Tag Archives: Cumming Homes

Your Home Appraisal Came In Low. Now What?

This great article came to me in a newsletter house questionfrom Mary Thompson, Certified Appraiser, with Lanier Appraisal Service.  I wanted to share this with you, as a low appraisal can often be a deal breaker, not to mention a huge source of stress for the seller.   An experienced Realtor will be able to advise if you are listing your home too high for the market, or be ready to go to bat for you if the appraisal appears to be erroneous.

Having the right team on your side will help you get your home sold faster, and at the best market-price possible.

Marie Dinsmore, Certified Luxury Home Marketing Specialist

The Dinsmore Real Estate Team  |  www.dinsmoreteam.com

Marie@DinsmoreTeam.com | 770-712-7789

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Article courtesy of Mary Thompson with Lanier Appraisal Service.   Please see their website for additional information:   www.lanierappraisalservice.com

You get the BAD news….The Appraisal came in Below Contract Price. What do you do as an Agent now? This one is long, but well worth the READ to help your sellers out of a difficult situation. Print it off  to Read Later Or Save in a Special File in your Email Program for later reference. 

1. First Please Ask Yourself…Did your GUT tell you value might be a problem?  If so, you really need to re-negotiate that contract and make it work, because this is the sellers only option as another appraisal will not fix the problem.

2. If  indeed you feel appraised value is low based upon your own market analysis or A Pre-Listing Appraisal provided to the Bank’s Appraiser, then review the comps used by the Bank’s Appraiser to see if they used ANY of the comps You provided or the Pre-Listing Report included. If not…Why not? The Appraiser needs to answer that question for you. (See “Benefits of getting a Pre-Listing Appraisal” Link to your Left as well as “Letter to The Seller” which you can give to them during your Listing Appointments. This could save You and the Seller very real head aches at contract time!)

3. Closely Check The First page of the Report which has all the Data on the home. If there are many errors on this page, such as wrong legal description, address (yes, I have seen wrong addresses on reports), type of exterior building materials on the home, Roof material, Windows, Number of Garages, number of bedrooms and baths (remember appraisers separate beds and bath in the terrace level from the GLA or gross living area which is above grade/ground), neighborhood description and boundaries, interior amenities,  there is a GOOD chance the other parts of the report are not reliable, such as the comps used and the adjustments made for the comps.

** Check the Comparable Sales Page. If you see adjustment amounts that are  too low or too high, ask why and how they came up with that number? ** IF YOU ARE DEALING WITH LAKE PROPERTY and See NO adjustments under the Lake Site for the Comps, this is a Red Flag. As you know Lake Lot values vary widely and just because each comp is located on the lake, does not mean the sites are equal in value across the board.  In most cases an adjustment is warranted on the lake. This applies to all specialty properties like Golf Course and Mountain View homes, etc. 

*** Check the ADJUSTMENTS very closely as to the POSITIVE + or NEGATIVE – adjustments made to the comps. An Error here can mean thousands more for the subject property. If the COMP is superior to the subject a NEGATIVE adjustment (against that sales price) should be made to that Comp. If the COMP is inferior to the Subject a POSITIVE adjustment should be made. Their comments should clearly show which are positive and which are negative and some are obvious, such as more or less beds, baths and square footage compared to the Subject.  

4. Check the Sketch for errors! This is one area overlooked by most and it could change the value by Thousands in the Sellers favor. If the Appraiser has UNDER Sized the home and the dimensions are not accurate, even if it is only by 100 square feet that could translate into Two, Three, Four Thousand Dollars depending upon the price per square foot used in the report.

(I have found several errors in other appraisers sketches so do not miss out on this opportunity). You can take that sketch and remeasure the exterior walls and see if it jives with the Appraiser’s Sketch) We do offer Sketch service so if you need help just give me a call. The cost will be well worth the ADDED benefit if the original sketch is not correct. 

5. Ask the question….What expertise does this appraiser have in this area? For Example with Lake property, how many appraisals has this Appraiser completed on the Lake in the past 6 months? City Appraisals….How many appraisals has the Appraiser completed in your given City ie; Gainesville. Values can vary widely within blocks of each other.

*** IT IS REQUIRED BY USPAP (Uniform Standards of Professional Appraisal Practice) that the Appraiser MUST be competent in the area in which they appraise or they MUST reject the assignment! It is called the Competency Rule. So unless they seek the advice of a local expert and NAME them in the report, they should not be accepting assignments in areas that they do not know or they violate USPAP.  FANNIE MAE is very specific about this requirement being met by both Lenders who assign the orders and Appraisers who accept them!

