Tag Archives: Choosing the Right Agent

Another very good article from Mary Thompson, Certified Appraiser, with Lanier Appraisal Service.  It’s important to know the facts regarding the appraisal process when valuing a home.  Although your  personal loan approval may be accomplished early in the loan process, the final loan commitment usually hinges on a satisfactory appraisal.

An experienced Realtor will be able to advise if you are listing your home too high for the market even before the final appraisal.  Having the right team on your side will help you get your home sold faster, and at the best market-price possible.

Marie Dinsmore, Certified Luxury Home Marketing Specialist

The Dinsmore Real Estate Team  |  www.dinsmoreteam.com

Marie@DinsmoreTeam.com | 770-712-7789

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Article courtesy of Mary Thompson with Lanier Appraisal Service.   Please see their website for additional information:   www.lanierappraisalservice.com

Myth: Assessed value should equate to market value.
Reality: While most states support the concept that assessed value approximate estimated market value, this often is not the case. Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when properties in the vicinity have not been reassessed for an extended period.

2014 Lake Lanier Tax Assessments are out and your homeowners may need a Certified Appraisal for their Appeal. If so, call Lanier Appraisal Service ASAP. We are getting booked up quickly for Tax Appeal Appraisals as the DEADLINE is June 30th! 

 

Myth: The appraised value of a property will vary, depending upon whether the appraisal is conducted for the buyer or the seller.
Reality: The appraiser has no vested interest in the outcome of the appraisal and should render services with independence, objectivity and impartiality – no matter for whom the appraisal is conducted.

 

Myth: Market value should approximate replacement cost.
Reality: Market value is based on what a willing buyer likely would pay a willing seller for a particular property, with neither being under pressure to buy or sell. Replacement cost is the dollar amount required to reconstruct a property in-kind.

 

Myth: Appraisers use a formula, such as a specific price per square foot, to figure out the value of a home.
Reality: Appraisers make a detailed analysis of all factors pertaining to the value of a home including its location, condition, size, proximity to facilities and recent sale prices of comparable properties.

 

Myth: In a robust economy – when the sales prices of homes in a given area are reported to be rising by a particular percentage – the value of individual properties in the area can be expected to appreciate by that same percentage.
Reality: Value appreciation of a specific property must be determined on an individualized basis, factoring in data on comparable properties and other relevant considerations. This is true in good times as well as bad.

 

Myth: You generally can tell what a property is worth simply by looking at the outside.
Reality: Property value is determined by a number of factors, including location, condition, improvements, amenities, and market trends.

 

Myth: Because consumers pay for appraisals when applying for loans to purchase or refinance real estate, they own their appraisal.
Reality: The appraisal is, in fact, legally owned by the lender – unless the lender “releases its interest” in the document. However, consumers must be given a copy of the appraisal report, upon written request, under the Equal Credit Opportunity Act.

 

Myth: Consumers need not be concerned with what is in the appraisal document so long as it satisfies the needs of their lending institution.
Reality: Only if consumers read a copy of their appraisal can they double-check its accuracy and question the result. Also, it makes a valuable record for future reference, containing useful and often-revealing information – including the legal and physical description of the property, square footage measurements, list of comparable properties in the neighborhood, neighborhood description and a narrative of current real-estate activity and/or market trends in the vicinity.

 

Myth: Appraisers are hired only to estimate real estate property values in property sales involving mortgage-lending transactions.
Reality: Depending upon their qualifications and designations, appraisers can and do provide a variety of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

 

Myth: An Appraisal is the same as a home inspection.
Reality: An Appraisal does not serve the same purpose as an inspection. The Appraiser forms an opinion of value in the Appraisal process and resulting report. A home inspector determines the condition of the home and its major components and reports these findings.

This year is proving to be the best time for sellers in North Georgia in quite a while.  If you’re in the market to buy a home, here are some great tips to help you be prepared from the RE/MAX Housing Blog.

Marie Dinsmore, Certified Luxury Home Marketing Specialist

The Dinsmore Real Estate Team  |  www.dinsmoreteam.com

Marie@DinsmoreTeam.com | 770-712-7789

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Stay Competitive in a Bidding War

Source:  RE/MAX Housing Blog

If you’re buying a home in a hot housing market with frenzied bidding wars, you’re going to want to stay competitive.

Your real estate agent can help you create the best strategy for submitting winning offers in your market.

Meantime, here are some general guidelines you can consider:

1. Get pre-approved. When you make an offer with a pre-approval letter from a mortgage lender in hand, you’re ready to compete.
2. Establish the top of your budget. When you determine the maximum amount you can pay, you’ll want to search for homes that are priced lower than this number. This gives you flexibility to increase your offer. When you start at the top of your budget, there’s no room to bid higher. When you can – consider an escalation clause, which automatically increases your offer by a certain amount if other offers come in.
3. Be ready to act fast. If you can see yourself living somewhere and your instincts tell you to submit an offer, do it as soon as possible. Sometimes your agent can write the offer right there during a showing. Of course, buying a home is a big decision, so if there’s any hesitation, you’re probably better off continuing to shop.
4. Stay as flexible as possible. This is especially helpful when it comes to escrow periods and closing times. If the seller asks to extend or shorten the process, rest assured if you don’t follow their timeline, another buyer might.
5. Don’t give up. If your offer isn’t chosen, you can present yourself as a standby in case the accepted offer falls through. But, of course, keep looking. You don’t want to miss another great opportunity waiting around for other buyers to change their minds.

Spring is here, and along with the buds and flowers comes a new crop of home buyers-Are you one of them? If so, you want to be well prepared to get that home you have always wanted.

