We have a few ideas we wanted [...]]]> Historic homes offer something special and many home buyers entertain the idea of buying a historic home, fixing it up and enjoying live there. Phoenix, AZ has identified 35 historic districts and there are dozens of other subdivisions with older interesting homes built in the 1950’s and before.

We have a few ideas we wanted to share with those looking at buying a historic home:

Use an agent who has knowledge of historic properties. These homes are generally over 60 years old and can have issues. A good agent can help point out problems that may or may not make the home a good choice. Naturally, you’ll conduct a home inspection on any home you make an offer.

Electrical, plumbing and AC can be a problem in many older homes.

In many of the homes they were wired without dedicated ground wires, commonly referred to as 2 wire homes. Many modern appliances such as TVs, stereos and computers need a ground circuit to be protected from line spikes. If you are looking at a historic home, make sure it has good wiring or budget to bring it up to current standards.

Many older homes were plumbed with galvanized pipe. Galvanized pipe deteriorates over time and can be prone to leaks. You’ll want to check this out and take the advise of a licensed plumber. Re-piping to copper is not cheap and involves tearing into walls that will have to be repaired.

Make sure the AC and heating systems are adequate for the home. Your inspector may advise seeking further inspections by a licensed HVAC professional. Again, HVAC problems and repairs can be expensive.

Grade and foundation issues need to be explored.

Many older neighborhoods in the Phoenix area use or used flood irrigation. Flood irrigation is where small canals literally flood the yards with water. If a prior owner changed the lot grading, there can be foundation and other structural issues. Again, a knowledgeable inspector should identify these problems and offer solutions or suggest further inspections by a specialist.

Remodeling Historic Homes:

Many historic home buyers have plans to remodel their new old home. There are rules and regulations one must observe when changing the exterior of a historic home in Phoenix. You’ll have to get special permits and have them approved by the City of Phoenix before making changes to windows and other exterior features. Cheap windows from Home Depot are probably not going to be approved.

Conclusions:

Historic properties can be great fun and offer a pride of ownership. Do your due diligence upfront before you buy and you will be less likely to buy a money pit. A historic home knowledgeable Realtor and great home inspector will be important to you.

Phoenix is home to about 35 historic districts with a variety of architectural styles including:

Historic homes can qualify for reduced [...]]]>  Many people are unaware of the fine historic homes in the Phoenix area. A variety of homes from the early to mid 1900’s are available and many have already been restored.

Phoenix is home to about 35 historic districts with a variety of architectural styles including:

• Tudor
• Spanish Colonial
• Monterey
• Ranch
• Bungalow
• Craftsman
• Spanish Mission
• Transitional and more.

Historic homes can qualify for reduced property taxes and grant money for updates and remodels. In addition they provide a bit of history that make them a wonderful place to call home. Below we offer search results for historic homes currently on the market in the Phoenix area.

If you would like to visit of these fun, often eclectic homes, toss us an email and we’ll set up an appointment for you.

Happy home searching… Ron and Gene

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Since [...]]]> These days many people thinking about buying a home in greater Phoenix are finding themselves considering a short sale property. The simple truth is that many of the homes on the market are short sales. On this beautiful March day I found 32% of the Phoenix homes for sale on ARMLS were short sales.

Since short sales are a different bread of animal and very different from the normal home buying experience. There is so much confusion and mis-information that we created a web site dedicated to short sales. Oh boy. It is called, www.short-sale-phoenix.com and it is there to provide answers and information to people thinking about selling or buying via the short sale process.

Short-Sale-Phoenix.com has over 100 pages of information and a special section for those thinking about buying a short sale property. It wouldn’t be a bad idea to read a bit about short sales in case you end up falling in love with one and want to buy it. The page dedicated to buying a short sale home can be found at www.short-sale-phoenix.com/joy-of-buying-a-home-info.html.

If you have any questions about buying a short sale property, please contact us and we’ll be glad to provide some answers.

Best to you…

A home warranty is simply an insurance policy [...]]]> Greater Phoenix home buyers often have questions about home warranty policies, especially since the Residential Purchase Contract has a section devoted to home warranties. Let’s talk about what a home warranty is, the pros and cons of home warranty insurance and a few of our personal thoughts.

