Category Archives: Real Estate

How to Deal With a Low Home Appraisal

Want to learn how to deal with a low home appraisal? In a competitive real estate market, a home being sold may enter into a multiple offer situation which could potentially raise the purchase price above the comparable sales in the area. In a situation like this, it is possible that the home appraisal for the buyer’s mortgage lender will come in lower than the purchase price. In a real estate market that favors buyers (home prices are soft or declining), sellers can also face a home appraisal that is lower than what they paid for the home if they bought the house at the peak of the market. Be aware that a low home appraisal can happen in any type of real estate market.

Why Do Low Appraisals Happen?

Here are a few reasons why a home appraisals may come in low:

  • Inflated home price because of multiple offers.
  • Declining real estate market due to a large inventory of homes and not enough buyers.
  • The seller has overpriced the home.
  • The real estate appraiser lacks experience and doesn’t understand the influences on value.
  • The real estate appraiser incorrectly selected his comparable sales for his report which may have resulted in a lower home value than what should have been assessed.

Solutions for Low Appraisals

If a low home appraisal is threatening to sink your sale, purchase or refinance, stay calm, here are a couple solutions:

    • The buyer can pay you the difference between the purchase price you agreed upon and the appraised price in cash, you can sell the property for the appraised value and get the difference from the agreed upon higher price in a lump sum cash payment if the buyer is able to do so.
    • If you are the seller of the home you do have the option of lowering the selling price. If you don’t you will run the risk of every buyer running into the same problem and not being able to get a mortgage because of a low appraisal.
    • The seller can offer to carry a second mortgage for the difference.
    • If the buyer feels they absolutely have to have your home and you are not willing to lower the selling price and the buyer cannot come up with a lump sum to pay you (as mentioned in option 1) you could accept having them make payments to you over a period of time instead of the lump sum.
    • Get a second opinion, have the buyer ask the mortgage lender for a list of their approved appraisers and select another company on this list and hope for a higher value, you could end up wasting another $300 on an appraisal but appraisers are not perfect and a mistake could have happened.
  • Cancel the transaction.

Have your realtor put in your purchase and sale agreement a loan contingency that if the home appraises for a lower value that you will get your money back (if you’re the buyer). If you are a seller being affected by a low appraisal propose on of the above options to your buyer if you would like to try and salvage the transaction.

Article Source: http://EzineArticles.com/expert/Bryce_Witherspoon/2114219

Sometimes It is Good to Move Away from Family Who Bring Chaos into Your Life

We both have some strange relatives. My wife and I have talked about this from the first time we met and I had to endure her brother and she endured my sister. We both joked that we must be adopted and they never told us. We do not act like our siblings or parents. They are really into drama and they keep it going by stirring arguments up and minding other people’s business. We decided to move when it kept hitting close to our home. We looked for nice apartments for rent in Nicholasville KY and found the perfect place. We love our families, but we need to live our own lives without all the drama.

We purposely picked a one bedroom apartment just so no relatives would get the idea to come and stay for a few days while things cool off at home. We have heard that so many times. We purposely picked Nicholasville because it is a nice place and about three hours away from our nearest relative. We certainly would keep in touch with our parents and siblings, but we knew they would be okay living out their lives of drama and intrigue that only they could enjoy.

We Wanted Peace and Quiet in Our New Apartment and Ended Up with That and More

I was frustrated after being awakened three night this past week when our neighbor got home from work. He is working an odd shift now that ends at 1:00 AM. He gets home about an hour later and needs to wind down before he goes to bed. He winds down by watching movies with his big screen TV and surround sound. Nothing like an action movie in the next apartment in the middle of the night. It was not going to change anytime soon, so my wife told me to look for nicer Murfreesboro apartments for rent. Neither one of us wanted to live here any longer. Our lease was ending in a few days, so we would be free to move without any issues.

We started by picking up those free booklets that tell you all of the apartments for rent in the area.

West Midtown Apartment Prices in Atlanta

I am excited that I am going to be moving to Atlanta here in the next couple of weeks. It is really an exciting period in my life, but as is typical with an exciting period in your life such as this, there is an enormous amount of attendant stress and anxiety. I do not have a place to live yet, and I am going to have to move into the city on a pretty exact time frame. I am trying to check out info for west midtown Atlanta apartments right now, because I have heard some good things about them.

