Online Real Estate Resources Can Cost Home Buyers and Sellers Tens of Thousands!

Watch on your mobile device >>

These days, who doesn’t want to find out information instantly? The truth is that with the technology available to us, we’ve become accustomed to finding things out – NOW. Well, when it comes to buying and selling homes there are lots of resources available online and they all provide that instant gratification. The question is, “how accurate are they?”

To help answer this and to help save our clients money, we pulled together some excellent examples of recent values available on Zillow to show you just how much money you stand to lose if basing your decisions on some of these resources.

I’m going to give you some specific examples so you can see. Here in North Orange County, a home in La Habra on Country Hills Dr that sold for $575,000. The Zillow estimate was $555,000. That is a big difference.  We have a house in Fullerton on Clear Creek Dr. The Zillow estimate was $631,000. The house was listed for $700,000 and sold in 9 days. So they missed it by about 69,000.

We have a home in Upland on Wilson Ave that Sold for $585,000 but Zillow was showing it for $550,000. One Home in Diamond Bar’s Exclusive “The Country” Community was listed on Zillow for $1,287,000 and it actually sold for $1,450,000. So Zillow missed it by $163,000.  

At the end of the day, they mean well, but Zillow is really a tool to drive people to the website. They earn money that way. People trying to save money by using Zillow for evaluations are really doing themselves a disservice and potentially costing themselves tens to hundreds of thousands of dollars. They are better off to hire either a real estate agent to sell or an appraiser to give them an actual value.


Mortgage Lenders Online Lure Buyer With “Low Rates” Then Pile On Hidden Fees

Online mortgage lenders are also a source for homebuyers. These companies tend to bring in leads by heavily marketing very low rates but then slapping buyers with other hidden fees and costs that often offset those low rates. What’s more, these businesses are usually not local and the level of customer service is lacking. In our many years of living and working in our surrounding communities, we have developed longstanding strong relationships with quality core members of the housing and mortgage industry.

Remember, online resources are great for a basic feel of our marketplace but if you turn to these venues to save money, you will likely end up saving less. For an accurate, customized one-on-one consultation with our office, contact us today. We will gladly connect you with our long-standing preferred partners in the housing and mortgage industry. The knowledge and experience that you get from working with a real estate agent cannot be compared to any online real estate service. Contact us today – we look forward to working with you! 

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

Watch on your mobile device >>

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.
~
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

Watch on your mobile device >>

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.
~
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.