Real Spaces DC Ranch/Silverleaf & North Scottsdale January/February 2017

REALSPACES 2017 • ISSUE 1

DC RANCH / SILVERLEAF & NORTH SCOTTSDALE

TM

REAL DESIGN • REAL IDEAS • REAL ESTATE

HEART of the HOME

Buy a New Home?

Stay and Remodel Existing Home?

Q&A

Titling Assets and Estate Planning REALSPACESMAG.COM

Advantages of a 1031-Tax Deferred Exchange

What Exactly is a

Home Theater?

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publishers letter

Real Balance...

Just Doing It!

I

t was in 1988 that the athletic shoe company Nike first introduced the highly successful trademark and advertising slogan “JUST DO IT.” The advertising campaign embodied Nike’s sportsmanship image as athletic and innovative and the motivational slogan implied success was attainable to all who would “JUST DO IT!” So onward we go following the slogan to “JUST DO IT!” Regardless of your state in life as young or old, single or married, working or retired, we find ourselves without enough time in a day to do all we want to do as well as all we need to do. We often find that at the end of a day, we may have worked hard but haven’t finished everything we set out to do and have not spent enough time with the people we love, enjoy and that matter to us the most! What we usually discover is that we need better balance in our lives… it usually comes down to time management and priorities.

Ralph Keyes, the author of Timelock says, “We’re time warriors who keep huge appointment calendars on the kitchen wall and message pads by every phone to balance our hectic schedules. We buy gadgets that promise to save us time, give up such activities as reading as luxuries from the past, try to do everything just a bit faster and wonder why none of the above seems to ease time’s crushing pressure.”

We get so busy with all we have to do, we rush through things and seem to run out of time and forget to literally stop and enjoy life. We fail to enjoy where we are, who we’re with , where we’re going and the joy of life by “Just doing it!”

So it’s not a matter of “JUST DO IT.” It’s a matter of balancing time, staying in the moment, slowing down and stopping to enjoy today!

As it’s often said, “Time flies, but never forget, you’re the navigator!”… so slow down, enjoy, bring more balance into your life… “JUST DO IT!” Trif Kupanoff Publisher

2 // REALSPACES

JANUARY/FEBRUARY 2017

Iron & Glass Doors, Windows & Architectural Iron

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table of contents 2017 • ISSUE 1

2 6 8 10 12 14 22 24

REALSPACES REAL DESIGN • REAL IDEAS • REAL ESTATE

Publisher’s Letter Understanding and Responding to Your IRS Notice or Letter Local Real Estate Update Q&A - Titling Assets and Estate Planning The Advantages of a 1031-Tax Deferred Exchange Heart of the Home What Exactly is a Home Theater?

www.realSPACESmag.com PUBLISHER Trifon M. Kupanoff, Jr. tkupanoff@minomedia.net ADMINISTRATIVE Margaret Kupanoff admin@minomedia.net EDITOR Tammy LeRoy editor@minomedia.net CREATIVE DIRECTOR Erin Loukili DESIGNER Jaclyn Threadgill ADVERTISING & SPONSORSHIPS 480.245.5888 moreinfo@minomedia.net CONTRIBUTING WRITERS Michael Barnes Laura Hudson Dale Gardon Mike Kowitz Michael Kupanoff Jon Stuart CONTRIBUTING PHOTOGRAPHERS Alexander Kupanoff Mickey Chapple EDITORIAL/PHOTO SUBMISSIONS editor@minomedia.net ADDRESS/SUBSCRIPTION CHANGES distribution@minomedia.net

Buy a New Home? Stay and Remodel Existing Home?

26

4 Great Ways to Create an Outdoor Living Space

28

5 Kitchen Updates that Stand the Test of Time

DISTRIBUTION JC Distribution distribution@minomedia.net

PO Box 27721, 7339 E. Williams Dr. Scottsdale, AZ 85255-9998 480.245.5888 www.minomedia.net REAL SPACES is published 6x per year by Mino Media LLC. Opinions expressed are those of the authors or persons quoted and not necessarily those of Mino Media LLC. While efforts to ensure accuracy are exercised, Mino Media LLC assumes no liability for the information contained in either editorial or advertising content. Information contained within is subject to change. Mino Media LLC assumes no responsibility or liability for unsolicited manuscripts or artwork. Reproduction in whole or part without the expressed written consent from the Mino Media LLC is strictly prohibited. REAL SPACES is the registered trade name of this publication. Copyright 2017 by Mino Media LLC. All rights reserved.

ON THE FRONT COVER Photo Courtesy of Dale Gardon Design

4 // REALSPACES

JANUARY/FEBRUARY 2017

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real tax

Understanding and Responding to Your IRS Notice or Letter

W

hen you receive an IRS notice or letter in the mail, your first response is fear. Your gut clenches, your hands shake and you have an overwhelming feeling of dread. Every year the IRS sends out millions of notices and letters. This is how they contact taxpayers, not via threatening phone calls or sending emails demanding payment – those are scams! But the letters are very real, and can have serious consequences. So how do you respond? What do you do?

