Tagged : Appraisal

Found 17 blog entries tagged as "Appraisal".

Automated Valuation Models (AVM’s) have become prominent on the internet over the past few years.  As an appraiser, I have been asked many times, “Why did the appraisal come in lower (or higher) than these AVM’s?”

To give an answer to this question you must consider where all this information is coming from.  For the most part, these “figures” are derived from tax records and/or Multiple Listing Services (MLS systems) and in some cases, the information used is gleaned from appraisers’ files.  When accessing these services, some AVM’s give options to help narrow down the fields utilized for the calculations.  Most AVM’s include your zip code, the number of bedrooms and the number of bathrooms you may have.  Other AVM’s (the better ones) give you more

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Agent’s Fall into Two Groups

Many agents that get into the real estate business have little or no experience.  Their lack of experience will allow you to overprice a home.  I recently had a call from a friend who had a house in the Decatur area.  The home was listed for $469,000; my analysis suggested that it should be listed for $372,000.  It was listed for $100,000 over what it should have been. The process included routinely decreasing the price.

When you meet an agent that has years in the business, the agent will not allow for a home to be overpriced.  This will ensure that the agent is an advocate for you.

Overpriced Homes will Lead to Fewer Showings

When a home is listed, the buyers have options for searching for homes in

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The Worst Appraisal In 34 Years

There are things that the appraiser needs to do to have a good appraisal.  These all require more attention to the appraisal so that the appraisal is one that meets the appraisal standards.  There are numerous things that the appraiser needs to consider when appraising a property.  This is the worst appraisal that we have ever received.  I will define some of the items that the appraiser defaulted on.

Problem #1

This ranch was built with brick in 1971 with 2071 square feet.  The appraiser used 2 stories and neglected the ranches that were also built with brick.  A requirement of appraising a home is that they have to be similar in structure.  To be similar they have to have 10% greater or less in square

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Sellers and buyers will both benefit from having a better understanding of where a home fits into the overall pricing structure of a community. As a buyer by following these simple guidelines you can increase the likelihood that the offer you make will represent a good value to you, and if a seller you won't be inclined to turn down an offer that you should accept.

First- Have your agent provide you a list of all of the homes like the one you are considering, that is either under contract, or that have sold within the last 3-4 months. 

Second- Upon review, you will begin to notice that they can be arranged into three categories.  Let’s call these categories A, B, and C. Now separate each of the properties into one of the three categories. 

 

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As a result of the Financial Crisis, there have been many changes made to how appraisals are performed.  The reality is that lenders usually do not have the ability to order an appraisal directly from the appraiser.  They are now required to contact an Appraisal Management Company to order an appraisal. 

The Process

Once the lender has ordered the appraisal for the AMC, the AMC assigns the appraisal to an appraiser.  Once an appraiser is confirmed, the appraiser will reach out to the listing or selling agent.  I always make sure that I am the contact for the appraiser; whether representing the Buyer or the Seller.  Once the appraiser reaches out to confirm an appointment; I always meet the appraiser at the home.  Once the appraisal is

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We Are Now Offering Sold Data for Property in Your Community

A recent website upgrade of ours included the addition of SOLD DATA.  This information not only includes all listing data associated with the listing while on the market, but also all changes in pricing and STATUS CHANGES.

How to Use This Information

Once on our site you will see SEARCH AREA on the right side of the site.  Immediately below you will see FMLS, use the drop down arrow to display FMLS SOLD'S.  Once selected you may search from her, or you may choose to REFINE your search, which will provide many additional search fields to further assist in your search.  Our site also provides SOLD DATA on commercial, multi family, land, lots, condo and town homes. 

 Access the

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With the continuation of historically low-interest rates, and inventory continuing to be low, all buyers at all price points should consider ways in which to distinguish and elevate the quality of their offers.  There are several ways in which to do this.

Make Sure You Are Pre-Approved For a Loan 

Including a Pre-Approval letter a fundamental element of all offers, without it a seller can only wonder if the transaction will provide a predictable outcome.  Additionally, there are different views of what the Pre-Approval letter should reflect.  Some agents prefer that the Pre-Approval letter reflect the offer price, thinking that this might compel a seller to accept the offer due to the fact the buyer can only qualify for the offer

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With the ongoing challenges presented by the current economy and the new rules associated with the HVCC Guidelines, the strategies used to insure that your interests as a buyer are protected are essential.  One special area of consideration in Georgia is the “Due Diligence Period”.

Prior to the recent decline in real estate values the biggest challenge faced by most buyers was resolving with the sellers any items that came up on the inspections performed.   This was due in part to the fact that loans were readily available for practically any buyer with no money down and very little qualifying. And, to the fact that prices were pushed up due to overly relaxed lending guidelines which encouraged buyers to pay more for homes because they could finance

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For homeowners, a real estate appraisal is the essential element to buying or selling their home. It allows the property transactions to occur among the buyer, seller, real estate agent and mortgage lender.

Before an Appraiser arrives, there are a few things you should know. By law, an appraiser must be state licensed to perform appraisals prepared for federally related transactions. Also by law, you are entitled to receive a copy of the completed appraisal report from your lender. Your appraiser can not provide a copy of the report to you if the order came from a lender without written permission.

To facilitate the appraisal process, it's beneficial to have these documents ready for the appraiser:

  • A plot plan or survey of the house and land
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Things to Consider When Challenging Appraisals

I recently received a call from a Keller Williams agent seeking insight into how to rebut an appraisal on a home in Roswell.  The appraisal had come in below the contract price, and her clients, the sellers were unwilling to adjust the price to the appraised value.   In an appreciating market where inventory is low, and Buyers are offering more than list price to insure that their offers are accepted, elevated values will often times need to be supported during the appraisal process.

A Recent Appraisal Rebuttal

Below is an appraisal rebuttal for a home in Roswell that specifically addresses the appraiser’s comments and approaches to the appraisal.

Click here for more information on establishing market

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