What Are They Really Worth? Put it this way: the picture of toilet paper should give you a hint. First, some background. In Minnesota, the first things that typically lead off any offer to purchase residential real estate are the Buyer’s earnest money check, and a pre-approval letter from a lender (unless the Buyer is...Read More
Housing Market Circular Reasoning The reason more upper bracket homes aren’t selling . . . is because more upper bracket homes aren’t selling. Huh? Once a deal is struck, the lender’s appraiser seeks to substantiate the value of the collateral — the home being sold — by looking to other, similar homes that have sold...Read More
Mispriced Properties: Exhibit A Where: 46xx 1st Ave. South in Minneapolis What: Bank-owned (foreclosure) 3 BR/2 BA 1917 stucco home with 2,000 square feet. How (much): asking price — $72,900; sold price — $130,000 When: listed — 4/19/2009; closed –8/18/2009 In my post yesterday (Seller’s Motivation: Is it Relevant?”), I made the case that the...Read More
Top 4 Obstacles Water, water everywhere, but nary a drop to drink. –Samuel Taylor Coleridge, “The Rime of the Ancient Mariner” Substitute “money” for “water” and you have a good sum-up of today’s lending environment. With mortgage rates at record lows — around 4.75% for a 30 year mortgage — you’d figure that anyone paying,...Read More
The Goldilocks Approach to Appraisals Just like Goldilocks preferred the porridge that was neither too hot nor too cold, appraisers like to see a home that prices in the middle of its peer group. In appraiser lingo, such a home is said to “bracket.” In plain English, that means it’s priced more than a slightly...Read More
Appraisal Issues Back on the Front-BurnerAs the saying goes, “April showers bring May flowers.” In the real estate market this Spring, the equivalent is, “April multiple offers bring . . . May appraisal issues” (OK, so it doesn’t have the same ring to it). One of the consequences of a home selling in multiple offers...Read More
