There are many things to consider when you are making an offer on a house. While it may be important to think in advance about movers, painters, budgets, your mortgage, furniture, school districts, utilities, contractors and housewarming parties, when it comes to making an offer there are some key things that can make a difference! Below are some important topics related specifically to the mortgage when you’re getting ready to write up an offer on a home. Read the rest of this entry »
It is very common for realtors to ask a homebuyer who their mortgage loan officer is and where they are located. There is a belief that a lender, and for that matter all the service providers to a real estate transaction, needs to be very local.
Realtors assign some magical powers to a mortgage loan officer who is Read the rest of this entry »
I told a realtor once that appraisers do not appraise a home, data does. I was trying to respond to their over-hyped level of concern about where the appraiser lives or works and the realtors’ hope that the appraiser will have some sort of intimate knowledge about the subject property’s market area. Appraisers don’t need to live near the subject property to do their job well.
If the data exists, i.e. recent settled sales that make for appropriate comparables for an appraisal, then the appraisal should turn out fine. In other words, it is not about the appraiser, it is about the data! Read the rest of this entry »
When sellers set an asking price for their home I always imagine big dollar signs in their eyes. Most human beings suffer from wishful thinking and confirmation bias. But how should you price your home: high, low or right at market value? If sellers are underpricing they may hope to sell faster, or hope for a bidding war. Overpricing a home may allow you to get more for your house than what it’s really worth with luck that one buyer loves your home. Underpricing or overpricing your home can be a gamble. And the best thing you can do is come to terms with how much your house is really worth. Read the rest of this entry »
When a homebuyer is getting a mortgage to buy a new home everyone seems to be on pins and needles waiting on the appraisal. When the appraisal does come in if the appraised value is below the contract price the response is usually alarm from the realtors and confusion by the homebuyer. At that point there is a lot to talk about and coordinate. Read the rest of this entry »
Realtors often think appraisers are not the most accurate assessors of real estate values. And appraisers often think realtors know less than they do. Maybe they are both right? I have had appraisers admit that a good realtor will likely know more than an appraiser about the value of a certain home. This is because most appraisers are appraising a wider geographic area a than a realtor may specialize in. Many appraisers cover a multi-state area, whereas a lot of realtors specialize not only in one state, but also in one city or town. So, it is hard to expect Read the rest of this entry »
I sometimes get asked about waiving one or all contingencies in a real estate contract, to help make for a more aggressive offer in a competitive sellers’ market. The main contingencies in most real estate contracts are the appraisal contingency, the financing contingency, the termite inspection contingency, and the home inspection contingency. I am not a proponent or an opponent of any of these strategies, but simply want to discuss the pros and cons of each, since it is a question I do get. In this blog I’d like to discuss waiving the Home Inspection contingency.
I sometimes get asked about waiving one or all contingencies in a real estate contract, to help make for a more aggressive offer in a competitive sellers’ market. The main contingencies in most real estate contracts are the appraisal contingency, the financing contingency, the termite inspection contingency, and the home inspection contingency. I am not a proponent or an opponent of any of these strategies, but simply want to discuss the pros and cons of each, since it is a question I do get. Let me take these one at a time. Read the rest of this entry »
I recently had an appraisal come in recently for a loan application and it was slightly below the contract price. The listing agent complained that the problem was that the appraiser came from a great distance and must not have known the local market. When an appraiser calls to schedule an appraisal inspection the realtor always asks them, “Where are you coming from?” The realtor is trying to surmise if they are local or not, but what is local? Read the rest of this entry »
In my experience, there seems to be a lot of confusion about appraisals. I hear a lot of misstatement about how appraisal values are determined. If an appraisal comes in below the agreed upon sales price there is usually a lot of push back, anger, and harshly worded statements about the intelligence of the appraiser. Many sellers, some buyers, and even some realtors use methodology and data that is not accurate. The reality is that there is a way to challenge an appraisal that is quite simple. All you have to do is come up with recent comparable sales (aka comps) that you think are better than the ones that the appraiser used. The problem is what some people come up with for comparable sales are not really viable comps. Read the rest of this entry »