How An Appraiser Sabotaged A Deal With Unclad Hands

 

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Appraiser ruins home buying plans.

Many times an appraiser will wreck the home buying plans of the first-time home buyer. Across the country, agents and home builders are complaining. Too many appraisals are coming in low, scuttling deals. Let me explain how.

Mr. Appraiser, had sized up a four-bedroom, three-bath house in San Rafael, CA for $45,000. Less than what the buyers offered to pay. A typical deal-killer for a seller.

And now come the best part.

Mr. Agent urged the lender to force Mr. Appraiser to consider several other properties. That could back up the original $1,410,000 sale price.

He tells Mr. Appraiser his valuation was going to wreck this first-time buyers’ shot at the American Dream of home ownership.

Buyers beware when your agent tries to persuade the appraiser to back up his valuation. By considering other properties you’ll end up likely paying $45,000 more for the house.

According to the National Association of Realtors 25 percent of its members has reported clients losing a sale. Due to a botched appraisal. The National Association of Home Builders said low valuations were destroying a quarter of all new home sales. The trend is to compare distressed properties to recently built homes.
What do you think.
Should distressed homes sales sit side by side with other recently built homes?

Roughly 40 percent of all home sales in past years were foreclosures or short sales. Meaning the property sold for less than the mortgage balance.
Mr. Appraiser determined the value of the property by looking at recent sales of comparable homes. Not only that.
He took an apples-to-apples approach.

In most cases, a foreclosure isn’t used as a comparison for a standard sale.

“Over the piano a sign read: Please don’t shoot the pianist. He is doing his best”.-Oscar Wilde

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Mr. Appraiser argues he is only sizing up homes according to the reality of the market. But he admits its becoming more difficult to determine the true market value of a home.

Each week we research and write enchanting real estate trend articles for you. I  hope you enjoyed this weeks subject. Share it with friends and family.

Any questions? Would you like to chat? You can call me at (415) 378-3314 or send a note to breginc@batesrealestategroup.com.

How to get the home you want

 

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Potrero Hill District

Searching for your first home is a nerve racking process. But Bates Real Estate Group has some inside info to make the search in San Francisco easy. So that you can find the home you want in less time.

How to get the home you want in San Francisco will take some planning:

1. Financial Options

Get approved for a mortgage loan . Visit your bank to see how much house you can buy. Get approved for a mortgage loan.

You will need at least a twenty percent down payment. This money should be in your account when you apply for the mortgage loan.

You may want to factor in a little extra cash for closing costs as well.

You might make a determination to go with a fixed rate mortgage. Where the interest rate remains the same. Fixed rate mortgage are usually for fifteen or thirty years.

Or you may decide on an adjustable rate mortgage. They offer lower interest rates in the beginning. But adjust to reflect changes in the credit market.

A fixed rate mortgage often seems higher in the beginning. But your mortgage payment will remain the same for the life of the loan.

2. Other costs and fees of home buying

First time home buyers are often unaware that there’s more to paying for a home. Than just the down payment.
Besides the down payment, you will also have closing costs. Appraisal fees, broker fees, and loan application fees .

Other expenses include the cost of the moving. As well as n property taxes, home owners or condo association fees. Which may have yearly increases and other related costs.

Considering making any renovations to the home? If so you should also set money aside for any changes that you are considering.

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3. Know what you want 

San Francisco is chock full of diverse neighborhoods. Some people never use their kitchen and want to be near great restaurants.

Other people love to entertain at home and want a larger space for their friends. And don’t care as much about the number of restaurants in the area.

Much of this is personal preference but can lead to buyer’s remorse. Down the road if you don’t stick to your instincts about your lifestyle. Bates Real Estate Group can help you find available homes in San Francisco. In a variety of neighborhoods and price points. And can help you find the perfect home through a process of elimination.

4. Extensive Research

You can use a  broker, or do your own  research in discovering if a property is right for you.

For instance, you may have heard that foreclosures are good deals.

But.

