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WARNING Inspect Lipstick Flips Before Buying
It is hard to miss all of the Flip/House Makeover shows on television. Some transformations are incredible, but some seem ‘too good to be true.’ Okay, maybe they are ‘true,’ but are the makeovers good enough to last long-term?
When inventory is tight and newly renovated homes are wooing prospective buyers, you must 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 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, others will cut corners to boost their return. Sometimes, an investor will do a “lipstick flip” on a home renovation. This flip type 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 consider foundation issues, leaks, plumbing problems, and work performed without permits.
Foundational and mechanical problems are a significant concern, but I want to caution buyers that cosmetic changes must be inspected for quality. A new DIY floor that is installed quickly may present problems.
Just look at the products’ quality and the renovation details before getting ‘wowed’ by the fresh new paint.
Once buyers close on a home, they’re responsible for the home. This includes issues that may be costly to repair or unsafe for habitation. You must 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”:
- Do not waive the inspection. In addition to the usual areas, inspect 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 arise during the inspection, you may change your mind about the house or 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 beautiful homes to offer. As a trusted real estate advisor, I like to ensure my clients don’t get burned! Let us use our years of experience and help you look for your next home (928) 830-6976.
How Property Taxes Can Impact Your Mortgage Payment
When you become a homeowner, you are also responsible for paying property taxes. These taxes can take a significant chunk out of your finances, and it’s essential to understand their impact on your mortgage payment. Property tax is a recurring expense and can affect the affordability of your home, especially if you’re purchasing in an area where rates are high.
When applying for a mortgage, you’ll see one of two acronyms in your paperwork, P&I or PITI, depending on whether you include your taxes in your mortgage payment.
P&I stands for Principal and Interest, and both are parts of your monthly mortgage payment that go toward paying off the loan you borrow. PITI stands for Principal, Interest, Taxes, and Insurance. Taxes and Insurance can be included in your payment, although, sometimes, you can elect to pay those items directly. Either way, they are all important factors to calculate when you want to determine the cost of your new home.
Understanding Property Taxes
Before diving into how property taxes affect your mortgage payments, it’s vital to understand the basics of property tax. Property taxes are a form of tax paid on real estate by landowners. Local governments use property tax to fund their services and operations, such as schools, hospitals, and services like garbage collection. The amount of property tax you pay can vary depending on your property’s assessed value and your area’s tax rate.
Including Property Taxes in Your Mortgage Payments
When you buy a home, you’ll have a mortgage. In most cases, you are required to make an additional monthly payment toward property taxes. The mortgage company holds the taxes in a separate account called an escrow account. When property taxes are due, your lender will use the money held in escrow to make payments on your behalf.
Tax Hikes and Your Monthly Payments
Property tax rates are not fixed and will change over time. Governments and local councils have the power to increase property tax rates, which can significantly impact your mortgage payment. It’s essential to be aware of any expected property tax increases and consider them when budgeting for your mortgage.
Yavapai County Tax
We are fortunate in Yavapai County to have a user-friendly online system to look up the property taxes for individual properties. If you are considering a house and want to look up the amount of past property tax, enter the property address on the Yavapai County Interactive Map. http://gis.yavapai.us/v4/ Once you have the address displayed, select ‘Taxes’ from the right-hand column and view the taxes for the past five years. The Yavapai GIS System also shows assessed values and the amount of previous sales.
Purchasing a home is a significant investment, and it’s essential to understand all expenses you will incur, including property taxes. Property taxes can significantly impact your mortgage payment, and it’s essential to factor them into your home-buying plans.
Dena and Dave Plane
(928) 830-6976
Prescott is Home to Incredible Bakeries!
Prescott, Arizona, is home to some of the finest bakeries in the country. Whether you live here or are just visiting, it’s worth taking time out of your day to explore what these local spots have to offer. With each bakery boasting something different – from specialty baked goods and cakes for any occasion – there’s something for everyone in Prescott! So, get ready for a sugar-filled visit as we journey through some of the top bakeries around town that will make even the pickiest sweet tooth happy.
Olde World Bakery
220 West Goodwin St. Suite 1, Prescott, AZ
(928) 237-3695
https://www.facebook.com/oldeworldbakery/about
Family-owned bakery that specializes in pastries, sandwiches, soups and salads. Olde World Bakery does not have a fryer. We forego the donut fad to offer delicate, flaky croissants, giant cinnamon rolls, hearty muffins, buttery golden scones, coconut macaroons, and cookies galore. Also in our repertoire: strudels, cupcakes, pies, bars and various other treats, both sweet and savory offered throughout the year. Come have lunch and a treat paired with Prescott-local coffee and enjoy our free wifi in our large, comfortable sitting area or our gorgeous (dog friendly) patio!
