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Real Estate Terms - From Condominiums to Deeds of Trust
by Dallas Appraiser L.L.C. on 04/25/14
Title:
Real Estate Terms - From Condominiums to Deeds of Trust
Word Count:
377
Summary:
When buying or selling a property, it always helps to have a basic understanding of real estate terms. In this on going series of articles, we take a look at definitions starting with condominium.
Keywords:#home_appraiser, #arlington_home_appraiser, #arlington_home_appraisal, condo, contract, deed
Article Body:
When buying or selling a property, it always helps to have a basic understanding of real estate terms. In this on going series of articles, we take a look at definitions starting with condominium
1) Condominium - A type of ownership in real property where all of the owners in a collection of properties jointly own everything except the interior of each property. Accordingly, the jointly area is run by a home owner’s association, which can assess fees to the owners for improvements, etc.
2) Contract, or Sales Contract, or Contract of Purchase and Sale - the agreement between buyer and seller. In most jurisdictions it must be in writing in order to be enforceable. It covers such things as the identity of the property, the purchase price, any conditions of the sale, the settlement date or escrow period, when the buyer will occupy the property, etc.
3) Contract for Deed - a written document which provides that Deed does not pass to the buyer until the final payment has been made. In the event of default by the buyer, the property reverts to the seller. (One sees these occasionally. Iíve seen them when an owner was financing the sale of raw land for a buyer.)
4) Deposit, or Good Faith Deposit - an amount of money tendered by the buyer at the time a contract offer is made on real property. The contract spells out who holds it, and circumstances under which the seller gets it, and circumstances under which itís returned to the buyer. Typically, the seller gets it as part of the purchase price at settlement, or as liquidated damages if the buyer defaults. The buyer usually gets it back if a condition of settlement is not met.
5) Deed - the written document which conveys title to real property. Some states are record states and ownership is defined by the deed’s being recorded at the courthouse in which the property lies.
6) Deed of Trust - the document which allows a third party to act for the lender should the lender need to foreclose on real property used as collateral for a loan.
As you can image, there are many real estate terms for which you have a general understanding.
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Real Estate Terms - From Appraisals to Comps
by Dallas Appraiser L.L.C. on 04/23/14
Title:
Real Estate Terms - From Appraisals to Comps
Word Count:
445
Summary:
When you are selling your home or other real property on your own, you donít have to know everything about the process. It does help to have a practical knowledge of the terms that come up during the process.
Keywords:
#Real_Estate_Terms, #DFW, #arlington_home_appraiser, #home_appraiser, #home_appraisals, #appraisers, #appraisals, #Dallas_Fort-Worth
Article Body:
When you are selling your home or other real property on your own, you donít have to know everything about the process. It does help to have a practical knowledge of the terms that come up during the process.
Keep in mind, these are not intended as be all, end all, penultimate definitions. They are working definitions for pragmatic folks. Let’s go
1) Acceptance - A legal term referring to the acceptance of a buyer’s offer by the seller. Acceptance is often preceded by a number of counter offers between the parties.
2) Appraisal - a professional opinion of the value of real property. Most jurisdictions have careful rules defining who may call themselves an appraiser, and most lenders via Appraisal Management Companies, have a stable of approved appraisers whom they use regularly. Typically, the lender making the new mortgage loan will require that the property appraise for at least as much as the purchase price. Occasionally, a buyer will require the same thing in an all cash transaction.
3) Bridge Loan - Short term loans used to bridge any time gap between the sale of a home and purchase of the next one. These loans can be valuable when escrow is delayed on the sale of a home and the seller has committed to the purchase of another home. Bridge loans are also known as panic loans, but can be a life saver.
4) Coinciding Settlements - when a buyer needs the funds from the sale of his prior home (which is under contract to be sold) in order to purchase his next home, he may well make settlement under his sale a contingency for settling on the home he is purchasing. In reality, the sales do not usually coincide. They usually take place back to back. Funds from the first are often wire transferred to the second.
5) Closing - Depending upon the state you live in, Closing can have different meanings. Generally, the closing of a real estate transaction refers to the exchange of necessary documents, execution of the same and transfer of money.
6) Comps - This term refers to the sales prices of similar properties in the area of a house in question. Comps are used to help determine the fair market value of a property.
