Tag Archives: Real Estate

Appraisers vs. Online Automated Valuation: Know the Difference

Friday, 15 August 2014 15:42
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AVM-copyBig news came down the wire last week when it was announced that Zillow had acquired Trulia for $3.5 billion in stock options.  While a lot of people may not see how this merger will directly impact their life, for home buyers or sellers, it’s always a good idea to understand the difference between “zestimates”—home value estimates taken from Zillow—or Automated Valuation Models (AVM) and real people.

When it comes to AVM’s, they tend to work best on “cookie cutter” homes where most of the properties look relatively similar to one another.  Therefore, it should come as no surprise that very few lenders rely solely on AVM’s for loan decisions since they can’t always accurately value unique properties such as those sitting on Lake Lanier, various upscale golf courses, and homes with a great deal of acreage.

Therefore, the following is a list of things that an automated or non-appraiser valuation (such as the kind you would find on Zillow) won’t tell you.  Before you consider purchasing a home based on these types of online valuations, it’s important to understand the difference.

1.)    IS THE PHYSICAL HOUSE STILL STANDING WITH ACCURATE SQUARE FOOTAGE?  Sites like Zillow obtain their information from courthouse and property data regarding location and square footage, which means it’s not based on an actual appraiser’s home measurement.  If you’re considering a house, you’ll obviously want to know for sure that it has things like four walls and a roof; therefore, it’s not always smart to assume that a computer is the best source for up-to-date data.

2.)    ARE THERE UNIQUE FEATURES WHICH MIGHT ADD OR DETRACT FROM THE PROPERTY VALUE?  Sure, the computer might value a property at $300,000; however, that number might be subject to extenuating circumstances such as the train tracks just down the road or the desirable parks right outside the neighborhood.

3.)    WHAT VARIABLES IMPACT COMPARABLE SALES?  While a computer might compare your property to similar, recently sold property a ¼ mile away, it doesn’t mean all of the other variables are in line.  The properties might be in a different school district, sit on different roads, be flood-prone, or have been sold under duress.

4.)    ARE THERE MARKET FLUCTUATIONS?  Since automated online systems utilize data from recent, nearby sales, they may not account for neighborhoods that are beginning to experience upturns or downturns.

5.)    IS YOUR APPRAISER QUALIFIED?  When you work with an appraiser, you’re generally aware of the person’s qualifications and whether they will complete your project with professionalism, solid ethics, and judgment; however, when it comes to free online services, you have no idea who is behind the values and either way, they will never compare to the work of a physical, on-site appraiser.

Marie Dinsmore, Certified Luxury Home Specialist | The Dinsmore Team | www.dinsmoreteam.com | 770-712-7789

Home Buyers: Avoid Counterfeit HVAC Refrigerants

Thursday, 31 July 2014 18:20
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297354Sadly enough, for every high-priced or in-demand product, there is often a market of counterfeit options that leave unsuspecting customers feeling angry and cheated.  While fake purses and watches tend to be a common—and even accepted—part of our society, additional counterfeit products are showing up on the market that fail to be harmless knock-offs.

Over the last few years, we’ve seen the cost of R-22 Freon skyrocket, which has left in its wake a trail of counterfeit and alternative refrigerants capable of damaging your HVAC system.  Therefore, if you find yourself in a position where you’re in need of refrigerant replacement, it’s important to understand the difference.

GENUINE REFRIGERANTS: These have not only been laboratory tested, but they are also approved by the EPA and HVAC manufacturers for use in their equipment.

ALTERNATIVE REFRIGERANTS: While these are approved by the EPA, they are not approved by the manufacturers for use in their equipment.  Although using these refrigerants is completely legal, it can void your manufacturer’s warranty.

COUNTERFEIT REFRIGERANTS: These are 100% illegal to use or sell, which obviously means they have not been approved by either the EPA or equipment manufacturers.  Generally comprised of some form of genuine refrigerant and a concoction of additives, these “cocktails” can be toxic and/or explosive, and generally require specialized hazmat methods for cleanup.

With this in mind, it’s important for home buyers to consider having all HVAC systems checked by a trusted HVAC specialist instead of a standard home inspector.  While general inspections are obviously necessary before purchasing a home, HVAC experts can spot alternative or counterfeit refrigerants, in addition to other potential issues which may require correction before closing.

If you need assistance and would like the referral of a great company, please contact me for more information.

Marie Dinsmore | The Dinsmore Team | www.dinsmoreteam.com | 770-712-7789

Buyers: Navigate a Multiple Offer Situation

Monday, 07 July 2014 21:39
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Desperate couple doing their accountsThere’s nothing like the feeling you get when, after touring what seems like—or might actually be—dozens of houses, you finally find the one.  The minute you enter, you can see your life playing out within its walls and try as you might, you cannot squelch the array of possible paint colors floating through your head.  It has to be yours.  You’re certain it will be…

…until you discover that nine other bidders are waiting in line.

How did that happen?  You’re angry and anxious, especially since you know that you’re attempting to buy in a seller’s market.  After the housing collapse of several years ago, it might seem strange to see buyers without the upper hand, but with less inventory currently on the market, it’s not unusual for sellers to receive upwards of 15-20 offers on a home.

Therefore, if you find yourself in this type of situation, whether you think you stand a chance or not, it’s always a good idea to write an offer anyway.  To help you along, here are a few tips to put you in the best possible position:

1.) DON’T UNDERESTIMATE EXPERIENCE—You wouldn’t go to court with an inexperienced, novice attorney, so why would you bet your financial livelihood on an inexperienced real estate agent?  When it comes to navigating a multiple offer situation, hiring the services of a seasoned Realtor—who is not only familiar with the process, but has a track record of successful closings—is one of the most important steps you can take.

2.) GET PREAPPROVAL—Generally speaking, each offer will undoubtedly be accompanied by a prequalification letter from a lender; however, you can appear to be the strongest buyer by entering negotiations with a loan preapproval letter.

3.) PUT YOUR BEST OFFER FORWARD—Instead of expecting negotiation, write your best offer and make it attractive.  In an effort to determine pricing, a solid Realtor will be able to give you a comparative market analysis, which is important since many sellers intentionally set low prices in an effort to generate multiple offers.  Just because you’re paying above their asking price, doesn’t necessarily mean you’re paying more than the market value.

4.) UNCOVER WHAT’S IMPORTANT—All sellers have certain wants that will help land you in their good graces.  Whether it’s a fast closing or a longer than normal escrow period, ask your Realtor to find out what those hot buttons are and work hard to make them a reality.

5.) DON’T GET HUNG UP ON CONTINGENCIES—While it’s essential to get a home inspection before you close on a property, there’s nothing wrong with tightening the time period a bit.  When it comes to contingencies, you have the power to speed things along, so if your loan is solid, don’t be afraid to waive the loan approval contingency.

In the end, multiple offer situations can be challenging, especially if you’ve found yourself on the losing end of a similar circumstance in the past.  To make yourself the best possible candidate, straighten your affairs and hire a practiced Realtor who can walk you through the steps.

To learn more or to see how I can help you, please feel free to contact me.  I’d love to hear from you.

Marie Dinsmore | The Dinsmore Team | www.dinsmoreteam.com | 770-712-7789