Seven Things You Can Do to Help Your Appraiser Come Up With a Strong Number

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These days, a lot depends on how an appraiser thinks your home (or the one you are purchasing) is valued. Whether you are having an appraisal done to appease the lender for a new purchase or if you are getting your existing home refinanced – it is very important the numbers line up. If the sale price/refinance amount does not line up with what an appraiser thinks the home is valued at – you can expect to face some pretty hefty challenges.

So to help make the appraisal process as positive and frankly, as much in your favor as possible, here are some tips to get the ball rolling in the right direction:

Request a Local Appraiser
Lenders commission independent companies to go out and evaluate homes, then provide them with reports. Many of these companies are regionally based or in some cases national firms. By requesting your lender to hire a local person, you can count on that appraiser to provide a more accurate number.

Don’t Hesitate to Make Their Job Easier
Provide as much information as possible, including area comparable properties, well-documented evidence of all improvements made to the home and other helpful items such as blueprints or recent surveys, etc. Not only will this make their job easier, but also it will help to support your case on why the home should be valued higher than if they did not take those things into consideration.

Renovate and Remodel Carefully
Whenever considering a remodel project on your home, consider the potential return on investment for each project. By far, kitchens and bathrooms yield the strongest return on dollars spent for improvements.

Keep Up-To-Date With Citywide Improvements
If you know of any new developments, projects and citywide improvement schemes, share them with your appraiser. Current knowledge of these things will only help to enhance your appraiser’s valuation of your property, keeping in mind that these things typically bring up the value of a home.

Pay Attention to Your Surroundings
Just like a homebuyer or anyone else that walks through a home, there is a lot to be said for perceived value. An easy way to steer your appraiser’s attention to the more attractive features of your home is to be careful not to let them be distracted with unsightly aspects. Keep your spaces clear, clutter-free and updated. Most appraisers do not spend too much time in a home and first impressions can do a lot to influence an appraiser’s opinion of a property.

Don’t Hover But Be Available
In case the appraiser has any questions, it is a good idea to be around to be able to answer them. But it is just as important not to hover and crowd around the appraiser, rather give them space to do their job without feeling cornered. They will appreciate this and also likely be more lenient when not stressed during an evaluation.

Know the Difference Between Above and Below Grade Square Footage
Just as certain improvements to a property yield a higher ROI, it is important to keep an eye on value as it translates through above grade changes verses lower level enhancements. In other words, keep in mind that a finished basement will get you a certain percentage back on the money you put into it, but the end value will not be impacted as much as had you expanded the main levels of the home.
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Keep in mind, as our housing market continues to improve – we will tend to see more and more appraisals that may not reflect upon the current trends. This is primarily as a result of them using past sold data that may easily be a fair amount off from today’s prices.

For help with finding good comparable properties, rather than relying on outdated data from the Internet, contact us today. And as always, we welcome the opportunity to serve your every real estate need.

Frank Del Rio Reveals His Top Five Real Estate Predictions for 2013

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We have seen a lot of changes on the real estate horizon lately and it’s been a rollercoaster ride for many in our region. But now, as we fast approach the first quarter of 2013, things are looking good. Here are my top five predictions for the coming year and why I feel they may come true.

Home Prices Expected to Rise

Though we may not see this trend evenly spread throughout our entire region, for the most part many neighborhoods will experience a rise in home prices. This is in part due to the number of cash buyers plus buyers that are buying as a result of today’s very low interest rates. Both these factors will help to propel the upswing in our housing prices.

New Construction Makes a Comeback

For years now we have not been seeing a lot of new builds in the area. This is because of the higher cost of materials versus the lower cost of labor and also the sheer magnitude of resale inventory on the market. Today, the situation seems to be changing rapidly. As we move further into 2013 I expect to see a lot more building take place. With banks willing to lend money again, buyers are finally jumping off the fence to build their dream homes.

Short Sales Will Take Over the Distressed Property Market

Gone will be the days of excessive foreclosures on the market, rather now we will see a lot more short sales taking place. The expense involved for a bank to litigate a repossessed home is astronomical and banks prefer to avoid owning homes. The short sale process allows for a win-win situation for all plus the financial ramifications of doing a short sale can once again be avoided with the extension of the Mortgage Debt Forgiveness Relief Act.

Inventory Will Remain At Its Lowest In Several Years
With reduced inventory, comes heightened buyer demand and of course the more demand there is the higher sellers can expect to yield on the sale of their homes. Sellers in our area are finally able to enjoy being in control, particularly for those that have homes in great condition and in great locations.

Sellers Will Reap the Benefits of Multiple Offers and Price Wars

Along with that reduced inventory will be more of a strained situation for buyers, resulting in multiple offers and price wars. Homes that are priced right to begin with, especially homes that are staged properly and located in desirable areas will almost immediately enjoy more attention than others in the area.
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Keep in mind this is just the beginning of our spring season in real estate. As we move closer to the second quarter we can expect even more activity. With the threat of prices rising and uncertainty as to just how long our historically low interest rates will last – buyers are very eager.

If you would like more information on these points or if you prefer a customized consultation regarding real estate in your desired areas, contact us today. We look forward to helping you successfully achieve your real estate goals.

Real Estate News – Extended Mortgage Debt Relief Act, PMI Tax Relief and Capital Gains Tax Rates

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Now that we are well into 2013, there will be some changes to our real estate outlook with some familiar programs back in action. With all the talk about the impending Fiscal Cliff, it is no wonder that homeowners everywhere are wondering how the outcome will impact them individually. Here are three recent changes and/or updates to the programs available out there that will have a significant impact on our marketplace this year and moving forward.

Mortgage Debt Forgiveness Act Extended Through 2013

On the minds of many homeowners that have mortgages falling short of the current value of their homes, the Mortgage Debt Forgiveness Relief Act was set to expire on December 31, 2012. Among the many issues discussed within Congress during the last few hours of 2012 was the extension period of this important tax relief for distressed homeowners. Primarily as a means to help consumers faced with hardships overcome their financial difficulties when they incur forgiven debt – the Act serves to waive tax implications on what otherwise would be considered taxable income.

Private Mortgage Insurance Tax Relief Now Applies to Fiscal Years 2012 and 2013

Each year millions of homeowners look forward to the tax relief that comes with being able to write off their private mortgage insurance premiums. By the end of 2012, no one was sure the American Taxpayer Relief Act of 2012 would be extended to include the coming year. Once again, at the final hours of negotiations the Act was extended through fiscal year 2013 to allow homeowners paying private mortgage insurance to deduct that amount when filing their income taxes.

Capital Gains Tax Rates Increased from 15% to 20%

A topic of confusion for many, the capital gains tax increase set for higher income levels is more lenient than most people realize. Though the theory is that this increase in tax impacts individuals and households with higher income levels, the truth is the income and gains cap is relatively high. The capital gains tax increase will only apply to individuals earning an Adjusted Gross Income of $400,000 or more. Furthermore, people in these income brackets will incur the capital gains tax only on income earned above and beyond the cap which is $250,000 or more for individuals and $500,000 or higher for households.

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If you would like to discuss these or any other issues in the real estate marketplace or if you are considering buying or selling a home – contact us today! We would love to help make your real estate dreams become a reality!