6. Put together a clear and concise rebuttal letter for the buyers lender. You need to include 2-3 comps that were not included in the report which you feel should have been included and WHY. You also need to state why any or all of the comps that the appraiser used were NOT the most comparable or why the adjustments or lack thereof are a problem.

7. Beware of the Comps You Provide in a Rebuttal. Realtors tend to use Comps that are Sales Price driven. I have seen many cases where the comps actually made the value lower as they were larger or newer homes or located in superior developments, etc. So please be careful to check these comps closely before you include them in your rebuttal. You do not want them to backfire on you.

8. If you have first hand knowledge about some of the COMPS used by the Appraiser and they are not describing them accurately in the report ie; you know that the interior was in bad shape (even if the FMLS photos showed otherwise). You know it was a distress situation, divorce, etc. that the Appraiser would have no way of knowing about. Anything about those homes, recent upgrades, amenities, that you know exists and the appraiser would have no way of knowing about, should be pointed out in your rebuttal.

9. Check the Comparable PHOTOS used by the Appraiser in their report. If any or all appear to have been taken right off the MLS/FMLS listings, CRY FOUL in your Rebuttal! Some are quite easy to detect as the Comp Photos are Spring Time Shots when the appraisal was done in the winter, etc. Appraisers are supposed to drive by the Comps and take their own photos for most every Lending Transaction, unless the home sits way back off the road or is gated, etc. If you see that they are using only FMLS/MLS photos, this likely means they never drove by the home and this is critical in order to get a feel for the neighborhood as well as how the home looks and compares to the subject. 

**In your rebuttal state that some or all of the photos were taken from FMLS/MLS Listings and you are very concerned that the Appraiser never drove by them, otherwise their own photos would be used in the report. Appraiser will have to answer to this. 

10. Consider an Independent Rebuttal Appraisal to provide to the Lender and Bank Appraiser. This will certainly confirm or deny the LOW Appraisal. If it does confirm a low appraised value, it can go a long way to get the Bank’s appraised value up. Even if it is just a few thousand dollars, it is worth the cost of the Appraisal.

This entire process does take time, but if done properly, it CAN and HAS been successful. I suggest bringing your Seller heavily into the process. They can consider it a Challenge to work on. The owner knows their home better than anyone and they can comb through the report for errors which can be included in your rebuttal and which will force the Bank and Appraiser to take a second look at the Report. Sellers can drive by the comps and tell you how they compare in neighborhood location, appeal, etc.

I hope this helps you to bring about a successful conclusion to your Rebuttal. Just come right out and ask the Appraiser & Bank to reconsider the facts put forth in your rebuttal. You can ask for reconsideration or for another appraisal if you feel you are not getting a positive response from the Lender and the Lender’s Appraiser.  They cannot just ignore your request for Review.

Seven Reasons to Have Your Home Professionally Staged

If you’re in the market to sell your home, you obviously want to be able to sell your home quickly and at the highest value you can possibly receive.

Everyone has an inherent knowledge of certain factors,  but I cannot emphasize enough the impact that curb appeal, cleanliness, and how your home is staged matter to attaining your goals.

Here are some interesting facts about home staging from About.com:

  • Most buyers form an opinion about a home within the first 7-10 seconds of arriving.
  • Over 90% of buyers look at homes they’ve found on the Internet. It is critical that your home makes a strong first impression online. Staging will help you do just that.
  • Sellers who spent $500 on staging recovered over 343% of the cost when they sold their home. (Homegain.com)
  • In controlled tests selling identical homes, professionally staged vs. those not staged, the non-staged houses sold in 102 days, while the staged houses sold in 45 days. (Real Estate Staging Association)
  • It is estimated that only 10% of home buyers can visualize the potential of a home. That means 90% are not going to be able to look past imperfections including dirt and clutter
  • According to the National Association of Realtors (NAR), the average staging investment is between 1 and 3% of the home’s asking price, which generates a return of 8 to 10%. That’s a pretty good investment.
  • Staged homes spent 83% less time on the market than non-staged homes. (HomeGain.com)

There is an art to staging, and I am happy to announce the newest members of The Dinsmore Team, Karen Hartz and Kelly Tam – Karen & Kelly Home Staging and Redesign.   Karen & Kelly possess over seven years of experience in staging homes for sale, and are an effective and affordable option for sellers (as well as realtors).

