on the market too long. The right price is vital. Get in touch today if you want to learn more: (928) 916-1921.
AMERICA’S TOP 100 REAL ESTATE AGENTS
FOR IMMEDIATE RELEASE
AMERICA’S TOP 100 REAL ESTATE AGENTS®
December 1, 2020 – Announcing the selection of Trent Beaver, Better Homes and Gardens Real Estate BloomTree Realty in Prescott, Arizona, among America’s Top 100 Real Estate Agents® for 2020. Selection to America’s Top 100 Real Estate Agents® is by invitation only and is reserved to identify the nation’s most esteemed and skilled Real Estate Agents and Brokers with a history of routinely selling homes above market value.
Members are selected through a comprehensive multi-phase selection process involving proprietary algorithms using advanced data analytics to assess a broad array of criteria and data for each candidate, including (but not limited to) the Real Estate Professional’s total yearly sales volume, notable above market value sales, luxury home sales, efficiency rating for closing sales, lifetime professional experience, client satisfaction ratings, and other notable recognitions, among many other proprietary factors. Based on these criteria, a measure/rating for each Real Estate Professional is established indicating their relative effectiveness in closing high-value sales above market value in comparison to other Real Estate Professionals in their region. Accordingly, the most efficient and effective Real Estate Professionals among the community are then identified for selection among America’s Top 100 Real Estate Agents®.
Only the Top 100 qualifying Real Estate Professionals in each region will receive this honor and be selected for membership among America’s Top 100 Real Estate Agents®. With these extremely high standards for selection, less than one percent (1%) of active Real Estate Professionals in the United States will receive this honor — truly the most exclusive and elite level of Real Estate Agents and Brokers in the community.
Prescott Golf Course Living
Not only is Prescott, Arizona, a desirable place to live, but it is also an incredibly popular place to play golf!
The Prescott area is home to numerous award-winning golf courses.
Live on the Green
Many people move to Prescott to live in a golf course community. Below is information on some of the more popular golf course subdivisions in the Prescott quad-city area. If you would like information on any of these areas, contact me, and I will be happy to answer your questions.
Antelope Hills Golf Course – Prescott
Antelope Hills is a small golf community located on the 36-Hole Antelope Hills Golf Course in Prescott, Arizona. This quiet community is conveniently located on the crossroads of Highway 89 and Highway 89A, just minutes from downtown Prescott, the Yavapai Regional Medical Center, and the Embry Riddle Aeronautical University. Antelope Hills residents can enjoy the nearby hiking trails in Pioneer Park, Watson Lake, and Heritage Park.
Hassayampa – Prescott
Copper Canyon Village is tucked away in the tall pines and granite boulders of Prescott, Arizona. Copper Canyon is minutes from dining and the quaint shops on the historic Prescott Courthouse Square. There are only 102 lots in this custom subdivision, with 22 lots still available to build. The gently rolling terrain, the panoramic views, and the tall Ponderosa pines are just a few of the many reasons Copper Canyon is a popular community in Prescott.
Prescott Lakes – Prescott
Prescott Lakes is a master-planned Residential and Private Golf Community in the heart of Prescott. There are 13 gated and non-gated neighborhoods within this popular subdivision. The Arnold Palmer Golf Management Group manages the Hale Irwin Signature Championship 18 hole private golf course winding throughout home sites in Prescott lakes. There are condos, townhomes, patio homes, custom-built, and estate homes surrounding the par 72 golf course. Residents can enjoy swimming indoors and outdoors with 30-meter lap lanes and a large open swim area, plus a 169 square-foot whirlpool Spa.
