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Your Guide to Home Appraisals

Well, you did it, you found your dream house! Now that that part is done with, it’s time to cross all your T’s and dot all your I’s before you can call it home. One of the things to be done before you can close on your potential new home is the home appraisal. But, some might be wondering, what exactly is that?

The home appraisal is essentially a value assessment of the home and property. It is conducted by a certified third party and is used to determine whether the home is priced appropriately. What this does is protect you from over-paying for a home, but also it protects the company who is lending to you, which we’ll talk about in more detail below.

During a home appraisal, the appraiser conducts a complete visual inspection of the interior and exterior of the home. He or she factors in a variety of things, including the home’s floor plan, functionality, condition, location, school district, fixtures, lot size, and more. Upward adjustments can be made for things such as a home having  a deck, a view, or a large yard. The appraiser will also compare the home to several similar homes that were sold within the last six months in the area. By doing this, they make sure that the home you are buying is selling for what similar homes like it have sold for, thus validating its listed price.

The final report must include a street map showing the property and the ones’ compared, photographs of the interior and exterior, an explanation on how the square footage was calculated, market sales data, public land records, and more. All of these things, in the end, help show how the appraiser came to the conclusion they did when they say whether or not the home appraised.

After the appraisal is complete, the lender uses the information found to ensure that the property is worth the amount they are investing. This is a safe-guard for the lender as the home acts as collateral for the mortgage. If the buyer defaults on the mortgage and goes into foreclosure, the lender generally sells the home to recover the money borrowed.

If a home does not appraise for the price it is being purchased for, a lender will not lend that money in order for the buyer to get the home because it puts their investment at risk. When this happens, the sellers and buyers have a few options. The sellers can come down to the appraised price, or they can try to contest the appraisal and show that the home is worth what it is being sold for. The buyers can try to come up with more cash down to the cover the difference in sales price and appraisal price (generally not recommended because then you are buying a home for more than it is worth), or if the seller will not come down on price, the buyer can walk away.

This is just a very short description of home appraisals and how they generally work. If you still have questions, we’d love to talk to you more about them and you can always call our office at 928-771-1111.

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Tomorrow is Thanksgiving!

A holiday full of good food, good people, and good laughs, we are excited to get into full swing of this holiday about giving thanks.

Perhaps you spend the holiday with friends, family, watching football, or on vacation, but no matter how you celebrate the holiday, let’s remember to give thanks for all we’ve been blessed with. Food on our plates, a roof over our heads, and all those we love around us – these are just a few of the things we here at the Kathleen Yamauchi Group are thankful for.

Whether your life is going great, or you’re having some struggles right now, we pray you still have many things to be thankful for as well.

From all of us at the Kathleen Yamauchi Group Real Estate, we want to say HAPPY THANKSGIVING! We pray you have an amazing and blessed time with your loved ones, eat all the good food, and have the best Thanksgiving Holiday yet.

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Ready or not, Thanksgiving is on Thursday and we’re here to help!

Below is a list of all the things you may need to purchase at the grocery store so you don’t forget anything! Cooked and basted turkey, stuffing, cranberries, green beans, honeyed ham, mashed potatoes and gravy, sweet potatoes, dinner rolls, pumpkin pie, pecan pie, and the list could literally go on and on! Is anyone else’s mouth watering? Courtesy of our friends at Lawyer’s Title, they have thought of everything you could ever possibly need to buy at the store so you won’t have one single staple Thanksgiving dish or food missing from your feast.

So, print off this list, do your grocery shopping, and get ready for Thanksgiving because it’s only three days away! Happy Thanksgiving to everyone, we are thankful for you!

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Organic Food on a Budget

Maybe it’s because Thanksgiving is just around the corner, but for whatever reason, we’ve got food on the brain!

In today’s food industry, with a lot of what we consume being highly processed and pumped full of chemicals and preservatives, many have been turning to the “safer” option of buying their food Organic.

Organic food is that which is produced without the use of chemical fertilizers, pesticides, or any other artificial agents used to make or grow normal food today.

While organic food usually tastes better and is better for you, it can also be very expensive compared to its non-organic counter parts! When we say, “more expensive,” we mean that organic food can cost nearly 50 percent more than non-organic food! Yikes! That’s a huge difference! Especially if you are a family on a budget. This price increase is due to the extra time and labor that is required to produce organic food. It is also due to the growing popularity of buying organic, which means that consumers’ demands on supply are continually rising.

So, what do you do then if you want to be healthier by going organic? How do you get that tasty organic food without spending a ton of extra money? Well, follow these tips and tricks to get more bang for your buck, and perhaps buying organic won’t seem so expensive after all!

