Is Pre-Listing Appraisal Worth It?

Should You Get an Appraisal Before Listing Your Home For Sale? 

The most important thing on every seller’s mind is the listing price. No one wants to leave money on the table by pricing a home too low. At the same time, pricing the home too high will also likely result in lost dollars either from wasting valuable time on the market or once stale, selling for below market value in desperation.

Getting a professional appraisal ahead of time might seem like the solution, but is it? An appraisal can be defined as an opinion of value at a given moment in time. If you are in an ascending market where listings are selling quickly, the appraiser can only use closed sales as a reference in the appraisal, so you might be tempted to list too low for the market, but not accounting for the increase in sales activity and prices. Contrarily if the market is slow and prices are declining, an appraisal received in May could be too high for the erosion of prices seen over the summer, and your listing will be overpriced for the reality of the neighborhood. More than just these scenarios, a pre-listing appraisal means nothing to the buyer or their lender. They will still use market data to write their offer and their lender will order a new appraisal regardless. While you can reference your appraisal in negotiations, the buyers will still only offer what the property is worth to them and you might miss out on a great deal by trying to stick to your price.

In the end, a pre-listing appraisal is probably a waste of time and money. As your agent has access to the latest market data and can show you the same comparable properties the appraiser would use. Utilizing me as your agent who is a good local agent you can  trust and work with me to price your home correctly.

Appraisals Explained

Appraisals Explained

Appraisals are one of the most confusing aspects of buying or selling real estate for the consumer. Is the value of your home what you and the seller just agreed on? When a buyer and seller agree on a sales price, it can be frustrating to hear that the appraisal came in with a value too low. It’s not enough for the principals to agree to the price, the appraisal is the lender’s way to ensure they are not loaning money over the actual market value of the property.

What does the appraisal cost and who pays for it?
While your lender will typically arrange for an appraisal, the buyer is ultimately responsible for the cost. Don't let this cost stop you from making offers: The home appraisal will only occur after your offer has been accepted by the seller and you have begun to work with a lender to finance your new home. You do not need to complete appraisals on every house you choose to bid on. 

 The appraised value is reached by a licensed professional who looks at the real estate market in which the target property is located. In most residential property transactions you are able to choose your real estate agent and your lender, but you cannot choose your appraiser. Instead the appraiser must be chosen by your lender to provide a level of independence from the buyer and seller. 

 They start with the target property and then look for recent sales in the area of comparable properties. These comparable properties will be located within a short distance of the target home, normally within a 5 mile radius. They should also be of comparable size and often fall within the same housing development.

 Once these homes are identified, the appraiser will adjust for the specific differences. For instance, does the target home have an upgraded kitchen or swimming pool? They add or subtract value based on such things as location, view, lot size, upgrades, additions, condition and many other factors. They can then arrive at a valuation for the target home.

 Once the appraisal has been completed, the lender is notified of the value. At this point, the loan amount is either confirmed or declined. If the appraisal comes in too low, the principals can choose to make up the difference in sales price, lower the sales price or cancel the transaction.

 What is the difference between an Appraisal and a Home Inspection? Although the home appraisal may seem similar to the home inspection, the goals of these two processes are very different. 

• The Appraiser determines the value of the home
• The Inspector determines any repairs needed, and their potential cost.

 Appraisals are not as complicated as they appear. By learning about recent sales in your area ahead of time, you can price your home appropriately up front with me; then the appraisal should come back as expected. 

If you have further questions about appraisals or your homes value please email me or call. I'm happy to give free home evaluations. 

Your Home-Your Neighborhood- My Priority

Tips for Selling in the Summer

Tips for Selling in the Summer

Summer has traditionally been the best time to sell a home. Not only do many families take advantage of moving when the kids are out of school, but in climates where winter weather is unpredictable or severe, the warmer months make it easier to be away for showings. With more homes on the market, how can you maximize your potential for a great offer among the options? Fortunately, you can take a few steps to ensure your home stands out from the crowd. 


Tips for Selling in Summer:

•  Control the Climate – The first thing a buyer will notice when they walk into a home is the temperature. If the weather is warm and humid, it’s critical you keep the home cool. A larger air conditioning bill is a small price to pay for a top dollar offer. 

•  Let in the Sun – It might be tempting to close the blinds to save money on air conditioning, but bright, sunny rooms are always more appealing; leave enough open to showcase natural light. 

•  Extend Outdoors – Today’s lifestyle includes the outdoor areas and more and more homes feature outdoor living and dining areas. Regardless of your home’s features, maximize the impact of your yard with furniture, BBQs and manicured landscaping. 

•  Spring Clean – A fresh, De-cluttered home with a lighter, seasonal color scheme will be visually appealing to your buyers. Replace dark pillows, linen and accents with softer colors which make the rooms seem larger. 

The summer selling season is here. Make sure your home is dressed for success. Welcoming outdoor spaces and bright sunny rooms combined with inviting an air conditioned rooms will ensure you get the best possible offer. 

Have more questions or needing assistance you can send an email to me to help! Kristibroker@gmail.com

Streamlining the Lending Process

Streamlining the Lnding Process

If you are starting a search for a new home, most likely you’ll need to get a home loan. The process might seem overwhelming if you haven’t obtained a loan in a long time; even more so for first time home buyers. The lending process doesn’t need to be difficult and by being prepared, you can streamline the process and ensure you are able to get the best loan for your needs.  

Choose a Lender
 The first step is to find a lender. You might start at your personal bank or credit union. Another good source for referrals is your agent or family and friends. The lender should have access to a variety of programs as well as the government options: VA and FHA programs.  

