Tag Archives: Best Appraised Value

Is it a Cost or an Investment to have an Appraisal done on your home?

 A Professional Appraisal: Cost Vs Investment:

The cost of a typical professional residential real estate appraisal varies from area to area. Currently, the range is $300 to $650 for a full market value appraisal. A full market value appraisal with pre-market suggested listing price range could be an additional $50 to $100, depending again on the area that the subject property is located in.

The cost of an appraisal may be an expense and may be deductible from the proceeds in some tax areas and for some properties, and this will reduce the net cost of the appraisal. This is an area which each individual will need to consult their respective tax adviser on.

For instances where a property may have been under-priced or over-priced and the net selling price is higher than the net cost of the appraisal, one might say that an appraisal is a good investment. Where market forces or a person’s particular circumstances govern a lower price than fair market value, an appraisal may be a poor investment. Generally though, a professional opinion of value will be more beneficial to a property owner than an individual’s own limited experience can offer.

Using a Home Appraisal as a Selling & Marketing Aid

A Home Appraisal as a Selling & Marketing Aid

A full real estate appraisal done by a professional may be an essential aid in marketing a property. Before a property is listed, whether For-Sale-By-Owner or through a Realtor, is the best time to get a Market Value appraisal with a listing price analysis. A pre-marketing appraisal can assist in preventing over-pricing or under-pricing a property, thus enabling an owner to obtain their best price.

Once the subject property has been listed, the pre-marketing appraisal may be used to inform prospective purchasers and/or Realtors what the current market value of the subject property is, thus possibly reducing the potential for large scale negotiating. In other words, if an appraisal is made available to prospective purchasers and/or Realtors, the likelihood of receiving a sale at or near the list price is greatly enhanced. Prospective purchasers and/or Realtors will have more confidence in the value of the subject property.

Once a purchase contract has been agreed to, it may be possible to have the appraiser provide a letter of transmittal to the purchaser’s lender so that the purchaser may use the appraisal, thus saving the purchaser time and money in getting his/her mortgage approved.

The Home Appraisal: Expertise in Market Research

 The Professional Appraisal: Expertise in Researching Market:

Each and every day professional appraisers are gathering information from many sources to include in the appraisal reports they write. One of the first sources to check is the MLS. This search brings up all the current listings, expired listings, cancelled listings, withdrawn listings, all the sales over the past 5, 10, 15, or 20 years, depending on the archive facilities of the local MLS board. Looking at old MLS data and information can be a valuable resource for confirming: age, size, and details of the property; improvements to a property; and/or missing data from the current listing, if there is one. Next, assessment and/or municipal records are searched for the maps, site plans, site maps, legal description, site size, site configuration, zoning, and/or conforming/non-conforming usages. Next, the property is searched on the internet to determine if there are any adverse factors that may pop-up, such as: the property is listed For-Sale-By-Owner, the property has been a grow-op (marijuana growing location), damaged by fire, flood or other means, been the target of illegal activity, etc. Internet browser maps can focus in on what is in the subject area and what types of properties are adjacent, near, or across the street from the subject property. In some areas, street eye-level images are available to get a good idea of the surroundings. In some centers, appraisers routinely do a title search on the subject property and note any irregularities on their appraisal report.

Once the subject property has been adequately researched, the subject property inspected or viewed, many of the above mentioned research sources are utilized in checking out the comparable sales, before the appraisal report is completed and delivered to the client.

You Need an Independent & Objective Home Appraisal

A Professional Appraisal: Your Independent & Objective Opinion

Clients hire professional appraisers for their independent & objective opinions, not to rubber-stamp predetermined sales prices, lending values, assessment values, cost estimates by builders, reconstruction cost for damaged properties, or market values for third party uses such as the income tax department or financial projections. As mentioned in the previous section, a professional appraiser treasures his/her credibility and likewise his/her right to have an independent and objective opinion regarding the value of the particular property that he/she is appraising. This opinion may or may not confirm another party’s estimate of value, such as: a sales price, a lender’s indicated loan value, an assessment value, a cost estimate by a builder, or a price on a private or MLS listing. Where another person’s estimate of value accurately reflects current market value, the two should be in alignment.