Shop at farmers’ markets: You can get fresh organic produce for far less at a farmers’ market than you’d pay at the grocery store. It’ll taste just as good, and you’re getting your food straight from the source. Prescott, Arizona has its very own farmers market featuring locally grown produce, meats, and more. You can check their website at prescottfarmersmarket.org for locations, times, and updates!

Choose seasonal produce: Out-of-season produce usually has to be imported, and that can really drive up the price. Focus your meals on in-season fruits and vegetables so that you don’t end up paying $6.00 for a pound of organic asparagus.

Shop more frequently and plan your meals around bulk sales: The trick here is to only buy what’s needed for your meals and to only plan for a week of meals at most. That way you’re less likely to throw food away because you can use leftover produce for more meals before it goes bad.

Grow your own: A home vegetable garden will provide some extremely cheap organic produce, and gardening can also be a fun and rewarding hobby. Don’t have a green thumb? Check out Watters Garden Center, located off Iron Springs Road in Prescott. They have plenty of staff to help you and give advice, and they even offer gardening classes to help you get started!

 

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Black Friday and Cyber Monday

Last week we talked all about how to build good credit from having both no credit and bad credit.

SO, naturally, now we are going to talk about how Black Friday and Cyber Monday are just around the corner! This is a day where people both spend and save a ton of money on their holiday shopping.

Black Friday used to just be on one day… Friday – the Friday after Thanksgiving to be specific. However, that soon became not soon enough for many stores and consumers, and now Black “Friday” often begins in stores on Thursday night, the night of Thanksgiving!

Black Friday signifies the first day of the traditional Christmas shopping season in the United States and is a day that stores offer up special discounted deals in order to sell more merchandise. This day has caused much pandemonium in the past with deals too good to be true. People go as far as to camp outside of stores and wait in massive lines that extend around store corners just so they can get into the store first and grab all the Black Friday gifts they’ve eyed in the sales catalog.

The event has caused chaos to the point where there are mobs of people all pushing to get into the store first causing shoving and injuries that land people in the ER! When it comes to sales, people do not mess around! Once that half-priced 60” TV is gone, it’s gone, so one can understand the urgency to grab yours before they’ve all been taken.

This Holiday shopping extravaganza has now been extended past Black Friday too! Perhaps becoming just as big as Black Friday, if not bigger, is Cyber Monday. Cyber Monday is the Monday after Thanksgiving promoted by online retailers who sell their merchandise at exceptional discounts comparable to Black Friday deals. The best part about Cyber Monday is all your shopping is done online, so you don’t even need to leave your home!

When researching what some of the best Black Friday and Cyber Monday deals were going to be this year, it seemed as though the best deals will be taking place at affordable retail stores like Walmart and Target. Big screen TVs, tablets, phones, smart watches, video game consoles, Bluetooth speakers and headphones, laptops, smart watches, and more. Nearly anything technological you could name seems to be being sold at an incredible discount this Black Friday and Cyber Monday. So, whether you normally partake in these days as part of your holiday season or not, it might be worth taking a look at the sales ads.

All that being said, it is good to remember, and remind ourselves, that this holiday season isn’t about buying new toys and receiving all the things on our Christmas lists. The true meaning of the holidays is to give and give thanks. To be with loved ones and friends, and tell them how much we care for them. To be thankful for all that we have and are blessed with, not focus on what more we can attain. We pray your holiday season is filled with good food, good conversation filled with laughter and joy, and good time spent with those you cherish most.

Happy Thanksgiving, and Happy Black Friday and Cyber Monday hunting!

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The History of Veteran’s Day

In case you didn’t know Veteran’s Day occurs every year on November 11th. It originated as “Armistice Day” in 1919 on the first anniversary of the end of World War 1. In 1926, congress passed a resolution for the remembrance to be an annual observance on November 11th and in 1938 it became a national holiday. It was officially renamed Veteran’s Day by president Dwight D Eisenhower in 1954.

According to history.com, “In 1968, the Uniform Holidays Bill was passed by Congress, which moved the celebration of Veterans Day to the fourth Monday in October. The law went into effect in 1971, but in 1975 President Gerald Ford returned Veterans Day to November 11, due to the important historical significance of the date.”

Veteran’s Day differs from Memorial Day because it pays homage to all Veterans, whether living or dead. However, it is meant to especially give thanks to living veterans who’ve served their country with honor during war AND during peace.