7) Conditions - any conditions which must be met before the sale can be consummated. Some typical conditions include things like the property’s appraising for the purchase price or more, the property’s being in good condition when a home inspection is done, the buyers loan being approved.
As you can image, there are many real estate terms for which you have a general understanding. Continue watching our Appraisal Blog for more real estate term definitions or visit our website's glossary of real estate terms
http://www.fortworthappraisal.com/Real-Estate-Terms-and-Definitions-.html
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Real Estate Specialists: The Buyer's Agent
by Dallas Appraiser L.L.C. on 04/23/14
Title:
Real Estate Specialists: The Buyer's Agent
Word Count:
372
Summary:
Never before has the role of specialists in the world of real estate been more important. With buyers and sellers requiring more services, the industry has seen an explosion of agents who specialize in either the representation of sellers or buyers. These specialist agents can provide a wealth of services and maintain a complete impartiality during the sales process as there is only one client to concern them.
Keywords:
Buyers Agent info, Real Estate Specialist, Representing a Buyer, #DFW_Realtor, #DFW_Properties, Real Estate in Arlington,#home_appraiser, #home_appraisals, #DFW_appraisal, #DFW_appraiser, #Arlington_home_appraiser
Article Body:
Never before has the role of specialists in the world of real estate been more important. With buyers and sellers requiring more services, the industry has seen an explosion of agents who specialize in either the representation of sellers or buyers. These specialist agents can provide a wealth of services and maintain a complete impartiality during the sales process as there is only one client to concern them.
Historically the sales transaction and the concerns of the buyer were the purview of a single realtor. However, as the industry has progressed so have the needs of each party and so the specialist arose. Buyers have some very particular needs, and specifically the need to feel that their best interests are seen to. Listing agents are representatives of the home's owner and in that role they have a primary responsibility to that owner. How could they properly look after the needs of an interested buyer as well?
So what is it that a buyer's agent does? Primarily the buyer's agent will begin with the location of suitable properties for their clients. This is usually based upon a list of requirements and desires that the client has communicated to the agent. They will then arrange viewings and recap their findings with their clients and assist in deciding upon a good candidate for an offer. This will be based on the wealth of community information that a buyer's agent commands. As specialists, they are experts on their given area which is critical in the education of clients on the areas that they are considering. Once a property is decided upon, the buyer's agent changes significantly, evolving into an overseer-negotiator role. They will typically coordinate the inspections and conduct the negotiations with the listing agent. This includes the execution of the buyers subjects and the closing of the actual contract.
There is an art to representing a buyer. It is a role that has become ever more crucial in an industry where customer service is the single most important thing that an agent can offer. If you are in the market for a home then the buyer's agent is the friend that you need to make sure that you are given the service that you deserve.
Protecting Your Worldly Assets
by Dallas Appraiser L.L.C. on 04/22/14
Protecting Your Worldly Assets
Human nature and the flesh yearn for material things. Most of us seek to store grain/ or wealth so that we can eventually experience retirement and relaxation (the endless feast). For instance, when you have something, you want to make sure that you keep it.
This article is meant to advise, conveying one person’s opinion, by which to safeguard your Worldly possessions. By investing in the right types of protection and insuring your real estate property and the things that you hold inside of it, you will have the ability to keep the things that are valuable on Earth or have the ability to replace them. One of the ways that you can ensure protection of your property is by asset protection.
Asset protection is a plan that is designed to protect your real estate and the things that you own inside of the real estate. If any type of financial disaster occurs, you will have replacements and ways to ensure that the value of your property isn't lost, even if something unexpected happens.
If you are just looking into asset protection, you will want to look at possible options through your own investigation or through talking to a lawyer. An analysis will be taken of the amount of money that you can protect as well as how your valuables are linked to the demographics of the area. Once the assessments have been made, you will be given an estimate of how much money you can receive in protection as well as the programs that may be best for you.
The asset protection that will be defined when you have this analysis done will vary according to the state law. Retirement and disability benefits are usually not considered a part of asset protection. Personal items may also not be included on asset protection. Things such as furniture, clothing, jewelry and other personal assets will most likely not be covered. Some states will allow a certain percentage of these assets to be covered instead of providing full coverage.