Laura J. Hudson, CPA Epstein Schneider, PLC Certified Public Accountants 480-729-6069 Laura.Hudson@ epsteinschneider.com

6 // REALSPACES

First, open the letter. If you have a Power of Attorney on file with the IRS, then your CPA or attorney has received a copy of this as well. It is not necessarily bad news! The IRS sends notices and letters for the following reasons: • You have a balance due.

• You are due a larger or smaller refund.

• They have a question about your tax return.

• They need to verify your identity.

• They need additional information.

• They changed your return.

• They need to notify you of delays in processing your return.

Next, read the letter. Each notice or letter contains a lot of valuable information, so it’s very important that you read it carefully. If the IRS has changed your tax return, compare the information they provided in the notice or letter with the information in your original return. Remember, you could be the victim of identity fraud and these notices can help notify you if someone has filed a fraudulent return under your social security number.

How to respond? If your notice or letter requires a response by a specific date, there are 2 main reasons you’ll want to comply: • to minimize additional interest and penalty charges.

• to preserve your appeal rights if you don’t agree with the IRS’s position.

If you owe taxes, pay as much as you can, even if you can’t pay the full amount you owe. You can pay online via your bank account or credit card, or apply for an Online Payment Agreement or an Offer in Compromise.

If you need help in resolving an IRS situation, call the number on your letter or notice. See what help the IRS can offer you first. If they can’t resolve your issue, contact your CPA or tax attorney. And hold onto that notice or letter! It’s important to keep a copy of all IRS correspondence with your tax records. You may need those documents at a later date.

JANUARY/FEBRUARY 2017

s me o H le ec ailab p S v A

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Each well-detailed, single-story residence is designed for seamless indoor/outdoor living ranging from 4,115 to 6,189 square feet with professional Gaggenau kitchens, casitas, guest houses and 3 & 4 car garages.

From the low $900s to the mid $1 millions

www.sierrahighlands.com | 8484 East Sand Flower Drive, Scottsdale, Arizona | 480-970-1900 Open Daily 10 AM to 6 PM Except Fridays 12 PM to 6 PM Rosewood Homes is the only 4-time winner of the prestigious Eliant Homebuyers Choice Award voted by homebuyers for providing the “Best Overall Purchase & Ownership Experience” in North America. In the interest of continuous improvement, Rosewood Homes reserves the right to change or modify pricing, plans, designs, materials, features and specifications without prior notice or obligation. Sales by Rosewood Sales Group, LLC. Rosewood Homes Construction, LLC ROC#250901. © Rosewood Homes 2017.

real estate update

Real Estate Market Update 2017 January Market Statistics for Single Family Homes in the 85255 zip code.

Market Snapshot for 85255 The table below provides a statistical summary of today’s residential resale market in ZIP Code 85255.

Detailed Info

Currently

Last Mo 12/1/2016

Last Qtr 10/1/2016

Last Year 1/1/2016

2 Yrs Ago 1/1/2015

Active Listings

591

607

557

539

559

Pending Listings

35

50

50

48

34

Sales Per Month

84

85

70

77

80

Sales Per Year

918

911

896

930

861

Days on Market - Monthly Sales

156

113

108

123

153

Days on Market - Active Listings

195

186

187

184

176

Days Inventory

236

244

228

212

238

Months Supply

7

7.1

8

7

7

Active Listings $/SF

$379

$369

$366

$393

$377

Pending Listings $/SF

$343

$327

$332

$360

$302

Monthly Sales $/SF

$273

$279

$286

$316

$289

Annual Sales $/SF

$282

$286

$282

$269

$273

Appreciation - Monthlyl $/SF

-14.0%

-6.0%

23.0%

9.0%

4.0%

Appreciation - Annual $/SF

-5.0%

7.0%

5.0%

-1.0%

11.0%

Appreciation - Monthly Median $

-13.0%

-13.0%

3.0%

-1.0%

11.0%

Appreciation - Annual Median $

0.0%

0.0%

-1.0%

-1.0%

5.0%

Appreciation - Long Term $/SF

4.0%

4.1%

4.1%

4.0%

4.4%

Avg Sale Price % List

95.8%

97.0%

96.8%

97.1%

94.1%

Annual Growth in Sales per Month

9.0%

49.0%

-23.0%

-4.0%

54.0%

Annual Growth in Pending Listings

-27.0%

-28.0%

-22.0%

41.0%

-33.0%

Dollar Volume - Monthly Sales

72.3

69.6

62.3

86.5

83.6

Dollar Volume - Annual Sales

834

848

823

822

782

Average Price - Monthly Sales

861

819

889

1123

1045

Average Price - Annual Sales

909

931

918

884

908

Median Price - Monthly Sales

637

590

643

730

736

Median Price - Annual Sales

660

665

665

660

668

Average Sq.Ft - Monthly Sales

3158

2939

3111

3555

3611

Average Sq.Ft - Annual Sales

3224

3258

3262

3282

3322

Lender Owned % Active Listings

0

0

0

0

1

Lender Owned % Monthly Sales

0

0

1

0

0

Pre-Foreclosures % Active Listings

3

3

3

2

2

Pre-Foreclosures % Monthly Sales

2

2

0

1

4

Information and data provided by ARMLS, The Cromford Report and Michael Kupanoff/Kupanoff & Company Real Estate. All information is deemed to be reliable but not guaranteed and is subject to change.

