According to Market Watch, 43% of homebuyers in 2014 so far have purchased with all cash. While some analysts believe that the cash-buying frenzy will not last, there is always more room for negotiation when the buyer brings cash to the table. When it comes to buying a home in a hot real estate market, sometimes cash can net you a lower price than a mortgage. So, if you’ve just sold your home and are looking to buy a new one with cash or are otherwise planning your estate, here are some things to remember.

Reasons to buy with cash:

As an empty nester or retiree looking to downsize, you often have cash from the sale of your larger home to purchase a new home. This allows you to choose a smaller home, pay cash, and possibly have money left over. Or, you can buy into a better community for retiring. So while you may end up with a smaller home, the amenities more than make up the difference.

Sometimes, you want to gift a home to your children as a wedding gift, or as part of your estate planning. After all, homeownership is part of the American dream. However, gifting only a down payment may pressure your loved ones to purchase a home when they are not ready to be homeowners. A better option for them would be to purchase a home for them with all cash. The home is paid-for and their obligation would extend only to yearly taxes and insurance, but not the heavy burden of a mortgage. A paid-for starter house protects them from the ups and downs of the market as well, and gives them a basis for a mortgage when the time is right for them.

Investment property that is completely paid for can be a “cash cow” for your retirement. The ongoing income from a rental that does not have a mortgage can make your retirement a little more comfortable, and is less problematic in probate than properties with mortgages would be.

Reasons to have a mortgage:

If you have a financial instrument that might give you a higher rate of return than the mortgage will cost you, it might make more sense for you to invest your cash in the higher return and to take out a low cost mortgage on the property.

If you need to improve your credit report, it might be better for you to take a mortgage. This type of “good debt” can improve your credit score and make it easier to borrow money for other reasons.

Additionally, there are tax benefits from holding a mortgage that, depending on your financial situation, may be more beneficial than owning the home free and clear. Of course, before you make this decision you should check with your tax accountant or financial advisor.

Negotiating with cash:

When you find the perfect house and you’re ready to make an offer, don’t start with the “all cash” offer. If the sellers know that you are able to pay cash for their asking price, they will be less willing to negotiate with you. Let your professional real estate agent help you determine the best time to reveal your cards. We know the right time to offer cash to get the seller to agree to your offer.  Call us today and we can get started finding the perfect home for you and negotiating the best offer for your needs.

Compliments of Virtual Results

Light exposure in your room plays a large part in the visual drama of your paint colors. In rooms with multi-directional sun exposure—either opposing (east/west or north/south) or perpendicular (north/west, north/east, south/west, south/east)—the play of light over your walls, reflecting off your ceiling or bouncing off the floor can change the appearance of the paint colors your chosen. In fact, the colors will look different at various times of the day and even change with the seasons throughout the year. And, when you add artificial light into the mix you may end up with a look you weren’t expecting.

The Basics

As you may remember from grade school, the concept of color is part of the light spectrum. You know that when you see a rainbow, its colors are different lengths of light rays from the sun bouncing off water molecules in the atmosphere. In fact, the very definition of color is the property of an object producing different sensations on the eye resulting from the way it reflects light. Just as beauty is in the eye of the beholder, so is color.

Humans have varying degrees of color-blindness, and in men, it is as high as seven to 10 percent in the red-green spectrum. A smaller number of colorblind people of either gender do not see the blue-yellow spectrum. That means that if you’ve chosen a neutral gray or taupe with a red or green undertone, your spouse may see it differently from you.

Add the play of light to the scenario and you can see why your color choices can make a huge difference to how you enjoy your home … and how it appears to potential buyers.

Light Direction

In the northern hemisphere, a southern exposure has light throughout most of the day and most of the year. Light from the sun intensifies colors, so consider the room’s use when choosing bright vs. cool colors. If this is the room you’ll be relaxing in at the end of the day you’ll want to cool it down with blue undertones.

East or west exposure is most intense in the morning or evening. A bedroom with a west exposure will be darker in the morning. If you have trouble waking up, you might want to add red or yellow undertones to your room colors. On the other hand, a room with an east exposure will be light and bright in the morning, so you might want to tone it down with blue or green undertones.