If you want to make sure that what you have receives the most in case of an accident, then your real estate investment shouldn't just include finding the right loan. It should also include looking at the assets and finding the best ways to get the most out of them. By protecting what you own, you will be more likely to keep what you love in this life.
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Pre-Construction Real Estate Investing
by Dallas Appraiser L.L.C. on 04/21/14
Pre-Construction Real Estate Investing
keywords: #real_estate_appraiser, #DFW, #appraisals, #Texas, #Metroplex, #home_appraiser, #home_appraisals, #appraiser
If you have the heart and soul of a gambler or love extreme sports and activities such as skydiving or bungee jumping then you may be the ideal candidate for pre-construction real estate investing. Pre-construction profits are often among the highest in the industry. At the same time so are the risks. You will find the greatest highs and lows that can be found in the field of real estate investing lie beneath the umbrella of pre-construction profits and many of the big names we know so well in the real estate investing field have made much of their fortunes through speculation and pre-construction sales.
Before I go any further, one word of caution should be spoken. While the potential for profits in this particular corner of the real estate market are unconventionally high the risks are also abundant. This is speculative real estate at its very best and as we have all learned in the past, when the bubble bursts in a specific market those who have the most invested are the ones who often loose most heavily.
As far as what pre-construction real estate is there are a few interpretations. The first is also the most obvious. You are buying real estate at some point before construction is complete. In hot markets you will often need to purchase the units before ground has broken on the project in order to get the lowest price for your investment and highest potential pay off for your pockets. Once you've purchased the unit or units you plan to sell you then begin seeking buyers for those units. In markets that are on fire like some Vegas suburbs and big retirement and vacation cities along the Florida coastline the same property is not exactly uncommon for a property to change hands and have several owners before the unit is complete. Each one will take a little something home from the table for their efforts with those who get in earliest often taking the largest piece of the pie home with them.
You may be wondering why this occurs and the answer really is simple. When the contractors attempt to get funding for their buildings in these large complexes they often need to have a certain percentage of the units "pre sold" in order to convince the banks that there is an adequate market and to garner some of the revenue that is needed to get the venture up and running, so to speak. So real estate investors buy these units at rock bottom prices because essentially they are paying for the idea of the unit (which hasn't at this time been built and isn't yet approved to be built in many cases) rather than a brick and mortar property. As the project draws closer to completion, particularly in markets where real estate is in high demand, the value of the property rises dramatically ending in ridiculous profits for those who have managed to hang on.
The risks however are many. There are any number of things that can go wrong on a project such as this not the least of which is that the demand for housing will be met before the unit is actually built. This has happened and continues to happen. Also recessions, business closings, economies collapsing, and tragedies in the vicinity can occur before the property is complete leaving everyone who has invested heavily in the project holding a little bit of the bag and loosing their profits and, quite possibly, their investment. These projects generally take a great deal of time to complete which makes the risks that much greater and the anticipation of these events a little more difficult to map out ahead of time. If you can manage to make it through however many investors see more than a one hundred per cent return on their investment making it a popular type of investment among many despite the rather large risks involved.
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Profit From Your Child's University Move
by Dallas Appraiser L.L.C. on 04/21/14
Title:
Profit From Your Child's University Move
Word Count:
753
Summary:
With school end approaching, some of us will be spending our summer vacations helping our children to settle into their chosen University town. Southern Methodist University is located just North of one of Texas's most populous cities of Dallas, and if you are planning to look for accommodation in this area - you are in luck!
Keywords: #SMU, #home_appraiser, #Home_appraisal, #appraisals, #appraiser, #DFW, #real_estate, #house, #buy_home, #second_home
Article Body:
With school end approaching, some of us will be spending our summer vacations helping our children to settle into their chosen University town. Southern Methodist University is located just North of one of Texas's most populous cities of Dallas, and if you are planning to look for accommodation in this area - you are in luck!
Tempe has an amazing range of places on offer and you can choose from town houses and condos through to family homes and mansions! Instead of paying out rent for your son or daughter, why not make money on buying an investment property? What are the pros and cons - apart from the obvious advantage of having a ready-made manager on hand to supervise the incoming revenue?
There are several factors that are constant for every family sending an offspring to University: (a) you will need to find a place suitable for your child to live in, (b) you need to find one that they will like, but that you can afford. (c) You hope he/she will make their funds last through the semester.