Living BA

Property stagers are not interior designers.   While some property stagers may refurnish an entire home, Karen & Kelly Home Staging and Redesign work with your existing furnishings to ensure proper placement, or removal, in order to show your home in its best light (value) and help prospective buyers see the home as “move-in” ready (selling faster).

Karen & Kelly can be available for a 1-hour consultation to go through your home, assess your home’s inventory and make necessary suggestions, or assist you through the entire process.   They also have partnerships with a variety of exceptional and trusted service providers if you need assistance with painting, construction, handy-man services, etc., as well a full stock of accessories to make your home stand out from the crowd.

Family BA

If you are selling your home, I hope that you will seriously consider consulting with Karen & Kelly Home Staging and Redesign before listing.  You can reach Karen Hartz at 404-432-8760404-432-8760, and Kelly Tam at 404-307-6603404-307-6603.

 

Marie Dinsmore, Certified Luxury Home Marketing Specialist

The Dinsmore Real Estate Team  |  www.dinsmoreteam.com

Marie@DinsmoreTeam.com | 770-712-7789770-712-7789

Georgia REALTORS Predicts Continued Price Gains for Atlanta Sellers

More good news for home sellers in Georgia, and especially in the continuously growing and desirable areas of Cumming, Milton, Alpharetta, Johns Creek, Suwanee and Lake Lanier!  Below is a snapshot of a report from the Georgia REALTORS’ Bulletin.

If you are looking to sell your home, please contact me so that I can ensure you receive the most value from you home for the current market conditions.

Marie Dinsmore, Certified Luxury Home Marketing Specialist

The Dinsmore Real Estate Team  |  www.dinsmoreteam.com

Marie@DinsmoreTeam.com | 770-712-7789770-712-7789

sellers market

Housing Indicators Show Continued Price Gains in January     

Housing Indicators show that the same factors that catalyzed widespread market recovery in 2012 and 2013 are likely to continue in 2014, though perhaps at a more moderate pace:

  • Median Prices rose 25 percent to $141,100
  • Average Prices rose 23 percent to $183,834
  • New Listings increased 8 percent
  • Pending Sales were down 6 percent
  • Inventory Levels shrank 4 percent
  • Months Supply of Homes for Sale decreased 6 percent to 5.1
  • Days on Market decreased 9 percent to 82 days
  • Percent of Original Price Received increased .3 percent to 94 percent

Click here to access the full report.

Click here to access the 2013 year-end report.

 

Can Living Near A Walmart Increase Your Home Value?

The answer is surprisingly, “yes”!   There was an interesting article on the National Association of Realtors‘ site that I thought I would share.

Marie Dinsmore, Certified Luxury Home Marketing Specialist

The Dinsmore Real Estate Team  |  www.dinsmoreteam.com

Marie@DinsmoreTeam.com | 770-712-7789

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9 Surprising Things That Add Value to Your House

By: Dona DeZube

A home’s value is dependent on many things. Here are nine factors you might not have thought about.

1. Surf Breaks: Being within a mile of a surf break (a spot where surf-able waves happen) adds about $106,000 to a home’s value, according to surfonomics experts at the Monterey Institute of International Studies.

Reality check: Mother Nature makes surf breaks, so it’s not like you could build your own DIY break to boost your home’s value.

2. Parks and Open Spaces:  A desirable public park or other recreational open space boosts the property value of nearby homes by 8%-20%.  One study looked at 16,400 home sales within 1,500 feet of 193 public parks in Portland, Ore., and found these boosts to home values:

  • Natural areas: $10,648
  • Golf courses: $8,849
  • Specialty parks: $5,657
  • Urban parks: $1,214

Reality check: A park that’s not maintained and overcrowded can drag down nearby home values.

3. Living Near a Walmart: Along with making it easier to run out for a gallon of milk at midnight, researchers at the University of Chicago concluded that living within a mile of a Walmart store could raise your home’s value by 1%-2%, and living within half a mile could boost your property value by an additional 1%.  For an average-size home, that’s an uptick of $4,000-$7,000.

Realty check: What you gain in home value, you may end up spending at Walmart.

4. Solar Photovoltaic Systems: California homes with solar photovoltaic (PV) systems sell for a $17,000 premium over homes without solar systems, according to research from the U.S. Department of Energy’s Lawrence Berkeley National Laboratory.