The Importance of Master Planned Communities

Why Master Planned Communities?

According to predictions, there will be changes around the globe in the future that will challenge the way people live. These changes include:

  • Much higher gasoline prices
  • Greater emphasis on energy efficiency
  • Environmental protection and other green features
  • Growing water shortages
  • A 24-7 world that will demand amenities that are open 24-7

To be able to keep up with the global changes, innovations are needed, especially in the real state industry. Understanding the future requires understanding the demographics and how they influenced the market. Thus the birth of the Master Planned Community.

What Is A Master Planed Community?

A Master Planned Community (MPC) is a large scale self-sustaining residential plan. It has a number of various essential amenities not normally found in a regular housing subdivision. A Master Planned Community gives the ability to work, live and play all within walking distance. Some real estate professionals consider this type of luxury real estate development a “Mixed Use” development since they include retail, housing and entertainment In previous times, clubhouses and pools were at the top of home buyers’ lists. Today, access to neighborhood retail services, hi quality restaurants and health care is becoming the top priority according to the latest research. People want to get access to everything they need quickly and at reasonable prices, thus walkable access to civic use areas is in high demand.

Convenience

Master Planned Communities are designed to provide a master planned convenience. In its varied housing within a community layout, homes are designed to conform to the lifestyle of diverse generations. They are created to provide both soft and hard amenities and services in the way people want them delivered. These luxury communities facilitate residents building and living comfortable lives and having more time to spend with their families. This lifestyle also enhances connectivity between neighbors and their surroundings through shared spaces created for everyone across varied demographics to use whether alone or together.

Important Aspects of Master Planned Communities

To highlight the benefits and most significant aspects of Master Planned Communities, listed below are some of the reasons why it is important to the home buyer.

1. Better Access to Important Resources

As mentioned above, people nowadays want to have easy and quick access from their own homes to their most important resources. In regular housing subdivisions, however, people bought all lands and built huge properties to maximize their lots, leaving no space for other amenities. In Master Planned Communities, lots and houses are planned accordingly by providing a required minimum and maximum size. That ensures that there are more open spaces for the building of other amenities. For example, park and play spaces are already built within the community and cannot be removed or replaced by any other infrastructures. In Master Planned Communities, virtually everything a resident needs is within the community or within short distances. This kind of setting is not just good for working parents, young professionals, aspiring entrepreneurs, and retiring baby boomers, it is also great for children going in and out of school most of all.

2. A Sense of Community Among Residents

The quality of neighbors defines a community. Not surprisingly, most people living in a luxury real estate development such as a Master Planned Community share a common interest which instantly creates a sense of togetherness among neighbors. As a result, residents feel safer, more serene, and more secure. Community events are organized within MPCs to provide residents with an avenue to socialize, get to know each other, and build strong connections. Additionally, the Master Planned Communities are founded on good governance with the rules and responsibilities of every community member that are declared beforehand. Many Luxury Master Planned Luxury Communities provide a variety of different community activities based upon the area within the PUD. For instance, in the luxury area, where homes start at $850,000 or so, you may find high end marinas, with wet slips and dry boat storage. Some luxury developments even have their own private beach in the luxury sectors. In the sections of the Planned Unit Development (PUD) where the homes are in the $300,000’s you may find community activities that involve fishing and pool parties.

3. Incorporated Agriculture

Gardens owned by the community is becoming popular in some Master Planned Communities. MPCs work to assist its residents to have their own local food production through either providing community gardens or incorporating small-scale farms.

4. Best Practices for Handling Transportation Issues

The use of multiple trails for biking and walking as well as the presence of sidewalks are necessary features of Master Planned Communities. And, as a solution to the most frequent and current demands of the community on transportation, MPCs implement various, sometimes combined, options of transporting people such as an electric autonomous vehicle systems, bus transit stops, car-sharing services, charging stations for electric vehicles, providing golf carts for driving within the community, or implementing shuttle services.