In the afternoon, light rays are shorter, giving them a blue tone that washes out color. If you’ll use a room most often in the midday, consider a brighter color that is opposite the blue spectrum (yellow on the color wheel) or with yellow undertones.

Lighting makes a big difference too. The type of light bulb, wattage and placement of the light fixture change the appearance of color on walls, floors and ceilings.

Making the Right Choice

Before choosing a color, bring home swatches and hang them on the walls. Watch how light plays off them throughout the day. If you’re still not sure, buy sample sizes of a couple of colors and paint larger swaths on the walls (or on butcher paper) to get a better idea.

If you’re unsure about which neutral color to paint in preparation to sell your home, give us a call. We’re happy to advise you on what buyers look for in a home.

Compliments of Virtual Results

 While home prices are on the rise in most of the U.S.—fueled by the low supply, low mortgage rates and investor buying—the number of Americans that own homes, as a percentage of the population, is decreasing. The reasons vary, since many current renters are former homeowners that lost their homes during the financial crisis and others simply do not have enough income to qualify. But some potential homeowners, with savings for down payments and the desire to own may be priced out of the market by as little as $1000.

A new report by the National Association of Home Builders points out that an increase of just one thousand dollars in the price of a new home can upset the delicate balance of income-to-debt ratios required to qualify for mortgages. According to their report, that $1000 increase in a home’s price knocked over 200,000 potential buyers out of the market in 2013, assuming a 10 percent down payment and a 30-year mortgage.

Subtle cost increases

The NAHB report suggests that local regulatory increases—fees, permits, zoning costs and higher taxes for new construction—price new homes out of reach for otherwise qualified potential homeowners. Since it is in the best interest for most localities to have more homeowners than renters, this inadvertent price increase imposed by local regulations may ultimately produce an undesirable effect.

Buying used

Since homes in established neighborhoods are less likely to have the higher regulatory fees and taxes that new construction has, a solution is to buy a resale home. Real estate professionals like us specialize in finding the right home for the right price for qualified buyers. Homes in older neighborhoods have other advantages as well. For instance, initial outlay for a new home does not often include the cost of landscaping. A resale home typically has at least some landscaping in place. When a new homeowner is on the very edge of what they can afford, extras like that raised flowerbed you have your heart set on, the stone pathway you envision or an in-ground sprinkler system and newly laid sod often have to wait.

We can help!

With income not keeping pace with the cost of new housing, you may find yourself priced out of the new-home market. We can help you find an affordable solution without sacrificing the amenities you want in your new-to-you home. Compared to new homes, pre-owned homes have the advantage of negotiation between buyer and seller on some or all of a home’s features or components. Remember that any upgrades the previous owner put into the home—ceiling fans, upgraded faucets, hardware and appliances—typically come with the home.

New homes often have warranty issues. The first owner ends up dealing with all of those issues so that by the time the second (or later) owner moves in, the potential for problems is less. A home inspection before your purchase should reveal any potential problems that then can be included in final negotiations at the time of close.

In Sedona, buyers have the edge right now.  We are in between seasons.  Our summer season is the slowest time of the year.  By the time October roles around, those folks who spend Winter in Sedona or Arizona will be arriving to enjoy warmer temps in the sunbelt state.  Right now, home Days On Market are increasing and sellers are more willing to negotiate.  Take advantage of this season to increase the strength of your negotiation power.

For information on the best home purchase for you, give us a call.

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Low housing supply is causing prices to rise for rentals for West Sedona Rental property. If you are looking for income property, I can help you determine the right property for you.

The current housing market, while picking up in most areas, has one basic problem: low supply. With many buyers choosing to keep their old home when they purchase a new home, fewer homes are on the market, driving up demand.

Becoming a landlord

Buyers that do not need the equity in their current property in order to purchase the home into which they are moving, are choosing to become landlords instead.

The financial crisis and ensuing recovery has increased the demand for rental housing especially in Sedona. In fact, the cycle of buyers not selling their current home before buying a new one reduces the supply for homes to buy, thereby raising the prices and pricing entry-level buyers out of the market. Unable to buy the home they can afford, they then seek to rent a home that better meets their needs instead, resulting in rental price increases due to higher demand.

For those able to become landlords, it is somewhat of a perfect storm since the ability to demand a higher rent increases the income from your rental property, increasing your equity.