Foreclosures take longer to close and having higher interest rates.

Condos can also have unexpected costs but by asking for the notes from prior board meetings. Try to find out about future improvements. That may lead to an increased financial burden for you, ahead of time.

You may also want to find out if the neighborhood itself has any major construction plans.
Some projects will be appealing. While others may not be so appealing. It is nice to know before you buy to avoid unwelcome surprises.

If you are a first time home buyer or need to sell your existing home to afford a new one, Bates Real Estate Group can help.

 

Each week we research and write enchanting articles on real estate trends for you. I hope you enjoyed this weeks subject. Share with friends and family.

Any questions? Would you like to chat? Call us at 415 378-6614 or send a note to breginc@batesrealestategroup.com.

We look forward to hearing from you!

 

 

7 Ways to Sabotage Your Home Sale

 

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So you’ve spent thousands on remodeling and upgrades. Evaluated and hired your Realtor and put your home on the market for sale.
You expected to be in your new home in time for the kids to start school in the fall. Today 175 days later, it still hasn’t sold. And you’re wondering why.

2 thoughts race through your mind:

  • Did I have too many pictures on the walls?
  • Did my agent do everything possible to get my home sold.
    More than likely your asking price is to high.

Because.

Most folks have the mistaken belief that their home is worth more than the market value. The 7 ways to sabotage your home sale are:

The easy peasy method not to sell your home for the highest and best price:

  • Don’t insist your agent provide you with the most recent comparable market analysis or (cma) for the last 90 days.
  • You don’t want to see homes comparable to yours that didn’t sale. Or homes that sold and their sales prices. And homes that are currently listed for sale within a half mile radius of your home.
  • Your home should go on market about 10% more than your competition.
  • Your Realtor did not help you stage your home or offer recommendations to a professional.
  • You won’t receive many offers this way. And this is a good thing. It usually means a lower sales price for you.
  • He should not market your home on all the search engines and the MLS.
  • Your home should not have its own unique website with as many pictures as possible.  Of special interest to buyers are pictures of the kitchen, bathroom and backyard.Make sure your agent performs all the steps above. If he does, your home will sell for the highest and best price in the shortest length of time.

Each week we research and write enchanting articles on real estate trends. I hope you enjoyed this weeks subject. Share it with your friends and family.

Any questions? Would you like to chat. You can call me at (415) 378-6614. Or send a note to andrew@batesrealestategroup.com

 



Impact Of Opting Out Of The MLS

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I just read an article opposing Zillow’s position on so-called pocket listings. Pocket listings or listings that are not marketed on the MLS results in brokers being able to double end deals.

Getting paid on both sides of the transaction is unethical and harmful to consumers according to a group known as Consumer Advocates in American Real Estate. They claim it’s a “harmful practice that thrives on breaching trust, deceiving clients, and intentionally putting them in a situation of duress and then profiting from it”. 

I disagree with this argument completely because there are many ways of marketing a property effectively.
After explaining the pros & cons of not using the MLS to market their homes, ultimately it’s my clients choice to have their homes listed on the MLS.
I take this position because there are many other ways of marketing listing to other brokers and consumers.   Let me explain how.

  • Marketing to my CRM
  • Postcard marketing. For about $50 I can reach every agent in the state..

Of course the different MLS’s around the country say no. Is it because they are afraid of losing all the fees they collect from us brokers. For very little value.

That’s why I was infuriated after reading an article by Doug Miller a consumer advocate. Who said  “pocket listings exist to generate a double fees & deceive the consumer”.

So my question to Doug is why is it wrong wanting to earn more money?

All sellers are required to sign an agency disclosure form where the pitfalls of not listing on the MLS is explained in detail.
Always give full disclosure to your clients, explaining the benefits and well as the bad of pocket listings.

Each week time is spent researching and writing enchanting articles on real estate trends. I hope you enjoyed this weeks subject. Share it with friends and family.