Other Significant Aspects

Play spaces, fitness boot camps, sand entry beaches, and co-workspaces are a few additional amenities to present in Master Planned Communities. Health and wellness is also one thing that MPCs are giving special attention to as more and more people are wanting to become healthier. The great outdoors with fresh, local produce and fantastic health care are things they are incorporating into the community in addition to sidewalks, pedestrian ways, multi-use trails, and social gathering places. On top of it all, Master Planned Communities have long-term increase in value which leads to great Return On Investment for home owners if planning to sell or rent their property. Master Planned Communities are also great for entrepreneurs. Business opportunities tend to be in abundance as many new partnership opportunities with companies that offer products and services wanted by the new generation of consumers emerge. For aspiring business owners, office spaces tend to be nearby at reasonable prices. The workers of businesses within planned communities tend to earn higher than average incomes. Many residential buyers look for the best location, easy access, quality neighbors, important amenities, and valuable future developments in choosing a home. A Master Planned Community is the realization of what was once just a dream community for many.

Article Source: http://EzineArticles.com/expert/Dean_Cacioppo/2071322

You Need to Know This About Home Appraisals

A home appraisal is a critical component of any real estate transaction that involves a mortgage loan. If you are refinancing you will need an appraisal, if you are selling your home to someone that needs to get a mortgage, he or she will need to have an appraisal done.

What Is a Home Appraisal?

A home appraisal is an opinion on value by a qualified, unbiased third party. Mortgage lenders require an appraisal to be completed when you are refinancing your mortgage. An appraisal is also completed in a transaction when someone is buying a home to make sure they have not over paid for it.

Mortgage Lenders require appraisal to ensure that homeowners are not over paying for a property because if the borrower stops paying for the mortgage the lender will take action to remove the borrower from the home and sell it to recoup their money, this is why it is important for the home to be worth more than the money loaned. In essence, a home appraisal is a lawyer of protection for the mortgage lender.

The Appraisal Process and How Appraisal Values Are Determined

These are the main factors that influence your home’s appraisal value: current market trends which are reflected in the comparable properties the appraiser selects, the house’s features,, square footage, number rooms/bedrooms & bathrooms, condition, is the property considered up to date, landscaping and exterior condition and parking (garage). The appraiser will do an interior and exterior inspection for the above noted factors and will also make note of any deferred maintenance which will be included in the report for the lender.

The appraiser will complete his report on a standard report form that is required by their appraisal jurisdiction. The information that has to be included in an appraisal report will not vary much from Canada to the United States.

A standard report includes the following: comparable sales, a street map, building sketch, square footage, photos of the front, back and street scene of the home, photographs of each comparable property used; a map showing the location of the comparables in relation to the subject property, plot map, description of intended users of the appraisal report, photo and description of each room in the house.

The cost of a residential appraisal report ranges from $250-$500 and the homeowner is typically responsible for paying the appraiser..

What Homebuyers Need to Know

When you’re buying a home an appraisal could potentially sink your deal. If you make an offer to purchase a house, towards the end of the home buying process your mortgage lender will require that the home being purchased be appraised. If the home appraises for less than your offer to purchase the lender will not provide the loan, however, this could be good for a buyer as well because you may be able to negotiate to lower purchase price but very often at the point of the home appraisal in the buying process an agreement of purchase and sale is already in place.. If a bad appraisal is standing between you and your home purchase, look into getting a second opinion via a second appraisal. Appraisers are not perfect and it is possible for them to make mistakes.

What Home Sellers Need to Know

As a seller, a low appraisal means that you may have to lower your home’s price to get it sold. Lenders won’t approve loans for more than a home is worth, and holding out for an all-cash buyer who doesn’t require an appraisal as a condition of completing the transaction is unlikely to net you a higher sales price. No one wants to overpay for a home but more importantly a mortgage lender will not over lend on the value of a property, therefor if the appraisal comes in lower than what your buyer is offering this will likely sink your deal unless you lower the price.

What Refinancing Homeowners Need to Know

If you’re refinancing your mortgage and looking to access some of the equity in the home the appraised value is very important. Mortgage lenders will have maximum loan to value ratio that they will go up to so the larger the difference between what you owe on your current mortgage and what the home is appraised at obviously the better. Having a better loan to value ratio will also make obtaining the lowest possible mortgage rates possible. Lenders put a lot of emphasis on this ratio so a high appraisal value is very important.