8 // REALSPACES

JANUARY/FEBRUARY 2017

Market Summary for the Beginning of 2017 Phoenix Metro Area Let us start with the basic ARMLS numbers for January 1, 2017 and compared with January 1, 2016 for all areas & types: • Active Listings (excluding UCB): 19,397 versus 20,073 last year - down 3.4% - and down 7.3% from 20,928 last month • Active Listings (including UCB): 22,313 versus 22,883 last year - down 2.5% - and down 9.0% compared with 24,514 last month • Pending Listings: 4,885 versus 4,865 last year - up 0.4% but down 15.5% from 5,782 last month • Under Contract Listings (including Pending, CCBS & UCB): 7,801 versus 7,675 last year - up 1.6% - but down 16.7% from 9,368 last month • Monthly Sales: 7,183 versus 6,770 last year - up 6.1% - and up 4.0% from 6,906 last month • Monthly Average Sales Price per Sq. Ft.: $144.77 versus $138.07 last year - up 4.9% - and up 0.2% from $144.55 last month • Monthly Median Sales Price: $225,000 versus $217,000 lastA new home at Casa Montaña has lower upkeep and maintenance year - up 3.7% - but unchanged from $225,000 last month costs than a used home, plus a 10 year warranty. All AV Homes are A new home atatCasa lowerupkeep upkeepand and maintenance A new home CasaMontaña Montaña has has lower maintenance Smart Home Automated and Guaranteed Energy Efficient. costs than a used yearwarranty. warranty.AllAll Homes As we suggested they might last month, sales volumes in Decosts than a usedhome, home,plus plus aa 10 10 year AVAV Homes are are A new home at Casa Montaña has lower upkeep and maintenance cember are back to a normal comparison with a year earlier. In Smart Home GuaranteedEnergy Energy Efficient.

Smart HomeAutomated Automated and and Guaranteed Efficient. costs than a used home, plus a 10 year warranty. All AV Homes are fact 6.1% annual growth is slightly less than we saw for most COMMUNITY FEATURES: of 2016. The increased interest rates may have taken just a little Smart Home Automated and Guaranteed COMMUNITY FEATURES: COMMUNITY FEATURES: Energy Efficient. wind out of the sails. However the large increase in loan approv• Set in•the shadows of Black Mountain • Convenient location shadowsofofBlack Black Mountain Mountain ••Convenient location al rates more than compensates for the reduced affordability.

• SetSet in in thethe shadows Convenient location The 1.6% increase in under contract listings compared with • Low maintenance home sites•• Three Three floor plans from 2,413-2,648 sq. ft.

• Low•maintenance home sites floor plans from 2,413-2,648 COMMUNITY FEATURES: Low maintenance home sites • Three floor plans from 2,413-2,648 sq. ft. sq. ft. $ a year ago suggests that we still have a decent level of demand • Gated • Outdoor living • From the mid $400’s $ $ • Gated • Outdoor From 400’s 400’s • Gated • Outdoorliving living ••From thethe midmid and the active listing counts above mean that those looking for • Set in the shadows of Black Mountain • Convenient location homes have relatively slim pickings to choose from right now. sites • Three floor plans from 2,413-2,648 sq. ft.

FEATURED home HOME No doubt buyers are hoping for a deluge of new listings arriving • Low maintenance FEATURED HOME $ over the next 3 months. We shall have to wait to see if sellers are

Tired of used home repairs?

Tired repairs?

Tiredof ofused used home home repairs?

Tired of used home repairs?

Tired of used home repair

A new home at Casa Montaña has lower upkeep and mai costs than a used home, plus a 10 year warranty. All AV H Smart Home Automated and • Gated • Outdoor living Guaranteed • From the mid 400’sEnergy Effi FEATURED HOME Barcelona willing to oblige.

Barcelona WAS The mid range from $250,000 to $400,000 is where we see the greatest disparity between supply and demand at this Enjoy cozy desert nights at your outdoor fireplace or Barcelona WAS 571,267 entertain guests in your brand new luxury kitchen and point. Supply is not weak in this price range, but demand has FEATURED HOME COMMUNITY FEATURES: Enjoy cozy desert nights 571,267 WAS NOW inviting family room. at your outdoor fireplace or grown a lot since this time last year, roughly 25%, and if it Enjoy Enjoy cozy cozy desert desert nights nights at at your your outdoor outdoor fireplace fireplace or or entertain entertain guests guests in in your your brand brand new new luxury luxury kitchen kitchen and and inviting family room. inviting family room.

• • Homesite Homesite 32 32 • • 2,413 2,413 sq. sq. ft. ft. • •2 2 Beds, Beds, 2.5 2.5 Baths Baths

entertain guests in your brand new luxury kitchen and • Homesite 32 • 2,413 sq. ft. • 2 Beds, 2.5 Baths inviting family room.

