Comments for Home Property

Comment on What factors determine a home’s value when it is appraised? by LTD

LTD — Thu, 11 Mar 2010 12:37:59 +0000

YES…the condition of the home plays a HUGE role…
"Comps" (comparables) are done on SOLD properties in the area within the last 12 months..(6 months for some lenders)…
and will GREATLY affect what your home will appraise for….you cannot go on "listed" prices..because you can list a property for anything you want…it’s what it SELLS for that is the "market value" of a home and/or property.
Since newer homes in your area could NOT be used as "comps" (they are in NO way comparable to your property..comparables have to be of like size, age, sq.footage, lot size, and within a certain number of miles from the "subject" property (this would be what your property is called for appraisal purposes)…so since the other homes are newer, and on less acreage, they CANNOT be used as comps for appraisal value…
If some homes (that are comparable to yours) sold recently for less than what they would have when your appraisal was done 5 years ago (and especially if there have been a number of foreclosures in your area…they will bring appraised values DOWN)…then, yes, the home can and would appraise for less….
The home is also 5 years older than it was…and being sold "as is" also means to the appraiser that the cost of repairs is too much for the owner….meaning, it’s got some problems….
References :
I am a licensed real estate broker in NC and worked in my father’s appraisal business for serveral years…

Comment on Pros and Cons of paying off Mortgage versus buying Vacation property? by mom

mom — Thu, 11 Mar 2010 12:25:59 +0000

The time is right to buy any home. It is a buyers market right now. Although paying any mortgage off feels good psychologically it is not always the smartest move. With interest rates at historic lows the money you would use to pay off either mortgage could be put to better use. Consider putting down 20% on your vacation home, locking in a low 30 year rate and maintaining two mortgages. Depending on your current mortgage rate, you may want to refinance your existing mortgage to a lower rate. The interest on both mortgages will be tax deductible if you itemize. Keep the remainder of the cash in some sort of investment. If you are risk averse consider Money Market savings or C.D.'s Talk to a fee only financial planner that can give you unbiased advice. You can Google Fee only planners to find one in your area. They charge around $1500 to do a financial plan for you but should not try to sell you on any specific financial products.
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Comment on How should I do if vendor accepts the offer from other agent even I offer full asking price? by WelshLad

WelshLad — Thu, 11 Mar 2010 12:12:59 +0000

There's nothing you can do, the seller can either accept who they like, nothing was signed, it was just an offer.
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Comment on What factors determine a home’s value when it is appraised? by Matthew L

Matthew L — Thu, 11 Mar 2010 12:05:59 +0000

There are a lot of factors that go into an appraisal, but the biggest is the value of comparable homes in the area. When real estate agents list a home for sale and when appraisers put a value on a property, they look at comparable sales in the area. If other homes in the area have been selling for less, that will hurt the appraised value of a home. An excessive number of homes on the market in your area can hurt the value as well.

Other things like age of home, square footage of home, upgrades to the property, etc. also play a large role in a home’s valuation, but ultimately it comes down to the individual appraiser’s expert judgment. You could have 10 different appraisers come through a home and all 10 of them would come up with different values, and it is not uncommon for different appraisals to differ by tens of thousands of dollars.
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Comment on How should I do if vendor accepts the offer from other agent even I offer full asking price? by Sarah

Sarah — Thu, 11 Mar 2010 12:02:59 +0000

Unless you had the house under contract, you really have no recourse against the seller for accepting another offer. There are lots of terms besides price that are important in an offer. Maybe the other buyer offered cash, ie waived the financing contingency. This is often super desirable to sellers because it's much less likely that a contract will fall through as many do due to financing. You could ask the seller to accept your offer as a back-up. That way, if something happens and the other buyer is unable to close the sale, you have the house under contract. Good Luck!
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Comment on Pros and Cons of paying off Mortgage versus buying Vacation property? by Maggie G

Maggie G — Thu, 11 Mar 2010 12:00:59 +0000

A lot would depend on your overall financial picture. How old are you? What is you net worth? Do you have 3-6 months of living expenses in an easily accessible account? Do you have a retirement nestegg? Is your job stable?

A vacation home is pure indulgence. How often would you use it? One or two weeks a year? Or would it be close enough that you would use it frequently? Would you be satisfied going to the same place year after year for vacation? Lots of thing to consider.

If it were me. I’d pay off the house and stash the rest. If I wanted to go on vacation, I’d rent a place once or twice a year.
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Comment on Pros and Cons of paying off Mortgage versus buying Vacation property? by golferwhoworks

golferwhoworks — Thu, 11 Mar 2010 11:54:59 +0000

pay off the home you live in. You may want this vacation home BUT how often would you go? that could be huge in this. If I were going 2-4 times a year I would not buy it. If I were going every week end and every vacation then I would. I love to go to Fla and golf with my friends when I can but I would not buy a house or condo down there as I can only make it 4 or 5 times most years and last year just 1 time Once you pay this home off even a job loss will not be so bad if you save the rest
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Comment on How should I do if vendor accepts the offer from other agent even I offer full asking price? by hanora

hanora — Thu, 11 Mar 2010 11:39:59 +0000

You should look for another house. The Vendor can sell his house to whomever he pleases for whatever he pleases. It doesn't matter who saw it first or the amount of the offer. Your agent has no recourse either, every agent who has been in the business for a while has lost a sale to another. The only exception to this would be if the vendor turned down your offer because of your colour or religion or something like that. But that is very hard to prove.
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Comment on Home value and property taxes? by acermill

acermill — Thu, 11 Mar 2010 11:35:59 +0000

Your Mom is blaming the lender. SHE signed the documents because she wanted to take 'equity' out of the house. Now she is paying the price for her silly move. If the house had increased to $520K in value, she would STILL have to make the mortgage payment, would she not ? Meanwhile, the falling value of the property isn't going to reduce your propertyt taxes. If the municipality reduces the value of your home, then they must do the same for everyone else. Guess what happens then ? Yup, the rate charged per thousand of valuation simply goes up.
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Comment on i live in the bay area and am saving up for apartment units. how long will prices continue to fall? by youradvisor13

youradvisor13 — Thu, 11 Mar 2010 11:32:59 +0000

If your objective is to get into the income property market, maybe you should think about single family residences as rentals to start out with. Apartment buildings are not as prone to the fluctuations of the market as SFRs. You may have a long wait for prices on these to fall to the level you can afford.

Also, interest rates are higher and loan to value ratios the lenders will give you are lower, so you will need more cash to get into these types of investments.

The value in the market right now will tend to be in SFRs and condos/townhomes, depending on where you are looking. If you would like more info about how to make prudent investments in income property, contact me at my website, below.
References :
CA RE Broker http://yourhomeinsantacruz.com