In real estate, Covenants, Conditions and Restrictions pertain to communities which are governed by a homeowner’s association. CC&R’s are the rules and guidelines set forth by the homeowner’s association to help preserve and maintain the property values in the community.
Examples of CC&R’s
Homeowner’s associations set up rules and guidelines for the residents to help maintain and preserve the neighborhood. For example, you may be required to keep the front yard maintained (keeping the grass mowed, trees & bushes trimmed & weeds under control). Other examples may include the number of trees & bushes required in the front yard as well as a list of accepted trees. CC&R’s can even determine the color of your house! Often times you will be provided a list of acceptable colors determined by the HOA to choose from. It’s easy to see why some residents have disagreements with HOA’s, but it’s important to remember the purpose behind guidelines. Preserve, protect & maintain the property values.
Prospective buyers should be aware of the CC&R’s in neighborhoods they are considering. Some associations may have dog breed and parking restrictions, that could be valuable information prior to purchasing.
Prior to purchasing a home in a covenanted neighborhood, homeowners will sign documents stating that they have read and agree to the terms set forth in the CC&R’s. Violating the terms enforced by the HOA could possibly result in fines, forced compliance or even lawsuits. For example if you decide to paint your house a color not on the approved HOA list, they could enforce a fine as well as force you to repaint the house.
HOA dues and assessments can be billed monthly, quarterly or even annually. Often times these dues can also cover services like trash, water and sewer. These dues as well as non-payment penalties can be found in the CC&R’s. If a homeowner falls behind on their dues, the HOA can go as far as to getting a lien on the home.
In summary, CC&R’s can help homeowners maintain and preserve home values, whether the market is in correction mode or thriving. The rules set forth by HOA’s may seem a little heavy at times, but in many situations communities rely on the structure provided by the CC&R’s.
To learn more about CC&R's and other real estate topics, visit our real estate knowledge base or contact the Arizona Key Team.
In the world of real estate, we refer to this document as the “SPDS” (spuds). The Seller’s Property Disclosure Statement is often provided by the sellers in a real estate transaction. This document asks the seller to provide information about the property and its known condition. The SPDS is a seven page document that emphasizes the Arizona law, that requires the seller to disclose material (important) facts pertaining to the property, regardless of whether they were asked by the buyer or their agent. This obligation stands even if both parties agree to waive the SPDS.
Buyers in a real estate transaction should be aware that there may be facts about the property that are not known by the sellers. Buyers are encouraged to take an active role in obtaining information about the property.
Brokers are not responsible for the verification of the items addressed in the SPDS, so the buyers should review the document with caution and verify any areas of concern.
What Are Sellers Not Obligated To Disclose?
The following are situations where the seller is not obligated to disclose that the property is or has been:
Although the sellers are not obligated to disclose these items, they cannot willfully misrepresent the known facts. Sellers are encouraged to answer truthfully if asked, or respond that they are not legally required to answer the question.
What Types Of Questions Are Asked On The SPDS?
The Seller’s Property Disclosure Statement is a questionnaire provided by the Arizona Association of Realtors and is organized by line numbers much like many other real estate documents. Lines 1 - 279 ask the sellers to provide information like Property and Ownership (legal owners, address, title issues, etc...), Building and Safety (roof, wood infestation, plumbing, pools, electrical), Utilities (electricity, gas, cable, internet, phone, garbage, fire services, water),Environmental Information (soil, noise, drug labs, airports, asbestos, flood, etc…), Sewer/Wastewater Treatment(sewer connection, septic).
Once completed by the sellers and reviewed by the buyers, the SPDS are signed by both parties (lines 280 - 295) and become part of the Residential Resale Real Estate Purchase Contract.
When Are The Sellers Required To Provide The SPDS?
When using the AAR (Arizona Association of Realtors) Purchase Contract, the seller is required to deliver the SPDS to the buyer within five days of contract acceptance. By not doing so, the sellers may be in breach of contract allowing the buyers to cancel and receive the earnest money deposit.
To learn more about the Seller Property Disclosure Statement or any other real estate topics, visit our Real Estate Knowledge Base or contact the Arizona Key Team.
Calliandra Estates - One of Gilbert Arizona’s newest beautiful communities is located in the San Tan Character district and offers top notch Arizona living at it’s finest. America’s Luxury Home Builder; Toll Brothers has developed another charming neighborhood in Arizona, offering four distinctive home floor plans to select from. Be one of the first to check out these gorgeous homes in this primely located community. A multitude of community amenities and home designs are offered in Calliandra Estates. Home design features offered by the Toll Brother’s in Calliandra Estates include basements, casitas, energy efficiency and not to mention personalized home designs to boot!