A home warranty is simply an insurance policy that covers the repair or replacement of various items and appliances in your home. Most policies cover AC & heating systems, plumbing, electrical systems, and appliances such as garbage disposals, ranges, microwaves, dishwashers and more. Many policies offer coverage for refrigerators, washers, dryers or swimming pool/spa for an extra fee. The exact coverage varies from company to company as well as the exact product you purchase. Below are links to a few of the many companies you may explore in the Arizona market:

American Home Shield
Fidelity National
First American Home Buyers Protection
Old Republic

There are pros and cons for  buying a home warranty policy. Below is an overview from our experience.

The Pros:

• For many, a home warranty buys ease and piece of mind. When a problem comes up you have a third party to call for diagnostics and repairs. Costly fixes such as an AC unit may be made for a small out of pocket expense.
• Many repairs are covered that may be beyond your capability.
• You call one number for just about everything. You don’t have to keep a list of service providers.
• Many home sellers, including banks, will provide a policy for the first year of ownership as part of the contract. Don’t be afraid to ask for one when you make your offer.

The Cons:

• The annual premium of a policy is generally in the $500.00 – $600.00 range.
• There is a trip charge for each item you call in for repair. Fees vary but are generally in the $60.00 range.
• Each repair requires a separate service call and fee. If there is a plumbing leak and an electrical problem you are likely to be charged for each item.
• Home warranty companies are insurance companies and may try to reject your claim, especially if they find the problem was due to a lack of general maintenance.
• The home warranty company’s service tech will generally try to repair rather than replace.

Cautions and Advice:

• Many people have trouble getting claims covered… a common issue with insurance providers.
• If you are working with a Realtor, know that he or she may have a fair amount of pull with the warranty company. In our case, we have placed hundreds of policies on homes and the warranty companies want to keep our business. Call your real estate agent if you have a problem and ask for help.
• Make sure and have appliances such as AC systems and water heaters serviced on a regular basis. Keep copies of the service receipts handy so you can provide them if needed. Many claims are denied due to lack of maintenance.
• Read your service contract fully and know what is and isn’t covered. Be tough and don’t give in when your claim is denied. Notice, we said when, not if.
• Look at AC coverage carefully. Some companies do not cover crane fees if your AC unit is roof mounted. Others charge for Freon disposal or if they have to bring the unit up to Federal standards such as the required 13 seer rating. Your real estate agent can help you through this mine field as well.

After reading this you may think a home warranty is too difficult. Personally, we are big fans of these policies, especially for the first year you own the home and if the home has an older AC unit. As always, feel free to drop us an email or call if you have questions. We truly like to be of service.

Ron Urban & Gene Urban
The Urban Team at Realty Executives
602-234-5777

The city of Phoenix Neighborhood Stabilization Program (NSP) offers a home ownership assistance program providing $15,000 for [...]]]> Many home buyers are interested in buying a home in Phoenix, yet they lack the funds necessary for the down payment and closing costs. However, the City of Phoenix may have a solution under the Neighborhood Stabilization Program.

The city of Phoenix Neighborhood Stabilization Program (NSP) offers a home ownership assistance program providing $15,000 for down payment and closing cost assistance.  Eligible buyers must be

• Buyers must be able to qualify for an FHA loan.
• Have completed the NSP-required eight-hour Home Ownership Education Class and Credit/Budget Assessment counseling course.

There are a few other notable requirements as well:

• Buyers must maintain the property as their principal residence.
• The total household income must be below 120% of area median income.
• Program participants must contribute a minimum of $1,000 of personal funds for down payment or closing costs.
• The $15,000 is paid back to the city when the home buyer sells the home or refinances.

The program targets foreclosed single-family homes, town-homes and condominiums (condominium conversions are not eligible) that meet HUD Housing Quality Standards (HQS).  The purchased home must be a foreclosed home anywhere within the city of Phoenix limits and meet other eligibility requirements.

Many mortgage lenders can assist you with this program. We’ve had good results with:

Judy Giel
MetLife Home Loans
602-494-6000 x222
jgiel@metlife.com

Ron Hall
BNC National Bank
623-293-6970
rhall@bncnationalbank.com