Friendly, Fast, Delicious! Wow! First visit and I’m blown away by this wonderfully quaint bakery. I ordered the Tuna Melt, but sans having it melted. The flavors are amazing. My taste buds are so happy. The sandwich is huge, enough for two people. Daniel, owner is super friendly and helpful. Please support this local bakery. Small indoor dining area and nice outside patio with umbrellas. Parking garage right next door. Great location, walking distance to everything in town in Prescott.
The Prescott Breadery
713 West Rosser St, Prescott
(928) 927-6715
https://www.theprescottbreadery.com/
We bake to order just for you! We are your Personal Bakers! You text or call in to let us know what you would like, what time and day you would like to pick up or have your yumminess delivered. We bake 7 day a week. Same day orders are welcome! We bake from our home at 713 West Rosser Street in Prescott and are licensed by the State as a Cottage Industry business through the Home Baked Goods Program and follow all applicable laws and regulations. We bake to order so your goodies are fresh from the oven, Breads, Cinnamon Rolls and Scones are most often hot or at minimum still warm when you pick up! We are not a storefront so please call ahead, text or PM The Prescott Breadery on Facebook. You are welcome to drop by to get a paper menu also. We welcome all orders! Large and small events too! Weddings, Birthdays any occasion or dessert for a dinner party!
“I ordered a custom cake and only showed a photo from one I saw on Pinterest. It was done perfectly. The inside was marble swirl cake with a coffee filling. Moist and beautiful. I also ordered some blueberry and maple scones. Those were DELICIOUS!!! Husband and wife who bake out of there home. This is the only bakery I will use in Prescott. Hands down.” – Norma Harding
Berry’s Pie Pantry
230 N Virginia St Prescott
https://berry-s-pie-pantry.hub.biz/
(928) 778-0511
About Berry’s Pie Pantry
Rustic eatery serving old-school American comfort mains & desserts, including breakfast.
16 Varieties of Home Made Pie, Home Cooked Meals Made From Scratch Daily .
Established in 1986, Berry’s Pie Pantry is located at 230 N Virginia St in Prescott, AZ – Yavapai County and is a business specialized in American, American Food and American Restaurant. Berry’s Pie Pantry is listed in the categories Bakeries, Bakers, Restaurants, Retail Bakeries, Eating Places, Full-Service Restaurants, Limited-Service Restaurants and Restaurants/Food & Dining and offers Luncheon, BREAKFAST & LUNCH, Salads, Sandwiches, Soups, Ensalada, Insalata, Pies, OMELET etc. After you do business with Berry’s Pie Pantry, please leave a review to help other people and improve hubbiz. Also, don’t forget to mention Hubbiz to Berry’s Pie Pantry.
“I didn’t get any pictures before I ate the pie…but dang!!! That pie was awesome!! Was my first time there and got there later in the day so the options were limited. I really wanted to try the rhubarb pie, but it was out. I got Dutch apple pie and regular apple pie and both were AMAZING! Highly recommended if you love pie.” — Vincent
Dave and I love everything Prescott! If you are new to Prescott and need information about our beautiful town – or have been here a while and want to find new things – let us know. We love to talk ‘Prescott’!
Dena & Dave Plane
(928) 308-6976
How to Lower Your Heating Bill
Prescott, Arizona, covered in a blanket of snow, is breathtaking! Match that with Christmas lights, making it the most magical time of year. You may notice an unwelcome increase in your heating bill with the temperature drop. Here are some tips on how to lower your heating bill and still stay cozy this winter:
- Weather Stripping: The most critical and common step in lowering your heating bill is ensuring no gaps around doors or windows. The best way to do this is by weather stripping. Weather stripping creates a barrier between the cold outdoors and will help keep your house warm.
- Cover Your Water Heater: Insulating your water heater can reduce the energy it takes to heat the water and save you money. The water heater blanket is approximately $20 – $40 at most hardware stores and can be installed in an afternoon or less.
- Turn Down Your Water Heater Temperature: Consider dropping your temperature from 140F/60C to a safe but reasonable 120F/49C. The lower temperature will help reduce the energy used to heat the water while providing enough hot water for everyday needs.
- Invest in a Programmable Thermostat: Set your thermostat lower than usual during the day when no one is home, then raise it closer to what you find comfortable when people are present. Regulating the temperature will save money on energy bills without having a noticeable impact on comfort levels.
