Arizona Real Estate

Arizona Real Estate

The real estate market has seen changes in the past year with “For-sale” signs staying up longer. Recent industry reports have hinted at a slowdown in real estate market basically because of investors pulling back. But it seems now that the market's again coming back to normal.

Buying A New Home Vs Renting

The trend is slowly moving towards Americans wanting to own homes. Even though there is a distinct advantage of renting since it is free of maintenance and responsibilities. But in renting, one loses the chance of building equity, take advantage of tax benefits, and protect yourself against rent increases. There is also the disadvantage of not having the freedom to decorate without permission and may be at the mercy of the landlord.

Benefits of owning a home

Owning a home has many benefits. While making mortgage payments, equity is built which constitutes an investment. One also becomes entitled for tax breaks, which help in dealing with new monetary transactions such as real estate taxes, insurance, and upkeep. Also there is no doubt that given the freedom, stability, and security of owning your own home, they are worth it.

Finding your home

Before you begin looking at homes, make a list of your priorities such as location, size and your budget. You should take into consideration your standard of living while choosing a house, looking into the special interests, which are unique to the whole family. Should the house be close to the school; Or to your place of work; Or to the market How large should the house be What type of neighborhood do you prefer What kinds of amenities are you looking for Make a “priority list” and a “wish list”. “Priority list” is the must haves while a "wish list" covers things that you wish you had but aren't essential.

Arizona Beneficiary Deeds

It was on 11-04-2001 that the Governor of Arizona signed a law known as Arizona Revised Statutes Section 33-405, which created a new type of arizona real estate property deed known as the Arizona beneficiary deed. This signing of deed will cause the property owner located in Arizona to see to it that the real property is given to persons or entities in the event of the owner's death. The interest accrued in the property given by this deed will not be given until the death of the grantor, and only then the interest will get transferred by law to the beneficiary named in the deed.

Advantages of an Arizona Beneficiary Deed

» There is no pecuniary obligation like a gift tax liability

» This deed is simpler and less expensive than a living trust as the property owner retains overall control of his property.

» After being a signatory to the deed, the property owners can manage their property any way they like without any restrictions or limitations and they can also change the Arizona Beneficiary Deed whenever they like.

» The prohibitive costs and implementation delay of probate is avoided, as the property, which is transferred, is not a part of the probate estate of the deceased grantor.

» The owner holds onto total control over their property during their lifetime and also continues to hold the ability to repeal and reverse the deed whenever they want.

Disadvantages of an Arizona Beneficiary Deed

1. As the property is not transferred till the death of the last owner, the full value of the property remains in the estate of the deceased for estate tax purposes.

2. For a minor child beneficiary, the child's interest will be given totally to the child unless the deed states otherwise.

3. When there are multiple beneficiaries, they will own undivided interests in the property, and so their task of managing and dealing with the property will be difficult and complicated.

4. If the ownership of the property has joint tenants, the last surviving tenant has the authority to repeal or change the deed and nullify the wishes of the prior decedent(s).

As with any type of estate planning, there are different situations unique to each estate. Thus property owners should look into the various aspects of this deed and consult with an Estate planning lawyer to fully get the benefits of this deed.

Areas to be looked into while buying arizona real estate

To make buying of arizona real estate property as smooth as possible, one must look into the following areas:

Documents that should be reviewed by a buyer

MLS Printout; HOA Disclosures; Affidavit of Disclosure; County Assessors Records; The Public Report; Seller's Property Disclosure Statement; Covenants, Conditions & Restrictions; Homeowners Association Governing Documents; Home Warranty Policy; Professional Home Inspection Report.

Physical conditions in the property to be investigated and looked into

The physical characteristics of the property should be properly investigated. Here are some guidelines:

Sometimes repairs may have been or some areas/items added, therefore one must find out whether the work was properly done and try to get copies of any invoices or other documentation regarding the work performed.

They’re maybe some maintenance work, which is to be done, so check to see if anything needs ongoing maintenance.

The roofing should be checked for leakage and such and its better to have it done by a licensed roofer.

If the house maintains a pool or has a spa, there should be a proper evaluation about its maintenance and any problems. A pool or spa company will do the inspection well.

The home’s area and footage should be checked.

A plumber, home inspector or other professional should check the sewerage system and if there is a septic tank or other on-site wastewater treatment facility, it must be inspected by a qualified septic tank company.

One should look for molds. Mold growth is found underneath materials and hence looks for discolorations, leaching from plaster, water damaged surfaces.

Check to see if the property boundaries are clean cut or require surveys done to demarcate boundaries with adjacent properties.

Having a home to call ones own is very important. A place for yourself and your family. It is a financial asset and a plan for the future. It is an investment in your community. So look at any number of houses before choosing the one that suits you and your family, considering all the factors.

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