Advantages for landlords

Don’t forget the other advantages of being a landlord too. Since your former home is now a business for tax purposes, repairs, maintenance, utilities, taxes, insurance, some fees, and other costs may be tax deductible. Be sure to consult a qualified tax accountant to find out what your tax liabilities or deductions may be when making your former home a rental. Remember too that collected rents count as business income, so be sure to establish proper accounting records for your property.

Advantages for underwater homeowners

The option of turning a home that currently is worth less than then its mortgage into a rental property offers a way to build equity into the home and shift the balance back toward the break-even point, while potentially making a little income in addition. So, rather than chuck more money into the current home, making it into a rental solves the upside-down mortgage issue while freeing up cash for the down-payment and mortgage on a new home.

The emotional costs of being a landlord

Some property owners, especially if they lived in the property, find it difficult to make the shift from homeowner to landlord. They mourn painting over their faux finishes with generic rental neutrals, and seeing a nursery turned into an office. They worry about potential damage to their property, and the associated costly repairs, and they fret about the possibility of months without a renter and having to pay on two mortgages at once.

The best solution toward making this shift is to hire a professional property manager. A professional helps you establish the appropriate rental amounts to cover both the initial mortgage and other costs and repairs that may become necessary.

In addition, they offer a buffer between the owner and the renter that keeps the relationship entirely professional. Having a property management service handle your rental and renters can give you peace of mind while ensuring that your former home is in good hands.

As your real estate professional, we can connect you with a property management professional, so let us know what your plans are so we can help.

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Having a second home in a favorite vacation spot (like Sedona) can be a great investment or an expensive luxury. A beach cottage or mountain retreat is enticing while both interest rates and home prices are low. How do you decide if it’s right for you?

Sedona has a small town atmosphere. In fact, approximately 10,000 “locals” live here.  As you may already know, four to five million visitors enjoy what this town has to offer every year. Many decide to purchase for one of the very reasons below.  My husband and I came to Sedona loved it so much we decided to purchase a second home within a couple of days of our fabulous visit.  See a little snippet of my story below.

Make it your retirement home

If your second home is in the area where you plan to retire, buying it now, before you stop working and your income is higher might be beneficial. Beware, however, of tying up your cash or extending indebtedness beyond your retirement date. Also, avoid using funds from your 401K or other retirement accounts to purchase a second home.

Create a family getaway

If several family members will use the property, consider buying the property together. This concept is not without pitfalls, so make sure all family members understand how and when the property is available for use. Be sure to designate how interest in the property transfers to heirs or create a Cottage Limited Liability Plan (LLC) that governs both the use and transfer of the property. This is similar to a corporation, where members own “interest” in the property rather than the property itself.

Income property

You might be considering buying income property. Remember that the IRS considers income property a business that has tax ramifications. Be sure to check with your financial advisor or retirement planner before investing in property that you plan to lease or rent.

Rental property ownership requires ongoing expenses, including taxes, maintenance, mortgage payments (especially if the property sits empty), repairs between renters, insurance, and other costs. Income property ownership may provide ongoing income and be a great investment, but consider all the expenses before jumping in.

In Sedona, there are city ordinances that address rental property.  Some properties can only rent or lease on a long term basis.  Besides the city ordinances, there may be Home Owner Associations (HOAs) that have certain CC&Rs (Covenants, Conditions & Restrictions) that come into play. Some homes are “grandfathered” and fit into a unique category that allows short term rental.  Do your homework and decide what works best for you.  I can help guide you in this area.

I can help you find properties with positive cash flow, so be sure to let me know that you are looking for investment property. If you need a property management service for your new investment, I can direct you to the resources you need.

Other considerations

Before investing in a second home and especially before financing a second home, review the potential for your situation to change. Is your job secure or could you be moved across the country? Does your family live near you, or near enough to the property for those family gatherings you envision? Do you have extra income to cover those empty months? Is the home in an area prone to natural disasters? Is it an area useful only during certain times of the year? If your second home is a condominium or a part of an association, can you cover the ongoing dues, assessments, or fees? Does the association require owner occupation?

I can help you determine the best investment or retirement/vacation property for your situation, so call me and I will get you started in the right direction.