Quailwood – Dewey-Humboldt
Quailwood in Dewey/Humboldt, Arizona, is a premier master planned community located a few miles east of the town of Prescott Valley. This growing community has beautiful views of the Mingus and Bradshaw Mountains. Homes in Quailwood offer townhomes and site-built homes ranging in size from around 1200 sq. ft. up to about 3200 sq. ft. Quailwood offers outstanding amenities for your use and enjoyment. You’ll find Tennis Courts, Basketball Courts, an Outdoor Pool and Spa, a Hot Tub, Workout Room, Community Kitchen, Meeting Rooms, Horse Shoes, Volleyball Courts, a large covered Patio, two Children’s Play Parks, and across the street is a City Park with Baseball and Soccer fields for the little ones.
Prescott Country Club – Dewey-Humboldt
In Dewey-Humboldt, Arizona, the Prescott Country Club is nestled in the golden panoramic valley between the Mingus and Bradshaw Mountain Ranges. This well-established neighborhood is home to one of the top-ranked golf courses in Northern Arizona. This popular subdivision is located at the Fain Intersection and Highway 69, a few miles east of Prescott Valley, minutes from the Prescott Valley Event Center, and only a few miles from the Yavapai Regional Medical Center. Prescott Country Club offers amenities like a clubhouse, fitness center, outdoor pool, restaurant, tennis court, and low monthly HOA dues.
As you can see from the list above, Prescott offers excellent options if you would like to live on or near a golf course. Let me know if you want more information on Prescott Real Estate, and I would love to help. Call: (928) 916-1921
Evaluate Schools Before You Buy Your Home
The quality of schools is a contributing factor for anyone buying a home. According to the National Association of Realtors, more than half of homebuyers with children, rate the local school district’s quality as a significant factor influencing their choice of a neighborhood. Even if you don’t have kids yourself, your next buyer might, and they might base their decision to buy on the school district that serves your home.
The Prescott, Prescott Valley, Chino Valley, and Dewey-Humboldt areas have numerous award-winning public, private, and charter schools in the area. Each has something unique to offer.
- Prescott Unified School District: Six primary schools and one high school.
- Humboldt Unified School District: Serving Prescott Valley and Dewey-Humboldt with five elementary, two middle schools, and one high school.
- Chino Valley Unified School District: Two primary schools, one middle school, and one high school.
- Charter and Private Schools: Tri-City, BASIS, AAEC, Trinity Christian, and Franklin Phonetic.
With so many options, the challenge is how do you evaluate schools? What’s the best approach for understanding if your local schools will score your property an “A” or harm the property value?
Resources
Luckily, there are some excellent on-line resources out there for evaluating schools. Here are a few I’ve come across which provide an excellent place to begin your research:
Education.com
A major portal site for education everywhere. Website: Education.com
Great Schools
A good search engine for researching schools, you can do zip code based searches that will help you learn a ton about the public and private institutions in the area. Website: Greatschools.org
Project Appleseed
A website dedicated to improving public schools, you can learn a lot here about the crucial elements of what makes a local school an excellent local school. Website: ProjectAppleseed.org
Evaluate Distance
Distance from your new house to the school might be an issue. For example, can the kids walk to school? If not, where’s the bus stop? Are you willing or able to drive your kids to school every day? Fortunately, most of the school websites offer bus route information.
Ask Questions
Neighbors may be a good source for first-hand information. But be cautious, you’ll only want to talk to a few neighbors — as you probably are aware, everyone has different needs when it comes to education.
Here are a handful of questions to ask yourself if you’re doing research:
- How comprehensive is the school’s safety policy?
- What social/support services are available at the school?
- How does the school handle discipline?
- Are people involved in a parent/teacher organization?
- How healthy is the school district’s annual report?
Visit the School
If time permits, a visit to the school will be incredibly helpful in your decision-making process. Call the school office to set up a time to meet with an administrator and take a school tour.
Finally, be sure to ask me for information. As a realtor in the Prescott area, I know the schools very well and are happy to help any way I can. Call (928) 916-1921.
Yahoo Finance: Arizona REALTOR®, Trent Beaver, Uses Social Media to Promote Listings Amid the COVID-19 Pandemic
The COVID-19 pandemic has created challenges for many businesses and industries, including the real estate industry. With more people losing their jobs or refusing to meet in person out of fear of contracting the coronavirus, it has made it more difficult for homeowners and REALTORS to sell their homes.