- Swap Out Your Furnace Filters: Dirty filters block air from freely moving through your system, making it work harder and use more energy. Replacing the filters every 60 days will help promote better airflow throughout your home and save you money in the long run.
- Change Your Curtains: Use thicker curtains to help keep out the cold winter air. This simple addition can make a big difference!
- Service Your Furnace: Annual maintenance on your furnace can help catch any minor problems before they become more prominent, more expensive issues. It will also ensure the unit is running efficiently and not wasting energy.
Following these simple tips, you can stay warm this winter while keeping your heating bill low. With a little effort and just a few dollars, you can quickly reduce your heating costs and enjoy the winter months without worry. Remember, wearing extra layers around the house is essential to staying warm! Have some cozy sweaters, fluffy socks, and warm blankets handy to keep everyone comfortable as temperatures drop. Enjoy Prescott’s beauty while having peace of mind, knowing you’re doing all you can to save money this winter. Happy Holidays!
Call us for your real estate needs!
Dena and Dave Plane
(928) 830-6976
Smartphone Tips To Keep You Safe
4 Mobile Phone Safety Tips
The convenience of mobile devices also comes with risk. As you check in, text, share photos, and increasingly run your life on the go, you may inadvertently expose private information or make yourself more likely to be a victim of a crime. Here are four things you should be aware of as you use new mobile and social technology that might spare you expensive or embarrassing lessons:
1. Beware of how often you “check in” through social media.
Apps like Foursquare and websites like Facebook allow you to “check in” when you’re out and about, effectively broadcasting where you are… and where you’re not. Be especially sensitive to checking in from airports and locations far from home. Enterprising thieves can use this information to target your home or business.
2. Beware of the photos you’re sharing.
If a picture is worth 1,000 words, what are your pictures on Facebook saying to friends, family, and co-workers? Just like checking in when you’re out of town, vacation photos posted in real time can inadvertently let people know you’re not home.
3. Remember to log out of public computers
If you’ve ever checked your email in an internet cafe or hotel computer, did you remember to log out? Closing a browser window isn’t usually enough. People who open the browser can often waltz into your email account because your “session” is still active. Remember to click “log out” or “exit my account” when logging into private accounts through public machines.
4. Protect your devices
Smartphones now carry the sort of data you used to keep under lock and key in your home office or closet safe. If your devices are lost or stolen, how much of your private information could be exposed through your device?
First and foremost, add password protection to your device in case it is lost. Most have a setting you can activate, forcing someone to enter a code before accessing the apps and data on the device.
Second, consider adding an app or service to track your device via GPS if lost or stolen. Depending on your device, many options exist to help locate your smartphone if it disappears. To find an app specific to your device, try Googling (without quotation marks): “app tracks stolen [device name]” where [device name] is replaced with your brand of smartphone (iPhone, Android, Blackberry, etc.).
Now that you have several tips to keep your mobile phone data safe, it is essential to remember that your online security and privacy should always be a top priority. As technology evolves, so do the steps to protect yourself. Remembering these steps while using your mobile phone will help you keep you safe. And if you ever need tips or advice about real estate – don’t hesitate to give me a call – I’m always happy to help! Dena and Dave Plane (928) 830-6976
Non-Profit Spotlight: Agape House of Prescott
Homeless Services in Prescott
Families who find themselves in economic despair, and living in crisis, find hope at The Agape House of Prescott. Agape House is a 501(c)3 nonprofit organization that provides long-term transitional housing for families without a residence. They work to rebuild and transform families’ lives and prepare them for an independent and self-sustained future.
The face of people experiencing homelessness is not who you may think. They are families living on friends’ couches, in the forest, in parking lots, and trying to manage a family while living in a car. They may be students, waiters/waitresses, or workers at Thrift Stores, Grocery Stores, and Construction sites.
As a Christ-based nonprofit, Agape House helps families rebuild and transform their lives through love, support, training, prayer, and the security of having a home. Agape House is not a shelter but a place to call home—an interim place to raise their family, rebuild relationships, and prepare for independence.
About the Agape Program
Agape House journeys with the families every step of the way during the rebuilding and transforming process. The Pathway to Independence gives families a place to call home. The support system is a four-phase stability, personal wellness, life skills training, and sustainability program. Their full-time mentors lead a team of 60+ volunteers that continually support the families by mentoring, coaching, and building relationships so that the families can thrive and succeed.