My Sedona Story – In a Nutshell

As my husband and I got about 10 years away from retirement, we started looking around for that area we would like to spend a lot of time in.  We did not make a determination if we were going to completely start over. We figured that would come with time.  Our base would still be our main home in California.  We were realists and knew that circumstances can change with every passing year.

Many states and areas were on our “list”.  Hawaii, Washington State, Oregon, the California coast or desert, Nevada, Texas, Georgia, Florida and parts of the midwest. Oh, Arizona was high up on the list. Every vacation included a question, could we retire or have a second home here.  Once we visited Enchantment Resort in Sedona, the decision was made to start looking for property.  At that point, we were about 6 years away from retiring. We secured a real estate agent on that same trip.

At first, we were looking at raw land or lots to build our dream home. We visited during  the winter and summer to make sure the climate was not a problem. As our search continued, it also changed.  We started looking for a second home to make sure this was where we wanted to be.  As prices started to rise, we became more focused in our search. We answered all the questions in the article above and after the two year hunt for that perfect place, we bought the current property we live in full time now.

As a team, my husband and I crossed all the same roads and bridges you may have to encounter as we made that same decision you are contemplating.  I know I can help you navigate around the potholes and forks in the road.

Compliments of Virtual Results

When you are cleaning to sell your Sedona home, buyers notice. This can be the easiest way to add value to your home.  A well cared for home goes a long way with a buyer and their perception of the home they are looking to buy.  At Sedona Select Properties, I recommend starting here first.

Investing some elbow grease while cleaning to sell can save you some money and make your home more attractive to buyers. Here are a few of the items to try.

Cleaning Painted Walls

When cleaning painted walls, start with a clean microfiber cloth or sponge and water. Gently wipe or sponge walls. If the grease, grime, and dirt persist, use mild water-based cleaner or dish soap. For difficult stains like soot or tobacco smoke, use a spray kitchen cleaner or all purpose cleaner. Do not use the abrasive side of a sponge, steel wool, or other metal mesh cleaners as these will remove the paint and may mar the drywall.

Caring for Stainless Steel

Ideally, clean stainless steel appliances once or twice a week. Disinfect with a disinfectant spray or bleach and water solution (1 part household bleach to 9 parts water), then use a wax-based aerosol spray. Lightly mist a soft, lint-free cloth and wipe over the surface to remove fingerprints and other marks. Don’t use anything abrasive—not even liquid cleansers or soft scrubbing pads as they can scratch or ruin the surface. If you have hardened, burned-on foods on your stove burners, remove them, and soak them in warm water and dish soap until it is soft enough to remove.

Caring for Your Tiles

Clean your bathroom and kitchen tiles using a neutral pH cleaner or make your own with a gallon of water and to 1/4 cup baking soda. Apply the mixture to floors with a soft mop or sponge. To clean your grout, use the same baking soda and water mixture, or use a toothbrush to apply a paste of an oxygen-based bleach and water. Allow the mixture to sit for 10-15 minutes, the wipe with a soft cloth or sponge and water. Once grout is clean, use a grout sealer to protect it. Apply the sealer with a small, slanted foam brush.

Countertop Stains

Various types of countertop material requires different approaches:

• Granite: wipe up stains immediately and have your granite sealed yearly. For rust stains, use a poultice of a half-gallon of water to 1/4 cup household ammonia. Use hydrogen peroxide in water for juice or coffee stains. Add a couple drops of ammonia for harder stains. Everyday scratches and wear respond to superfine, grade 0000 dry steel wool.
• Butcher block: To remove stains and scratches from solid butcher block, sand lightly with a fine wood sand paper. Oil the surface with food-safe wood oil.
• Solid Surface: Composite, solid-surface materials respond well to gently sanding with a fine dry steel wool or mildly abrasive cleanser. Remove stains with the oxygen-based bleach and water paste described above.
• Laminate countertops: Stains on a laminate countertop respond will to the bleach and water mixture or kitchen cleaners, but scratches are more difficult to disguise. Try a wax-based polish to fill in small lines and scratches or try this recipe. If your countertop is very marred, consider replacing it or using one of the DIY countertop faux finishes to give it an updated look.