$ $

$

* $ * 557,000 NOW 571,267

$ $

$ 557,000* locat • Set Barcelona the shadows Mountain •in Homesite 32 • 2,413of sq.Black ft. • 2 Beds, 2.5 Baths • Convenient NOW

continues there should be no difficulty or delays for sellers who price their homes right. At the higher price ranges the market is somewhat stronger than it was last year in January, but demand varies greatly depending on location and the style of the homes.

Locations within close reach of downtown facilities are in strong demand and modern contemporary styles are very popular at the moment. Distant spots with mountain and golf course views are suffering from reduced enthusiasm. We can probably blame some of this on Canadian buyers, who have been conspicuous by their absence since mid 2015. The stronger dollar has kept most foreign buyers away and made sellers of many foreign residents who already own property here.

In summary, the market is looking very healthy and favoring sellers over buyers in most segments.

Enjoy cozy desert nights at your outdoor fireplace or entertain guests in your brand new luxury kitchen and inviting family room.

WAS

* 557,000 • Low maintenance home sites • Three floor plans from 2,413-2,6 571,267 $ $

$ 400’s • Gated • Outdoor living • From the midNOW

• Homesite 32 • 2,413 sq. ft. • 2 Beds, 2.5 Baths

557,000*

$

AVHomesInc.com/communities/casa-montana AVHomesInc.com/communities/casa-montana • • 480-214-7411 480-214-7411

FEATURED HOME

REALSPACESMAG.COM

* Offer Offer good good for for aa limited limited time time only. only. Developer Developer reserves reserves the the right right to to change change or or withdraw withdraw any any offer offer at at any any time. time. Prices, Prices, * promotions, features features and and availability availability vary vary per per plan plan and and per per AV AV Homes Homes Arizona Arizona community community and and are are subject subject to to change change promotions, withoutAVHomesInc.com/communities/casa-montana notice. Offer Offer is is subject subject to to certain certain terms, terms, conditions conditions and and restrictions, restrictions,•including including the use use of of aa designated designated lender. lender.

480-214-7411 without notice. the See See Sales Sales associate associate for for full full terms terms and and conditions. conditions. This This is is not not an an offer offer in in states states and and jurisdictions jurisdictions where where prior prior registration registration is is required and and void void where where prohibited prohibited by by law. law. No No offer offer for for sale sale or or lease lease can can be be made made and and no no offer offer to to purchase purchase can can be be accepted accepted required prior to the issuance of the final Arizona Public Report.

ROC# 256789 (c) Copyright 2016 AV Homes All Rights * Offer good forissuance a limited time only.

Developer reservesROC# the right to(c)change or withdraw any offer at anyReserved. time. Prices, prior to the of the final Arizona Public Report.

256789 Copyright 2016 AV Homes - All Rights Reserved.

Barcelona

promotions, features and availability vary per plan and per AV Homes Arizona community and are subject to change without notice. Offer is subject to certain terms, conditions and restrictions, including the use of a designated lender.

16-AV-1367 -- City Times Ad 1 3:35 See Sales associate for Sun full terms conditions.

This is not an offer in states and jurisdictions where 7/14/16 prior registration 16-AV-1367 City Sun Times and Ad .indd .indd 1 7/14/16 3:35 PM PM is required and void where prohibited by law. No offer for sale or lease can be made and no offer to purchase can be accepted REALSPACES AVHomesInc.com/communities/casa-montana • 2016 480-214-7411 prior to the issuance of the final Arizona Public Report. ROC# 256789 (c) Copyright AV Homes - All Rights Reserved.

Enjoy cozy desert nights at your outdoor fireplace or

// 9

W

real financial planning

Q&A: Titling Assets and Estate Planning

Michael R. Barnes FineMark National Bank & Trust Vice President & Managing Executive 480.333.3955 mbarnes@finemarkbank.com

10 // REALSPACES

Question: What are some common methods of titling assets and how does it affect ownership of the asset upon death?

Answer: Your best-laid plans for the distribution of your wealth when you die might not go as intended if you do not pay close attention to the titling of your accounts and your designation of beneficiaries. While these are basic items, the way in which an account is titled and beneficiaries are designated have legal significance and can supersede your estate plan.

Typically, personal accounts are owned entirely by you, i.e. titled solely in your name; owned jointly, i.e. as husband and wife; or owned by a trust. An IRA is an example of an account that must be titled solely in your name. Other accounts, however, can be owned entirely by you, jointly with others, or by your trust.

Types of joint ownership in Florida include joint tenants with right of survivorship, tenants in common and tenants by the entireties. The titling of an account impacts your estate plan because an account that is owned jointly with a right of survivorship will pass automatically to the survivor or survivors of the joint owners regardless what your estate planning documents provide.

Beneficiary designations allow you to designate who will own your account after you die. Many different types of accounts allow you to make beneficiary designations. Like account titling, beneficiary designations can impact your estate planning.

To ensure that account titling and beneficiary designations match your estate planning, you should review them on a regular basis or when a life event occurs; i.e. marriage, death or the birth of a child or grandchild. This way, your accounts will not be left to the wrong person.