This prestigious gated community is located in Gilbert on the North side of Riggs Road near Higley Road, within the highly regarded Chandler School District. Aside from being gated, other community features in Calliandra Estates include a spacious park, with a community clubhouse and pavilion, as well as surrounding walking trails. This desirable neighborhood is conveniently located in close proximity to shopping complexes in Gilbert such as Crossroads Towne Center and SanTan Village, as well as Queen Creek, AZ Marketplace. Travel a short distance from Calliandra Estates to neighboring towns and enjoy local favorite restaurants such as Pho Chandler and The Deli in Queen Creek. The San Tan Mountains to the South, near neighboring community Adora Trails, provide a welcoming backdrop of spectacular mountain views as well as excellent hiking and outdoor activities.
Contact the Arizona Key Team, 480.202.6846, to schedule a showing of this exclusive new community and new homes offered for sale.
When deciding whether or not to buy a home for the first time, it is essential to compare the benefits of buying versus renting. Renting provides the liberty to move when the lease expires rather than having to wait until you sell your home. Renting allows you to avoid the cost of maintaining the property and requires less cash up front; however, homeowners have the freedom to remodel as they choose. Also, renting throws away money that could be building equity. When you own your home, your monthly mortgage payment not only pays for you to live in the house but is also an investment.
Although you generally invest 5% - 20% percent of your own money and 80% - 95% of the bank's money, you receive the benefit of 100% of the house appreciating each year.
When you sell your house, you receive money that you would not have received when you are renting. Plus, you can deduct items on your taxes, including interest on your mortgage and property taxes. Provided that you choose a fixed rate mortgage, you lock in a consistent payment, while renters should expect a few rent increases over the years.
Vacation Home: The Investment
Investing in a second home has several benefits. First, you get the same financial rewards that come with home ownership; tax-deductible interest and property taxes are most always deductible. In addition, you may be able to use the home as a source of rental income. If you choose to rent out your vacation home, it can help offset the costs of ownership. Second, you can deduct the mortgage interest you pay on your second home. To the IRS, a second home is one that you personally use at least 14 days per year, or at least one day for every 10 days it’s rented out.
You can use the equity you have built up with your primary residence source to help buy your vacation home. With home values in many markets much higher now than they were a few years ago, many owners have experienced rapid equity growth; leveraging that equity to invest in a second home may be a smart financing strategy.
There are several things to consider when buying a second home. You need to decide what you want to get out of your second home. If you are hoping to help offset the cost of your second home by renting it put a portion of the time, make sure you find out about rental demands in the area you are looking to purchase. Do you want something close by so that you can go regularly, or do you want something a little farther away for longer extended weekends? What do you want to do when you get to your second home? Are you looking to be in the hustle and bustle of the city, or do you want to enjoy the peace and quiet of a secluded spot? The environment, location and proximity you prefer are important factors when looking for your second home.
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There are several ways to determine the market value of your home, including an Automated Valuation Model, Comparable Market Analysis and Appraisal. An Automated Valuation Model is an electronic appraiser that provides a Homes Sales Valuation Report by entering your property address. A Comparable Market Analysis is generated by comparing prices of similar properties in your area that have recently sold, are currently on-the-market or were taken off the market unsold. Unlike a Comparable Market Analysis, which is often obtained at no cost, an Appraisal is completed by a professional appraiser specifically for your home and costs between $300 and $600. After inspection, the appraiser will determine the value of your home based on its condition, location and a Comparable Market Analysis of sold properties in your area.
Abandon your Personal Bias
In order to determine the market value of your home, you must objectively establish what someone else would pay for your house. This means setting aside your emotional attachment to the many wonderful memories you have shared in your home. Some things to consider when determining the price of your home: total square footage, floor plan, construction quality, condition, amenities, lot size, topography, view, landscaping and neighborhood.
Get Comparable Market Analysis from your Real Estate Agent
Visit local open houses and compare the location, condition, size and amenities of these houses to your own as objectively as possible. If your house is located in a neighborhood that is highly in demand, you will be able to get a higher price than you can for the same house in a less desirable area. A house that has been well-maintained will show better and, therefore, is likely to sell more promptly and for a higher price than one that needs work. When a house offers amenities that are currently popular in the marketplace, it will invite a higher price.