Any questions? Want to chat? You can reach me at (415) 378-6614. Or send a note to andrew@batesrealestategroup.com. We’d love to hear from you.

Why Didn’t Your House Sell?

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Information is knowledge, knowledge is influence and influence is power.

You are looking for some answers. Why didn’t your house sell. After sitting on market for so long. Why you ask.  Let me explain why it didn’t.

If you price your home too high, buyers will pass it by. They’ll visit homes that are at lower price points. And you need to pick the right agent.

Knowing how to price your home for sale is powerful information. Also helps you get the highest and best price for your home.

You have made the decision to put your property on the market. Now it’s time to start interviewing agents.
You should use an agent that offers value added services.

The easy peasy method for choosing the best agent.
Look for an agent that:

  • Handles transaction from beginning to close of escrow
  • Provides market profile of your neighborhood
  • Help you prepare your home for sale
  • Markets your home
    And now for the best part
    4 Juicy ideas to get your home sold quick:
  •  Consider your price point, be realistic in what you expect to get at closing.
  •  Be careful examining the comparable properties in your neighborhood.
  •  Consider closing costs by using a net sheet, etc.
  •  Schedule a time with your agent in advance. A time to see how your listing is performing compared to the competition. Let me explain.
    You want to see how many visitors come to the open houses. And if there are any offers. Your agent will provide reports on a regular basis. And reviewed to adjust your sales price if needed.

Each week time is spent researching and writing enchanting articles on real estate trends. Let me know what you think. Share it with friends and family.

Any questions? Would you like to chat? You can contact me at (415) 378-6614. Or send a note to andrew@batesrealestategroup.com

Tips to Prepare Your Home for Sale Fast

Tips to Prepare Your Home for Sale Fast

 

Working to get your home ship-shape for showings will increase its value and shorten your sales time.

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There are 5 tips to prepare your home for sale fast that will net you more dollars at the close of escrow. Following these tips to prepare your home for sale will get your home sold in the shortest length of time.

5 Juicy Ways to Sale Your Home Fast

1. Have a home inspection

Schedule a pre-sale home inspection. For $250 to $400, an inspector will warn you about troubles that could make potential buyers balk. Make repairs before putting your home on the market. In some states, you may have to disclose what the inspection turns up.  batesrealestategroup.com

2. Get replacement estimates

If your home inspection uncovers necessary repairs you can’t fund, get estimates for the work. The figures will help buyers determine if they can afford the home and the repairs.
Also hunt down warranties, guarantees, and user manuals. For your furnace, washer and dryer, dishwasher. And any other items you expect to remain with the house.

3. Make minor repairs

Fix as many small problems—sticky doors, torn screens, cracked caulking, dripping faucets—as you can. Or hire a handyman. A home in disrepair will give buyers the impression your home isn’t well maintained.

4. Clear the clutter

Clear your kitchen counters of everything. Your closets by packing up little-used items. Out-of-season clothes and old toys. Use closet organizers to maximize space.
Put at least one-third of your furniture in storage. Particularly large items, such as entertainment centers and big TV’s. Bundle up family photos, knickknacks, and wall decorations to depersonalize your home. Store the items in a storage facility. Or in boxes arranged in your garage or basement.

5. Do a thorough cleaning

A clean house makes a strong first impression that your home has been well cared for. If you can afford it, consider hiring a cleaning service. If not, wash windows and leave them open to air out your rooms. Clean carpeting and drapes to remove cooking odors, smoke, and pet smells. Wash light fixtures and baseboards. Mop and wax floors, and give your stove and refrigerator a thorough once-over. Pay attention to details, too. Wash fingerprints from light switch plates, clean inside the cabinets, and polish doorknobs. Don’t forget to clean your garage, too.

 

Each week we research and write enchanting real estate trend articles for you. I hope you enjoyed this weeks article. Share with friends and family. We’re counting on you.

Any questions? Do you want to chat? You can call me at (415) 378-6614. Or send a note to andrew@batesrealestategroup.com.  I am looking forward to hearing from you.