Home Appraisals are (usually) Necessary When Buying a Home

Whether you are buying or selling, if the buyer is not paying cash (and on occasion, even if they are) the home appraisal is a one of the most important steps in the process and could make or break a deal on either side. So what exactly is a home appraisal?

A home appraisal is an expert opinion of a home’s value and it assures the lender that their loan will be in line with the fair market value of the property. A home appraiser is a licensed professional who has completed the required training, apprenticeships, and exams to carefully and impartially provide opinions about the value of real property, according to the the world’s leading organization of professional real estate appraisers.

This means your appraiser is not going to give a low estimate because they didn’t like your furniture. But rather, according to the Appraisal Institute, appraisers put together a series of facts, statistics, and other information regarding specific properties – then analyze this data, and develop opinions of value. The appraisal report will include recent sales information for similar properties (comps), the current condition of the property, and the location of the property as to how the neighborhood impacts the property’s value.

In most cases the buyer will need to cover the cost of the appraisal. Both the buyer and the seller should meet with their agent and find out what comparable homes in the area have recently sold for, which will give clues as to how much the property will ultimately appraise for.

If an appraisal comes in lower than you feel it should, the seller’s agent can use his/her knowledge of the area to challenge the appraisal. Home prices in the Las Vegas valley have been increasing so quickly that the comps that sold six months ago don’t yet reflect this improvement. There may not be adequate comps in your area, so the appraiser might have referenced comps from a less desirable community.

You have the right to see a copy of the appraisal report. Look it over as carefully as you look over your credit card statement each month you might just find errors or omissions and if that is the case the appraisal can sometimes be corrected.

If the appraisal is not adjusted enough to get to the original contract price, and both parties still want the sale to go through, it could make sense to split the difference, with the seller dropping the price a bit and the buyer adding cash to the down payment. For example, if the difference between the sales price and the appraised value is $10,000, the seller could lower the price by $5,000 and get the buyer to bring another $5,000 to closing. This solution depends entirely on the relative willingness and financial positions

of the two parties. Of course, neither party is obligated to compromise and if a new agreement is not reached, the buyer and seller can part ways and (most real estate contracts contain a provision that states) the buyer will have their earnest money returned to them.

When an appraisal comes in low, don’t panic. Remember to stay calm, assess the situation, and let your agent walk you through the process. Often, there is a fair and equitable resolution for all. It just may take some extra time.

Are you ready to buy or sell a home? Do you have a need for commercial / industrial / retail space? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day….Jeff

Selling Real Estate Without an Agent Will Likely Cost You Money

First, I realize this article may seem self-serving – after all, I earn a living helping people sell real estate, but I truly hate to see people lose tens of thousands of dollars, and statistics show that is what usually happens to FSBO’s. What does FSBO mean? For Sale By Owner — it’s the process of selling real estate without the representation of a real estate broker or agent.

This way of selling your property is not the greatest idea in most cases (trust me – I was that guy many years before I got my real estate license). That is why you hire a real estate professional – their job is to know the local real estate market and put the most money in your pocket. Let’s face it, people pay more when a salesperson is involved. Think about it; when you have a garage sale, even if you are selling quality items, the buyers always expect a discount. And if the discount on the property you are selling turns out to be as much (or more) than the commission you would have paid, then you did all the work and still did not make more money. I don’t know about you, but I really don’t like doing more and getting less.

Sellers who choose to sell their home on their own just may experience “seller’s regret” when they see how much less they get for their properties (or worse, not even realize how much they lost). FSBOs sell for an average of $60,000 to $90,000 less on the sale of their home than sellers who work with a real estate agent, according to the National Association of REALTORS®. Here’s the breakdown:

* All agent-assisted homes: $250,000 (median selling price)

* All FSBO homes: $190,000

* FSBO homes when buyer knew seller: $160,300

With the knowledge of the numbers shown above – why would anyone want to sell their home on their own? Some sellers want to avoid paying a commission to an agent — but even factoring in a commission; researchers from the NAR researchers have stated “The closing price for the agent-assisted seller is likely going to be way above a FSBO. [And] in reality, homes sold by the owner make less money overall.”

Sorry (not sorry) for the Las Vegas based pun… but don’t gamble when selling your house; hire a professional.

This message is getting through to homeowners: Only 8 percent of home sellers in 2017—an all-time low—chose to sell their home themselves, according to NAR’s 2017 Profile of Home Buyers and Sellers. This figure has been falling since 2004, when 14 percent of homeowners sold their own homes.

Are you ready to buy or sell a home? Do you have a need for commercial / industrial / retail space? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day…..Jeff

Selling Your Home? Staging Will Usually Bring You More Money, Faster.

 

Great – you have decided to sell your home for any number of reasons. Moving out of town, kids are grown and don’t need as much space, ready to buy a larger home for growing family or just want to move to a newly built neighborhood with lots of amenities.

Even in a hot real estate market, you can still increase the amount of money you put in your pocket by making your property more attractive than your competition. Let’s face it, people will pay more for something that looks nicer.

If you are thinking of selling, first call me, as I am an incredible Realtor. After we meet, I will send an Interior Designer to your house to help you look at your home through the eyes of today’s buyers and suggest the best way to stage your home for the quickest sale at the best price.

You don’t plan to hire me? Well, I’m sad, and here are some easy things you can do on your own;

Before doing anything if you have walls that are not in a neutral shade you might want to put a fresh coat of paint in very light brown or grey (not just white). After that I suggest have your home professionally cleaned and your yard should be spruced up.

