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.

Impact Of Opting Out Of The MLS

Mark Moz Photo

 

 

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.

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.