REALTOR Trent Beaver turned this hardship into opportunity. Since most of the world is in quarantine, more people spend their time on social media these days. Beaver used this as a perfect opportunity to seek out new clients and promote their listings to prospective buyers from all over the world. Read more.
Tips to Declutter and Maximize Small Living Spaces
Does household clutter drive you nuts? Don’t fret. There are ways to declutter and make a small living spaces feel bigger! Below are tips to help you make the most out of small spaces.
Tips to Declutter
- Weed out the extras. A yard sale will alleviate some clutter, and a trip to the local Goodwill will help even more. An article by Dave Ramsey says that a good rule of thumb to follow is: if you don’t use it or wear it regularly and if you haven’t needed it in a year, then let it go. Sort through your home and make three basic categories: Keep, Sell, and Trash.
- Bookcases are for more than books! Your walls are vertical friends for storage. Use a bookshelf for plants, valuables, artwork, and more. Place items that you don’t access every day on the top shelves and use boxes to store items such as old letters or loose pictures.
- Don’t pile it, hang it! Hanging items to help with storage issues is especially true in kitchens where you can use pot racks, hanging baskets, and even wall-mounted shelving units to raise things and help the room feel bigger.
- Maximize cabinets and closets with organizers. Inefficient use of cabinets for storage can easily waste more than 30% of usable “hidden” space. Take advantage of great hardware out there to tune up the interior of your cabinets and closets.
- Go below. A raised bed is a great way to free up storage space equal to your bed’s square footage. Using baskets and drawers can ensure the below-the-bed storage remains tidy as well.
- Paint light. Dark walls make small rooms feel smaller. Those rooms that feel a little too close for comfort can feel bigger and brighter with a fresh coat of light-colored paint.
- Elevate shelving above the toilet tank. If you have shelves elsewhere, but the space above your toilet tank is empty, consider relocating high shelving to above the “dead space” behind the toilet. Consolidating this used space into a single area can broaden out the rest of the bathroom.
- Use multifunctional furniture. The Family Handyman gives tips on incorporating multifunctional furniture in small rooms. Options include using a sofa with pullout storage space, an ottoman that opens for extra storage, or a steamer trunk that can double as a coffee or end table.
- Utilize the space above your door. If you are working to make a small bathroom feel more significant, there are many options. When transforming your small bathroom into a larger-feeling space, you need to add storage. Life Storage provides an idea for that additional storage. By adding a shelf above your door, you can store extra toilet paper, towels, or other products. With this storage being above eye level, it will still provide you with open spacious bathroom space.
Remember: Organization and smart storage can turn a tiny home into a cozy abode.
Of course, if you’re ready to upgrade your home rather than squeeze the last few inches out of your existing space, get in touch! I’d be happy to help you search for a new home today: (928) 916-1921
Clever Kitchen Hacks to Free Up Space
You probably don’t need an elaborate survey to tell you that the kitchen is one of the most used spaces in a family home. It serves as a hub for meals, a communal space for gathering, and often a message center for family traffic. Some consider the kitchen the ‘brain’ of the home.
Many homes have kitchens that are small or overrun by clutter. The mess can be a significant barrier to enjoying the space. Without some intentional organizational systems in place, a kitchen can feel almost useless, missing out on the potential of being deemed ‘the brain.’
Did you know that the kitchen is the most expensive room in your home to renovate? An article by Master Remodelers states that in upscale kitchen remodels in Pittsburgh, homeowners spend around $128,000! That’s a ton of money. In my experience, most individuals don’t have that kind of cash lying around.
So, what’s the solution? Does opening up your kitchen require a total renovation? Not always. Fortunately, I have some kitchen hacks to open up your kitchen without you having to do a complete makeover that will not require you having to spend thousands of dollars.