If you have questions about this article, give Michael Barnes a call at 480-333-3955. We are always happy to answer questions or help you with any of your needs.

Question: How often do I need to review my estate plan?

Answer: Although there are no hard-and-fast rules about when you should review your estate plan, a good rule of thumb is to do a review immediately after any major life event, once a year for a quick review based on the economy or tax code changes, and every five years for a thorough review. You should consider reviewing your estate when other circumstantial events happen in your life, such as: • Your marital status has changed or the marital status of your children or grandchildren has changed • There has been an addition to your family through birth, adoption or marriage • Your spouse or family member has died, become ill, or is incapacitated • There has been a substantial change in the value of your assets or in your plans for their use • Your income level or requirements have changed • You have made a change in your estate plan (e.g., you created a trust or executed a codicil to your will) • The executor, trustee, or guardian changes his or her mind about serving in that capacity Reviewing your estate plan will not only give you peace of mind, but will also alert you to any changes that need to be addressed.

If you have questions about your estate plan, talk with your advisor or give Michael Barnes a call at 480-333-3955. We would be more than happy to help or do a complimentary review of your estate plan.

JANUARY/FEBRUARY 2017

Living JU

R P ED R U IC C E TI O N

ASHTON WOODS CHARMER ~ DC RANCH

EFFICIENCY TOWN HOME ~ DC RANCH COURTYARDS

LONE MOUNTAIN TOWN HOME ~ PRIVATE POOL

9230 E Canyon View Road 4 Bed | 2 Bath | 1,935 sq ft | $595,000

8650 N Thompson Peak Pkwy #1076 2 Bed+Office | 2 Bath | 1,773 sq ft | $545,900

7293 E Eclipse Drive 3 Bed | 2.5 Bath | 2,661 sq ft | $484,000

SO V AR IE IN W G S

M O SE TIV LL AT ER ED

H O R S D EL R O EA V M ER ’S

C

ST

IN G

SO O M

LI ST ED

O N

the North Scottsdale Lifestyle

5 ACRE EQUESTRIAN RETREAT ~ NORTH SCOTTSDALE

PRIVATE ENCLAVE AT QUAIL RIDGE ~ TROON VILLAGE

1.6 ACRE PRIVATE LOT ~ EAGLES GLEN

27333 N 90th Street 6 Bed | 6.5 Bath | 7,276 sq ft | $1,895,000

11147 E Desert Vista Drive 3 Bed | 3 Bath | 3,168 sq ft | $899,000

10051 E Buckskin Trail 3 Bed+Office | 4.5 Bath | 4,200 sq ft | $949,000

Darla McCormick, REALTOR®

Cathy Hotchkiss, REALTOR®

Multi Million Dollar Producer REMAX International 100% Club

ABR, CDPE, E-PRO, GRI, SRS Institute for Luxury Home Marketing®

Darla@RMXPlatinum.com www.Darla.SearchScottsdaleHomesNow.com

CathyHotchkiss@comcast.net www.CathyHotchkiss.com

480.363.7418

480.236.3336

title spaces

The Advantages of a 1031 Tax-Deferred Exchange

H

ave you ever wondered why savvy investors continue to take advantage of the 1031 Tax Deferred Exchange?

It’s a good question, and fortunately, there are many good answers. Aside from giving the investor a tremendous increase in purchasing power, a 1031 exchange provides the benefits of leverage, consolidation/diversification, management relief, and increased cash flow/income.

LEVERAGE Investors can take advantage of the 1031 Tax Deferred Exchange to acquire a more valuable investment property. By utilizing the money they would have paid to the IRS in taxes, they can increase their down payment and acquire a more expensive replacement property. Thus, leveraging their cash and continuing to build wealth through real estate investment.

CONSOLIDATION/DIVERSIFICATION With the flexibility of an exchange, an investor may exchange one property for several others, consolidate multiple properties into one, and acquire property anywhere within the United States. For example, an investor can exchange two duplexes for a retail strip center, or take advantage of a new growth area by exchanging one property in California for three properties in Arizona.

Tom Newell First American Title (480)563-9034 www.ThinkFirstAmerican.com

12 // REALSPACES

MANAGEMENT RELIEF Investors that own several rental properties are often faced with the burdens of intensive management and costly maintenance-which often leads to increased headaches! An investor can increase profits and decrease time and effort by exchanging out of high maintenance rental properties and consolidating into an apartment building or NNN leased investment.

INCREASED CASH FLOW/INCOME Cash flow and overall income can both be increased through a 1031 Tax Deferred Exchange. For example, a vacant parcel of land that generates no cash flow or depreciation benefits can be exchanged for a commercial building that does.

INCREASED PURCHASING POWER The following numbers illustrate the financial power of a 1031 exchange.

Original Cost (Basis) $100,000 Plus Capital Improvements 20,000 Less Depreciation 35,000 Equals Adjusted Basis 85,000 Sales Price $500,000 Less Adjusted Basis 85,000 Less Costs of Sale 40,000 Equals Capital Gain 375,000 Capital gain is taxed at a maximum capital gains tax rate of 15% and depreciation is recaptured at 25%.