As your real estate team, we will give you a full Comparable Market Analysis after examining what comparable homes have sold for in your neighborhood in the recent past. Drawing upon our knowledge of other homes within the area, we will determine what we believe to be an approximate value of your home that we may use together to determine the final listing price.
Calculate the Price per Square Foot
Using homes from the Comparable Market Analysis, divide the list price by the total square footage. This will establish a baseline value per square foot of homes in your area. Multiply this number by the total square footage of your house and adjust based on amenities.
Consider Market Conditions
How is the economy? Interest rates? Local job market? What season is it? Homes tend to sell more quickly in the Spring and Summer months than in the Winter because people prefer to move during the longer warmer days and between school years. Are prices of homes in your neighborhood on the rise? Are they selling quickly? Check your Comparative Market Analysis to determine the days on the market for each comparable house sold. When real estate is booming, houses may sell in a few days. Ask your local real estate agent if it is a buyer’s or seller’s market. The Unsold Inventory Index, which indicates the pace of the market, is calculated by measuring how long it would take for all the homes currently on the market to be sold at the current rate of sales. A smaller index signifies a seller’s market, whereas a higher index suggests a buyer’s market. The Price Discount is the percentage difference between the seller's initial asking price and what the house actually sold for. A small percentage means the market favors sellers, while a large average discount signals a buyer's market.
As you begin searching for the home you've been dreaming of, it is important to think about the loan that will help you make this dream a reality. It is important to get pre-approval from a bank before beginning the hunt for your dream home. This will prevent your dream from turning into a nightmare. No one wants to find the perfect home and then have their loan application denied. Not only do pre-approvals help to determine the price range you can afford so that you are not wasting your time looking for a home that is out of your price range, but they also give you a bargaining tool when making an offer to the seller. When you are pre-approved for a mortgage, a lender has looked closely at your credit report and income in order to determine that you qualify for a loan. The lender will tell you which loans you qualify for, the maximum amount you are eligible for and possible interest rates that are available to you.
Pre-approval letters are formal agreements between the buyer and lending institution that offer a guarantee of loan approval for a specific amount. The financial institution issuing such a letter may or may not charge for this service. Keep in mind that even with a pre-approval letter, your bank may deny the loan on the specific house you wish to purchase. As one example, banks will deny the loan for a specific property if the appraisal is significantly less than the sale price.
Pre-qualification letters are different from pre-approval letters in that they do not include an analysis of your credit report or your true ability to purchase a home. All it means is that someone has taken a general look at your income and expenses in order to determine your debt-to-income ratio. This gives you a general idea of the price range you can afford. There is no charge to obtain pre-qualification letters.
Pre-qualification letters are a good idea to obtain so that you have an idea of the price range to begin looking at. However, as soon as you are seriously looking for a new home, it is important to get pre-approval. This will save you time and give you more buying power.
Contact us to start the process and get out in front of your home search.
Keep it clean. Even though you have thoroughly cleaned and prepped the home to put it on the market, you must still live in it between showings. Be prepared to tidy up and vacate your home at a moment's notice so it can be shown. Make up beds first thing in the morning so that they are not forgotten. Keep disposable floor wipes handy to be able to quickly mop floors as well as freshen up bathrooms and kitchen sinks.
Open all window coverings to let in as much lights as possible. Turn on lights in smaller rooms, such as bathrooms and the laundry room, to help them appear larger. You want to create a lighted environment without overdoing it. If the weather is nice, open a couple of windows to create a breeze and get some fresh air into the house.
If you have ceiling fans, turn them on to help circulate air. In winter, think about turning the heat up slightly to make it cozy feeling to potential buyers who walk in from the nippy outside. You will also want to create a pleasant mood as the house is being shown. One way to create this mood is to is to play soft music while the buyer is there. You may also wish to place fresh flowers around the house to create a cheery atmosphere. You may wish to create visual ambiance by turning on key lights such as chandeliers or scones.
Finally, make sure the home is vacant as it is being shown. You and your family should take a walk or otherwise do something outside of the house. Make sure the pets are gone too; put them in cages or take them to a neighbor.
Your goal is to make home buyers fall in love with the house as soon as they see it from the street. And that comes with a bonus--a great overall impression is often enough to make a buyer more lenient about minor repair issues. Every house is different, and no one expects you to be a professional home stager. But taking the time to prepare the house to the best of your ability can put extra dollars in your pocket, and in less than average time.