- Hack #1: Hang it high. Long-handled pots, pans, and other utensils hung high, with an appropriately-installed ceiling rack, makes them easily accessible. Use your longest-handled pan as a guide and install a hanging rack high enough above your head.
- Hack #2: Play all the angles. Pay attention to the unutilized space in the corners. Typically you will find a chunky wooden knife block tucked into these corners. Consider installing corner shelving, or even place a magnetic knife strip near a convenient corner.
- Hack #3: Shelve it for later. Counters and cabinets don’t have to do all of the storage work. Nesting shelving in windows or even on the surrounding backsplash and walls can be a great solution.
- Hack #4: Save the sink space. Seldom are you using the sink while you’re prepping veggies, so why not get a large cutting board and lay it across the surface? This way, you turn a sink into a temporary counter.
- Hack #5: See the studs. Open up a wall or two in your kitchen to access the recessed space between studs. Subdividing this space with shelves or hanging hooks can be a space saver. Properly finished, these shelves add creativity and serve a valuable purpose of creating storage all at the same time.
- Hack #6: Jar it up! Take a mason jar lid and screw it to the underside of an existing shelf or overhang. Now, put items in the mason jar and screw the jar into the lid. Bingo! New hanging storage.
Of course, if no amount of clever hacks will open up your kitchen, it may be time to upgrade. When you are ready, I can put together a list of local homes that are for sale that have killer kitchens. (928) 916-1921
Presenting The Premier Homes Team!
After 7 years as a solo agent and helping over 250 homeowners both buyers and sellers, I am branching out as with a real estate team! Business has been running at max capacity for the last few years and I’m always looking for ways to continue to expand, help more, educate more, but never let my service to my clients falter.
After much thought, discussion and sleepless nights, the decision was made to create a real estate team. It was a way to continue achieving goals, but provide this value to more people as well! My number one priority has always been providing stellar service to clients, because after a bad experience of purchasing a home personally, I have always promised myself I would never let my clients experience what I did.
My number one priority for my team members is to provide value to them, educate them in providing value to clients, and help them be the best REALTOR that they want to be. Just because I’ve been successful doesn’t mean they’re going to use the same ways or methods I did. If they don’t enjoy that aspect of the business I’m wanting to learn from them and what they enjoy doing. Then we can help create the plan for them to build their business and elevate them to their next levels of success.
Big things come to those who work hard. When opportunity isn’t knocking, build a door. Learn something new every day and don’t be afraid to ask questions.
-Trent
How to Dispute an Error on Your Credit History
Discovering an error on your credit history can be an unpleasant surprise when you’re attempting to get pre-approved for a mortgage. Though most people don’t think about the details of their credit report until the need to secure a loan, it’s an excellent idea to check your report for inaccuracies periodically. Checking your credit reports is easy to do. Each of the nationwide credit reporting companies, Equifax, Experian, and TransUnion, are required to provide you with a free copy of your credit report, at your request, once every 12 months.
What Happens When Your Find an Error?
If you discover an error on your credit report, the recommended way to attempt a correction is through a dispute letter. Dispute letters allow you to request the reporting agency to correct the error. Though it may take a little time to get the errors fixed, cleaning up these mistakes can have a direct (and favorable!) effect on your credit score. Higher credit scores help you secure lower interest rates and better terms on your mortgage.
Here’s what you’ll need to include for each mistake on your credit report that you find:
- Refer to which account has the error.
- Spell out precisely what is incorrect about the account and reference where it appears in the report.
- Outline the requested changes and explain why those changes are necessary.
- Include supporting evidence or documentation which will bolster your claim.
- Send the letter by certified mail with a return receipt requested so that you can document what the credit reporting company received.
For example: “In my report, the Chase Visa ending in XXXX shows my account is still active. I closed this account in 2012. Please market the account ‘closed’ on the report, not ‘active.’ Included is a letter from Chase bank, confirming the date of the account’s closure.”