In this example, the total taxes due would be: $59,750 (25% of $35,000 and 15% of $340,000) plus $35,812.50 (9.55% of $375,000 in California capital gain tax) equals $95,562.50 deferred through the 1031 tax-deferred exchange for increased purchasing power!

JANUARY/FEBRUARY 2017

SCOTTSDALE AREA RESORT STYLE LIVING FROM LOW $300’S Monterey Ridge is a gated luxury condominium community in walking distance to shopping, dining and movie theaters. Golf courses, miles of hiking trails and bike paths are all near by. Single level living. 2 car garages plus storage. Community pool and BBQ gathering area.

17850 North 68th Street, Phoenix, AZ 85054

480.356.0179 MontereyRidge.com

N EW CAC HE T CU STOM H OME COMMUN I T I ES

Fox Haven is an enclave of seven semi-custom homes located near Hayden Road and Gold Dust in north Scottsdale with floorplans ranging from 4,341 – 4,889 sq, ft.

Located in beautiful north Scottsdale near Pima and Dixileta, Sincuidados is a master plan community with sixteen new semi-custom homes ranging from 3,327 – 3,724 sq. ft.

NOW SELLING! FOR INFORMATION, CALL 480.556.7038

Cachet H O M E S

#1 HOME BUILDER 2002, 2006, 2009, 2013, 2015 & 2016 Sales by Cachet Homes. Susan Goodrich, Designated Broker. All Pricing is subject to change without prior notice. Sales are subject to buyers receipt and review of the Arizona Subdivision Disclosure Report.

architecture & design

ABOVE: The hearth table can be an integral part of the kitchen and be convenient and functional for dining, homework, and casual socialization.

14 // REALSPACES

JANUARY/FEBRUARY 2017

architecture & design

HEART OF THE

HOME

by Dale Gardon, AIA, LEED AP, Principal of Dale Gardon Design Architecture by Dale Gardon Design, Photography courtesy of Dale Gardon Design

I

’m sure it comes as no surprise... the kitchen will always be the heart of the home as the gathering spot for social interaction amongst family and guests. So how can you really plan for all the activity that has to occur there and have all the conveniences required within a convenient few steps from one another? With careful planning all can be accomplished, and the architectural character of the home can carry thru the kitchen millwork and provide the casual or more formal atmosphere desired. Consider how all the materials can contribute to the mood and add up to create the desired effect inclusive of the floors, walls, ceilings, countertops, appliances, lighting, backsplashes, etc. Look for opportunities for special nooks and retreat areas that allow for a more intimate setting within the overall space. Strategic and functional layout as part of the early design planning is paramount to achieve convenience and enjoyment of the space. Think about locating the dishwasher within one or two steps to the storage of dishware to make a daily chore of unloading easier.

Wide drawers are becoming the preferred choice over cabinets with deep shelves that are always hard to access. Consider all options for pantry storage such as full height pullouts, to roll out drawers behind cabinet doors vs. always assuming a walk-in pantry is best as its size may make the location less convenient to the cooking center. Lastly, if you enjoy utilizing outdoor cooking and dining, look for all the opportunities to provide indoor-outdoor connectivity where possible, but be cautious during design and planning where that connectivity doesn’t allow for enough counter or cabinet space.

Dale Gardon, AIA, LEED AP Principal of Dale Gardon Design Architecture by Dale Gardon Design 480-948-9666 dale@dalegardondesign.com www.dalegardondesign.com

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REALSPACES // 15

architecture & design

16 // REALSPACES

JANUARY/FEBRUARY 2017

architecture & design

LEFT: There is plenty of charm and coziness that a kitchen can exude to make you feel like you just found the greatest secret bistro hideaway and you have a full access pass every day. There is no need to just have that feeling when you are travelling.

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REALSPACES // 17

architecture & design

before

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JANUARY/FEBRUARY 2017

architecture & design

after

BEFORE & AFTER: The basic framework of this kitchen and dining space worked well for intimate dinner parties or just the family gathering each night, but a lighter fresher color palette transformed the space to create a new personality for the kitchen and dining area beyond. The use of glass doors helps add depth to the perception of the space.

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REALSPACES // 19

architecture & design

LEFT: Daylight and visual access is critical from the kitchen to the outdoors.. this basic requirement is exemplified in this home, and the lighter cabinets and countertops help contibute to the feeling that the daylight carries all the way into the kitchen.

RIGHT: When more more warmth and charm are desired in the material composition, then sometimes immediate access to daylight on two or more sides of the kitchen along with lighter wall colors can help balance the scene to avoid an overly dark kitchen.

20 // REALSPACES

JANUARY/FEBRUARY 2017

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audio spaces

What exactly is a Home Theater?

T

Michael Kowitz Jerry's Audio Video 602-263-9410 www.jerrysav.com

22 // REALSPACES

he Definition of home theater is an audio or video system in your home that tries to duplicate the movie theater experience. There are many levels of home theaters starting from small 32 to 55 inch flat panel TVs with powered sound bars all the way up to full-blown custom home theaters which include video projectors with wall-mounted screens, built-in speakers, high-end electronics, Blu-ray or media streaming devices, and automated Control systems.