Wood Floors

Clean wood floors with a water-based household cleaner or wood soap, or follow the instructions here. If your floor has scratches, use an oil-based polish in a color similar to your wood to fill in the scratches. If you have many scratches, consider lightly sanding the area and applying a stain-finish combination available at most hardware or paint stores.

Carpet

For synthetic carpets, you might rent a carpet-cleaning machine. Be sure to use only the soap or cleaning solution suggested, and avoid applying too much soap as the residue may attract more dirt.

If you are unsure of any of these projects, call in the professionals at Sedona Select Properties. We can offer suggestions for you, so give us a call.

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Whether you’re preparing your home to move in, or preparing it to sell, choosing the right paint from the myriad choices available to day can be daunting. Paints come in up to six different finishes, so even if you’ve chosen the colors, you still have to decide on the finish for your application.

On a gradient from matte or flat to high gloss, there are both textural and visual differences in paint finishes. In texture, the gradient moves from a “dryer” feel to a “slicker” feel, but visually, it moves from less light reflective to more light reflective.

• Matte Finish: Called either Flat Finish or Wall Paint, this basic paint type has a chalkier feel and is not light reflective. It also hides imperfections, cracks and bumps because light does not bounce off them. This finish works well on interior walls such as living rooms and bedrooms, but can be more difficult to clean and may mark easily. Because it absorbs rather than reflects light, a darker matte-finish paint color is perfect for a media room.
• Flat Enamel Finish: The addition of the enameling elements combines some of the advantages of flat paint with a more durable finish that holds up to periodic cleaning. This is a good choice for interior walls in homes with children. Sometimes this is called “Kids Room Paint.”
• Eggshell Finish: Slightly more durable and light reflective than matte or flat, eggshell has just a minimal amount of gloss added to it, and a deeper color saturation. It holds up to cleaning better and often works well for living rooms and dining rooms where more light-reflection is desirable but a glossier finish is not necessary.
• Satin Finish: Often used for window and door trim, or ceilings needing a more reflective finish such as a the bath area or a workroom, satin finish holds up to cleaning and resists stains, marks and smudges better than matte, flat enamel or eggshell.
• Semi-gloss Finish: Used for trim, doors, cabinets and railings, semi-gloss resists most stains and marks while cleaning more easily. It reflects and refracts light, so it magnifies imperfections or textures in the surface. When using semi-gloss, care with surface preparation is vital to the finished product. Semi-gloss can work well in bath areas too, where a more reflective surface is helpful to make the room lighter and brighter.
• Glossy Finish: When applied properly, glossy or high gloss paints have a reflective surface similar to enamel, and creates a smooth finish for furniture and cabinetry. Because of its light-reflective quality, a glossy finish reveals and amplifies imperfections, but is the easiest surface to clean. When using high-gloss paints, carefully follow preparation instructions to get the best results.

In Sedona homes for sale, I have found that choosing the right paint can help sell your home faster and for a higher price.  Staying with neutral colors will be most appealing to a variety of potential customers.  Buyers on the other hand, are hoping to add that little something extra to make the home theirs.  Paint is the easiest way to accomplish this feat.

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Lush greens and rolling verdant fairways stoke homeowner dreams of the perfect lawn. This holds true in Sedona as in most areas. Though, many homes have desert landscaping in the front and backyard, so a green lawn can be very novel in Sedona and other desert areas such as Phoenix and Tucson. For most areas, July starts the season with the highest demand on the water supply. So maintaining those lavish landscapes takes knowledge and a plan. In Sedona,  our two driest months are May and June. Monsoon helps to eleviate the burden of water consumption in our desert areas.

Planting

Not all grasses are equal. When designing your lawn, be sure to use a grass that tolerates your climate. If you spent your childhood in one part of the country and have visions of a deep dark thick-bladed St. Augustine as your ideal lawn, but now live in a more drought prone area, where a Bermuda may be the optimal choice. The wrong grass species can increase watering and feeding requirements and reduce your enjoyment of your lawn.

Consult a local turf expert before you order seed or sod and end up with a lawn-care nightmare.

Watering

Drought or wet conditions in your location determine how often your lawn needs watering. With drought conditions being widespread, however, you may only have one or two days per week that you’re allowed to water, so it is important to maximize your results.