It’s a good idea to keep copies of everything you send. Also, be sure to send the correction to all three major reporting agencies (Equifax, Experian, and TransUnion) as well as the original creditor (i.e., the credit card company, utility, etc.). You can find the current dispute mailing addresses on these company’s websites. Federal law mandates that agencies must help you within 30 days. Keep records of your disputes and when/how you communicated with the agencies.
An article by Experian offers insight on credit scores and disputes. Filing a request has no impact on your score. However, once your dispute is processed, that is where your credit score could change. Along with this, updating or changing information such as identification or address information will not affect your credit score.
Why Clean Your Credit
Having the cleanest credit report as possible will result in a higher credit score, which in turn increases your chances of getting pre-approved for a mortgage. A low credit score results in a much higher interest rate when you apply for a home loan. Besides, if you have a low credit score, you will be required to contribute a much larger down payment of cash.
When looking to be pre-approved for a mortgage, you first need to get your credit report as clean as possible, pay off as many debts as you can, and make on-time payments. One of the hands-on things you can do today is set up payment reminders and pay your bills on-time. Take these steps, then sit back and watch your credit score rise!
According to the law, negative credit information stays on your credit report for seven years. On the other hand, positive information can remain on your credit report indefinitely. That is why getting your credit in shape is a crucial step to take when you’re preparing to buy a home.
I help buyers prepare every day! Contact me today. I would love to help you buy your next home, (928) 916-1921.
Donʼt Make These 3 Home Buying Mistakes!
There are numerous rollercoasters in life, and buying a home can be one of them. But, when done correctly, the rollercoaster doesn’t need to be as big as California Screamin’, it can be more like the gentle curvy track at the carnival.
As a realtor, my goal is to save buyers and sellers pain and stress. When it comes to buying a home, there are myths about the home shopping experience that must be addressed. The tips below, plus several other tools that I have up my sleeve, will help you make a successful home purchase . . . one that won’t be a scary ride, instead it ends with a smooth transaction.
Myth #1: “That house has been on the market so long I bet we can easily work the seller down.”
Maybe, but not necessarily. Days on the market, also abbreviated as DOM, is the time between when a home is listed on the MLS and when it is sold or taken off of the market. In Prescott, in the Spring of 2020, a house was on the market for an average of 110 days. There were times in the past that the average days on the market was much lower, and times when it was higher. A home on the market for 100 days isn’t necessarily going to go for a ‘bargain’ just because of the days on the market. Exceptionally high days on the market could mean almost anything. One possibility, the seller could be unrealistic about their price. Alternatively, the seller may not be particularly motivated to sell for emotional or other personal reasons. This is when you need to rely on the experience and training of your realtor to negotiate on your behalf.
Myth #2: “I want to look at foreclosed homes because they’re a real bargain and the banks need to unload them.”
Unfortunately, there are several reasons a home may arrive in foreclosure. It could be a death in the family, illness, or divorce. Once the home is in the hands of the banks, the rules of negotiation change. Banks, like entrenched sellers, don’t always make rational. You can have a hard time determining the reason a bank chooses to reject an offer for a foreclosed or distressed property. Rejection may be based on financials which seem counterintuitive. The truth is, many distressed sale transactions can be longer and more stressful than regular sales. If you are looking for a bargain or a fixer upper, contact me and I can set up a personalized search that will alert you when inventory meeting your criteria becomes available.
Myth #3: “I liked this house a lot, but with this market, I bet it will still be there if I decide to buy it.”
It is incredibly painful to see a client fall in love with a home, but fail to make a move to purchase that home. If you fell in love with it, it is highly likely that someone else will fall in love with it as well. Just because a property has been on the market a little while doesn’t mean it will stay on the market. Ask yourself, if you don’t make an offer on a home, are you comfortable losing this home?
My job as an agent is to represent your interests and do my best to protect you along the way. If you’re pursuing a home purchase in the near future, please contact me today at (928) 916-1921. There are many other ways I can lower your stress and help you find a great home.