While it is mainly an American holiday, some other parts of the world observe it was well. Great Britain, France, Australia, and Canada commemorate the veterans of World War I and II on, or near, November 11th. Canada has a holiday called Remembrance Day and Great Britain’s holiday is called Remembrance Sunday, which takes place the second Sunday of November. It is also common in Great Britain and the Commonwealth countries to observe two minutes of silence on November 11th at 11AM.

In the united states today, history.com says there are:

  • 1 million living veterans served during at least one war.
  • 2 million veterans served in peacetime.
  • 2 million veterans are women.
  • 7 million veterans served during the Vietnam War.
  • 5 million veterans served during the Persian Gulf War.
  • Of the 16 million Americans who served during World War II, about 558,000 are still alive.
  • 2 million veterans served during the Korean War.
  • 6 million veterans served in peacetime.
  • As of 2014, 2.9 million veterans received compensation for service-connected disabilities.
  • As of 2014, 3 states have more than 1 million veterans among their population: California (1.8 million), Florida (1.6 million) and Texas (1.7 million).
  • The VA health care system had 54 hospitals in 1930, since then it has expanded to include 171 medical centers; more than 350 outpatient, community, and outreach clinics; 126 nursing home care units; and 35 live-in care facilities for injured or disabled vets.

That is a lot of men and women who put their lives on the line for our own, for our freedoms, and for our country! This coming Veteran’s Day, we would like to encourage you to say “thank you” to the Veterans in your life, or any Veterans you might encounter during your holiday celebration. They are the true heroes and we owe them more than we could possibly understand, or ever pay back.

To all our Prescott, Arizona, and U.S. Veteran’s out there, we say thank you for your service and all you’ve done for us!

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The Fed rate cuts: Good for Mortgages?

If you follow the housing market at all, odds are you have seen that interest rates for buying a home have dropped twice over the last year and are lower than they’ve been in quite some time. So, what does this mean for consumers and therefore, mortgages?

Well, check out the article below from Prescott’s own The Daily Courier to read what they’ve learned from sources such as The Federal Reserve and Freddie Mac:

What Fed’s rate cut means; good for mortgages?

The Federal Reserve has cut its benchmark interest rate again, big news for the U.S. economy but something that will likely have a muted impact on Americans’ personal finances, experts say.

That’s because the reduction doesn’t offset the increases of recent years. And as the key rate creeps closer to zero, financial institutions are less eager to pass borrowing benefits along. Lower rates could also further dampen the perks of savings.

As a reminder, the Fed slashed its benchmark rate — which affects a host of consumer and business loans — to near zero during the recession and kept it there until 2015. Then, as the economy improved, it raised rates several times. Now it has lowered them twice in one year, despite a fairly healthy economy, due to concerns about slowing economic growth and global trade tensions.

The central bank on Sept. 18 reduced its key rate by a quarter-point to a range of 1.75% to 2% and said it’s prepared to do what it deems necessary to sustain the U.S. economic expansion.

Here’s how the latest move may play out for consumers:

MORTGAGES

This is a bright spot for consumers. Mortgage rates remain at near historic lows and, while they do not move in lockstep with the Fed, they are influenced by some of the same factors. As of last week, the average rate on a 30-year fixed-rate mortgage was 3.56%. A year ago, it stood at 4.6%, according to mortgage buyer Freddie Mac.

Greg McBride, chief financial analyst at Bankrate.com, said that this full percentage point difference is “the single biggest impact on consumers” in this low rate environment. Low interest rates on mortgages can open the door for homeowners to refinance and save money or for people shopping for a house to secure an attractive rate. Someone with a $200,000 mortgage could potentially save $125 to $150 a month with a reduction of that size, McBride estimates, which is a meaningful increase in a household budget.

Mortgage rates fell sharply over the summer as broader economic concerns caused interest rates on government bonds to tumble. The yields on government bonds, especially the 10-year Treasury note, influence long-term mortgage rates. And while mortgage rates may move up slightly as they have in recent weeks, they remain historically low and no one expects major hikes soon.

BORROWING

The rate for other forms of borrowing — credit cards, home equity loans or personal loans — won’t see much of a change.

“The Fed raised interest rates nine times between 2015 and 2018,” McBride said. “Unwinding a couple of those puts us back to where we were this time last year, and rates are still notably higher than they had been as recently as a couple years ago.”

Lenders are also less likely to pass along decreases to consumers than increases.

Credit cards, for example, track the bank prime rate, which is 3% above the federal funds target rate. The prime rate will move down immediately after the Fed’s decision but many credit card issuers do not automatically adjust rates downwards because they have leeway in their contracts to do so. Some issuers may elect to keep rates unchanged to account for default risk or increase profits, said Tendayi Kapfidze, chief economist at LendingTree.