“Impact on Homeless Families: The partnership between United Way of Yavapai County and Agape House has resulted in life-changing outcomes for numerous homeless families. By providing families with their own apartments, Agape House creates a stable and secure environment, promoting a sense of belonging and ownership. This contributes to a positive shift in their mindset, fostering a greater sense of hope and determination.” – United Way of Yavapai County
Agapeville Apartments
As Prescott’s only family-inclusive interim housing community, Agape House needed a permanent facility where families could find safety, stability, transitional housing, and support as they work to rebuild their lives. Agape House was able to make that need a reality. Recently, the Agape House purchased a nine-unit apartment complex near downtown Prescott. The apartments not only provide a secure place to call home, but they also offer a community of support. Families help families, mentors have a central location to meet with the families, and kids have a place to play and be kids. For many of the children, this is the first home that they have ever had.
Celebrating 10 Years!
Agape House of Prescott is Celebrating ten years of rebuilding the lives of families in Prescott. In the past ten years, Agape House has worked hard to provide more than 40 families (146 individuals) 32,513 nights to call home.
Read more about Agape House Here
Top Home Searching Tips
In today’s housing market, low inventory dominates many conversations in Prescott and many areas of the country. With less inventory available, this increases the need for preparation for homebuyers when a house becomes available. Without preparation, you may miss out on a great opportunity. To help out, we have summarized five tips from Realtor.com’s article, “How to Find Your Dream Home—Without Losing Your Mind.”
1. Get Pre-Approved for a Mortgage Before You Start Your Search
One way to show you’re serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage. Even if you’re in a market that is not as competitive, understanding your budget will give you the confidence to know whether or not your dream home is within your reach. Being pre-approved will help you avoid the disappointment of falling in love with a home well outside your price range.
HOW TO MAKE A DOWN PAYMENT POSSIBLE
2. Know the Difference Between Your ‘Must-Haves’ and ‘Would-Like-To-Haves’
Do you need a large kitchen island to be happy with your home choice? Would a three-car garage be a convenience or a necessity? Before you search, list all the features of a home you would like. Qualify them as ‘must-haves,’ ‘should-haves,’ or ‘absolute-wish list’ items. Taking time to recognize your priorities at this point in the process will help you stay focused on what’s most important.
3. Research and Choose a Neighborhood Where You Want to Live
Every neighborhood has a unique charm. Before you commit to a home based solely on the house itself, take a test drive of the area. Make sure it meets your needs for included amenities, how far is the commute to work or school, look at the school district, check out the neighborhood noise, and survey the traffic.
4. Pick a House Style You Love and Stick to It
Evaluate your family’s needs and settle on a style of home that will best serve those needs. Just because you’ve narrowed your search to a zip code doesn’t mean you must tour every nearby listing. For example, if you need all your bedrooms on the same level, avoid two-story homes that don’t meet those criteria. If you don’t want to spend time working in a yard, avoid touring homes with large yards and high maintenance.
5. Document Your Home Visits
Once you start touring homes, the features of each home will begin to blur together. Having a journal or notebook to organize your thoughts and comments for each house would be helpful. Keep your camera handy and make notes to document what you love and don’t love about each property you visit.
Being prepared is your best advantage. Get your ‘must-haves’ and ‘must-nots’ ironed out, check with the mortgage company, and of course, enlist the help of a realtor (like me) to research homes that meet your criteria.
When you are ready to start searching for a home, call me, and I will put my resources to work.
Dena and Dave Plane
(928) 830-6976
Is a Home Warranty Right for You?
Home Warranty Pros and Cons
A home warranty offers some peace of mind regarding inevitable repairs and maintenance on your property. These contracts can cover various things, from electrical and plumbing work to appliances and HVAC repairs. However, finding the right policy can be overwhelming, particularly if you are a first-time homeowner.
According to the National Association of Realtors, a home warranty is “a service contract, normally for one year, which helps protect homeowners against the cost of unexpected covered repairs or replacement on their major systems and appliances that break down due to normal wear and tear. Coverage is for systems and appliances in good working order at the start of the contract.”
In a nutshell, you insure critical systems in the home, and should something go wrong with those systems, the insurance company covers the cost of repairs. And it’s true, a home warranty can be exceptionally valuable, especially in the first year of homeownership, when you’re still getting a feel for your home’s overall health and maintenance status.
Home Warranty Plans average $350 to $600 annually for basic home warranty coverage. In addition to the annual premium, homeowners pay service charges (also referred to as a deductible) for each claim. This fee ranges from $75 to $100 for each repair or replacement.
Sellers often offer a home warranty to ease buyers’ concerns over their first year in the home. A warranty can be a competitive advantage if a buyer is looking at two comparable homes.