(d) You will not want your child to be so hampered by residential rules that he/she becomes stressed, (e) you will prefer a place near to University to save on transportation, and (f) you hope that fellow renters will not be into drugs, excessive parties or alcohol, etc
Most of these concerns can be eradicated if you buy a modest home and rent it to students - one of them being your child. You will have as much, or as little, control as you feel you need. Many of your worries will disappear into thin air....read on..
For instance (a) you know that your child will have a suitable place to live in, and (b) you will not have to put out money to pay rent as the other rental students will cover your mortgage. (c) You know that they cannot be given notice half way through the semester.
The residential rules (d) can be made to suit your child's preferences; for instance, if he is an early riser then noise will cease at 11p.m. (e) You can choose a place near to the school or at least walking distance of up to 20 minutes (therefore no car is needed with all that expense and worry of it being wrapped around a lamp-post!). Finally (f) you and/or your child will write the rules about parties etc and have the control over tenant's behavior.
Not only is this a worry-free suggestion, but it will actually make you money! You will probably find that you like the idea of having a second property financed for you in this way, and continue with the system long after the degree has been awarded!
Let's get down to a few technicalities, although a good real estate agent will help you with all this. If you have a home already in which you have accrued equity, you can use this as a surety (collateral) for a second home in DFW. Perhaps you are retired in which case you can use a pension as 'income', or maybe you both work and financing is a doddle!
Your real estate agent can advise you on points to be considered when buying a rental property, practicalities such as suitable layouts, bathroom choices, front and back door positions etc. Sometimes a large bedroom with two windows can be made into two smaller bedrooms if there is also a living room available for residents etc. You can send/email a list of requirements to a local realtor and be the first one to hear of such suitable properties.
Now is a very good time to buy any second home, because of the low mortgage interest rate and also the large choice of homes. It is a buyer's market now, so you can shop around. It is easy to be more practical when you are not choosing a personal home. Having said that, the SMU area is a great place to be a snow bird in when you become retired, so pick a place you like. Highland Park has a small town loving feel with many parks, country clubs, and pools. Having said this SMU is only 2 miles north of Dallas for all your big city needs.
The fact that your son or daughter is going to move away and go to University need not be viewed upon as a financial drain; it may bring great joy into your lives. You will be financing a second home ready for your retirement! Thank goodness they chose SMU to study in and not Detroit!
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In Real Estate Positivity Pays!
by Dallas Appraiser L.L.C. on 04/21/14
Title:
Positivity Pays!
Word Count:
383
Summary:
The way you greet and interact with the people who come to view your home - however minimal - could make or break the possibility of an offer. If your prospective buyer is a hesitant or indecisive person, your approach could be critical.
Keywords:
home sales, home marketing, real estate sales, selling your home, home sales theories, #DFW, #home_appraiser, #home_appraisal, #appraisers, #appraisals, #Texas
Article Body:
The way you greet and interact with the people who come to view your home - however minimal - could make or break the possibility of an offer. If your prospective buyer is a hesitant or indecisive person, your approach could be critical.
That is because attitude is powerful! Optimism is catching! Have you ever gone out in a great frame of mind, and come back feeling awful? That is probably because you met someone who was inundated with problems, who regaled you with their complaints, who told you that your solutions were 'hopeless' and who completely sucked all your positive energy out of you!
When your prospective buyer comes, you want him to enter your home with an open, positive mind and leave with the same feeling. This is where home staging has something to offer. The art of home staging is to de-clutter your home of your own personal bits and pieces so that your buyer can visualize himself living in your environment.
But home staging is also done to ensure that any negative vibes are removed. For instance dirty dishes left in the sink suggests work. Garbage cans left on show may remind the prospective buyer about trundling out in the cold and rain to set the cans out for pick-up etc. This reminder of working in your house may not help him to feel good about buying it, so let that thought stay in his subconscious!
Another factor which can be formulated in a positive way is the reason why you are moving out of this lovely/easy care/well kept home. Saying something like, "We can't wait to move closer to our daughter now she has a baby' is a much more positive suggestion than saying, "We can't handle the stairs - or the garden - anymore."
Don't give them the feeling that will be worn out in your house running up and down the stairs or doing all that gardening!
