Real estate Appraisal

What is a Appraisal?
An appraisal is an objective supported opinion of value of an adequately described piece of property made by an appraiser who has sufficient knowledge, training and experience to accurately estimate its value.
In this detailed and time consuming report, appraisers use comparable sales together with information about the property being appraised, its neighborhood and community along with the local and national economy, to support the appraised value.

Look Objectively not Subjectively.
The most important thing you can do when previewing is to look at the house as if empty: four walls, floors and a roof.
Don't let the current owners' furniture and decor influence you.

Important Tip!
If you are buying a house with the owner carrying the paper (loan), it is well worth the cost to hire an appraiser to make sure you don't pay more than it is worth.
For your protection many real estate agents will write in a purchase contract: this contract is contingent upon the property appraising for the sales price.

How is Value Established?
The value of a house is based upon recent sales of the similar neighboring homes in the market as well as rentals and listing data.
Ideally, appraisers want to use sales of properties of the same size, age, room count, condition and with similar amenities and external influences. This rarely happens though, so adjustments have to be made, based on what people will pay extra for.
Examples: extra square footage, bedrooms, fireplace, upgrading, parking facilities, swimming pool, lot size, location and so on. To help get a better picture, this information is entered on a form, a value for differences is established and comparisons are made to the subject property.
A minimum of three verified closed sales with photos are required to establish a value.

Houses Appraise for More When:
- Well maintained inside and out.
- Located in a good school district.
- Additions are done with the proper building permits.
- Additions conform with and fit well into the existing house.
- Properties throughout the neighborhood are well maintained.
- Not over improved or the largest house on the block.
- Style of the house conforms with those in the neighborhood.
- Zoning changes are not expected or there is not a mixed use.

Remember: Location, location, location.
You can change everything about a house except it's location.

What is Poor Location?
- Located on a feeder street.
- Under an airport flight path.
- In or near a gang territory.
- Center of night life activities.
- In a rundown block or neighborhood.
- Next to a school or school yard playground.
- Next to apartments or commercial property.
- In close proximity to a freeway, expressway or railroad.
- Next to a gas station, near a municipal garbage or toxic waste dump.
- Odors from factories, farms and processing plants are routinely noticed.
- The city is affected by the closing of a major employer.

Think about Selling - When You are Buying.
Location is a big factor in a home's appraised value. This is most notably felt at the time you sell or refinance. What seems like a bargain when you buy might turn into a real headache when you try to sell.
Drive around the neighborhood and note any adverse conditions.
You may think you can live with something adverse for the price, but when it's time to sell you might find buyers won't.

Important Tip!
Adding onto your house = Always obtain a building permit.
A 600 square foot addition built without a permit is given no value on an appraisal. When it is time to sell or refinance, the frustrations of the building permit process will be worth it.
Always save copies of the final permit sign offs and keep with your house papers.

Buying a House with an Addition?
Verify that it was built with a permit prior to closing the sale.
Don't just accept the sellers word. Get copies of the permits before final sign off.
Should you want to refinance or sell at a later date, and the appraiser cannot verify the addition being permitted, no value should be given.
The result: no new loan or worse . . . no sale.

Tip!
A one bedroom house or condominium doesn't appreciate as well and is harder to sell.

Work with An Agent
An advantage of working with a real estate agent is that they can provide you with sales information of similar properties to better guide you on how much to offer.
Your agent can provide recent sales "comps" for similar homes in the neighborhood.
Finding the list prices is also important. Comparing the list prices with the sale prices tells you exactly what percentage of the list price sellers are getting.
To find out what prices homes are selling for and to get a comprehensive report about the neighborhood, try Zillow which covers most communities across the United States. It's free and fairly accurate.
A local real estate agent typically will be more accurate what a home is likely to sell for in a specfic neighborhood location.

Fizber.com

You can tell a lot about a neighborhood by driving through it. Manicured lawns and well-kept homes indicate pride of ownership. Junk cars parked on overgrown lawns and overturned mattresses at the curb are signs of decay. However, if you rely on these indications alone, you could face a rude awakening when you move in.

Not only will meeting the neighbors give you a good idea of whether you will be compatible, but neighbors will disclose material facts that a seller might conveniently forget.

When Gary and Stephen found their dream home, they were ecstatic. It had everything they wanted, location, space, vintage, updates and a quaint yard. The price was right, too. Shortly after signing the contract, the two men drove over to the vacant home to meet the neighbors on both sides. The neighbors to the west told them the basement floods on a regular basis and seemed perturbed that the sump pump drained water into their yard. The seller's disclosures did not mention a wet basement.

