Appraisals cost between $400 to $700 in our area.  Most of the time your REALTOR’S® market analysis will provide you with much of the same information as an appraisal.

When an agent comes over to talk to you about selling your home, they will most likely, have a market analysis of the current market conditions in your neighborhood and the nearby surrounding areas.   They will compare what homes, similar to yours, listed for and sold for in your area.  An appraiser will potentially use the same information, but will go into more depth about each property.  

So, how do you decide whether or not to have an appraisal done prior to listing your home?

If you live in a typical suburban neighborhood where the homes are similar in style and square footage, you probably don’t need to have the home appraised prior to listing your home.  The information on your REALTOR’S® market analysis should be current and give you a very good idea of the market value of your home.  If you are still not sure, maybe you should talk to a couple of different agents and see that they are all in about the same price range, that should give you a good number for your home’s value.

My advice to a seller would be that you should have a professional appraisal done prior to listing your home if you have a VERY unique property.  Maybe something that is on the historical register or something that was built exclusively for you by an architect and there is not another similar home in the area.   If you fit into one of these categories, I would strongly suggest pre-appraising your home.

If you do decide to have your home appraised prior to listing, hear me when I say that the appraised value is one person’s opinion.  If you hire 3 appraisers, you will probably get 3 different values.   Just because one person’s opinion of value is one number, the market value might be a different story.   What someone is willing to pay for the house is the market value and what your home is ultimately worth.  Don’t let yourself get hung up on what an appraiser says your home is worth.  If it takes time for your home to sell, other homes may come on the market and go to closing which will affect the value of your home.

The other thing that is important for you, a seller with appraisal in hand,  to know is the appraisal you have is for your own knowledge.   If a purchaser is placing financing on your home, the purchaser and the purchaser’s lender will have their own appraisal. 

The bank will most likely use an appraisal from an appraiser that is on the bank’s approved appraiser list.   They want to make sure that the buyer is not paying too much and that they are not lending too much money for a property.

Ultimately it is up to you, if it you believe your home needs to be appraised before listing, you can do that.  Just make sure you listen to your professional REALTOR® to tell you how much your home will most likely sell for.

First time home buyer credit

First off  let me say that I am the queen of procrastination.  I am not getting on to you, but I know human nature and I am here to tell you, time is running out.  I can’t tell you how many research papers I did the night before they were due in school.   I made my believe I did my best work “under pressure”.  

Well, the same for you if you are a first time home buyer and you would like to take advantage of the potential $8000 credit, time is a wasting.  You need to take action and take it now!!  You have, at this point, waited until the last minute.   You have 80 days from today to qualify for your tax credit .  Today is “the night before your project is due”. 

You say, “what do you mean? I have until December 1st to buy my home?”  Hear me loud and clear, YOU HAVE UNTIL DECEMBER 1ST TO CLOSE AND OWN YOUR HOME, NOT WRITE YOUR OFFER!!!!  There is a big difference.  Closing and owning the home and having an accepted offer on a home are two different things.  Hear me one more time, you must close and own the home to qualify for the credit.

Okay, so what does that mean, what’s the big deal you say?  That means you need to find an agent, get qualified for a mortgage and find a home by the end of November.  If the average closing takes 30 to 60 days, that means you only have 20 days to find your home!! 

This means that you can search for the home you want to make an offer on, negotiate your contract and get to closing by November 30th to beat the clock for December 1st!!

So let’s look at some of the details involved in getting you to closing by November 30th;

•  Have all of your finances in order to hand over to your loan officer to get your loan done in time
• Finding a seller that can move and close by the deadline
• Making sure all inspection items can be finalized by the deadline

• Competing with other buyers who have procrastinated who will take up time slots to close at the last minute

Here is the most important thing I would like to say to anyone who is now trying to take advantage of the tax credit, DO NOT SCHEDULE YOUR CLOSING ANY LATER THAN NOVEMBER 15TH.  LET ME SAY THAT ONE MORE TIME,  DO NOT SCHEDULE YOUR CLOSING ANY LATER THAN NOVEMBER 15TH IF YOU ARE TRYING TO TAKE ADVANTAGE OF THE TAX CREDIT!!

Why?  Because there are so many details involved with your loan and what and underwriter wants in a file these days it may delay your closing.  You may need a week for a seller to make a last minute mandatory underwriter repair and you will need the time, with a major holiday in the middle of your closing, to make it by the deadline.  The underwriter may ask for documentation from you for your loan package, there are many things that can go haywire at the last minute and you need a time cushion to get to closing on time.   Just think how many other people are going to try to close at the last minute.  The banks and title lawyers are going to be swamped trying to get everything done by the deadline.

You still have time but you will need to act now.  Call your real estate agent and loan officer to get started right away.  Remember, it is the proverbial “night before your project is due”.