A Home Appraisal Gives You Reliability & Verifiability on Value

A Professional Appraisal: Your Assurance of Reliability & Verifiability on Value of Your Property

Professional real estate fee appraisers are educated in many aspects of property valuation and real estate markets and one of the main focuses of the appraisal profession is reliability and verifiability. Essentially the data and information which an appraiser uses must be reliable and verifiable. The most common source of data and information which residential real estate appraisers use is the Multiple Listing Service (MLS). The MLS is used because the data and information is on an open market system, open for all interested parties to see and use. The Realtors who provide the MLS data and information are legally responsible to the users of that data and information, and are expected to originate or confirm the data and information to the best of their professional abilities. Some data and information is a matter of opinion and may be open to interpretation, however, for the most part MLS data and information may be relied upon faithfully by an appraiser. Another source of data and information is the own appraiser’s files on comparable properties. This data and information is prized by the appraiser, for he/she has personally verified the details at some past point in time. There is the possibility that a comparable property on file may have had renovations, upgrading, or may have even suffered damage from fire or flood, hence there is the possibility that the details may not be totally reliable.

Assessment records, Land Titles Office records, For-Sale-By-Owners, project developers, house builders, and exclusive listings are some other sources of data and information that can be utilized for comparable sales, however the details on these types of sales are often not complete and may require further verification by the appraiser when utilizing them in an appraisal report. Instances where the subject property has unique features, an isolated location, and/or where there are a limited number of MLS sales, these sources are often very helpful. The professional appraiser makes note of these situations in his/her appraisal report so that the appraisal report reader is fully informed and can adjust his/her expectations of the report.

 

Do Home Appraisals Give Historic Present or Future Values?

A Professional Appraisal: Do You Need an Historic, Present, or Future Value?

Real estate fee appraisers rely on historic costs, historic comparable sales, and historic or present income to base their estimated values for residential properties. Other types of appraisals (i.e. for commercial, industrial, multi-family residential properties) may include future values, which are generally based on some method of expanding a projected future income stream from the subject property to arrive at a Future Value as of a certain date in time. A projected future income stream from a property may also be discounted using various formulas to arrive a Present Value of the income stream, which would be reconciled with other approaches to value to arrive at an Estimated Value for an income producing property.

The type of future value that many people think of is the value that their property will be worth in the future, i.e. 6 months, 2 years, 10 years. This is generally a projection of a short-range trend line; showing graphs of historic Multiple Listing Services (MLS) average sales prices that are popularized in the media. If one looks at the long-range trend line picture, one will see a number of corrections in which prices fall for periods of time. If one smooths out the overall long-range trend line it will be seen as rising over the past century, hence one can conclude that residential real estate appears to be a good investment. The only caveat is that one never quite knows when a correction in the real estate market will happen, so that accurately projecting a future value of an individual residence becomes a guessing game at best. In addition to never really knowing when a correction will happen, the depth of the correction (i.e. the percentage drop in market values) or how long it will be before the market recovers to previous levels (i.e. 6 months or 6 years) are also unknown factors.

When pricing a house for sale, owners often include a certain amount of negotiating room in the asking price, thus making the asking price somewhat higher than current market values. As a particular real estate sector becomes more in demand, prices rise because owners receive offers that are closer to their asking prices. As time goes on, these small increases amount to moving the real estate market higher and higher. This is also, in effect, the projection of future values. This analysis can also be done by an appraiser for an individual residential property by including an addendum section in an appraisal, which adjusts competing current listing prices to reflect a listing price for the subject property. This can give an indicated estimated listing price for a particular property, however this is not an appraised value as such, but an educated projection of what is reasonable to list a property for in order to obtain the current market value based on the standard appraisal practices according to USPAP (Uniform Standards of Professional Appraisal Practice) or CUSPAP (Canadian Uniform Standards of Professional Appraisal Practice) standards.

A Professional Appraisal – What is it?