The neighbors to the east were blatantly hostile. They pointed to the rose bushes that appeared to be growing on the buyer's property and said they had planted them. Although a fence existed between the two homes, the neighbors on the east said the boundaries were in dispute. They also said, "We smoke like chimneys and plan to sit out on our front porch every night smoking," adding with a smirk, "And there's nothing you can do about it."

It was clear that the neighbors on both sides of this home had a bone to pick with the existing seller, but Gary and Stephen did not believe they should be the recipient of that ongoing battle. The neighbors' reaction was enough to cause Gary and Stephen to buy a different home in another neighborhood.

In Florida's Treasure Coast, buyers for Palm Beach oceanfront properties are some of the wealthiest people in the world. Ever since the 1920s, when the Vanderbilts and Biltmores built palatial winter estates on the sunny beaches of South Florida, northern snowbirds have flocked southward to Florida.

"I'm working with several foreign buyers right now," said Deborah Magraw, a Palm Beach, Fla. agent who is currently representing buyers from Germany, Canada and Spain. "One buyer is looking for Palm Beach foreclosures priced between a $1.5 million and $2.5 million."

Magraw, who sells bank-owned properties in the upscale communities of Wellington and West Palm Beach, Fla., said the trend of expensive homes falling into foreclosure has accelerated the past year, and she estimates that their are 80 high-end Palm Beach properties that are in foreclosure.
Consider Veronica Hearst, the widow of Randolph Hearst and stepmother of 1970s kidnap victim Patty Hearst, whose 52-room oceanfront mansion in Palm Beach, Fla. just recently went up for auction and sold back to the foreclosing lender for $22 million.

The Hearst foreclosure is an extreme example showing that high-end foreclosures are a growing trend.

"It's going to be nasty," warned McCabe. "The subprime was only the tip of the iceberg."

Sourse: Fizber.com

A POPULAR schoolteacher has stunned friends and family by leaving over £1 million to charity in her will.
Martha Calvert - who taught Sir Fred Goodwin - passed away in December last year aged 96, and her recently published estate has revealed the true extent of her wealth.

Miss Calvert, an only daughter, and brought up in Renfrew, was an outgoing and admired figure in the Paisley community. Included in her legacy was her family home valued at £245,000, and cash, shares and investments totalling over £900,000. And although the philanthropic OAP lived a fairly frugal lifestyle - including never owning a television - her bequest reveals extensive gifts to charities, family and friends.

The three charities and organisations that received over a million in donations between them were the ex-Servicemen's nursing home Erskine Hospital in Bishopton, the Accord Hospice in Paisley and Glasgow University. Close friends have spoken of their shock at the extent of Miss Calvert's savings.

Shipping Executive Capt. Robert Logan, 63, a family friend, said: "Martha was a really good friend of my late mother, and had actually been a bridesmaid at her wedding.

"She was a very private, but a very interesting person to know.

"Right up until her last couple of months Martha's mental prowess and agility was second to none. I think it might have to do with all those crosswords she loved doing."

But he insisted that the pensioner was not flashy and showed no signs of her secret fortune.

He said: "She led a very simple life, and the only outward sign of her wealth was when she treated herself to a yearly holiday.
"I was extremely surprised to find out she had left as much as £1 million in her will.

"I knew she liked to study the stock market, but it looks like she knew more about it than she let on."

Capt Logan also revealed Miss Calvert never even owned a television set throughout her long life preferring instead to either read or listen to the radio to receive her news.

Miss Calvert's portfolio contained substantial shareholdings in blue chip companies RBS, Marks and Spencer, Cadbury Schweppes and the pharmaceutical conglomerate, GlaxoSmithKline. Up until her death last year, the retired school teacher was a lively, sociable pensioner who regularly attended her local church, was a keen crossword enthusiast and who loved to tend to her beloved garden.

Source: Fizber.com

Started in 1995 by Craig Newmark, Craigslist.com was initially created to help people find affordable housing in San Francisco.

Craigslist.org is now the most popular local classifieds website for more than 550 cities in over 50 countries worldwide - community moderated, and largely free. The site gets more than 12 billion page views per month and more than 40 million people use Craigslist each month.

Whether you are a seller interested in selling a home or a real estate agent with a large inventory of properties to sell - if you aren't using Craigslist, you are missing a valuable opportunity to drive hoards of traffic to your ad. Agents can capitalize on this traffic by posting free ads and answering ads seeking homes. It truly is a real estate agents dream marketing tool.

Most users can start advertising on Craigslist free, although there are charges for certain services in certain locations. The real estate section of Craigslist is divided into sections to direct traffic to specific areas including rooms & shares, apartments/houses for rent, housing swap, office & commercial, parking & storage, real estate for sale, sublets & temporary and vacation rentals.

As you can see using Craigslist is a very easy and affordable way to reach new customers. This is only the beginning of what homeowners and agents can do to promote properties on Craigslist.

Sourse: Fizber.com