Optimism is one of the factors in the Law of Attraction. That Attraction theory states that you get back what you give out. If you are giving out that you are happy and content living in this lovely home, the ambience may be infectious and your buyer will have an intuitive feeling that this place is the right place for him!
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Pre-Purchase Inspection
by Dallas Appraiser L.L.C. on 04/20/14
Title:
Pre-Purchase Inspection
Word Count:
602
Summary:
A pre-purchase inspection can save you from making a big mistake when buying your next home. Should you try doing it yourself, and if not, who should you hire?
Keywords:
pre-purchase inspection, inspection, real estate, home appraiser, home appraisal, DFW, appraisers, appraisals, real estate appraiser
Article Body:
Should you do your own pre-purchase inspection? Yes and no. Yes, you should inspect a house before you write an offer on it. Then you should put an inspection contingency clause in the offer, and hire a professional inspector. Why do both?
Doing your own inspection can help you get a better deal. Each cracked window or leaky toilet you can find is a negotiating point. You see, you could just make a low offer, but a seller is more likely to accept your offer if you have reasons for it being lower. In fact, you should attach a list of your concerns to the offer, as an explanation and justification for your price.
Use a list as you walk through the house. Using a home inspection checklist keeps you from forgetting things. You don't have to know the difference between 12-gauge and 14-gauge wiring, or become an expert on all the building trades, as useful as this would be. Just use what you do know, and make a note if something looks "odd" or "smells funny." Afterwards, you can have a professional inspector take a closer look.
Pay for a professional pre-purchase inspection. Unless you really know a lot, it can save your neck financially. An acquaintance of mine just discovered that the house he made an offer on was almost beyond hope, because their was so much termite and other damage. He backed out of the deal, and considering the tens of thousands of damage he hadn't planned on, I don't think he's regretting the $300 he spent on inspections.
Do a walk-through inspection yourself, by all means. Just also put that clause in the contract allowing you to have professional inspections too. Now, how do you choose the right person to do the inspections? Carefully.
Pre-Purchase Inspection - Choosing An Inspector
For specific inspections that are customary in your area, you can rely on most reputable companies. Termite inspections are the norm here in Tucson, for example, and it's cheap to get one done by a pest control company (they hope to get the job if there are termites to be eradicated). If the roof has obvious problems, you can get a roofer to take a look and give you an itemized quote.
For general pre-purchase inspections, though, it isn't as easy to hire the right person. In many states it is relatively easy to get licensed for general home inspection. What you really want, though, is not someone that read the right books and passed a test, but an inspector with real life experience. Ideally, you want a former builder or tradesman that has real experience with everything from electrical work to roofing to plumbing and more.
You want to know what is wrong, but you also want to know what it will cost to fix these problems. Not all inspectors will have that information for you. Ask if they can give you estimates for repairing any problem they find, even if only in the form of a range of the possible cost. You may be re-negotiating the price based on his findings. You could call in contractors to get quotes on big problems, but you need to at least know which are big problems, and a good inspector should be able to tell you.
To sum up: Do your own walk-through inspection, then hire a professional. Ask about their experience. Ask if they can note estimated costs next to problems found. If you want to learn more, ask if maybe you can tag along for the inspection. Do these things and you'll have a thorough pre-purchase inspection.
Private Sale (FSBO) Property Pricing
by Dallas Appraiser L.L.C. on 04/20/14
Title:
Private Sale (FSBO) Property Pricing
Word Count:
1550
Summary:
Getting the asking price right is the most important part of selling your home whether selling through a real estate agent or FSBO. Find out how to value your property correctly and how to maximize your equity.
Keywords:
private sale, property price, real estate, FSBO, For Sale By Owner, property, home sales, equity, FSBO valuation, property valuation, tips for homeowners, real estate tips, home appraiser, home appraisal, appraisers, DFW, appraisals
Article Body:
The property price dilemma
As a homeowner selling your home you are faced with a dilemma when setting the asking price for your property. Ask too much and you risk your property sitting on the market for months without attracting any offers. Ask too little and you lose out financially. Faced with this choice many homeowners set their asking price too high believing that they can always lower the price if the property does not sell. However this can have disastrous consequences for the value of your home.