A Practical home theater consists of a large 55 to 90 inch flat panel TV combined with a Bluray or media player, surround sound receiver, 5.1 speaker package and universal remote control. If executed properly with the right combination of

equipment choices installed properly with in your room your home theater can get very close to that Theater experience.

With the continual erosion of flat panel television pricing it is becoming more and more affordable to have a very good home theater system in the 5K to 10K range. The Speaker system is the most important part of the home theater experience.

Combined with good electronics and a modern 4K UHDTV flat panel, there will be many hours of viewing and listening enjoyment.

For The ultimate home theater experience you want to have a dedicated video projector and large screen from 92� to upwards of 200� depending on the size of your room. Custom built in speakers with multi-channel amplifiers and surround processor.

Motorized shades and controlled lighting are all part of the experience as well as fully designed and built theater aesthetics. Custom home theaters range from $30K to $200K. No matter what your budget, consult an expert because there are many options for designing your own home theater, which of executed properly, will give you years of enjoyment.

JANUARY/FEBRUARY 2017

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There is no better way to recommend the correct products or technology before viewing the actual space or environment where they will exist. The type of construction, oor coverings, window locations, and size of room are all critical to the proper recommendation of the correct products needed to optimize the experience created by the system. Our in-home consultation allows us to understand your exact needs, and allows us to explain the many possibilities for the best solution for your technology requirements.

Allow us to do the shopping for you, and receive a personalized experience every time. We offer the nest brands in the industry and are competitive with our pricing. Jerry’s Audio/Video is the trusted expert with 45 years of product knowledge, understanding of technology, and best installation practices.

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remodel spaces

Buy a New Home?

Stay and Remodel Existing Home?

5 considerations to help you decide.

I

and noise. Any construction issues can be minimized by working with a good contractor and watching the work proceed can even be fun but your lifestyle and personality will determine if this is something you and your family want to live through.

s it better to stay and remodel your existing house or move to a new house? Each individual situation will be different and there are many things to consider when deciding so here are five important criteria to help you make the best decision.

1

.

How do you feel about the neighborhood where your current house is located? Does it have the lifestyle you love?

Are you friendly with your neighbors? If you have children do you like the schools? You can remodel your house but you can’t change your neighborhood so if you love it or hate it that will strongly influence your choice about remodeling or moving.

2

4

Are there any zoning or HOA restric-

tions that prevent or impact your remodel? Will the city make you update anything, like adding fire sprinklers, that will increase your cost if you decide to remodel?

Will any property setback or height restrictions impact your plans or will your project only impact the interior of your house?

Determining these issues at the beginning of your project will save much time, effort and possible frustration relating to your project.

Does renovating make financial sense?

3

To help establish this you will need to determine what your current house is worth and approximnently what your renovations will cost. A realtor and contractor can help you obtain this information. Another consideration is to determine the cost of buying a different house, either with the features you want or in a different area, as you will need that information to make an informed decision.

Are you willing to live through a re-

Jonathan Stuart Stuart Luxury Homes 480-797-1300 Jon@StuartLuxuryHomes.com

24 // REALSPACES

model? Depending on the size of the project you will either need to temporarily move out of your house or have a disruption to your daily routine. If you decide to stay in your home this may result in times when the water and/or power need to be turned off. In addition, there will be workers in your home and no matter how careful your contractor is dust

5

Can you enjoy the process if remodel-

ing or does moving into a new home, where everything is already done, provide a better fit for your lifestyle and personality? Are you able to spend the time to make the many choices that will be needed for your project? Remodeling can be frustrating, especially when things aren’t completed on time or cost more than expected but it can also be extremely rewarding to see your dream become reality.

Good luck with your project or new home search and if you want a free report showing your home value or the cost of common remodeling projects please email me at Jon@StuartLuxury.com with what project pricing you are interested in or your home address and I will email you a report.

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REALSPACES // 25

financial spaces

What you should know about rising interest rates

H

omeowners planning to refinance and buyers searching for a home may have an idea of what’s in store for them with regards to interest rates, but they never really know until they lock in a rate. This is in part because rates can change direction fast, and when they rise-as they have been recently-it can cost borrowers a great deal of money and time.

The effect of rising interest rates on your home purchase

Today, the median existing home price in the United States is around $235,000, and the average mortgage interest rate is near 4 percent. If you were to buy a home at that price, an interest rate increase of half a percent would cost you an additional $70 per month on your loan payment. And that assumes you’ll put the standard 20 percent down in advance. A more dramatic rate increase-say from 4 percent to 6 percent, even over time, would increase your monthly payment by almost $300.

Home price gains

For homebuyers, it’s not just rising interest rates that can increase your payment, but so can home price appreciation. In fact, in most markets, housing prices

26 // REALSPACES

have increased past highs previously set before the financial crisis in 2007/2008. For example, in citing this recovery, the Federal Housing Finance Agency recently increased the maximum loan amount for mortgages that meet Fannie Mae and Freddie Mac guidelines for the first time in more than a decade.