 A Professional Appraisal Defined

The type of appraisal we are talking about here is the one which is completed by a certified, designated, and/or licensed real estate fee appraiser. There are three Approaches to Value available to the appraiser. The Market Approach to Value considers recent comparable sales in the subject area. The appraiser utilizes dollar or percentage adjustments to the selling prices of these comparable sales to reflect the differences between the comparables and the subject property and arrives at an Indicated Market Value of the subject property. The appraiser may also include the Cost Approach to Value where appropriate, incorporating current building costs and depreciation for age, condition, location, deferred maintenance, and obsolescence, etc. to arrive at an Indicated Cost Value. The Cost Approach is not typically used by purchasers or sellers in the market place. Further, there is little or no evidence to support the rates of depreciation used in this approach. If the subject property is rented, the third approach, called the Income Approach to Value, may be included. The Income Approach basically takes the net income of the subject property and capitalizes that income using various methods to arrive at an Indicated Income Value of the subject property. The appropriate Approaches of Value are considered and reconciled within the residential appraisal report to arrive at a final Estimate of Value. It should be noted that the Market Approach to Value is generally the most prevalent indicator of value for most owner-occupied single family residences, since this is most reflective of the process most purchasers go through in their quest for a new home.

Is Your Landscaping Adding Value to Your Property?

What Difference Does Landscaping Make the Value of Your Home?

There is nothing that is more useful to someone trying to create a new look and feel in their yard than a good landscaping idea picture. With a landscaping idea picture you will not only get inspired you will learn so much. Yes, I said learn, you can learn a lot by looking at a landscaping idea picture. You can learn what looks fabulous and you can learn what does not look so hot. All that from a little tiny landscaping idea picture. Don’t you think that it is time that you go out and got yourself one?

Where can you find a landscaping idea picture you ask? You can get a wonderful landscaping idea picture from many different places. Your best bet is to get as many as you can and take notes about which ideas you liked and which you really didn’t like. This way when it comes time to start work you will know exactly what you want. You can even show your landscaper the landscaping idea pictures so that he or she can see exactly what you are talking about. This kind of communication is very important because the landscaping contractor may not know what you are talking about otherwise. This way he will see it for himself.

You can get a great landscaping idea picture from the library. In fact you can get hundreds of them there. Visit your library and find the Landscaping and Gardening section, if you are having trouble then ask the librarian, they are there to help you. Explain that you are after a landscaping idea picture or two and you need help. They might even have some books of that kind in a different section as well, who knows?

You can then photocopy any landscaping idea picture that you think may be of help to you. Bring a folder with you so that the landscaping idea picture will be protected and then go home and start making the things that you like in each landscaping idea picture and the things that you hate. If you do not want to write right on the landscaping idea picture then write on the back. This is good because if you were to write about the landscaping idea picture on a different page you could get things confused, this is easy to do if you are dealing with all kinds of landscaping idea pictures.

Landscaping is a matter of personal choice. One person’s magnificent masterpiece is another person’s albatross around their neck. One loves to manicure and fiddle over the most minute detail, while the other just wants a simple, easy-to-care-for, low maintenance yard, so he/she can spend their time with family and/or friends, or spend more time working in their business, or spend the time at the lake or traveling to exotic places.

The value of your landscaping thus depends on who will be enjoying your property when you sell it, not on the time and effort that you have put into building up your own version of Buchart Gardens.

 

Low Maintenance Landscaping With Rocks

How Do You Use Rocks for Landscaping?

You can use landscaping rock to add some depth and texture to your landscaping design. This landscaping rock can come in a couple of different forms, actually there are quite a few. Not only is there a fine collection of colors of landscaping rock there is also several different kinds of stone to choose from. Different landscaping designs will require different landscaping rock. You can get small landscaping rock or larger landscaping rock.

The trick to using landscaping rock successfully is to fully integrate them into your yard and the design. You need to place them in places that will add to the yard, not in places that will make it look like you are trying to cover something up or take attention away from another part of the yard. If you were to just put your landscaping rock here and there you will be doing nothing for the yard and your yard will end up looking strange and unbalanced. You should plan exactly where each landscaping rock should be placed for the ultimate good effect.

If you take the time to bury your rock it will look much better. This will make them look planted and they will blend in and look as if this is where they really should be, not just where they got clunked down.

How far should you bury your roc in the ground? The depth will all depend upon the landscaping rock that you finally choose fro your yard. If you choose a very large landscaping rock then it should be deeper than a smaller landscaping rock. Four to six inches is a good depth for your landscaping rock to be buried.

It is easy to build a landscaping rock. All you need to do is dig a spot about the size of your landscaping rock and them place the rock into it. You can then just tuck some dirt into the spot around the rock and then you are done. Voila!

