A little assistance understanding apprasals

erino — Tue, 08 May 2012 17:13:01 +0000

Loan (Photo credit: Philip Taylor PT)

This was an article found on The Realty Times website, hope you find it helpful.

Understanding Appraisals

by Carla Hill

It’s a term homeowners and sellers hear all the time. What does “appraisal” really mean and how will it affect your ability to make a deal?

As the market dips and continues to struggle across the nation, many sellers are finding themselves in an unhappy predicament. They have a buyer lined up and an offer on the table, but wait…… the buyer’s financing has now fallen through. The asking price of the home has come in over the appraised value.

This has led to a unnaturally high number of contract cancellations. According to the National Association of Realtors (NAR), “Twenty-one percent of NAR members in January reported delays in contracts, and 33 percent said contracts fell through.. The number of contract cancellations remains mostly unchanged from December. An increase in the past year of contract cancellations or delays has been blamed on more lenders declining mortgage applications from stricter underwriting standards and low appraisals coming in under the agreed upon contract price.”

Here are some things you need to know about appraisals:

First, it’s true that lenders usually won’t write a mortgage for more than a home is “worth”. This sets them up for a large financial burden should the prospective borrower default on their loan. They will, instead, write a mortgage for whichever price is less, be it the sale price or the appraised value. From a business standpoint it is logical. For a stalled and unpredictable housing market, it is downright frustrating.

An appraisal is figured by your local tax office (appraiser’s office). They calculate what the market value of your home is based on, the square footage and specifics of your home. Do you have a fireplace, hardwood floors, and four bedrooms? You’ll pay more in taxes and have a higher appraised home than the same home with no fireplace and laminate floors.

You generally receive a statement from the tax office each year showing you the appraised value of your home. If you feel this is in error be sure to contest it!

To read the full article, click here

Home Ownership Matters

erino — Tue, 08 May 2012 14:42:09 +0000

Spring Plant Sale

erino — Tue, 08 May 2012 10:23:35 +0000

We love Toledo Botanical Garden, you don’t want to miss this annual Plant Sale.
@ Toledo Botanical Garden
Thursday, May 10th thru Sunday, May 13th

Does Home Ownership Matter? Yes!

erino — Mon, 07 May 2012 21:05:50 +0000

From Realtor.com

“A nation of homeowners is unconquerable.”

Powerful words spoken by Franklin Delano Roosevelt, our 32nd President. The man that led this country out of the Great Depression and through the greatest war the world has ever seen.

The man who helped America regain faith in itself as it emerged from the darkest of hours.

Decades have passed since FDR made this statement, but in 2012, these words still resonate.

Because today, as it did then, home ownership still matters.

And for me, home ownership is much more than a a monthly mortgage payment.

Owning a home gives me a sense of belonging. Roots. A place in the community. A little place in the world for my family that’s uniquely ours.

For me, home ownership is much more than just owning my home.

It’s getting to know my neighbors. Spending time chatting while the kids play in the front yard. Stopping for a few minutes of conversation with local grocers every morning while running with my dog.

Want to read more? Click here.

Toledo Ranks 3rd in Affordable Housing!

erino — Fri, 04 May 2012 14:50:17 +0000

Check out this recent story on 13 ABC. After years of uncertainty, it seems like things are starting to puck up in the real estate world. Realty Trac has ranked Toledo in the top five most affordable housing markets, with a median home price of $100,000. ….

Click here to watch the video

Get the best price possible for your home

erino — Mon, 30 Apr 2012 22:02:15 +0000

Without proper exposure, sellers may be leaving money on the table

By Dian Hymer, Monday, April 30, 2012.

Inman News®

Wouldn’t it be nice to sell your home without the hassle of exposing it to the public? Selling off-market works occasionally, but most sellers who try it eventually end up having to put their home on the market. This wastes time and could delay the sale.

There are other drawbacks to trying to sell without full market exposure. One is that it’s difficult to prepare your home for sale if prospective buyers are coming through. You have to stop work, and buyers see a work in progress.

It doesn’t make a good impression if your home is shown before it’s ready. Buyers remember what they see, not what you tell them it will look like when you finish painting a room or replacing outdated light fixtures.

Sellers in a desirable Oakland, Calif., neighborhood were asked by neighbors who needed a larger home if they could see the house before it went on the market. The buyers were so turned off by the poor appearance that they not only didn’t buy the house, but they didn’t even want to see it when it came on the market. So you can lose buyers by letting them see the house before it’s ready.

A potentially more serious downside of selling without exposing your home to the market is that you’ll never know what it could have sold for with the benefit of promotion. You might be leaving money on the table.

TO READ THE REST OF THIS ARTICLE PLEASE VISIT INMANNEWS.COM

5 Ways to Sell a Home Faster

erino — Thu, 26 Apr 2012 11:22:54 +0000

From Realtor Mag
24/7 Wall St. recently asked real estate experts and several real estate organizations to weigh in on how sellers can get their house sold at the best price and in the shortest amount of time.