Put away any personal items like family photos, religious items and children’s toys – a prospective buyer does not want to see those things. Pack away excess furniture and knickknacks that are cluttering you home – you want your rooms to look spacious and neat.

Speaking of neat, take anything unnecessary off your kitchen & bathroom counters so they also look uncluttered. Make sure you keep up with the cleaning of counters and sinks etc. As silly as it sounds, hide your trash cans. Sure, everyone has trash, and no one wants to see yours!

The seating areas in the living room and family rooms should look inviting. The potential buyer wants to see a space that their furniture would look good in. If you can, create conversational areas within your rooms. This might mean removing a couple of pieces of furniture depending on how big the space is.

Bedrooms are another part of the home that is very important to buyers. Pack up any and all personal items that are on all surfaces – jewelry, mail, magazines to name a few. Make sure all the beds are made and everything is clean. If you have a lot of furniture, again, remove a few things. If you need to spend some money on new bedspreads, pillow covers, throw pillows, do it – a small price to pay for a quicker sale.

If you have pets do not leave their water bowl and food around – pick it up and when you have a buyer looking at the home take your pets for a ride.

The basics are clean, uncluttered and appealing – think “model home”. The more inviting your home looks, the more money you will get in a shorter period.

Are you ready to buy or sell a home? Do you have a need for commercial / industrial / retail space? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day…..Jeff

Professional photos make a big difference

iPhone pictures are great for selfies, but get it done right when selling your house, or lose money & time on the market.

A homeowner (let’s call her Mary) was recently interviewing an agent from another brokerage and before signing any paperwork, Mary was speaking to Bob on my team about the process. Bob knows Mary personally (but not as well as the other agent), and was working on getting us an interview. Mary was convinced that she intended to hire this other agent and did not need to interview us, so Bob offered her a list of questions to ask. (We provide this list to anyone, anywhere who would like it – just click here to download it FREE).

One of the questions asks if the agent being interviewed intends to use a professional photographer. You can google the benefits of using a professional photographer in real estate here.

All of our research, as well as our experience (and our eyes) tells us that unless the house is in dire need of extensive rehab, professional photos will put additional money in the homeowner’s pocket. Studies vary on the amount, but from everything I have read, it can be as little as $900 and as much as $19,000 and averages around $3,400. Can you imagine the vacation you could take with all of that extra cash? Listings with professional photos also get more many views online and sell faster according to these studies. Yet, when asked by Mary if she intended to use professional photos, the agent being interviewed said “don’t waste your money”.

Wow!! And if she took that shortcut, what other shortcuts is she going to take that will cost Mary an additional $1,250, plus $2,275 plus $8,400 plus ????

Mary’s listing went active recently and the photos of the “highly upgraded” kitchen, as well as the laundry room and 2 of the bedrooms are extremely blurry. Mary is seen in 1 of the photos from behind, her dog’s butt is in one of the photos (just the butt prominently displayed). 90% of buyers begin their home search online, by looking at these photos, and I can tell you from experience, they often opt-out of visiting houses that have bad photos. If the agent you interview does not intend to hire a professional photographer, show them the door and call us right away at 702 SELL NOW. Even if you are not in the Las Vegas area. We will help you find and interview a competent agent anywhere in the country for FREE. We can’t stand it when lazy agents get hired to sell houses and cost the homeowner thousaands and of dollars, as well as time on the market.

Footnote: In a fascinating turn of events – as I was writing this post, a client of mine called me about a house we saw yesterday. When I asked her what she thought of the home, she said that the kitchen was actually nicer than the photos showed (can you guess why?)

3 ways to make your home more appealing for under $50

I know it’s cliche, but you really never get a 2nd chance to make a 1st impression, so take a few minutes and a few bucks and make a great 1st impression!

I know it’s cliche, but you really never get a 2nd chance to make a 1st impression, so take a few minutes and a few bucks and make a great 1st impression!

Boost #1: Front door
Clean all of the cobwebs out and givie it a fresh coat of paint. Maybe even brighten it up by painting it a brighter-than-usual color, like red or blue. Pick a color that will stand out but also complement your home’s exterior. Be sure to ask permission from your HOA, if you have one.Keep in mind people stand at your front door while waiting to come in and they look around the whole time they are waiting.

Boost #2: Highlight your front porch
Many homeowners use their backyards for outdoor living and forget about their front porches. Even if you personally never sit on your front porch, adding a little furniture can help future homeowners envision themselves in your home before they ever step foot inside. Some inexpensive, secondhand wicker furniture and bright pillows will make even a small front porch look enticing. Maybe even add a small table.

Boost #3: Lighten up
Potted flowers brighten up the space and are very welcoming. Get a few from your local nursery, and of course, don’t forget to water them.

Desert Shores is a lovely community just north of Summerlin

Adorned by great restaurants lakeside and surrounded by all of the amenities anyone could really ask for sits the 3 finger lakes of Desert Shores. Check out the homes for sale in this community by clicking the link below;

http://goo.gl/oToR8U

Is it time to find your Summerlin home?

A new year often bring new changes. Are you ready to live in Summerlin? You can buy a home from under $55,000 to almost $13,000,000. Would you like to at least see what is available? C’mon, you know you are curious. Click the link to search.

http://goo.gl/7Ln2xP