The Bottom Line

The home appraisal is a very standard process these days in any real estate transaction involving a mortgage loan, it should be taken serious, you should know how the appraisal works and what the value is based upon, if you feel your home is undervalued you can speak with the appraiser and make your case or get a second opinion.

Article Source: http://EzineArticles.com/expert/Bryce_Witherspoon/2114219

Five Renovations That Don’t Increase Home Appraisal Value

Every homeowner must do routine maintenance to their home that more or less just maintains its current condition. However, some homeowners decide they want to improve their home’s value and marketability. The amount of value certain improvements cost may not add as much value as the cost to do it.

Homeowner’s are very biased when it comes to their own home, they see the things they have done to it and think dollar for dollar the home’s value should go up with each improvement, this is not often the case. A potential buyer or real estate appraiser may be unimpressed with certain improvements, what you must keep in mind is that what you view as a valuable upgrade may not be the same as what the real estate market sees as a valuable upgrade.

Below I am going to outline Five Renovations That Don’t Increase Home Appraisal Value.

1. Swimming Pools

There aren’t many areas of the world where backyard pools are common place. Before adding a pool think about your neighbourhood, do the majority of properties have pools? Would a potential buyer expect there to be a pool? If pools are not common place in your area and/or have a very short season you likely will not be adding much value to your home, definitely not as much as the cost to put one in. In fact, Many potential home buyers view swimming pools as dangerous, expensive to maintain and insurance claims waiting to happen. Potential buyers with small children could really be turned off by there being a swimming pool. In-ground pools come at a very steep price, my opinion is if buyers in your area would not expect a pool then this money is better spent elsewhere as you are not likely recoup the cost in a sale or appraisal.

2. Elaborate Landscaping

Home buyers and appraisers definitely appreciate good landscaping, but there is a line where elaborate landscaping no longer adds its equivalent in value to what it costs. Keep in mind that the next person buying your home may not want to take on the upkeep work of elaborate landscaping and may not want to have to hire a professional landscaper to take care of it. An appraiser will also only assess so much value to landscaping in their report as not a lot of emphasis is put on landscaping by the market, how often have you heard of someone buying a home because it had great landscaping? sure it is a plus but you are better off to just meet the standard in your area than to get too carried away.

3. Overbuilding for the Neighborhood

It is better to have the other homes in your neighbourhood “pull-up” your home’s value than to have them drag it down. Your neighbourhood plays a large factor in your home’s value, you do not want a large, elaborate, two storey home surrounded by older bungalows. The people that will be looking for that type of home will go to a neighbourhood where it will be surrounded by similar properties. Likewise, it will be very difficult for an appraiser to find similar comparables in your area and this could lead to a lower value being assessed.

4. High-End Upgrades

Most people are on a strict budget when it comes to home improvements, so what they will do is they will pick a room and do a complete remodel adding higher end flooring and fully modernize the room. This is good and I understand the strategy, next time you have some extra funds, pick another room and the same and after 5 years or so your home will be fully updated. But does that full remodel of that first or even second room really add as much value to your home as it costs? My opinion is now, if you full remodel one room and then plan on selling or getting an appraisal the appraiser is going to see the other 80 or 90% of the home is still dated and would be considered a project. An alternative strategy might be to take all of those funds that you were planning on sinking into an elaborate bathroom and spread them over the whole home, the cost of a full bathroom remodel could redo the flooring and paint throughout the entire home and this would be look upon much more favorably by a potential buyer or appraiser in their assessment of value than you just having one high quality room.

5. Invisible Improvements

New plumbing, electrical or HVAC might be necessary, but don’t expect to be adding dollar for dollar value for their cost. Home buyers and appraisers simply expect these systems to be up to date and in good working order. These items would be considered more home maintenance than home improvements.

The Bottom Line

When spending money on your home assess why you are doing it, if it is purely for your own comfort and enjoyment with no real intent in adding value then go ahead and add that pool. But if you are consciously trying to add value to your home then where to spend your renovation budget requires much more thought. Consider speaking with a realtor or appraiser and ask them where they feel your funds are best spent to improve value.