Think about it, this is what rocks and boulders look like when you see them out in nature. The next time that you are out taking a walk or you are hiking keep an eye out for any large rocks, look at how they sit in the dirt and then try to get the landscaping rock in your yard to look just as natural.

 

 

Hardwood Floors: Tips for Selecting Flooring

Do Hardwood Flooring Make any Difference to The Value of Your Home?

To create great looking hardwood floors in your home requires several important functional and design considerations to get it right.  Whether you are considering natural hardwood floors, bamboo, or even laminate flooring – pay close attention to the following tips.

DESIGN STYLES

With thousands of colors and styles to select from today it can seem like a daunting task to make the right flooring choice. To narrow the field down it is recommended that you select a flooring style that complements your overall interior design style. Nothing will look worse that a glaring clash of styles, so make sure your new flooring complements your existing (of planned) interior design. Look here for a quick summary of matching hardwood floors and their design styles.

SITUATIONAL FACTORS

Almost every install will have physical or functional requirements that will further narrow down the scope and selection of an appropriate hardwood or laminate flooring system. Here is a brief summary of factors to consider:

FLOOR TRAFFIC EXPECTATIONS

The quantity and type of traffic you expect on your floors will impact the flooring material you can choose. Laminates offer high durability, as well as wood species that have high “hardness rankings” on the Janka scale. Softer woods are generally not a good selection for high traffic areas.

SUB FLOORING

The quality of any new hardwood flooring installation can only be as good as the sub floor underneath. For the best outcomes, the sub floor should be dry, stable, and level. Concrete sub floors generally are only acceptable for laminate installations, but you should be mindful of installing a quality underlayment that provides an appropriate moisture barrier as well as good sound installation. Poor laminate installations will sound very hollow when walking on it.

HUMIDITY AND TEMPERATURE

To prevent warping and cupping of floors make sure there is adequate ventilation and regulated temperatures thought the year. Laminates work best in areas that experience higher humidity levels.

INSTALLATION

The time and cost of installation is an often-overlooked factor in floor selection decisions. Glueless click-style floating laminate floor systems can be a weekend project for experienced do-it-yourselvers, and can save a lot of installation labor. Other flooring installation methods are generally more complex and will require professional installation in most cases.

WARRANTY

Making a successful claim under a flooring warranty often requires that you can demonstrate the product was installed exactly as per the manufacture’s recommendations and that the damage is not a product of wear and tear or poor workmanship. Hiring a professional installer and dealing with a large brand name product that has an established track record is your best protection.

 

Bathroom Remodeling Ideas to Add Value to Your Property

Bathroom Remodeling Ideas to Add Value to Your Property

When we often think of home improvement projects, such as a bathroom-remodeling project, we tend to think of what that project can do for us, personally. While you can easily benefit, a number of different ways, from having your bathroom remodeled. Did you also know that your home could benefit as well? The truth is that your home, itself, can benefit from a bathroom-remodeling project, often in more ways than one.

Before you can begin to understand the benefits that your home may reap from a bathroom-remodeling project, it is a good idea to focus on what a bathroom-remodeling project is. Depending on whom you talk to, you may get different definitions of a home improvement project. Although there are some who say that a bathroom remodeling project can only be considered remodeling if all of it is changed, there are others who claim that simply replacing your bathtub is enough to constitute a bathroom remodeling project. Whatever your bathroom remodeling plans are, whether they only involve replacing your bathtub or changing around your whole bathroom, your home can still benefit from the changes made.

Perhaps, the greatest bathroom remodeling benefit that your home will see will be an increase in value. The majority of homes that undergo a bathroom-remodeling project end up seeing an increase in value. This is because almost all bathroom-remodeling projects result in something better. Even though a small bathroom-remodeling project may result in an increase in value, the larger projects are often ones that produce the biggest differences in value. Despite the fact that most homes do see an increase in value, after a bathroom remodeling project has been completed, it is important to note that not all homes to. If your bathroom-remodeling project was poorly done or never got completed, you may actually find that your home’s overall value decreases. That is why it is important that all projects not only get finished, but that they get finished right.