But as with all insurance policies, the fine print matters. When researching home warranties, you must know what the policy covers and how the insurance company honors claims. The home warranty can be a massive cost saving for big-ticket items like heating and cooling systems, often reducing out-of-pocket expenses to less than 10%. However, with smaller appliances and simple repairs, the deductible/service fee can cost as much as the repair would.
You should also be aware that having a home warranty isn’t required on certain home features. For instance, the home warranty coverage may be excessive if you already have a dishwasher or water heater under the manufacturer’s warranty. However, the warranty can be worth the investment if you have major systems with considerable age.
Be aware of the warranty terms when it comes to maintenance and neglect. Home warranty companies occasionally try to get out of paying for repairs or replacements by claiming you haven’t kept up with routine maintenance issues. Understanding how the insurance company justifies these claims ensures you don’t get caught in these technicalities.
Check with the insurance company for a list of providers in your area. Many claims are ’emergencies,’ and you will want to ensure they have service contractors ready to take care of your needs quickly.
Insurance is always complicated, but don’t hesitate to investigate a home warranty if you’d like protection from major, catastrophic repairs. With a bit of diligence, you can get the coverage you need. If you have any questions about where to obtain home warranty quotes, contact me today.
Dena & Dave Plane
928-830-6976
New Luxury Subdivision in Prescott
WELCOME TO SOLSTICE RIDGE II
At Prescott Lakes
Solstice Ridge II at Prescott Lakes is an exclusive gated community that offers a private golf course, a recreation center with pickleball courts, indoor pool, outdoor pool, and a world-class fitness center.
Prescott Lakes is an 1,100+ acre master-planned residential and recreational community centered around the Hale Irwin-designed championship Prescott Lakes Golf Course. Located just minutes from Downtown Prescott and major restaurants and retail, you will enjoy the benefit of resort-style living while still connected to all of the amenities that Prescott has to offer.
If you’re seeking a peaceful lifestyle away from the hustle and bustle of the city so you can enjoy outdoor activities such as hiking, golfing, or simply taking in the scenery, then you’ve come to the right place.
AVAILABLE HOMES IN SOLSTICE RIDGE II
We are excited to be a part of the team for the Solstice Ridge II community! We would love to tell you more about the homes, the community, and Prescott! Give the Plane Team a call at (928) 830-6976.
How to Make a Down Payment Possible
Do you wish the rent you are paying was going into your future? Unfortunately, the down payment required to buy a home prevents people from switching from renter to homeowner. Climbing the “down payment mountain” isn’t impossible. It’s about breaking your essential, challenging, audacious goal into practical steps.
Saving for a down payment on a home can be challenging, especially if you need help figuring out where to start. But saving enough for a down payment on your dream home is possible with some creativity and discipline.
Here are some tips for conquering saving for a down payment:
Find out where your money goes. You can only start saving money if you know where you’re spending the money. Track each expenditure for a month or two, no matter how small. Get an objective picture of where you’re spending the cash.
Get specific about how much you need to save. Even if you’re not 100% sure of your down payment amount, it’s good to start doing a little math to figure out how much you need to save. Pick a dollar amount and a timeline to hit that dollar amount. For example, a $25,000 down payment in two years totals $1,041/month. Sound unrealistic? Either scale down your home desires to something smaller or scale up your timeline. If you can wait three years, that monthly savings goal drops to $694/month.
Determine the big moves you can make. How much would you save in rent if you’re in a three-bedroom apartment and can handle the idea of scaling down to a one-bedroom one? What about going from two cars down to one? If you can make them work, these sacrifices will significantly impact your savings goals.
Establish a separate savings account. Having a separate account with a “hands-off” attitude is essential. Keep your dream home money from mingling with your regular checking or savings account. Establish a high-yield savings account with a credit union or money market account to protect and build your savings. Automating your savings is one of the best ways to save for a down payment. This way, you’ll never have to think about it – the money will be there when you’re ready to buy.
Pretend you already have a house payment. Once you determine the approximate amount of a new house payment, start making that payment now. This trick is two-fold. Instead of paying the bank, pay your savings account. It will help you accumulate a down payment faster and ensure you can afford the new house payment.
Mind the risky investment schemes. Once you have a little momentum, it may be tempting to take some of that cash and invest it to make it grow faster. Be prudent about this, as investing in stocks, startups, or high-yield funds can quickly decimate your savings. Be conservative.
Of course, knowing how much home you want to buy is essential when saving up for your down payment. I’m happy to give you an idea of what homes are selling for in your area. In the meantime, check out the various neighborhoods in the Prescott Quad City area. We have an up-to-date list of homes for sale in the area.
Feel free to get in touch at any time if you have questions (928) 830-6976.