The average interest rate on a credit card is 17.61% as of Wednesday, according to Creditcards.com. A year ago it was 16.92%.

Other types of short-term borrowing, such as adjustable rate mortgages and home equity lines of credit, are more directly impacted by changes by the Fed. But Kapfidze said that as rates approach zero, they’ve been less responsive and he expects the latest reduction will see a muted reaction as well.

SAVINGS

Interest rates on savings accounts were already historically quite low and will likely stay that way.

The FDIC reports that the average rate paid on savings accounts in the U.S. is 0.09%. While some lenders have been competing online to offer high yield savings accounts with rates well above 2%, a few banks have already opted to dial back those offers. Marcus, the retail bank arm of Goldman Sachs, and Ally Bank both lowered the rates on their savings accounts this spring, just ahead of the Fed’s prior rate cut in July. There are still some savings accounts well above the national average available but those rates will likely dip after this most recent announcement.

All the same, this shouldn’t discourage people from saving, McBride said.

Consumers who find themselves worried about an economic downturn should still take steps now to shore up their finances, regardless of rates. That includes paying down debt, refinancing at lower rates and boosting emergency savings.

This “will enable households to better weather an economic downturn whenever one should materialize,” he said.

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9/11

September 11th is tomorrow. It’s been eighteen years since one of the most memorable days in the history of the United States when more than 3,000 people were killed in multiple terrorist attacks on the East Coast.

When looking for the right things  to say to convey the gravity and magnitude of this horrid day, there were/are no words to encapsulate it.

Researching 9/11 for content for this blog, we came upon this video from history.com. Striking awe and unspeakable sadness in us with a small glimpse reminding us of how awful this day truly was, this video is better than anything we could say. September 11, 2001. We will never forget.

September 11th Facts from CNN.com:
  • Nineteen men hijacked four fuel-loaded US commercial airplanes bound for west coast destinations. In the attacks, people were killed in New York City, Washington, DC and outside of Shanksville, Pennsylvania. The attack was orchestrated by al Qaeda leader Osama bin Laden.
  • At the World Trade Center (WTC) site in Lower Manhattan, 2,753 people were killed when hijacked American Airlines Flight 11 and United Airlines Flight 175 were intentionally crashed into the north and south towers, or as a result of the crashes.
  • Of those who perished during the initial attacks and the subsequent collapses of the towers, 343 were New York City firefighters, 23 were New York City police officers and 37 were officers at the Port Authority. The victims ranged in age from two to 85 years. Approximately 75-80% of the victims were men.
  • At the Pentagon in Washington, 184 people were killed when hijacked American Airlines Flight 77 crashed into the building.
  • Near Shanksville, Pennsylvania, 40 passengers and crew members aboard United Airlines Flight 93 died when the plane crashed into a field. It is believed that the hijackers crashed the plane in that location, rather than their unknown target, after the passengers and crew attempted to retake control of the flight deck.
  • As of July 2019, 1,644 (60%) of 2,753 WTC victims’ remains have been positively identified, according to the medical examiner’s office.

9/11 Remembrance in Prescott, Arizona:

If you’re looking for a way to further remember this day, don’t forget about Healing Fields going on at the Prescott Valley Civic Center Lawn this week. Stop by to see each life lost on 9/11 represented by an American flag, including a short bio of their life. For more information about this week long event, check out our blog about it here.

 

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The History of Labor Day!

Today is Labor Day and, ironically, we celebrate it by not laboring. That’s right, for the majority of American’s today, we celebrate Labor Day by getting an extended three-day weekend to vacation, relax, or do whatever else our hearts desire.

In case you didn’t know, this year is the 125th anniversary of Labor Day being celebrated as a national holiday and what it is, is the celebration of the American worker. The U.S. Department of Labor defines Labor Day as this: “Labor Day is a creation of the labor movement and is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country.”

The first time the government recognized Labor Day was when municipal ordinances passed in 1885 and 1886. From these ordinances, a movement was developed to secure state legislation. After this, the first state bill was introduced into the New York legislature, but it was actually Oregon who became the first to pass it into law on February 21, 1887. More states followed suite in the years to come, but it wasn’t until June 28, 1894 that Congress passed an act making the first Monday in September of each year a legal holiday in the District of Columbia and the territories.