Aside from an increase in value, a bathroom-remodeling project may help to improve the appearance of your home. As previously mentioned, most bathroom remodeling projects are done to improve a bathroom, in other words, make it better than it was before. Whether your home just didn’t look attractive or if your bathroom needed repairs to make it safe again, your bathroom could greatly benefit from a new facelift. In fact, you may find that your bathroom not only looks better, but so does the rest of your home.

Although it is nice to know what a bathroom-remodeling project can do for your home, you may also be wondering what it can do for you. As stated above, homeowners often end up benefiting, in a number of different ways, from a bathroom-remodeling project. Many of these benefits are, in a way, related the appearance of your home or bathroom. Since bathroom-remodeling projects almost always result in something better, you, as a homeowner, may feel proud of your new bathroom. In fact, you may feel as if you got a whole new bathroom. Since there is a good chance that you will be pleased with the changes, you may find yourself more willing to invite your friends or family to come into your home; thus resulting in a whole other set of benefits.

As you can easily see, there are an unlimited number of benefits to having your bathroom remodeled; benefits that may not only apply to you, but to your home as well. If would like to reap many of the above-mentioned benefits, you are advised to get started today. The sooner you start your bathroom-remodeling project, the sooner you can be pleased with the end result.

 

Tips for Selling Homes

Selling homes can bring lots of fun and excitement but it also takes hard work.

It requires fixing and all those small problems that you have not bothered to look into for many years. You also need to decide if you are going to sell it all by yourself or contact a professional real estate broker. The transaction will take time, depending on the local real estate market.

Some mental and emotional preparation is needed too. Are you looking forward to moving up to a new dream house or facing the uncertainty of a major move across the country? This will make you feel so hard leaving the memories behind or keen to start a new life without the home you have lived in.

The turbulent feelings that you will be facing should be replaced by plenty of practical matters that need more attention.

There are many questions that will be considered in deciding if your home will caught up in the selling market. A for sale home should be visually appealing and in good condition that will attract potential buyers driving down the street.

It should be attractive to an outsider’s eyes. This checklist will help you decide if it passes the standard of an outsider’s eyes.

• Are the lawn and shrubs well maintained?

• Are there cracks in the foundation or walkways?

• Does the driveway need resurfacing?

• Are the gutter, chimney (if the for sale home has it) and walls in good condition?

• Do the window casing, shutters, siding or doors need painting?

• Are garbage and debris stored out of sight?

• Are lawn mowers and hoses properly stored?

It is important to clean the mess inside, this will affect the transaction. Buyers prefer clean and comfortable home. It is better to touch up the interior part of your home. Like put a fresh coat of paint in the most used areas. This will clean as well as brighten up the rooms.

Wash the walls where paints are not appropriate (for example wallpaper, paneling and tiles). Wash all floor and bathrooms tiles. Clean or better yet shampoo dirty carpets. Get rid of clutter. Clean out all closets, basement and attic. Use self-storage if necessary. Replacing air filters and put some fresh plants that will help keep the dust down.

It is common that sellers want to get top dollar for their home, but consider that it will scare off potential buyers. This may also cause the property to languish on the market for many months. And reducing price later may lead buyers to wonder if there is something wrong with the home. Here are some factors to consider in putting in the right price for your home:

• The location

• Economic conditions

• Supply and demand in the local housing market

• Seasonal influences

• Local schools

• Average home prices in the neighborhood

• Home’s extras (like pool, fireplace, central air etc)

In determining the value of the home, you probably will want the advice of an estate agent or appraiser. Agents can prepare a market analysis for you, showing the recent selling prices of three neighborhood properties comparable to your own. They can also help you adjust for the unique features of the home you’re selling.

If the seller has less of information around home selling market, it’s better to contact a realtor. In finding realtor, find someone that you feel comfortable with.

First ask your friends and acquaintances for any recommendations, still the final decision and choice should be based on your needs. Realtor should show you research to support any recommendations, this includes information about recent sales, current listings and recent expired listing in your neighborhood.

The realtor should be more knowledgeable in the area that the home located. And will get better co- operation from other agents. You should ask references from the realtor, he or she should be willing to give you names of previous clients. Look for a realtor who can tells you what he or she knows from experience in the market, and not what they think you want to hear.

These home selling tips can help seller stop headaches about selling his or her home. All these can be a source of problem and sellers should be serious about it. Do not make yourself regret everything for not doing the right thing.