• When to water: If walking across your lawn leaves visible depressions in the grass and blades don’t pop back up immediately, your grass needs water.
• Water summer grasses once every three days (or as allowed by your city’s watering plan).
• Use sprinklers designed to deliver larger droplets nearer to ground. Mist and small drops evaporate more quickly than large drops. For more information on sprinkler systems, read the section below.

Irrigation Tips

Install sprinklers based on your property’s topographic needs. Consult and expert for your area even if you plan to install the system yourself. Most manufacturers can help you develop a plan and offer custom-designed systems for you.

Once installed, check your sprinkler heads often. Adjust sprinklers to water only your lawn sidewalks or the side of the house. If water runs down the street, both your frequency and spray may need adjusting.

• Only apply water as fast as the soil absorbs it.
• If you have water runoff, divide watering times into shorter periods.
• Adjust your watering schedule each month to match seasonal conditions and landscape requirements.
• Have your system checked yearly for leaks and broken parts.

Water Saving Tips

Periodically aerating your lawn allows water to seep to the roots rather than run off the surface. A pattern of holes every six inches provides excellent root access for most lawns.

Avoid cutting lawn too low. When you cut to a height lower than 1.5 to 2 inches, grass blades can no longer shade the soil, allowing water to evaporate more quickly. When you mow, leave the clippings on the lawn to further protect the soil and hold in moisture.

We can help you find a property with the lawn of your dreams, so give us a call today.

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Okay, so it’s not the Titanic. It’s your new house and you can’t seem to make your older furniture fit. Buying new furniture is out of the question, so how do you make your round pegs fit into those square holes?

Make a plan

Literally … make a floor plan. This can be a rough sketch, or a sophisticated layout, but having a floor plan helps you visualize your options. You can find some useful tools on the Internet to create a basic layout and add virtual furniture. Here is a list of programs to choose from with different options.

Create a couple of options. Since a floor plan doesn’t give you a sense of height, you may need to try taller or shorter pieces in various locations to see what works for you.

Have an open mind

When your new space is a different shape from your old space, you need to change how you think about space. Often, we place our seating furniture against one wall and our entertainment center opposite and fit everything else in-between. Consider different groupings for different purposes. Do you watch TV with a large group of friends, or just the two of you at the end of the day? If it’s just the two of you, group your favorite seating with your entertainment area and move other seating to the opposite end of the room as a conversation area.

Empty the room

When the movers place everything in the room, the extra boxes, bunched up furniture and general clutter hampers your ability to visualize arrangement options. Move as many boxes and furniture out of the room as possible and bring them in one at a time as you form your arrangement.

Place large pieces first

Set your sofas, cabinets, large storage pieces and tables first. Try the different options from your plans to see which one feels right. Don’t be afraid to use a large shelf as a room divider. If your new living room is much longer than your old one, you may find it cozier to split it up. Group a couple of chairs near a window for reading or set two sofas back to back … one for watching television and one for conversation.

On a side note: wait to hang pictures and wall ornaments until you’re satisfied with the basic furniture arrangement—it saves repairing holes in the walls.

Don’t hug the walls

Free up your options by moving furniture away from the walls. There is no rule stating that the sofa must be against a wall. Bring your seating toward the center of the room anchored by a rug, coffee table or trunk. Check out these images for ideas.

Try again…

Once you’ve set up an arrangement, try it for a week or so. Adjust your smaller pieces—lamps, side tables, smaller bookshelves and artwork—to compliment the larger pieces. If it feels crowded after a week, consider removing a piece. If it seems off-balanced, try placing larger pieces opposite of each other. If it feels empty, consider a piece of furniture or décor to fill the void … then start shopping. But don’t buy until you’re sure it’s what you want. After a few months, you may change your mind or feelings about the arrangement.

Therapy

For those of you that love to rearrange furniture—you know who you are—your spouse or significant other (or friend you always call to help you move things) will thank you for using the planning tools and ideas ahead of time.

Let’s not forget that many homes in Sedona Arizona are considered second homes.  Someday, those same homes may be your retirement home.  Be careful to not over do the amount of furniture you place in your Sedona home.  At some point you may find yourself downsizing.

Compliments of Virtual Results