Reality check: Although costs for residential solar power systems are falling, they’re still rather pricey at $15,000-$40,000, depending on the size of your house.

5. Walkability: Being able to stroll to schools, parks, stores, and restaurants will raise your property value anywhere from $4,000-$34,000, says a 2009 study from CEOs for Cities.

Reality check: The biggest boost in walkability values occurred in large, dense cities.

6. Accessory Dwelling Units:  Whether it’s a granny flat, an in-law apartment, or a carriage house, having a separate unit can increase your home’s value by 25%-34%, according to a study of 14 properties with accessory dwelling units in Portland, Ore. You can also get a steady stream of income from a second unit.

Reality check: Local governments often ban accessory dwelling units, so check zoning laws, building codes, and homeowners association rules before you add a unit.

7. Professional Sports Arenas:  A new pro sports stadium can raise property values in a 2.5-mile radius by an average of $2,214. The closer you are to the new facility, the larger the increase in home value. Researchers from the University of Illinois at Urbana-Champaign and the University of Alberta examined house sales in Columbus, Ohio, before and after the city added two sports stadiums.

Reality check: If a stadium is proposed, home values can decline a bit until the project is complete. And if you live really close to a stadium, you may encounter traffic and parking issues.

8. Community Gardens:  Planting a community garden raises the value of homes within a 1,000-foot radius by 9.4% within five years, according to research by the Office of the Comptroller of the Currency and New York University School of Law.  The impact increases over time, and high-quality community gardens have the greatest positive influence. Poor neighborhoods saw the biggest gains in home values.

Reality check: Gardens on privately owned land and in higher-income neighborhoods don’t have the same beneficial influence.

9. Trees:  No real surprise here — whether trees are in your yard or just on your street, they’re a valuable asset you should be aware of. Here’s a gauge of how much trees are worth to your home value according to a University of Washington research survey:

  • Mature trees anywhere in your yard: 2%.
  • Mature trees on your street: 3%.
  • Trees in your front yard: 3%-5%.
  • Mature trees in high income neighborhoods: 10%-15%.

Reality check: Trees usually mean work — raking leaves, trimming branches, and keeping roots out of sewer lines.

Why Realtor Certification Matters: CDPE

I’ve been a Realtor along the GA400 corridor (covering Milton, Alpharetta, Cumming, Johns Creek, Suwanee and Dawsonville) since 2002, and have helped more than 300 families buy or sell a home in the area. My experience and knowledge of this market is extensive. With over 12 years’ experience in the Real Estate Industry, I realize the importance of being able to assist my clients with not only their buying and selling needs, but also to be able to help those in need during difficult financial times avoid foreclosure.

Through years of experience, I have developed what I believe is the most effective short sale listing system available: understanding what works; how banks think; and how to get banks to forgive outstanding debt associated with short sales.

In a previous blog, I explained the importance of having the CLHMS (Certified Luxury Home Marketing Specialist) certification.    This time, I would like to explain the CDPE certification.

CDPEA Certified Distressed Property Expert® (CDPE) has a thorough understanding of complex issues in today’s turbulent real estate industry and knowledge of foreclosure avoidance options available to homeowners. CDPEs can provide solutions, specifically short sales, for homeowners facing market hardships.

Homeowners regularly proceed without guidance of any kind through the often financially and emotionally devastating prospect of foreclosure. Speaking with a well-informed, licensed real estate professional is the best course of action for a homeowner in distress. Through comprehensive training and experience, CDPEs have the tools to help homeowners find the best solutions for their unique situations and to avoid foreclosure through the efficient execution of a short sale.

So what is a short sale?

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here’s a more official definition:

  • A homeowner is “short” when the amount owed on his/her property is higher than current market value.
  • A short sale occurs when a negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then ‘sold short’ of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into all of the following circumstances:

  • Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
  • Monthly Income Shortfall – A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
  • Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of an experienced professional. CDPEs don’t merely assist in selling properties, they serve and help save their clients in need.

While the market has shown definite improvement in the North Atlanta area, you or someone you know may still need advice on how best to avoid foreclosure during difficult financial times.   Please contact me if you have any questions regarding the short sale process.

Marie Dinsmore, Certified Luxury Home Marketing Specialist

The Dinsmore Real Estate Team  |  www.dinsmoreteam.com

Marie@DinsmoreTeam.com | 770-712-7789770-712-7789