The REAL Purpose of Appraisals What is the purpose of an appraisal, in the context of a residential real estate sale? To make sure that, if the Buyer defaults on their loan and the lender ultimately forecloses, the value of the collateral is sufficient to make the lender whole. Or, in plain English: if the...Read More
The REAL Purpose of Appraisals What is the purpose of an appraisal, in the context of a residential real estate sale? To make sure that, if the Buyer defaults on their loan and the lender ultimately forecloses, the value of the collateral is sufficient to make the lender whole. Or, in plain English: if the...Read More
The REAL Purpose of Appraisals What is the purpose of an appraisal, in the context of a residential real estate sale? To make sure that, if the Buyer defaults on their loan and the lender ultimately forecloses, the value of the collateral is sufficient to make the lender whole. Or, in plain English: if the...Read More
Homes That Can’t Be Bought or Sold “Sunk Cost“: A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business may face, such as inventory costs or R&D expenses, because it has already happened. Sunk costs are independent of any event that may...Read More
Pricing a Home When the Comp’s are Tough “You have to know the rules before you know when you can break them.” Normally, the standard way of doing a CMA (“Comparative Market Analysis”) is to limit your focus to three Comp’s, or “Comparable Sold Properties.” By definition, those are the nearby homes most similar in...Read More
A Short Brief Short Sale Q&A Question #1: When doesn’t a homeowner care what their home sells for? Answer: When they’re not receiving the proceeds. Question #2: When does a homeowner not care what the Realtor’s commission is? Answer: When they’re not paying it. Question #3: When do both of the above apply? Answer: In...Read More