1.  Mortgage Matters:  “Pre-qualified” sure sounds good, but in fact, it doesn’t ensure that homeowners or realtors will consider your offer. Getting “pre-approved” for a bank loan will signal to an informed seller that your offer is within your means and should be given serious consideration which can tip things in your favor in a tight housing market. Pre-approval is more difficult now than in the past, so, beginning the process early allows you to be prepared to make an offer that will be considered seriously when you find your dream property.

When signing mortgage papers, get any help needed to understand what you are agreeing to, including all of the terms, closing costs, and fees. Take the time to understand the difference between the various types of mortgages including fixed rates, adjustable rates and balloon payments as well as the benefits and costs of different loan terms such as 15 and 30 year mortgages. Also, be sure to explore if you qualify for discounts or credits based on income, being a first-time buyer, or a veteran.

2.  Credit Counts:    Higher credit scores garner lower mortgage rates and monthly payments. Financial experts recommend reviewing your credit report to identify and remedy any erroneous entries prior to making major purchases to ensure you attain the highest credit score possible. In addition, since applying for credit can lower your credit score, prospective home buyers should avoid applying for additional credit during the year prior to buying (and through closing) your new property. Credit scores of 750 and above often get the best rates, and while you can get a mortgage loan with scores below 650, you will generally have higher costs. A little planning and preparation can reap significant financial rewards.

3.  Know Your Budget:  A safe “rule of thumb” for mortgage payments is that it should not exceed 28% of your gross monthly income. This ensures you have enough discretionary income available for upkeep, maintenance, and insurance. Buying within your means will also help in the event of any unforeseen circumstances. While plenty of lending institutions are willing to give you a higher mortgage, be mindful of all the costs of owning your home, your other financial commitments as well as the cost of pursuing your hobbies and interests.

Online calculators can help you estimate monthly payments on homes you are considering, and you can see how those payments compare to your current payments. If you plan on buying a home with larger payments than you pay now, think about putting the difference into a savings account each month to confirm the higher payments are realistic. An added benefit is these funds will be available to apply toward a down-payment or closing fees when you are ready to purchase your new property.

4.  Location, Location, Location:  Decide where you want to live, both in terms of general areas and specific geographic requirements. This is as important as the actual house you buy, it will affect your commute, schools, your neighbors, and where you shop and do business. This preparation might be more difficult if you come from further away, however, a real estate agent who gets to know you will help steer you in the right direction. Some locations have specific issues – parking, grounds fees, or other specifics that come with living in a certain locale and a realtor that knows your desires will be able to evaluate any issues accordingly when searching for properties.

You can build your knowledge of an area by reading the local newspaper, visiting local stores and schools, dining at local restaurants, and shopping at a local supermarket.

5.  Timing Things:  When do you want to move? Often, buying a home is a game of hurry up and wait – except when it’s not. Sometimes buyers or sellers want to move quickly, and want expedite the process. Be up front with your moving schedule, and willingness/ability to be flexible. While you may or may not be able to impact the schedule, the more prepared you are with the logistics of the sale; the better off you will be in the long run. Paperwork takes time, and depends on how fast the bank and other institutions move, and how much additional information is needed. Following up with lenders, escrow officers, and your agent can be critical to ensure that documents move through the system in a timely fashion.

Timing affects moves in multiple ways, from the moving of possessions, to completing repairs, to enrolling in schools. Moving on the fly can cost more than those with a little planning. Establish a timeline. If you plan in advance for the home purchase and for the actual move, you gain time to shop around for the best deals on everything from mortgages to moving vans. Additionally, advanced planning and research enables you to move faster on things if you need to move up closing dates or shift schedules for any reason.

6.  Terms of Endearment:  Are the terms that you agree to going to work for you? Negotiate terms you can love as you finalize the sale/purchase of a home. While everything might not be exactly what you want, know the terms you are agreeing to. If you compromise in one area, you might be able to use that compromise to get something in another area.

For example, if the owner needs extra time in the home after closing, and you don’t have to move right away, you can agree to a rental agreement so that they can stay a bit longer while you are orchestrating your own move. In exchange, you might let them know that you will be having some repairs made while they are renting and before you move in. This can all be spelled out in the terms of sale.

7.  How Handy are You?:  Biting off more than you can chew with a fixer-upper can come back to haunt you in the end. Properties that require extensive work might also require more time and money for the move, and any building permits you might need to get. Purchasing a home in good repair or one in which the seller has recently replaced the roof, carpets, and flooring may come with a higher price, but it might still be worth it if you don’t intend to make those repairs yourself.

On the other hand, if you want your home to be your new project, come prepared with what it will take accomplish various tasks in your new area. Doing some things in climates that differ from your own might surprise you – projects that include roofing, heating and cooling can differ substantially between regions.

8.  Permissions:  If you purchase a home with remodeling in mind, take a cursory look into permits before assuming that you can do what you want to. The permitting issues of communities and towns, time-frames around getting those permits and inspections, and costs involved, can all vary. Be certain that the permissions needed for the desired improvements are within your budget and schedule, on top of the cost of materials and labor. There might also be special restrictions if this is in an apartment or community.

It isn’t every day that you shop for a home, but when we do, its best to do it with us much knowledge and preparation as possible. Doing your homework can be daunting and challenging, but on that closing date, you’ll be glad you followed through and got the best home you could get.

Marie Dinsmore, CLHMS

www.dinsmoreteam.com   |   Marie@DinsmoreTeam.com  |  770-712-7789