Tag Archives: Real Estate Market

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 This search brings up all the current listings, expired listings, cancelled listings, withdrawn listings, all the sales over the past 5, 10, 15, or 20 years, depending on the archive facilities of the local MLS board.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.

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.

Should You Remodel Your Bathroom?

Why You Should Make the Decision to Remodel Your Bathroom.

Each year, thousands, if not millions, of homeowners make the decision to remodel their bathrooms. Are you looking to become one of those individuals? A large number of homeowners are, but despite wanting to remodel their bathrooms, many do not end up doing so. One of the reasons for that is because of uncertainty. You and other homeowners just like yourself often wonder whether or not they could benefit from having their bathrooms remodeled. Of course, the final decision is yours to make, but you will find that you can benefit a number of different ways from having your bathroom remodeled.

One of the many benefits of bathroom remodeling is the possibility of an increased home value. This bathroom remodeling benefit is one that is important, but it is also one that tends to go unnoticed. A large number of homeowners do not realize that by remodeling their bathrooms, the value of their homes could increase. Although most bathroom remodeling projects do result in an increased home value, not all do. The increase in value, if there is any at all, will depend on the type of bathroom remodeling that is done, as well as the quality of the remodeling. That is why it may be a good idea to have a professional remodel your bathroom for you.

Another one of the many reasons why you should make the decision to remodel your bathroom is because what a bathroom remodeling project can do for you. If you are even thinking about having your bathroom remodeled, there is a good chance that you are unhappy with the current state of your bathroom. Since the bathroom is often considered one of the most used rooms in a home, you will likely be spending a fairly large amount of time in there. When you are in your bathroom, it is important that you feel pride, not disgust. That is why if you are unhappy with the way that your bathroom looks or the way that it makes you feel, you may want to think about starting a bathroom remodeling project soon.

In addition to how a bathroom-remodeling project will make you feel, it is also important to examine what it can do for your home. Aside from increasing the value of your home, a bathroom-remodeling project will likely increase the appearance of your home. This appearance will not only be noticed by you, but your guests may also notice it. An attractive home or at least an attractive bathroom may help to make your home feel more welcoming and inviting. In fact, once you have your bathroom remodeled, there is a good chance that you may be more willing to invite your friends or relatives into your home, whether it is for a party or just a small social call.

As you can see, there are a number of different reasons why you should want to remodel your bathroom, or at least think about doing so. What is even more amazing is that the above mentioned reasons are just a few of the reasons why a bathroom remodeling project may be just what you need. In fact, there are not only a large number of reasons why you should remodel your bathroom, but there are also a large number of benefits too. That is why it is, at least, advised that you sit down and think about remodeling your bathroom. After a close examination, there is a good chance that you would like to get started right away.

 

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.

 

Buying A Home After Bankruptcy

Buying A Home After Bankruptcy May Improve Your Credit Rating

NOTE: The following article is general information only and does not constitute legal advice.

The good news of having a bankruptcy record on your credit report does not mean you can’t buy a home. Believe me or not but people who have gone through bankruptcy have been able to encouraged themselves to build credit by taking on debt again

But the bad news is that the debt will be closely scrutinized and may come in smaller amounts and high interest rates. This usually happens because when you experience bankruptcy you are now tagged as high-risk borrowers.

But these negative thoughts rather facts should not dishearten those with deprived credit account from investigating their home loan options. The conscientious use of credit is the only way up from a bankruptcy filing.

Bankruptcy can provide liberation to people in terrible financial straits by releasing them from the obligation to repay their debts.

It’s a drastic move for anyone because a bankruptcy will stay on a person’s credit rating for up to 10 years, effectively acting like a warning flag to anyone considering lending that person money or a line of credit.

In order to mitigate the risk of providing that person a loan, the lender will charge higher interest rates than they normally would. For instance, an auto loan that might ordinarily carry six percent interest could come with an interest rate of eight percent or higher.

But, as time passes and small loans and credit card balances are paid off on time, the bankruptcy filing becomes less and less significant to a lender.

Establishing good credit after bankruptcy is essential. The following will help recent bankruptcy filers regain their financial strength:

Pay bills on time. This is the single best thing bankruptcy filers can do to build up their credit rating.

Acquire and use a secured or unsecured credit card. Just don’t charge any more than you can afford to pay off each month.

Read your credit report. Errors are possible, and keeping tabs on your progress will help you stay focused on the goal of rebuilding after bankruptcy.

Mortgage companies would want someone with a reassurance that is on safe and responsible track. Many lenders prefer to see three things when considering loaning money to someone following a bankruptcy.

First thing is a long stretch preferably two years or more of on-time bill payments. This may be hard due to the case of reliable income. Likewise, with a steady work history and a down payment, even a small one, it would not be impossible for someone just coming out of bankruptcy to secure high ratio coverage on a home loan.

A down payment is the second thing and a steady income coming in on third. Well this isn’t much as hard as the first one since. Some lenders will be willing to provide a loan sooner than two years if there is evidence of responsible bill payment on a car or secured credit card plus reliable income.

Just keep in mind that after experiencing bankruptcy buying home may not be impossible.

There are many reasons a person chooses to file bankruptcy. The loss of a job, unexpected medical bills, and overwhelming credit card debt are just a few of the factors that can lead to filing bankruptcy.

The mortgage lending industry has created special loan packages and terms for those who have filed bankruptcy in the past.

Lenders have little to lose in approving a home loan after bankruptcy. With your home serving as collateral for the loan, the lender can feel confident in approving you for a home loan, often soon after your bankruptcy has been discharged.

In summary, cash will solve this problem, for sure. However long it takes to gather that cash is how long it will take to get the house.

Start thinking about how you can make money in your spare time, selling on line at eBay, doing freelance work, or starting your own business.

You can increase your chances by coming into the deal with a lender with as much cash as possible. The more money you can use as a down payment, the less risk for the bank. There is a level where they’ll lend you the money because the loan is secured by the house and the house is worth more than the mortgage.

Keep an open mind to all the possibilities.

 

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.