Setting the correct price is the most important part of selling your home. Whether selling your home FSBO or through a real estate agent it is vital to get the asking price right first time. Your aim is to sell your property in a reasonable amount of time and to get on with living your life, in order to do this you must set a realistic price.
Buyers know the real estate market
Buyers are often well researched when it comes to the current real estate market. Therefore if a property is overpriced, it simply will not sell. As a homeowner you may well feel that a prospective buyer can always make you an offer but in many cases buyers will simply walk away. It is said that a reasonably priced property will attract reasonable offers but an excessively over priced property will attract no offers.
If a property is over priced and does not sell it will sit on the market and will quickly become stale. Buyers will recognize the property as having been on the market for some time and assume that there must be something wrong with it; the property will have gained the reputation of being a lemon. If you overprice the house to test the market and then reduce the price later, it signals to buyers that the property was and may still be overpriced. Homes that are listed through real estate agents are particularly vulnerable as many agents give homeowners inflated valuations on their property to try and secure the listing. The owner is later conditioned by the agent to accept a lower offer that is often less than the true value of the property.
Factors affecting the price of your property
The amount of time that you have to sell your home will affect its sale price. Any property will sell if the price is low enough. If the real estate market is slow and you need to sell quickly you may have to accept a lower price to sell you property. By offering a property for sale at a lower price the pool of potential buyers is expanded as the property becomes attractive to real estate investors who either want to rent the property to tenants or renovate and sell at a profit. If you are not in a hurry to sell your property you can concentrate on appealing to homeowners rather than investors. Homeowners are less likely to be concerned about rental yield and profit margins and will pay more for a home that they fall in love with.
Some factors other than time that affect the price of a property are:
Location: You can not get away from this one; the cliche location, location, location is well known because it is true. If your property is located in a desirable area that is in demand, you will be able to get a higher price than you can for the same house in a less desirable area.
Condition: A house that has been well maintained and can be moved into without the new owners having to undertake any major renovations will always sell for more than one that has been neglected and needs work.
Desirable amenities: If your house has popular amenities such as parks, schools and shops close by, it will sell for a higher price.
FSBO and property prices
As a FSBO homeowner you are in a fantastic position in that you can under cut your competition (properties listed with real estate agents) and still keep more of the equity in your pocket as you have no real estate agent’s fees to pay. However a significant number of FSBO owners erode their competitive advantage by asking the same or more than properties listed through an agent.
Opinion is divided as to whether buyers would rather buy direct from the owner or through an agent. Some people feel that buyers prefer to negotiate through an agent, as they can be more honest in their feedback, therefore if these buyers are to be enticed to consider FSBO properties they need a reduced price to attract them. Others feel that buyers would rather deal direct with owner rather than have to put up with the deceit and games played by some agents. Having dealt with many agents and FSBO owners I would rather deal direct any day.
Whether the prospective buyer prefers to deal direct or would rather be negotiating through an agent one thing is for certain. The buyer knows that the homeowner is saving a considerable amount through not having to pay commission and will expect the homeowner to share some of this saving with them.
Any sensible FSBO vendor will share the saved commission with the buyer by accepting a slightly lower price. The homeowner is still ahead in terms of the equity they have in their pocket and can move on and get on with their life in their new home. It is important to focus on selling your home not how much you can save.
How to determine the price of your property
In order to determine the price of your property it is necessary to compare your property to other homes that have sold in your neighboorhood. There are three ways that this can be done:
1. Online valuation service
These services compile reports based on historic sales data for a particular suburb or street. They are a useful overview and provide information quickly and easily but provide fairly high level information e.g. you may be able to find out the average house price in a street but may not know how many bedrooms the average house has.
2. A professional valuer
A professional valuation is the most accurate way to find out how much your property is worth. A valuation from a professional valuer is not the same as a valuation that you might get from a real estate agent. A professional valuer has no financial interest in your property and is legally responsible for their valuation. Banks will require a valuation from a professional valuer in order to issue a mortgage. Banks will not accept a valuation from a real estate agent, as they know that these are not reliable.
In order to value your home the valuer will visit the property to make measurements and assess the condition. They will then consider how your property compares to other properties that have sold in the local area.
3. Comparative market analysis
It is possible to conduct your own market analysis by comparing your home to others that have sold in the area. The key here is to compare to the selling price of other properties and not the asking price.
