BUYERS: 5 Questions to Ask Yourself Before Getting an Appraisal

5 questions you must ask yourself before getting an appraisal

October 25, 2013 By Tom Horn  Birmingham Appraisal blog

I had a reader email me a question last week asking why they should get an appraisal on their home, and I want to share with you the answer I gave them with the hope that it can help you make a similar decision. This person asked me “Why do I need to get an appraisal, I don’t want to have to pay for one”? In their particular situation a family member had died and left a home to the family. They wanted to sell it and needed to know what to ask. Some situations require you to get an appraisal such as when you buy or refinance a home, and you usually do not have a say so in the decision, however there are other times when you can make the decision yourself.

I told the person to ask themselves these 5 questions to help them.

1. Do I have access to a recent appraisal? The owner may have had a recent appraisal done on the home that could be used, such as with a refinance or a recent purchase. A recent appraisal can give you a good estimate of value if the real estate market hasn’t changed much since it was done, and if this is the case I wouldn’t recommend getting a new one.
2. Can I get information on home sales in my neighborhood, and if so are the homes very similar to my house? Some neighborhoods are what we call cookie cutters, meaning that they are all very similar in age, style, size, and appeal. If this is the case, and there have been recent sales and some current listings, then you may be able to estimate the value on you own. You can read more about doing this on a past post I wrote.
3. If I get an appraisal will the cost be offset by the money saved? I recently did an appraisal on a home a person was buying. They were not getting a loan from a bank so they did not have to get the appraisal, however they wanted to know if they were paying the right price. The appraisal value came in approximately $15,000 lower than the contract amount! The cost of an appraisal varies across the country, but in the Birmingham, Alabama area the average is about $350-$450 for a typical house. Would you pay this to save $15,000?
4. If I don’t get an appraisal will it prevent me from selling my home in a reasonable amount of time? This is related to #3 because it compares the additional cost you may have to pay if you don’t get an appraisal. By asking yourself this question you take into consideration the cost of holding on to the house for an extended period of time. If you price your home too high, and it takes 4 months longer to sell than if you had priced it more competitively with the market, then this additional cost must be weighed against the cost of the appraisal. If your mortgage payment is $1,000 then this additional cost would be $4,000, which would be about 10 times the cost of the  appraisal we discussed previously. You need to determine if this is a good return on your investment.
5. Am I committed to actually using the appraisal? Some people get an appraisal but will not use the value estimate to set a list price because they don’t like the value. Sounds crazy, huh? Why pay for an appraisal if you’re not going to use it? People allow their emotions to take over and ignore the value arrived at by a professional and unbiased appraiser. The appraiser is trained to be unbiased and provide a report that reflects the local market. If used correctly the appraisal will help you price your home to the market so it sells in a reasonable amount of time for the what the market will support.

If you have read through these five questions and decided that an appraisal can help you sell your home, please give me a call. I can answer any other questions you may have-no strings attached. I am committed to helping homeowners sell their home by pricing it properly and look forward to speaking with you.

Read more http://birminghamappraisalblog.com/appraisal/5-questions-you-must-ask-yourself-before-getting-an-appraisal/

Selling A Home: 5 Tips to Protect Your Home During A Showing

AGENT ADVICE, BUYING & SELLING

5 tips to protect sellers’ homes during a showing

With strangers wandering through the house, these precautions will make your sellers feel more comfortable

by John Lakatosh  Sep 3, 2015

Takeaways:

• Encourage the sellers to hide any valuables during a showing, including medication.
• Hide personal photos that show the homeowners’ faces.
• Make sure the sellers lock all doors except for the primary entrance where visitors will be entering.

There is a lot that goes into selling a home, and many homeowners often feel overwhelmed throughout the process. As a real estate agent, it’s your responsibility to make them feel at ease.

Homeowners might feel concerned about leaving their home during a showing — and rightfully so. Depending on the showing, there could be hundreds of strangers walking in and out of their home.

It’s easy to get caught up in making a home look perfect for a showing, but it is just as important to help clients keep their belongings safe while their home is on the market. There are things that both the agent and homeowners can do to stay safe.

It’s vital to help clients keep their belongings safe while the home is on the market.

CLICK TO TWEET

1. Hide valuables

bikeriderlondon / Shutterstock.com

Encourage the sellers to hide any valuables during a showing. Medications should be kept locked away in cabinets, as theft of prescription drugs is becoming more common during showings.

If the clients have a safe, they should lock up expensive items such as jewelry. Portable safes should be as hidden as possible, or kept with the seller for maximum security.

Also, consider asking the homeowners to keep relevant documents with private information in their possession, rather than leaving them at home. It’s impossible to keep an eye on everyone, and you never know when someone might decide to go through drawers looking to steal the homeowners’ identities.

In addition to valuables, hide weapons such as guns and large kitchen knives. Make sure these are locked up or removed entirely from the house. This precaution prevents theft and protects you.

2. Remove photos

Family photos are great for staging. They make the home feel “homey” and help prospective buyers imagine themselves in the home.

But with many people touring the home, you never know who could be there. Protect the family and hide personal photos that show the homeowners’ faces.

Breadmaker / Shutterstock.com

3. Encourage buyers to sign in

It might not be feasible to have every guest sign in for large showings. But for smaller showings, ask prospective buyers to leave their name and phone number.

That way, if there is suspicion of theft, you have a record of who entered the home during the open house. Signing in also helps determine how many people were in the home during the showing.

4. Limit access to the home

During a showing, it’s important to limit the number of accessible entrances. Make sure the sellers lock all doors except for the primary entrance where visitors will be entering.

When you arrive before the showing, check that all necessary doors have been locked and secured.

Keeping only one door open during a showing also makes it easier to track who is entering and exiting.

5. Secure the home

Securing the home is especially important if the homeowners have moved to another home while their old home is still on the market. Vacant homes are attractive to criminals.

At the minimum, encourage the sellers to secure the exterior of doors. They should not skimp on deadbolts and locks, as cheaper locks can be faulty.

As a real estate professional, you might also want to suggest a home security system to protect the home. There are many options available for security systems, including budget-friendly options.

With many prospective buyers entering and exiting the sellers’ homes, it is important to think about safety measures that protect homeowners and their identities.

Security will provide them with peace of mind knowing that they have an agent who is looking out for their best interests.

John Lakatosh is president of Crime Intervention Alarm Company, which provides custom security plans for businesses and homes throughout the Mid-Atlantic region.