It is hard to miss all of the Flip/House Make-Over shows on television.  Some of the transformations are incredible, but some of the transformations seem ‘too good to be true’.  Okay, maybe they are ‘true’, but are the make-overs good enough to last long-term?

When inventory is tight and newly renovated homes are wooing prospective buyers, you need to take a step back and remember that the home you’re hunting for is a long-term investment. While futuristic appliances and gleaming hardwood floors may seduce you into making a quick offer, understand that there’s much more to a home than what lies on the surface.

Investors who renovate homes want to maximize their profit as quickly as possible. While many are upstanding folks, there are those out there who will cut corners in order to boost their return. Sometimes when a home is renovated, an investor will do a “lipstick flip.” Basically, this means fixing up what’s cosmetic and leaving the rest as-is. Paint, flooring, appliances, fixtures… all may get a tune-up. But this doesn’t necessarily take into account foundation issues, leaks, plumbing problems, and work performed without permits.

Foundational and mechanical problems are a significant concern, but I would like to caution buyers, the cosmetic changes need to also be inspected for quality.  It doesn’t take much to have a new DIY floor that is installed quickly to present problems.  Just take a quick look at the quality of the products used and the details of the renovation before getting ‘wowed’ by the fresh new paint.

Once buyers close on a home, they’re responsible for the home. This includes issues which may be costly to repair or remain simply unsafe for habitation. This is why it’s vitally important you take the necessary steps to protect yourself before signing off. Here are some tips to prevent the headache and heartache of a bad “lipstick flip” home:

• Do not waive the inspection. In addition to the usual areas, have inspections for exposed wiring in the attic and mold. Include a termite inspection.
• Ask for a complete list of all work done with receipts for the work.
• For all work done, make sure the seller used a licensed contractor.
• Ensure the work on the home passed inspection and is up to code. Request a copy of the certificate of occupancy.
• Ask the seller for a current disclosure statement, as required by law.

If the seller balks at these requests, it may be necessary to pass on the home. If issues come up during inspection, you may change your mind about the home, or you may negotiate for repairs or closing credits, depending on your agent’s advice.

Don’t worry, not all flipped homes are money pits. Prescott has many homes to offer, some were recently renovated, some are simply beautiful.  But as a trusted real estate advisor, I like to be certain my clients don’t get burned! Let me use my years of experience and help you look for your next home, contact me at (928) 916-1921.

Trent Beaver
(928) 916-1921

Looking to buy a home? Are you looking for a new build or and existing home? Investopedia put together an article offering their two cents on the subject. But if you are leaning toward purchasing a new build there is a question you need to ask yourself: Do I need to hire a real estate agent to represent me when I buy a new home from a builder?

And the answer is, legally, no. But if you don’t, you might be missing out on some tangible benefits that impact your wallet and how much you get for your money.

There are many reasons why an agent is a sound investment during the purchase process with a builder. While some of them can be quite complex and go beyond the scope of this blog post, here are a few highlights:

Market Value Compared to Purchase Price: How much money are you going to be able to come out of pocket for your down payment? If you don’t want a nasty surprise when it comes to disparities between your agreed upon purchase price and the actual market value of the home, you’ll want an agent with access to information which will help you accurately assess the true value of that brand-new home.

Negotiation Power: Real estate agents are professional negotiators, and often an agent can get more from a builder than you would on your own. While some of this might be related to purchase price, other perks may include property or home upgrades.

Financing: It’s probably no surprise that your builder will have preferred financing partners to work with. Many of those “partners” pay good money for the opportunity to handle your loan. But is it the best loan at the best rate? An agent can be both a sounding board for financing terms and a source for trusted alternatives.

Contract Expertise: While your real estate agent isn’t an attorney, they know a great deal about the ins-and-outs of property contracts. This includes builder’s contracts, which may have provisions that put you in dicey territory should something unforeseen happen. Protect yourself with an agent.

These four reasons are a good place to start, but there are plenty more advantages to having a Real Estate agent on your side during the buying process. The bottom line is: The builder will have their own system in place to maximize their profit and minimize their costs. Shouldn’t you?

There are numerous new home developments in the Prescott area. Contact me if you have questions about any of these homes, or questions about the buying process.

Trent Beaver
(928) 916-1921

For me, being a successful realtor is more than pulling off a stress-free real estate transaction.  My job surpasses buying or selling a home, it is almost like I become a teacher.  An important part of my job as a real estate agent is educating and protecting my clients. There is the typical learning curve on what to expect when you list your home, how to prepare your home for sale, what are the legal aspects of the transaction, etc.  But one component that makes most of my clients nervous is the home inspection.  Therefore, my job is to teach my clients the pros and cons of a pre-listing inspection.​​​​​​​

A home inspection is common practice on most real estate transactions.  According to American Society of Home Inspectors a home inspection report will include:

The condition of the home’s heating system; central air conditioning system (temperature permitting); interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement and structural components.

The initial question that I usually receive from my clients is, “Should I have a home inspection before I put my home on the market?” Each house transaction is different, but there are some common rules I use when it comes to getting your house ready for a home inspection.

Being Prepared

Knowing what you’re in for when it comes to selling a house is always better than getting a nasty surprise down the line. In the event you find repairs that need to be made, doing them ahead of time allows the repairs to be done in a reasonable time frame. When you have time on your side, you can wait for your favorite contractor, shop for lower priced supplies, or have time to make the repairs yourself.