Find 4-5 houses similar to yours that sold in your area over the last 6 months. Ask agents or owners or use property records to find out what the properties listed and sold for. Keep an eye on newspaper property pages for examples of recent sales.
As no two homes are exactly the same it will be necessary to make adjustments for differences between your home and those in the comparison e.g. if the home in the comparison has a renovated bathroom and your property does not you will need to reduce the comparison price.
Setting the asking price for your property
It is difficult trying to subjectively value your home because of the emotional attachment that you have. This can lead you to over emphasize the property’s good points and to overlook any shortcomings. In order to get the most accurate valuation we would recommend investing in a professional valuation.
When setting the asking price it is important to remember that the only thing that is relevant is how much a buyer is prepared to pay for your home today. It does not matter how much you paid for your home five years ago, nor does it matter how much your new home is costing or how much you still owe on your mortgage. It is only your property’s value as determined by the current real estate market that is relevant.
You may however wish to include a small buffer to allow for some negotiating room. 5% more on the asking price will give enough room to negotiate but will not overprice the property so much that buyers are scared away.
How to maximize your equity
In order to maximize the amount of money that you end up with in your pocket we recommend using a professional valuer to determine the property value.
Once you have decided how much to sell your property for listing with a good FSBO website (also known as private sale) means you avoid paying commission to a real estate agent and can maximize the amount of equity you are left with.
Preparing for an Appraisal - Plan For It
by Dallas Appraiser L.L.C. on 04/20/14
Title:
Preparing for an Appraisal - Plan For It
Word Count:
505
Summary:
A critical part of selling a home is the appraisal. Here are a few ways to plan for it.
Keywords:
appraisal, appraiser, marketability, hardwood flooring, good appraisal, sell your home, cleanliness, home appraiser, home appraisal, appraisers, home value, property value, real estate
Article Body:
A critical part of selling a home is the appraisal. Here is how to plan for it.
You have a contract to sell your home and now the appraiser is coming. The appraisal needs to come in at a good price in order for your buyer to get his loan. What should you do?
Appraisers typically tell people not to do anything special before they come. They tell the owner they see lots of houses and they can look past a little clutter and dust. Do not be nervous and prepare to the best of your ability. Appraisers are sincere people. I am sure they mean what they say.
On the other hand, appraisers are human. They respond to cleanliness and order and to good maintenance the same way buyers do. If you have to let your hair down, get your home back into show condition before the appraiser comes.
Everything you know about a tidy approach to your home, well mulched flower beds, door knobs that are attached firmly and work smoothly, lack of finger prints, lack of clutter, and all the rest applies. Take a look at a Uniform Residential Appraisal Report form if you doubt me. The age of the home and the effective age are asked for under the General Description. How well your home appears to be cared for affects the number that appears under effective age?
The Uniform Appraisal Report requires information about materials (and their condition) used for floors, walls, trim and finishing elements, bathroom floors and wainscots, and for interior doors. Appraisers train themselves to notice these details. If yours are dusted, polished, and free of scratches and fingerprints, don’t you think you might be giving your appraisal a nudge in the right direction?
The Report also asks about kitchen equipment (refrigerator, range and oven, disposal, dishwasher, fan and hood, microwave, and washer and dryer). Do you think it would be a good idea to have them clean and purring?
The Report asks about amenities such as fireplaces, patios, decks, porches, fences, pools, and sheds. If an appraiser is going to take special note of such things, shouldn’t they be swept, cleaned, and have paint in good condition? Also, clean out the gutters if they need it. If it should be raining on the day your appraisal is done, you want your house to handle the rain water well.
Let me share with you about the comments section of an appraisal; which can get the owners what they wanted. I think this information will give you a good feel for what you need to do. The subject is well maintained and no physical, functional or external inadequacies were noted. Marketability is enhanced by hardwood flooring throughout a majority of the home, an updated kitchen, fresh interior and exterior paint, updated or efficient windows, built-ins, a front porch, a rear patio, a large storage shed, 4 fireplaces, etc.
The appraiser is a human being. Make sure you do everything you can to appeal to them and you will get the best appraisal you can. Remember the most important value determinate when appraising residential real estate is the market place. Appraisers utilize the sales comparison approach to value when determining market value for residential real estate, which is based on recent similar sales in the property’s immediate market.
