“The reason dolphins have a reputation for saving drowning swimmers is because you never hear from the ones they push out to sea.” As a Realtor, you seldom hear about the transactions where the home appraised at (or above) the sales price, and the deal went on to close smoothly. On the contrary, you hear...Read More
Changing Mix of Comp’s (“Comparable Sold Properties”) It may strike non-professionals as odd, but real estate market values are established by “looking through the rear view mirror” — that is, by scrutinizing recent, similar sales as near to the subject property as possible. Every rule has its exceptions, but the conventions in residential real estate are: ...Read More
By now, most people know what an upside down home owner is: someone who owes more on their mortgage(s) than their home is currently worth. Supposedly, Americans are (still) collectively underwater to the tune of $5 trillion. So, what’s an “upside down” house? (my term) It’s a home where the finished square feet are disproportionately...Read More
Calculating the Risk that a Low Appraisal Will Scuttle a Deal In a market with lots of first-time Buyers (like today’s), it’s a question I’ve been fielding a lot this Spring: ‘when should I give notice to my landlord?” The (usually) safe answer: ‘once the Inspection Contingency has been removed.’ That is, after the Buyer’s...Read More
Why Didn’t That Home Appraise? Test your knowledge of today’s housing market, and answer the following question: What is the most common reason homes fail to appraise today? A. Buyers who pay an above-market price, perhaps in multiple offers. B. Appraiser inexperience (they use the wrong Comp’s, or get the adjustments wrong). C. Appraiser error...Read More
“I Know that Block!” Perhaps the key to what Realtors call a Contingent Offer (one where the would-be Buyer first has to sell their current home) is . . . surprise, surprise . . . the Buyer’s current home (referred to as “the backup home”). Specifically: –Where is it? –What kind of shape is it in?...Read More