The new conforming loan limits increased only slightly, to $424,100 in most parts of the country.

This will enable home buyers in higher-cost areas to access larger home loan amounts and more affordable loan products, in line with local housing prices.

The home buying season may start early this year

Spring/summer is traditionally the busiest home buying time of the year as many sellers wait to list their homes after the cold winter weather is over and to coincide with the summer school break. However, with both home prices and interest rates on the rise, more buyers are expected to enter the home buying market earlier this year, making for a more competitive home buying season. Potential buyers will need to be aggressive to find the home they want at a rate they can afford.

Starting your loan search today

If you’re in the market but haven’t found the home of your dreams yet, there are tools available to guard against increasing mortgage rates. Lenders like loanDepot help customers save by giving them the opportunity to lock a quoted rate and hold (lock in) that rate for 45 to 60 days, protecting them from potential fluctuations in the market. And with rates rising, now is a great time to lock your loan at a more favorable interest rate.

If you do choose to lock your loan, you’ll need to provide an appraisal deposit which can range from $450 to $750. This is not a fee, and is returned when working with loanDepot if there is no appraisal performed on a home.

Navigating your options can seem confusing at first, but a loanDepot licensed lending officer can help. You can learn more by visiting loandepot.com or by calling (888) 983-3240 today for more information. - (BPT) JANUARY/FEBRUARY 2017

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tech spaces

6 easy, affordable smart home features They could help you sell your house faster

F

resh paint on the walls, professional staging and an asking price that ends in 999 - when you’re selling your home, you’ll do whatever you can to help it stand out and sell faster. Because the National Association of Realtors is predicting modest growth for the 2017 real estate market, as a seller you want every edge you can get. And on the heels of the popular Consumer Electronics Show in January, perhaps that edge is a smarter home.

“Smart home features are designed to make homes more convenient, appealing, secure and energy-efficient - all of which are bonuses when you’re trying to sell a house,” says Geoff Lewis, president of RE/MAX, LLC. “Sellers who want to move their homes faster may benefit from adding smart features that make their properties more appealing to tech-minded buyers.”

According to IHS Markit and CNBC, 80 million smart home devices were delivered worldwide last year. That’s a 64 percent increase from 2015.

Here are six trending smart home features that might catch buyers’ attention and help sell your home faster:

1

.

Keyless/remote entry door locks - Have you ever left the house and worried that you left the front door unlocked? If your home is equipped with a keyless/remote entry door lock - available from multiple manufacturers - you can use an app on your smartphone to lock the door from wherever you are. Some manufacturers make versions that will also send a text or email to your phone when the door opens. Locks that can be programmed with multiple entry codes also allow you to see who comes and goes and when.

2

Smart lighting - From lighting automation that allows you to control lights remotely and wirelessly, to energy-efficient LED bulbs that can change color to match your mood and decor, lighting has come a long way. Some smart lights work in tandem with home automation systems to allow you to turn them on or off, or even dim them, from an app on a smartphone or tablet. Others require no

28 // REALSPACES

communication hub and can be controlled directly from your mobile device. You can also put some smart bulbs on timers (using your wireless device), sync them with certain TV shows or movies, and integrate them with security cameras and thermostats.

3

DIY security systems - Don’t want to sign a contract or deal with complex security systems? Install-it-yourself security systems are affordable and offer security features like cameras, sensors, motion detectors and alarms or sirens, without the need for a security service to monitor them.

4

Smart appliances - The Internet of Things (IoT) - everyday objects that have network connectivity - includes a growing list of smart appliances. Many manufacturers are offering washers, dryers, refrigerators and other home appliances that can communicate with you - and each other - wirelessly. Many can be controlled remotely from your smartphone so if you leave the house and can’t remember if you turned off the stove, you can check in and turn it off using your smartphone app.

While appliances aren’t always included in a home sale, they do make for interesting features that keep your home top of mind to buyers.

5

Smart plugs - One of the easiest, most affordable smart home upgrades you can make is to add smart plugs to your home. These Wi-Fi-enabled plugs fit existing outlets and can be controlled from a smartphone app.

Plug anything into a smart plug, like lights or a television, and you can turn it on or off JANUARY/FEBRUARY 2017

remotely, track energy consumption, or even create an on-off schedule.

6

Temperature controls - Programmable thermostats were just the beginning; today’s home temperature controls are even smarter.

Like other smart home features, smart thermostats can be controlled remotely from your mobile device. You can program them to make automatic temperature adjustments and then use your smartphone to override the program like turning up the heat on a particularly cold day. Some smart thermostats learn from household behavior and adjust the temperature to meet your family’s needs and save energy, while others adjust based on the number of people in a room. And several can now be operated via voice-controlled virtual assistants.

“Many of these smart home features are surprisingly easy and affordable to install,” Lewis says.

“Sellers who are open to the idea of investing a little money to possibly help get a speedier sale, may want to consider adding the smart features buyers will be looking for in 2017.”

If you’re thinking of selling your home, find more helpful information at www.remax.com. - (BPT)

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