It wasn’t an easy fight though to get this holiday passed, which came about by those fighting to start getting more fair working conditions and wages in this time. According to history.com, Labor Day “…originated during one of American labor history’s most dismal chapters. In the late 1800s, at the height of the Industrial Revolution in the United States, the average American worked 12-hour days and seven-day weeks in order to eke out a basic living. Despite restrictions in some states, children as young as 5 or 6 toiled in mills, factories and mines across the country, earning a fraction of their adult counterparts’ wages. People of all ages, particularly the very poor and recent immigrants, often faced extremely unsafe working conditions, with insufficient access to fresh air, sanitary facilities and breaks. As manufacturing increasingly supplanted agriculture as the wellspring of American employment, labor unions, which had first appeared in the late 18th century, grew more prominent and vocal. They began organizing strikes and rallies to protest poor conditions and compel employers to renegotiate hours and pay.”

There is far more to this historical time than can fit into one small blog, but read the history channels full article here to get all the details.

This Labor Day, while we’re grilling, relaxing, and spending time with our loved ones, let’s try to remember those who’ve gone before us to fight for many of the freedoms and rights we have today within in the workplace. AND, thanks to them, we get a long holiday weekend!

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Home Chores for the Summer

With the warmer weather comes more opportunities to do the outdoor chores you haven’t been able to do, or haven’t needed to do, because of winter. Whether it be you doing the chores yourself, or maybe taking advantage Summer vacation and assigning your kids more household chores, here are some summer chore ideas to keep your whole family busy and get the house in tip-top shape and ready to be used:

Mow the lawn:  Since you laid down your summer grass seed a few months ago (right?), it’s time to mow it and enjoy the fruits of your labor. Get that grass cut and take a blanket out on the lawn for a picnic with the family, or to lay in the sun and read a book. Don’t forget to make sure it’s getting adequate watering, though hopefully monsoons will hit soon and do that job for you!

Trim the yard plants: This is one chore that – done properly – can really make a difference in the appearance of both your front and back yard. Whether you just want your home to have a clean-cut look, or you’re throwing a backyard BBQ, trimming the bushes and trees in your yards make your house look amazing and show that you take pride in taking care of your home. This is also very beneficial for your plants, as it gets rid of dead or excess branches, and helps them to grow healthier.

Do some landscaping projects: Always wanted to add a gardening bead for flowers or fruits, or vegetables? Why not this summer? Or maybe you’d like to make an easy path to and from somewhere? Some large pavers surrounded by mulch is an easy and cheap way to accomplish this clean look. Another idea would be building your very own firepit to enjoy the summer night skies and family time over s’mores. There are dozens of tutorials online of how to do this well and how to do this on a budget!

Pull some weeds: This one seems like a no-brainer considering the weeds are EVERYWHERE, but it is also a chore that easily gets put off for “next weekend” almost every weekend. If you aren’t careful though, those weeds will seed and spread, making next years weeds even worse! So, put on your gloves and grab your hula hoe, and go get those weeds! This simple chore will make your home look so much better and well cared for!

Wash the car: Now that we’re in that middle season between winter rains and monsoons, it’s a good idea to get your car washed. Get off the dirt and grime from weather and use, and get your car looking shiny and new. There are plenty of car wash business in the Prescott and Prescott Valley area if you just don’t have the time, or you could do this yourself or with the kids as a fun way to cool off while also accomplishing some work.

Clean outdoor items: This could include outdoor furniture like benches, tables, or hammocks, or maybe toys you’ll be using this summer such as boats, ATVs, or campers. Either way, we’re sure they could use a good spruce up after a long winter of not being used. Dusting, getting rid of cobwebs, and just a general overall cleaning are probably in order here. This will make that outdoor furniture ready to use and enjoy in the warm weather and will also make you ready to take those summer vacations or day trips where you’ll be using your recreational toys.

Spraying the house for bugs: This chore is probably best left to the adults rather than the kids, but if you live in Arizona, you know it is a must! Now is the time where all those not so missed creepy crawlies start making their long legged and winged return. Spiders such as wolf, daddy long leg, and even black widows can be common. Aunts, centipedes, and scorpions also make the list of bugs trying to call your home their home. Spray both the inside and outside of your home, getting every edge, door jam, windowsill, and point of access you can think. Of course, the bugs will be inevitable, but this will drastically reduce the amount of them you see in your house.

Mouse traps: Lastly, don’t forget to set up your mouse traps (gasp!). Yes, we have mice here in Prescott, Arizona. Field mice, pack rats, and more… you better get used to it if you plan to stay here. For the occasional mouse, setting up a few traps should do the trick, however, if you are having a real problem with them, it might be a good idea to call the exterminator. Make sure to be checking those traps and replacing them as needed.