For more information on selling your Arizona home, contact the Arizona Key Team.
Moving can be a stressful time, but planning ahead will help you from becoming overwhelmed. Below are some helpful hints to ease you through the process.
First and foremost, it is essential to purchase the proper packing materials, such as bubble wrap, boxes, peanuts, paper and tape – all of which can be bought from moving or truck-rental companies. They often sell kits; for example, a dish cell for protecting china and crystal, or wardrobe boxes that allow you to keep clothes on hangers.
If you are hiring a professional moving company, it is a good idea to inquire for estimates approximately 6-8 weeks prior to moving, if possible. This is especially important if you are moving during the peak summer season between May and September. There are two types of estimates offered; a binding estimate, which guarantees the total cost of the move based on the quantities and services shown on the statement, and a non-binding estimate, which is an approximation of the cost and is subject to change. Once you have decided on a company to use, call to schedule the date of the move. As your moving date approaches, call to confirm the arrangement with the company.
It is important to plan ahead and start packing early. Choose a "packing room" where you can store packed boxes and packing materials. Begin packing items that you won’t need a few weeks before the move and box up a few items each day. Because many things cannot be done until the last minute, it is essential to do as much as possible before that time.
Pack one room at a time and be sure to label each box with its destination as well as a description of its contents. This will make unpacking easier.
When packing a box, pour a layer of packing peanuts on the bottom for cushion. Make sure to place the heaviest items on the bottom. Once the box has been packed, use packing peanuts or crumpled packing paper to fill empty spaces and prevent contents from shifting. Make certain after you pack a box that you can still lift it easily. To reduce the chance of breakage, unpack fragile items over the box that you are taking them out of, so if you accidentally drop it, it will land on some cushion.
Remember that hazardous materials may not be shipped. These items include paint, nail polish and remover as well as cleaning and laundry products. It is best if you personally transport irreplaceable items, such as keepsake photos, financial and legal documents, medical records, jewelry and other valuables. Also, make certain that each family member has a bag packed with essential items for the first few nights. These items should be carried with you rather than packed in the moving truck. It might be a good idea to have some snacks as well as a simple meal that you can just heat and serve for when you arrive in your new home. Don’t forget to have sheets, bath towels and kitchen utensils handy.
Once everything is packed, it is important to have a strategy to load the truck. It is best to first load items that you need the least and make sure to put the heaviest items on the bottom. House plants should be loaded last and unloaded first.
Make arrangements for children and pets to spend moving day with a family member or close friend. If you can, move on a weekday, when banks and utility companies are open. Most moving companies only accept cash, certified check or money order. All charges must be paid before your shipment is unloaded at your new house.
To make the change-of-address process smoother, order preprinted address labels with your new address as soon as you know it. Send out change of address notices to family, friends, employers, schools, banks, credit cards, doctors’ offices, utility companies, etc. Keep a checklist so that you know who you have informed of your address change. Don’t forget to transfer services for your utilities. If possible, make sure that power and water are functioning properly at your new home before you arrive and leave them on at your old address for a few days so you can do any necessary clean-up after the move.
Getting Rid Of Extra Items
The idea of moving can seem daunting, but it is also the perfect opportunity to get rid of the extra items that you have accumulated. Now is the time to go through your house room by room and toss out any possessions that you do not need. This will prevent you from spending time and money packing things you will not want.
Develop criteria that will help you to weed out items that are not worth taking with you to your new home. Here are some questions to consider:
Take inventory of everything you decide to keep and assign replacement values for insurance purposes. Plan to sell or donate anything that does not make the cut. Make sure to properly dispose of any hazardous materials, such as cleaning products and paint.
Pack away stuff that you know you will not use for a while. Since so many things need to be done at the last minute, it is a good idea to pack as much as possible before crunch times comes. Use up items that cannot be moved, such as foods that are stored in your freezer.
Search Arizona homes for sale, contact the Arizona Key Team for real estate information.
Are you excited about moving into your new home? Along with all the expectation, you are most likely feeling some anxiety over preparing to move. However, following the suggestions below can help you anticipate each step of the process and hopefully avoid any last minute hassles.
7 Weeks Before Moving
6 Weeks Before Moving
5 Weeks Before Moving
4 Weeks Before Moving
3 Weeks Before Moving
2 Weeks Before Moving
1 Week Before Moving
After You Move