Be Prepared
Before you meet with the lender, gather the information you will need. Generally, you will need to provide current pay stubs, W2s, bank account statements and the last 2 years of your tax returns. If you have been divorced and/or have child support obligations, bring the final court document with you as well. 

 Understand Your Limits
 Typically, you will be able to borrow up to 31% of your gross monthly income. In addition, the lender will require that you have no more than a total monthly debt of 36% of your gross income. Be prepared to disclose all your debt, even if it does not appear on your credit report. Your loan officer is your advocate and there to help you succeed. 

 Don’t Make Any Credit Changes
 Once you’ve started the loan process, it’s critical that you make no changes to your credit. Postpone any big purchase, do not apply for new credit of any kind and do not pay off any credit cards. It’s also important not to change jobs during the approval process, even if it’s for more money. Before you do anything, talk to your lender.  Getting a home loan is not as difficult as it was a few years ago, but it’s important to plan early and do the right things. Once you make the decision to buy a home, speak to a lender immediately and then follow their advice and you’ll find the loan process simple to manage.

Currently, interest rates are running to the lowest levels in nearly two years. It's been another awesome week for rates. 
Home Mortgage Rates are now all sitting below 4%, Two weeks in a row in fact. If you have been waiting to own a home while locking in at a low rate now is the time to think about calling your lender and your agent. 

Questions about rates, home sales, home buying or relocation send me a message and I'll be happy to assist in way I can. 

What are Contingencies on a Contract?

What are Contingencies on a Contract?

Contingencies are commonplace in contracts of all kinds. A contingency allows for one party or another to legally back out of a contract in the event of some specific condition occurring. They are protection against the unknown. 

 In real estate, there can be contingencies inserted for either buyer or seller or both. These take many different forms and until removed in writing, either party may change their minds based on the result of the contingent event or issue.

  Some examples of home buyer contingencies: 

• Home inspections – condition of the home

 • Specialty inspections – mold, geological, roof inspections

 • Code Violations – an investigation into improvements made without permits

 • Lender appraisal – ensures the offered price is not too high 

• Sale of current home – allows the buyer to back out if they cannot sell their current home in specific time frame

 • Final loan approval – loan is ready for signature and close

 • HOA CC&Rs – review of documents to ensure rules and regulations do not infringe on enjoyment of property 

• Insurability – home owner’s insurance available at a reasonable rate 

Home sellers can also have contingencies included as well, such as one which states the sale is contingent on finding a replacement home. Contingencies are a fact of contract law. In real estate, they ensure that the offer is concluded as expected.

Home Buying doesn't have to be complicated or stressful. You can trust that I can advise you every step of the way. Contact me at Davis and Associates to help you answer all your Real Estate Questions. 

How To Lower Closing Costs

How To Lower Closing Costs

Closing costs help facilitate the sale of a home and both buyers and sellers pitch in. Some closing costs can be paid before the home is officially sold and others are paid at the end. 

 However, closing costs aren’t set into stone and they can be negotiable. You can ask your real estate agent or lender with help in estimating your actual closing costs. Look over everything to make sure all the numbers are right and then you plan accordingly in how you’re going to lower them.  

Loyalty Programs
  Some banks offer assistance to buyers when they use them to help pay for the purchase. It’s a way for a bank to reward loyal customers. 

 Closing at the End of the Month
 Schedule your closing at the end of the month so you don’t have to pay the per diem interest for so many days.  Get Multiple Quotes Get estimates from different lenders because you’re looking for the best package of closing costs and interest rates. There might be something better out there.  

Junk Fees
There may be some fees a lender charges that may be negotiable, such as origination fee, processing fee, or application fee. Make sure to ask if what you are being quoted is the best they can offer.  

Title Costs 
Sometimes title insurance and settlement are bundled together. You may be able to find a title and settlement company that is less expensive. 

 Negotiate With the Seller
You can try to negotiate with the seller in paying for some of your closing costs. Buyers can ask for credit or to cover lender expenses during the offer and negotiation process

DETERMINING THE RIGHT PAINT FINISH

Determining the right paint finish

Paint is one of the easiest ways to change the feel of a room – or even a home. A fresh coat of paint in a trendy color can update a room in an instant. Choosing the color is only one aspect of picking the right paint; the finish or sheen is also important to the look and feel of the space.  


Flat Finish
Flat finishes is exactly like it sounds – flat. There is no sheen at all. Today’s matte finishes reflect rich tones and are much more luxurious than the dull finishes of the past. Use for: 

• Ceilings
• Dinging Room
• Formal Living Rooms
• Adult Bedrooms

Satin Finish 

Satin finishes have just a slight sheen. These finishes reflect the light softly and provide a richer look and feel than flat paint. These are better for high traffic locations than flat.  

• Halls
• Baseboards 
• Family Rooms 
•  Children’s Bedrooms

Semi-Gloss

Semi-gloss provides even more shine. These paints can make a room seem larger by providing a slight gleam from the painted surfaces. Easy to clean, a semi-gloss paint works well in areas frequently cleaned.

• Kitchens
• Bathrooms
• Close Doors and Cabinets 
• Stair Rails and Banisters

Gloss

 A high gloss paint is the brightest available. These paints bring out the truest color of the paint and provide a durable finish for areas you wish to highlight. A high gloss paint works well for accents. 

• Wood Trim
• Doors
• Furniture

Each of these types of finishes has variations as well. Today’s paints are more luxurious with deep, rich pigments and more durable elements. Choosing the right color and finish can bring freshness and modernity to any room or home. 

Contact Me (Kristi Fenton) at Davis and Associates Inc., Realtors  if you have any questions on all of your home buying and selling needs.