Article Source: http://EzineArticles.com/expert/Bryce_Witherspoon/2114219

4 Things That Will Help Fetch the Right Resale Value for Your Property

So, you have decided to part with your home. Wondering how to get the best deal that will justify holding it is an investment property until now. Before you put up a notice for sale, or start passing the news to your near and dear, consider the fact that the reality market is some parts of the country has been sluggish.

Hence, it is worthwhile to put in a little bit of effort that will make your property look a lot more attractive to potential buyers. Here are some expert tips that will help enhance the resale value of your home by tens of thousands if not few lakhs.

Pep up the exteriors

As soon as a home is bought, homeowners spend time, money and energy in designing the interiors to their whims and fancy. What they miss to see is that, the exteriors play a major role in creating an impression in the minds of a potential buyer than the interior. It is the exterior that is first seen before they take a walkthrough of the interiors. Hence, pay attention to pepping up your exteriors in equal measure to the interiors to get a better resale value.

Creating additional space

An extra room is fine, but what if it serves no purpose? Moreover, what if that extra room does not fit into the ergonomic layout of the home properly? Instead, think of ways to increase the space inside the home. There are plenty of architect firms with interior designers and vasthu consultants who help altering the physical dimensions of any home to make it appear spacious and airy. A spacious home will fetch a higher resale price than one which boasts about a tiny and ill-fitting extra room.

Setting right minor repairs

Like drops of water that collect together to form a messy puddle, a number of unattended minor repairs can wash away a significant portion of your property’s resale value. A prospective buyer will be more interested in knowing the present physical condition and the expected longevity of the house before making a final decision.

The scene of leaking walls, falling patches and plumbing problems can definitely take a hit on the property’s sale worthiness. Hence, make sure all minor repairs are attended to on a regular basis.

Keep a cushion for price negotiation

Indians are ruthless negotiators. We love to bargain for the best deal in every transaction. Especially when it is about buying a new home expect the negotiation process to be fiercer than what you can imagine. Hence, make sure you price your property with some cushion for reduction during the negotiation process.

You might want to take into consideration the existing market rate of similar properties and how the deals have ended before fixing the price or agreeing to the price offered by the buyer.

The resale value for a property is highly dependent on various factors. Location, floor space, number of rooms and furnishings all play a major role in determining the resale price. However, other factors like well-maintained exteriors, perfectly functioning plumbing and sanitation, additional space for storage, etc. can help further increase the resale value to a higher denomination.

Article Source: http://EzineArticles.com/expert/Sulabha_Kulkarni/1855236

Sparkling Future For Estate Agency

These days the growth factors have been taking a very vast and quick turn which is entirely leaps and bounds and coping with these immediate changes is something very challenging for the different industries. Every industry has its own setup and this may move according to the demands made and the changes evolving. The technology industry needs a very quick response if a business needs to be in the market for a future intent. However, the property and estate agent industry has now been on a steady position and there are bright chances for it to remain income generating in the future. On the other hand, the internet service providers which used to offer the card system have become extinct.

When it comes to focusing on the real estate business specifically one may expect the brightness of future for a number of reasons a few of these reasons may include the following:

Boom of Residential Spaces

These days at every point what we see is the construction of a new residential space which may be a bungalow or a huge building. The population is increasing day by day and with this the demand of residential properties is also increasing with the same pace. Therefore the future of estate agencies here may prove being a very outstanding one because when it comes to the sales and purchases of these residential spaces there is a major chance of the business of real estate to take a boom. The relation between the real estate and the residential properties is a direct one because people need a home for shelter and real estate may give a perfect deal.

Trend of Shopping Malls

Another very commonly increased concept all over the world is the prevailing concept of shopping malls. Previously people accustomed to run after the differed shops in different corners but with the passage of time these malls are taking very significant place in the lives of every individual. In this regard, the development of malls may leave out numerous shops and stores on individual basis which may need a selling agent and here the role of the real estate is something essential. Many builders may approach different agents for the purpose of either purchasing the individual shops left out or the builders working over the mall projects may move towards real estate agents for huge lands. In every case, the future of the real estate agency is a brighter one.