Here’s what they had to say as some of the best ways to get the “sold” sign out this spring:

Pay attention to “curb appeal”: First impressions are critical, and homes with inviting landscapes and exteriors tend to sell better, agents say. Pay attention that the driveway is in good condition, lawn well-kept, and the house looks freshly painted.
Set the right price: Real estate professionals know how to set the price and prepare a home for sale. Agents use comparable sales of homes sold in the last 60 days to help set the most realistic price for the sales price of a home. By setting a realistic price from the beginning, sellers should be reminded that this will prevent having to drop the price of the home several times before getting it sold and having it linger on the market. If no recent comps are available, some experts recommended sellers get an appraisal, which will also offer a realistic price that the bank may be willing to take when a buyer tries to qualify for financing the home.
Want to read the rest of the article, click this link to visit the Realtor Magazine site

Metropark plans advance downtown

erino — Tue, 24 Apr 2012 12:58:03 +0000

Great news for the city of Toledo and more importantly for underdeveloped and long ignored areas of the downtown Riverfront. Read the article here: Link to Toledo Blade article

Some of the changes mentioned: developer David Ball announced plans to convert the long-vacant Toledo Edison steam plant into a YMCA fitness center, a University of Toledo Medical Center health clinic, and 67 market-rate apartments.

How do Real Estate Agents Get Paid?

erino — Sun, 22 Apr 2012 00:22:12 +0000

By Kay McArdle/kaymcardle.com

Generally the public doesn’t know just how our business works and exactly how we do get paid. And I think sometimes people think we make a lot of money for a little work. I myself was surprised when I became an agent nine years ago with how hard we all work 24/7 and how many expenses we have as independent contractors. But, I love being a real estate agent helping people find a wonderful place to live and like most other agents, wouldn’t trade the job for any other.

So let me take a step back and explain just how we are employed. After taking a number of state required real estate courses, we sign agreements to work with a real estate company as an independent contractor ….not as an employee. We are not paid hourly to show clients homes, do open houses, stay up-to-date on current law and practices through required continuing education or to stay on top of market values and trends. Which we all happily do because this makes us more successful. But, we are only paid if we are part of a closed real estate transaction.

Typically, the seller pays the commission and the buyer has no direct cost for their agent’s services and representation. The commission is then split 4 ways between the 2 real estate companies and the 2 agents involved in the sale. It isn’t an equal 4 way split, but generally the listing side retains more of the commission and each agent will have a certain split with their company dependant upon their productivity and company policies.

The seller commission is negotiable, but the services that will be included in the listing may vary greatly. The marketing may only include listing the home on the local MLS or it may provide a video tour, syndication to multiple real estate websites, be featured in an agent blog and Facebook page, be listed in local print media and have the agent hold Open Houses. Agents and their companies have may also have good systems in place to make sure all inquiries about the home are handled promptly and that the transaction from negotiations through inspections and closing are handled smoothly for the client. The co-broke, which is the part of the commission that goes to the agent and broker representing the buyer, can vary and does serve as an incentive for other agents to show the home. Agents can differ on how and how frequently they communicate with clients with showing feedback; on market changes and trends; updates on new comparable listings; homes going into pending status and sales; and suggestions to continue to prepare the home to make it more appealing and marketable.

From the commission earned from a transaction, agents are responsible for a number of small business owner costs:

Car related expenses

Marketing and Advertising

Errors and Omissions Insurance

Multiple Listing Dues

State of Ohio Realtor Licensing Fees

Website Maintenance Costs

Accounting Fees

As one agent in our company says, we are one of the few professions that work with the hope of getting paid. Although Welles Bowen doesn’t often use Buyer Agent Contracts which guarantee a certain commission to the buyer’s agent, we do so appreciate when clients work exclusively with us and not hop from agent to agent.

Kay McArdle, Realtor

Office: 419-535-0011
Cell: 419-654-0059
Fax: 419 535-7571
VM: 419-539-2700 ext. 102
kaymcardle@wellesbowen.com

You can find Kay’s website by clicking here.

6 Reasons to Reduce Your Home Price from Susie Thomas

erino — Sun, 15 Apr 2012 13:55:23 +0000

While you’d like to get the best price for your home, consider our six reasons to reduce your home price.

These six signs may be telling you it’s time to lower your price.

1. You’re drawing few lookers

You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.

2. You’re drawing lots of lookers but have no offers

If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.

3. Your home’s been on the market longer than similar homes

Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and you’re pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.

4. You have a deadline

If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend.

5. You can’t make upgrades

Maybe you’re plum out of cash and don’t have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.

6. The competition has changed

If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what’s still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.

By: G. M. Filisko Published: March 19, 2010

Susie Thomas, Realtor

Office: 419-535-0011
Cell: 419-367-3974
Fax: 419 535-7571
VM: 419-539-2700 ext. 135
susiethomas@wellesbowen.com