Another bonus to having a pre-listing inspection is knowledge.  The pre-listing inspection allows you to gather estimates for the repair.  This is incredibly useful in situations down the line when you suspect the buyer’s home inspection reflects wildly inflated estimates for repairs.

Repairs vs Upgrades

You also need to know the difference between maintenance repairs and home upgrades. Buyers have a reasonable expectation that the home has been properly maintained. Making necessary maintenance repairs doesn’t mean that you can up the price on the listing. You can’t cover the cost of your new roof by pumping up the sale price. You might be able to use it as an effective marketing point over other listings in the area, but a roof is a maintenance repair, it is not a fabulous kitchen renovation!

If you don’t want to make the repairs, understand that not making repairs can have a disproportionately negative impact on your sale price. For example, if you want to hold off and not take care of a $1,000 plumbing repair, and pass that task and expense onto prospective buyers, the buyers are not going to equate that to $1,000 off the asking price. Instead, potential buyers are going to think about the time, inconvenience, and the cost of the repair. It is quite possible that a $1,000 repair might translate to a $3,000 reduction to the asking price. Buyers will want to be well-paid to handle a seller’s headache.

You Must Disclose

It is important to keep in mind that if you fail to disclose a problem found in the inspection, you could be in big trouble down the line.  In this case ‘Honesty’ is the only policy!

There’s a definite benefit to the pre-listing inspection, but it’s important to consider the pros and cons with your agent.  I’d be glad to have a conversation with you about the specific concerns you may have about your home if you’re preparing to list it. Please contact me today!

Okay, first-time buyers… it’s time to turn the dream into the dirt you can stand on. Your very own home. I’m sure you have questions. In fact, I’m sure your questions are like most first-time buyers. Which is why I’ve put together this down-and-dirty answer guide for the most common questions home buyers have.

1. What kind of credit score do I need to have?
   Generally, 630 or above is what you’ll want to have. The better your score, the better the terms will be on your loan. Some lenders may give you wiggle room on this, but it all depends on the circumstances. A loan professional can help you navigate this as you go.
2. How much of a down payment is required?
   There are loans which will let you in for as low as 3% – 5% of the value of the home, but I would consider 5% to be the floor. More is better, especially if your credit isn’t as optimal as you’d like it to be. Working with a loan officer will help.
3. What’s the first step to home buying?
   Getting pre-approval for a mortgage. Don’t shop for a home until you know what you can afford. There’s no use in falling in love with a $300,000 home in your dream neighborhood if the banks will only write you a loan of $150,000.
4. How much do I have to pay my real estate agent?
   As a buyer, you don’t have to pay your real estate agent. The seller is responsible for listing fees and a portion of those fees will be paid to your agent for helping with the transaction.
5. Why should I use a real estate agent?
   Like a lawyer, doctor, or other professional hired to represent your interests, the agent will not only advise you about the transaction, but protect and facilitate the process.
6. How long does it take to buy a house?
   After you find the home you want to buy, it takes between 30 and 45 days, generally. The home search can take longer, however, so have a clear idea what you’re looking for and able to afford. (Your agent can help you with this. Another reason to have one on your side!)

Naturally, there’s more to buying a home, but this covers the basic introduction to the process. As your agent, I will walk you through the rest, guiding you along the way. When you’re ready to make the move, reach out to me at (928) 916-1921.

There is no denying that the real estate language can be confusing. Although, one term that is straightforward is a “Buyer’s Agent”. A Buyer’s Agents is a real estate agent who represents only the buyer of a property in a real estate transaction. This type of agent agrees to exclusively represent the best interest of the buyer, usually under a formal contract. A Buyer’s Agent is worth a million when it comes to buying a house.

The beauty of a Buyer’s Agent, they work for one person, the buyer! It costs nothing to hire a Buyer’s Agent, as all commission are paid by the seller. The second bonus of a solid Buyer’s Agent, is they will not only will work for you to negotiate the best price for the home, using their expertise with the market conditions, but they will provide you a tremendous amount of knowledge, relating to which lenders to use, home inspectors, contractors, insurance agents, appraisers, etc.

One of the key tasks for a Buyer’s Agent is keeping things on track. Buyer’s Agents coordinate the timeline so things run smoothly, such as inspections, repairs, loans, title, and escrow. A good Buyer’s Agent will coordinate with all the parties involved with the transaction to ensure the closing will occur on time. This isn’t a task they take lightly. If you don’t have someone in your corner leading the transaction through its various stages, there is a good chance that things won’t close on time, and you may find yourself spending a few nights at a local hotel.

There are two key support roles of a Buyer’s Agent: emotional and legal support. Realtors have a fiduciary responsibility to their clients and need to understand the legality of the transaction. In addition, purchasing real estate, as well as the back and forth of negotiating, can be a highly emotional process. Buyer’s agents understand the contract, have continuing education requirements to keep up to speed on the always changing market, and understand the responsibilities that come with meeting the terms and timelines of the contract, so the selling party doesn’t breach the contract.

Buying a home is an exhilarating experience. The hunt. The find. The score. To ensure that you minimize your costs and to get the best deal on a home, it is crucial to have a Buyer’s Agent represent you. Use their knowledge and experience and tap into their huge resource base to make the process a positive experience. Truly, there isn’t a better deal in real estate than hiring a Buyer’s Agent.  Contact me for more information, I would be happy to help you buy your next home.