These two factors add a lot to the future of real estate agency and with this the reliability possessed by the agents makes people prefer professionals who are also a plus point for the business of real estate and this is why estate agent jobs are growing.

Candidates can search a range of estate agent jobs, throughout the UK & Ireland at estateagentvacancies.com

Article Source: http://EzineArticles.com/expert/Daniel_Leahy/2193167

Six Characteristics of a Good Note

The six critical factors to be aware of when buying or creating a real estate-backed note include the buyer/borrower, the collateral, the down payment, the terms of the note itself, seasoning and the associated paperwork. We’ll go through these one at a time.

The most important of these is the person buying the property and getting a loan from the seller. Most seller-financed loans are created for people with a credit score of 600 or greater, although most banks have a 620 minimum. Just like with banks, the better your score, the better the interest rate you can get.

If you are creating a note you can protect yourself from an applicant with poor credit by getting a larger down payment and charging a higher interest rate. These are things a note buyer will look for when considering the purchase of a loan.

The second thing to analyze is the property being offered as collateral. A pretty 3-bedroom home in a nice suburb would be worth more than a single-wide on 35 acres, 20 miles from the nearest grocery store. A well-built apartment building would be worth more than 50 acres of dirt.

When buying a note you must affirm that the property is correctly valued. If you get that number wrong, the whole deal starts off on shaky ground. While you may want to check a home’s value on Zillow, or Trulia, or eppraisal.com, your most accurate number will come in a BPO (Broker’s Price Opinion) created by a local realtor who has actually driven out to see the property. Sold comps and listing comps will be more accurate than anything produced by a software package like Zillow.

The third factor to consider is the down payment. Consider two people who each by a house worth $50,000. One puts down $800 and the other puts down $5,000 (10%). The note that has the great down payment will be worth more than the other if everything else is equivalent. If a buyer has enough “skin in the game” they will be more likely to make paying their mortgage a top priority since they have more to lose if they default.

The fourth thing to look at are the terms of the loan. What is the interest rate? Currently, a rate between 8 and 10% is pretty common in the seller-financed world. Much above that will make it difficult to pay. A note with a rate of 5 or 6% may pay too little to make it attractive to an investor who will be forced to deeply discount their offer to get their required yield.

The payback period can also affect the perceived value of a note. Generally, a short amortization period is more attractive because an investor will get her money back quicker.

If a note has a provision to collect escrows for taxes and insurance, that should bring a better price when sold than one that doesn’t. In the latter case the lender is counting on the buyer to set aside funds to take care of these payments, but that’s asking for a lot of self-discipline from someone who has shown via their credit score that they may not have much.

If the buyer can’t make the insurance payments, you as the investor may have to attach forced-place insurance, an expensive option to keep yourself covered.

Property taxes will be collected eventually and generally have a lien position ahead of the first mortgage. Non-payment over a period of years can lead to the loss of the property at a tax sale.

The last thing to look at on the note itself is the overall payment. An investor making an offer to buy a loan will want to feel comfortable that the buyer can afford to make the payments and still have enough left over for all their remaining living expenses. Also, if local rental rates are higher than their mortgage payment, that’s another incentive for the buyer to keep up their obligation to pay on time.

The fifth factor is called seasoning. That’s simply the amount of time the borrower has been making payments. A note buyer will offer more for a note with three years of seasoning than one where the new owner has only made three payments. A good track record gives an investor confidence that payments will continue being made on time and can even offset the negative affect of a low credit score.

Sixth and last, all the ancillary paperwork contributes to the overall value of a note. Here’s a list of documents to ask for from the note seller: title policy, tax certificate, mortgage or deed of trust, the allonge (showing the transfers of the loan), the mortgage transfers, credit report, payment history and original application including the social security number of the borrower. If you are creating a seller-financed note, having all these documents will keep the value of your note as high as possible.

So whether you’re buying a note or creating one, the same six pieces of the puzzle will be responsible for the size of the discount offered when a note is sold.

Article Source: http://EzineArticles.com/expert/Les_Goss/291877